Crypto Exchange
An online marketplace where you buy, sell, and trade cryptocurrencies — a centralized "bank-like" middleman for crypto.
A crypto exchange connects buyers and sellers of digital assets. Most users’ first crypto experience is on a centralized exchange (CEX) like Binance or Coinbase, where the platform holds your funds and matches trades.
CEX vs DEX
A centralized exchange keeps a private ledger of everything you hold. A decentralized exchange (DEX) runs on smart contracts — trades happen directly between user wallets, and nobody can block you. Centralized exchanges are how most people buy their first coins; decentralized exchanges are the DeFi ideal.
Why it matters to decentralization
Exchanges concentrate large amounts of coins and influence. When the W3D Terminal measures capital decentralization, how much supply sits in exchange custody factors directly into the score.
Related terms
DEX, CeFi, DeFi, Wallet, Custody, Order Book