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What is CEX?

CEX (short for Centralized Cryptocurrency Exchanges) is a central exchange. An activity that acts as a middle ground between a buyer and a seller. They will provide services, monitor operations, and allow buyers and sellers to trade cryptocurrencies.

How does CEX work?

  • TRANSACTIONS: Allows for the exchange of fiat currency. At the same time, CEX will provide many preferential services such as storage, limit, leveraged trading, and lending-lending.
  • REGULATIONS: Exchanges will be required to obtain separate business licenses for each of their regions or countries. They will carry out KYC and AML procedures to ensure law enforcement, compliance with the law, and attention to the safety of each customer.
  • CONTROL: When participating in transactions, customers will be under the control of CEX.
  • TRANSACTIONS FEES: CEX earns revenue by charging a fee after each customer’s transaction. It fluctuates very low, about 0.1% -1.5%.

The Benefits of CEX

  1. MANY TRADING FEATURES: It will provide very user-friendly access to P2P, spot, margin, and futures trading.
  2. SECURITY: CEX will store customer information by storing private keys on their platform. Since companies are mainly organized in a decentralized manner, they are vulnerable to hackers. Currently, they apply 2FA and email-authentication protocols to provide maximum protection for customers.
  3. LIQUIDITY: Because of its decentralization, the CEX Exchange is easy to find, making the cryptocurrency more liquid.
  4. The CEX floor processing speed is faster than the DEX floor.
  5. Transaction is completed quickly.

CEX’s Disadvantages

  1. NO MANAGEMENT RIGHTS: If you want to edit or change something, you must go through the exchange process.
  2. TAXES: To avoid money laundering, all your information is submitted to the tax office.
  3. INSECURE: In the past, the well-known CEX-Exchange Mt. Gox was hacked and lost over 850,000 Bitcoins, making it less secure to this day.
  4. Requires a high level of trust in third parties.
  5. You are completely in control, and you must transfer money to the wallet.

Reputable Exchange

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Binance Trade: The Binance exchange is currently quite popular and leading in crypto. Because it is a large exchange, there will be a large number of assets. The volume is quite high, but it does not affect the price much. There is a lot of support for you, such as support in Vietnamese and the exchange that accounts for the percentage of total daily trading assets.

Huobi Exchange: Being at the top of the top exchanges in China, the trading volume is quite large, so it is chosen by many customers.

FTX: Although just born, the 24-hour trading volume is always in the top 5. Behind FTX is one of the Market Maker companies, a famous investor in Crypto and also the owner of Alameda Research is Sam Bankman Fried support.

Gate.io: It is also one of the oldest exchanges in China, established in 2013 under the leadership of CEO Lin Han.

Kucoin: The Kucoin exchange is also one of China’s exchanges. The exchange has low transaction costs to increase the user experience.

Overview of Coins on the CEX Exchange

What is the CEX Exchange coin?

CEX exchange tokens (CEX tokens) are coins produced by CEX to serve the ecosystem of that exchange.

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The Purpose of Using the CEX Exchange Coin

They usually have some of the following characteristics:

  • Reduced transaction fees: When users make a transaction, the transaction fee will be reduced, with a different fee for each floor. Binance Coin (BNB), KuCoin Share (KCS), Huobi Token (HT), and other well-known coins.
  • Upgrade to a VIP account: Having a VIP account entitles users to a variety of special offers from that floor. For example, Binance, Okex.
  • Participating in profits from the floor: It’s like dividing shares. Customers will be paid a part of the profit from the floor by the floor. Typically, there are KuCoin and BitMax.
  • Taking part in IEO: This type of project has been influential since 2019 with two projects: Bittorrent (BTT) and Fetch (FET). The coins are used directly to buy tokens.
  • Exchange coins are used in the exchange’s own blockchain: the exchange is like an ecosystem. Each exchange has its own blockchain. In private exchanges, the coins are also used for their own functions.

How to Invest in the CEX Exchange?

Some ways to profit from trading coins:

  • Take part in IEO and invest in IEO using exchange coins.
  • Invest in floor coins first, then wait for the price to rise before taking profits.
  • Make investments in the areas of fundamental analysis and technical analysis.

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