Cryptocurrency Q&A
How do centralized crypto exchanges work?
How do centralized crypto exchanges work?
Silvia
Thu Oct 24 2024
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6
answers
1555
I'm wondering about the operation of centralized crypto exchanges. How do they actually work in terms of processing transactions and managing digital assets?
6 answers
EclipseChaser
Sat Oct 26 2024
In a centralized exchange (CEX) setup, the operator of the exchange holds the private keys associated with your cryptocurrency.
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Daniele
Sat Oct 26 2024
Consequently, from a technical perspective, you do not possess full ownership of your funds when they are held on the exchange.
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Maria
Fri Oct 25 2024
The exchange serves as an intermediary, allowing you to engage in trading activities with your coins.
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Maria
Fri Oct 25 2024
You have the option to withdraw your coins to an external wallet, but until you do so, the exchange retains control of your private keys.
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Stefano
Fri Oct 25 2024
This arrangement is a fundamental aspect of how centralized exchanges operate.
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