What is CEX? Advantages and disadvantages of centralized exchange (CEX) compared to decentralized exchange (DEX)? Let’s learn more about investment opportunities with the CEX exchange token here!
What is CEX?
CEX (Centralized Exchange) is a centralized exchange managed by a 3rd party, a company or an organization that owns the exchange. When deposited into your account on the CEX exchange, all your crypto assets are managed and controlled by that company or organization.
In a word, CEX exchange can be considered an intermediary specializing in providing reliable coin/token exchange trading services for users in Crypto.
Some popular CEX exchanges today include Binance, Huobi, Kucoin, …
Advantages and disadvantages of CEX
Advantages
Good interface and user experience with many utilities and features, suitable for new entrants.
The processing speed of CEX is faster than that of DEX.
High liquidity.
Fast transaction speed.
Disadvantages
Must trust 3rd party.
Must transfer money to the exchange wallet, and the exchange will control 100% of your crypto assets.
Top 5 reputable centralized exchange (CEX)
1. Binance
The largest cryptocurrency exchange in the world, Binance, has over 120 million unique users and has been allowed to conduct business in many different countries.
Founded by Changpeng Zhao (CZ) in 2017, Binance Exchange is a centralized virtual currency exchange. Within three months of its launch, Binance outperformed all rivals to become a significant virtual currency exchange globally, and it has held that position ever since.
2. Bybit
Bybit is a Peer to Peer (P2P) exchange founded by Ben Zhou in March 2018.
Bybit exchange is one of the most active cryptocurrency exchanges i. The exchange offers trading services such as Spot Trading, Margin Trading, Future Trading, P2P Trading, etc. Despite being relatively new, the exchange has developed into one of the electronic exchanges with more than 5 million members registered (per May 2022 figures).
3. OKX
One of the biggest cryptocurrency exchanges available is called OKX. According to CoinMarketCap statistics, OKX ranks 2nd in terms of 24-hour trading volume, just behind the giant Binance.
The cryptocurrency exchange OKEx changed its name to OKX in January 2022, dropping the “E” from “Exchange” and adding the phrase “more than just an exchange.” The CEO of OKX stated that his company will “maintain the core principles of cryptocurrency, namely decentralization and autonomy,” but added that “we are moving beyond the traditional centralized exchange model to bring customers the best crypto experience.”
The purpose of this rebranding partly reflects OKX’s ambition to dominate hot markets such as DeFi, NFT, Web 3.0, and Metaverse.
4. Coinbase
Coinbase is a cryptocurrency exchange; many blockchain projects want their tokens listed on this platform. San Francisco, California, USA, serves as the exchange’s administrative hub. It facilitates trading in several cryptocurrencies, including Tezos, Litecoin, Ethereum, Bitcoin Cash, and Ethereum Classic.
Since its establishment, Coinbase has supported fiat currencies in about 32 nations, enabling the storage and exchange of bitcoins in 190 different nations.
In 2012, Brian Armstrong and Fred Ehrsam established Coinbase. By trading volume, it is now the biggest cryptocurrency exchange in the country.
It boasts strong liquidity, one of the most well-known and established cryptocurrency exchanges worldwide.
5. MEXC
A cryptocurrency exchange called MEXC Exchange (MXC Exchange) was founded in Singapore in 2018. MEXC provides users with a diverse and full-featured trading platform, including features such as cryptocurrency trading, margin trading, spot trading, futures trading and other financial services. One of the exchanges with the most coins listed on the market for virtual money is this one.
MXC, which has formal operating licenses in four nations, including Canada, Switzerland, the United States, and Australia, is the forerunner to the MEXC exchange. MEXC has joined the top 10 list of the world’s top cryptocurrency exchanges after only 4 years of existence.
Please find more here.
Overview of CEX tokens
What is CEX token?
Exchange tokens (also known as CEX tokens) are coins/tokens issued by CEX exchanges for the purpose of serving in that exchange’s ecosystem.
Purpose of using CEX token
Each exchange has a different ecosystem, so the needs & purposes of each exchange token are different. However, they usually have some of the following characteristics:
Reduced transaction fees: When users own CEX tokens, the exchange will reduce transaction fees when performing transactions. Each exchange will have a different fee reduction policy. Some typical exchange tokens are Binance Coin (BNB), KuCoin Share (KCS), and Huobi Token (HT).
Upgrade to a VIP account: When you become a VIP account, you will receive special offers from that exchange. Popular exchanges with this form are Binance, Okex.
Participating in profits from the exchange: This form is almost the same as dividing shares in the traditional market. The exchange will pay users who buy & hold exchange tokens part of the exchange’s profits. Examples include KuCoin, BitMax,…
Participating in IEO: IEO investment form has blossomed since the beginning of 2019 after 2 very successful projects on Binance: BitTorrent (BTT) & Fetch (FET). Exchange tokens are often used directly to buy tokens in an IEO project. If you want to participate in IEO, please read the terms carefully. Exchanges with high-profit IEOs like Binance, Huobi, etc.
Exchange tokens are used on the exchange’s blockchain: Exchanges are now not only a place to exchange tokens but also an ecosystem. Some exchanges are developing their own blockchains. With these exchanges, the exchange tokens are also used as a coin in that blockchain.
How to invest in CEX exchange coin?
Depending on the token design in each exchange, here are ways to make money from exchange tokens:
Join IEO on exchanges, and use exchange tokens to buy IEO investments.
Invest in exchange tokens first; when IEO prices increase, take profit.
Invest according to fundamental analysis & technical analysis.
Here are the exchanges with exchange tokens you may be interested in: BNB, HT, FTT, OKB, BTMX, BTM, KCS, WRX, OCE, GT, BGG, BIX, LEO, MXC, HOO,…
Summary
Many exchanges have their own coins, but not every exchange coin is for a good profit. You need to research carefully before making an investment decision.
