CEX / Centralized Exchange vs Custodial
Quick comparison to help you distinguish these two crypto terms.
CEX / Centralized Exchange
beginner
market_structure
A centralized exchange is a company-operated cryptocurrency trading platform that holds your funds, manages order matching, and requires identity verification to use.
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beginner
fundamentals
A custodial service is one where a third party, such as an exchange, holds and controls your cryptocurrency private keys on your behalf rather than you controlling them directly.
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