Centralized exchanges (CEX) are platforms that facilitate the buying, selling, and trading of cryptocurrencies. They act as intermediaries, allowing users to trade digital assets like Bitcoin and Ethereum in a secure environment. Users create accounts and deposit their funds, which the exchange manages, providing liquidity and ensuring transactions are processed efficiently. These exchanges typically offer user-friendly interfaces and various trading features, making them accessible for beginners. However, since they hold users' funds, they are also targets for cyberattacks. Popular examples of centralized exchanges include Coinbase, Binance, and Kraken.