Centralized Exchange: What It Is, How It Works, and What You Need to Know

When you buy crypto like Bitcoin or Ethereum, you’re probably using a centralized exchange, a company-run platform that holds your crypto and handles trades between users. Also known as CEX, it’s the most common way beginners get into crypto because it works like a stock app—easy to use, fast, and familiar. Unlike decentralized exchanges that let you trade directly from your wallet, centralized exchanges act as middlemen. They store your coins for you, manage your password, and decide what coins you can trade. That convenience comes with a cost: you don’t fully control your assets.

That’s why Bitstamp, a long-standing, regulated exchange known for strong compliance and deep liquidity in assets like XRP, stands out. It’s not flashy, but it’s trusted by European traders who care more about safety than speed. On the other end, Bybit, a platform that uses geofencing to block users from restricted regions like the U.S. offers high leverage and fast trading—but warns users that bypassing its location checks can get your account frozen. These differences matter. A centralized exchange isn’t just a place to trade; it’s a gatekeeper for your money. Some are licensed and audited. Others operate in legal gray zones. Some let you earn interest on your crypto. Others lock your funds without warning.

The posts below show you what’s real and what’s not. You’ll find honest reviews of exchanges like Bitstamp and Bybit, breakdowns of how they track users, and warnings about fake platforms pretending to be legit. You’ll also see how scams use the name of real exchanges to trick people—like the BFX token scam that pretends to be connected to Bitfinex. Whether you’re looking for a safe place to trade, trying to avoid a ban, or just wondering why your favorite coin isn’t listed, these articles cut through the noise. No fluff. Just what you need to know before you click "Buy."