What is a CEX?
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A CEX, short for centralized exchange, is a type of cryptocurrency exchange.
Crypto exchanges are platforms that facilitate buying and trading of crypto, token staking and swaps as well as trading services.
CEX’s are typically compliant with crypto regulation in all jurisdictions they operate in starting with rigorous KYC requirements.
Once users are verified they can use tools like margin and leverage trading, limit orders, lending and other trading functions.
Many CEX’s allow users to purchase crypto with traditional currencies like the USD, Euro and many more.
The Backpack Exchange is a regulated CEX that is optimized for beginner users alongside a suite of tools for advanced traders.
CEX’s also play a role as a secure marketplace where users can buy, sell and trade internally with other exchange users.
The CEX reserves provide liquidity so that transactions are immediate.
Most CEX's charge a transaction fee for enabling instant transactions.