centralized exchanges

Centralized exchanges are platforms that facilitate the buying, selling, and trading of cryptocurrencies. They act as intermediaries, where users create accounts to trade digital assets like Bitcoin and Ethereum. These exchanges manage user funds, making transactions easier and quicker, but they also hold private keys, meaning they control access to the assets. This can increase convenience but also poses security risks; if the exchange is hacked, users may lose their funds. Examples of centralized exchanges include Coinbase, Binance, and Kraken, which offer user-friendly interfaces and features like market analysis and customer support.