Centralized Crypto Exchange: What It Is and How It Works

When you buy Bitcoin or Ethereum through an app like centralized crypto exchange, a platform run by a company that holds your funds and manages trades on your behalf. Also known as CEX, it’s the most common way people enter crypto—simple, fast, and familiar, like a bank for digital money. Unlike decentralized platforms, you don’t control your keys here. The exchange does. That’s why some call it the easiest path in—and the riskiest if you pick the wrong one.

Think of it like a grocery store: you walk in, pick what you want, pay at the register, and leave with your items. The store handles the inventory, the cash, and the security. But if the store gets robbed—or worse, if it’s fake—you lose everything. That’s why BlueBit exchange, a platform built for technical traders using MetaTrader 5 can feel safe for some, while NUT MONEY, a platform with no withdrawals, no license, and a trail of lost funds is a trap. The same goes for Superp crypto exchange, a decentralized platform offering crazy leverage on BNB Chain, which isn’t centralized at all. Confusing? It should be. Not every platform calling itself an exchange is one—and not every one that looks official is legit.

Most people use centralized exchanges because they’re easy. You link your bank, buy crypto in minutes, and trade without learning how wallets or private keys work. But that convenience comes at a cost: you’re trusting someone else with your money. And if that someone turns out to be a scammer, or if the exchange gets hacked, or if it suddenly shuts down—like Digiassetindo, an unregulated Indonesian platform with zero transparency—you’ve got little to no recourse. That’s why the best users don’t just pick any exchange. They check for licenses, audit reports, and real user activity. They avoid platforms with fake volume, ghost tokens, or no withdrawal history.

What you’ll find below isn’t a list of the "best" exchanges. It’s a collection of real stories—some about platforms that work, others about ones that stole from people. You’ll read about exchanges that cater to traders, ones that are outright scams, and a few that barely function. You’ll learn what to look for before you deposit a single dollar. And you’ll see how easy it is to get fooled—because the biggest scams don’t hide. They just look like the real thing.