What Is a Centralized Exchange (CEX)?

What Is a Centralized Exchange (CEX)?

If you're starting your crypto journey in Italy, one of the first terms you'll come across is CEX, short for centralized exchange. 

A CEX is a digital platform where you can buy, sell, and store cryptocurrencies. What makes it “centralized” is that there’s a company managing the platform, holding custody of user funds, verifying identities, and helping facilitate trades between users.

In short: you’re trading crypto through a trusted intermediary, which, for many people, makes the process safer and easier to understand.

How Does a CEX Work?

Trading crypto on a CEX might feel like using an online bank or investment app. These platforms are designed to remove complexity.

CEXs operate through a centralized order book system. They match buyers and sellers internally, record transactions, and usually offer wallet services where your crypto is stored. Since the platform manages custody, they’re responsible for keeping your funds safe.

How To Use a CEX

To use a CEX, you typically:

• Sign up and verify your identity (KYC process)

• Deposit euros or crypto

• Choose what you want to trade (like )

• Execute the trade

• Store your crypto on the or withdraw to a private wallet

It’s this ease and accessibility that make CEXs a popular entry point into crypto.

What Are the Benefits of Using a CEX?

Why have so many people opted in favor of centralized exchanges over decentralized exchanges? 

Nowhere to break it down:

• User-friendly Interfaces: Others are designed to take you through a step-by-step process.

• High liquidity: You obtain more favorable prices and quicker order pair-up.

• Fiat compatibility: Easily buy crypto with euros or other currencies.

• Customer support: In case anything goes amiss, a team will assist you.

• Rule and accountability: CEXs adhere to laws to safeguard the users.

Having these guardrails can make all the difference for Italians new to the space.

CEX vs. DEX: What’s the Difference?

CEXs and DEXs both let you trade crypto, but how they operate is quite different.

Here’s a side-by-side comparison to help you decide which might suit your needs:

• Custody: CEXs hold your funds. DEXs allow self-custody.

• Verification: CEXs require ID, while DEXs usually don’t.

• Support: CEXs offer help desks and guides, while DEXs don’t.

• Fiat On-Ramps: You can use euros on a CEX, but not on most DEXs.

• Ease of Use: CEXs are great for beginners, while DEXs require more technical comfort.

If you’re focused on simplicity, regulation, and support, a CEX is likely your best bet.

Are CEXs Safe To Use?

Yes, if you choose the right platform and follow smart practices. Robust security measures can include:

• Two-factor authentication ()

• Cold storage for most funds

• Regulatory oversight

• Encryption and fraud detection systems

However, even with these precautions, you have a part to play in your protection. Always have effective passwords, do not use phishing websites, and do not share your login details.

What Are Some Popular CEX Platforms?

When it comes to selecting a centralized exchange (CEX) to buy crypto, multiple reliable services exist with great safety, convenience, and a varied choice of coins. Here’s a look at some of the most renowned CEX platforms, such as Gemini.

Gemini

is a licensed and safe platform offering a user-friendly, streamlined experience. It’s a great choice for anyone new to cryptocurrency, or more knowledgeable traders who are looking to experience a safe and regulated platform.

It’s a full-reserve, secure CEX available in Italy. With our commitment to user protection, regulatory compliance, and transparency, Gemini is a trusted choice for building your crypto portfolio.

Coinbase

Coinbase is known worldwide thanks to its simplicity of use and great educational materials, so it is popular among beginners. It also accommodates a variety of cryptocurrencies and has an easy time changing fiat into cryptocurrencies.

Kraken

Kraken boasts more advanced services, such as margin trading and futures, making a more detailed interface for experienced crypto traders. It’s a safe option, and it allows the trading of various cryptos with strong compliance features.

Bitstamp

Bitstamp is among the oldest cryptocurrency exchange platforms and has been characterized by a simple, trustworthy process with great regulatory ease and is, therefore, a good option among European traders.

Binance

Some users in Italy have also been wary of Binance because of regulatory issues in some markets in Europe, even though the exchange holds the widest array of cryptocurrencies and extensive trading facilities.

Who Should Use a CEX?

If you’re based in Italy and ask yourself, “Is a CEX right for me?” — here’s a guide.

A CEX may be ideal if:

• You’re new to crypto and want an easy onboarding experience

• You need customer support in case of issues

• You prefer a regulated, legally compliant environment

• You want to trade crypto with fiat (euros)

However, a CEX might not be for you if:

• You want full anonymity

• You prefer non-custodial wallets

• You’re heavily invested in DeFi protocols

It’s not about which is better overall, but rather which choice is best for your needs and preferences. 

Can I Use a CEX in Italy?

Yes, absolutely. Regulated CEXs are fully accessible to Italian residents. Just keep in mind:

• You may need to report crypto gains to Agenzia delle Entrate (Italian Revenue Agency).

• Regulation is evolving, and the is introducing clearer rules across the EU.

• Reputable CEXs like Gemini can provide transaction histories and help you stay compliant.

In a world where crypto laws are still catching up, having a regulated partner matters.

Wrapping Up

Centralized marketplaces simplify the process of any investor starting to trade crypto with security, particularly in Italy. They provide the structure, support, and ease of use that many newer users want, but not at the cost of security.

You may trade more or less regularly, or you may be making a long-term portfolio. In any case, a CEX provides you with tools, trust, and transparency.

Ready to explore crypto the secure way? and take control of your financial future.

FAQs

What is the role of a centralized exchange in crypto?

It facilitates trades between users, manages custody of assets, and ensures regulatory compliance.

Do CEXs hold your crypto?

Yes. When you use a CEX, your funds are held in a wallet managed by the exchange—unless you withdraw them.

Can I buy crypto with euros on a CEX?

Yes. Most CEXs allow deposits and purchases in EUR.

What’s the safest centralized exchange?

Safety depends on the platform’s security features. Gemini is considered one of the safest due to its full-reserve status and strong regulatory oversight.