Overview#Centralized Exchange is a Centralized system of a Digital Currency Exchange online platform and most common way to trade Cryptocurrency.
Centralized Exchanges typically are a Service Provider for services that includes buying/selling
- Cryptocurrency with Fiat Currency (At least some Centralized Exchanges do)
- Cryptocurrency with a different Cryptocurrency.
Centralized Exchanges also typically are part of Know Your Customer compliance and Identity Document submission that one has to do while using Centralized Exchange. And this opens you to another vulnerability of identity theft or your Personally Identifiable Information getting leaked via Centralized Exchange.