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Crypto exchange
A crypto exchange is a company or service where people buy, sell and trade crypto, often for dollars or other government money. Most hold customers' coins for them and record who owns what in their own books.
What it means for you. Coins left on an exchange are held by the company, and FINRA notes that crypto trading platforms are not registered with the SEC and lack the protections of stock exchanges or brokers. The FTC notes crypto in accounts is not government-insured like an FDIC bank deposit. Check whether you can withdraw to your own wallet, and what that costs.
Sources: FINRA: Crypto Assets, FTC: What To Know About Cryptocurrency and Scams, IMF: Regulating the Crypto Ecosystem (Fintech Note 2022/007), FSOC: Report on Digital Asset Financial Stability Risks and Regulation 2022 · checked 4 October 2026
CEX
A CEX (centralized exchange) is a company that lets you buy, sell and trade crypto, often with ordinary money. While your coins sit in your exchange account, the company holds them for you; they are only in your control once you withdraw them to your own wallet.
What it means for you. Coins left on an exchange depend on that company: it can freeze withdrawals, be hacked, or fail, and a regulator warns there may be no recourse if crypto is stolen. Before depositing, check whether you can withdraw that coin to your own wallet, on which network, and what the withdrawal fee is.
Sources: ethereum.org: Get ETH (centralized and decentralized exchanges), CFTC: Understand the Risks of Virtual Currency Trading, Investor.gov (SEC): Exercise Caution with Crypto Asset Securities · checked 4 October 2026