Centralised exchanges (CEXs) play a vital role in the digital asset ecosystem, offering users a convenient platform to buy, sell, and trade various digital assets.

The most significant function of these exchanges, particularly for those embracing the decentralisation ethos, is that they serve as essential on and off-ramps, enabling users to convert traditional fiat currencies into digital assets and vice versa. This accessibility is crucial for widespread adoption as it provides a bridge between the traditional financial system and the decentralised world of digital assets.

However, centralised exchanges have expanded their services beyond simple trading, and now offer many features normally associated with traditional banks, such as lending, deposit accounts and credit cards. Interest accounts on these platforms attract users by providing a passive income stream, encouraging long-term investment strategies.

Despite their convenience, centralised exchanges do come with certain risks, such as potential security vulnerabilities and regulatory scrutiny. However, they remain a fundamental component of the digital asset landscape, offering a suite of financial services that cater to a diverse range of users, from traders seeking quick liquidity to long-term investors looking for additional income opportunities.

Nevertheless, by far the most serious security risk is the same as with any traditional bank : you have entrusted your funds to an intermediary that could at any time declare bankruptcy, prove to be fraudulent or incompetent, or indeed, by request of a malicious government, seize or freeze your assets. In order to protect their funds as much as possible from these risks, any serious user of digital assets will keep only minimal funds on a centralised exchange, and remove the majority to their own self custody wallet or wallets.

Please note that we currently, or in the past, have made extensive use of all the platforms mentioned here, and although we offer our opinions on their pros and cons, we advise that each person should do their own research to ascertain the suitability of each, for their own particular requirements.

Obviously we are very active and have considerable experience in the digital asset and decentralised finance arena. We come across new and interesting options all the time. Once we have tried it for ourselves, and at least performed limited testing on the product, we may publish it below for your consideration.

PLEASE NOTE :  all the information we include, anywhere on this site, should be considered as a limited review of the product or service in question, and not considered to be a recommendation as such. In addition, we do not include anywhere on this site, any product or service that we do not currently use ourselves.