CEX (Centralized Exchange)
Definition
A cryptocurrency exchange operated by a company that acts as an intermediary between buyers and sellers, holding users' funds in its custody. Centralized exchanges like Coinbase and Binance typically offer higher liquidity, faster trades, and user-friendly interfaces compared to decentralized alternatives. However, users must trust the exchange with their assets and usually complete identity verification to comply with regulations.
Related terms
- DEX (Decentralized Exchange)A cryptocurrency exchange that operates without a central authority, allowing users to trade directly with one another through smart contracts. Unlike centralized exchanges, DEXs do not hold users' funds and typically do not require identity verification. Popular examples include Uniswap and SushiSwap, which use liquidity pools instead of traditional order books.
- Wallet (Cryptocurrency)A digital tool that allows you to store, send, and receive cryptocurrencies by managing your private and public keys. Wallets can be software-based (apps or browser extensions), hardware devices, or even paper printouts. They do not actually store your crypto but rather store the keys that prove your ownership of assets on the blockchain.
- CryptocurrencyA digital or virtual form of currency that uses cryptography for security and operates on decentralized networks, typically based on blockchain technology. Unlike traditional currencies issued by governments, cryptocurrencies are not controlled by any central authority. They can be used for peer-to-peer transactions, investment, and as a medium of exchange on various platforms.
- Private KeyA secret alphanumeric code that gives you full control over your cryptocurrency holdings and the ability to authorize transactions. Your private key must be kept secure and never shared, because anyone who obtains it can access and spend your funds. It works in conjunction with a public key to enable secure, encrypted transactions on the blockchain.
By the numbers
What the data says
- July 2025
14%
US adults who own cryptocurrency
Source: Gallup - 2022 survey
$192,900
Median net worth of US families
The mean is about $1.06 million, pulled up by the wealthiest households
Source: Federal Reserve, Survey of Consumer Finances - 2025 guidance
10x income
Retirement savings target by age 67
Milestones: 1x by 30, 3x by 40, 6x by 50, 8x by 60
Source: Fidelity Investments, retirement savings guidelines
National figures from the sources shown, as of the period on each card. They are context, not a forecast or advice for your situation.
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