Centralized cryptocurrency exchanges are online platforms used to buy and sell cryptocurrencies. They are the most common means that investors use to buy and sell cryptocurrency holdings.
In the term “centralized cryptocurrency exchange,” the idea of centralization refers to the use of a middle man or third party to help conduct transactions. Centralized exchanges are trading platforms that function like traditional brokerage or stock markets.
In essence, centralized exchanges often act as the first point of contact for newcomers that are interested in trading cryptocurrency. Many individuals seek to have an interface that can connect them to both cryptocurrency trading and the real economy, and centralized exchanges provide that.
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