Centralized exchanges are third-party trading platforms that function like traditional brokerage or stock markets, acting on behalf of their users for trading crypto-currencies and assets. CEXs maintain customers’ or end users’ crypto funds, balances and possess custody of their private keys.

Some centralized exchanges have shut down owing to death of their promoters or promoters fleeing resulting in loss of users’ crypto assets. Kraken, Gemini and Robinhood are some well-known Centralized Exchanges.