The True Face of CEX: Challenges Hidden Behind Convenience

When you start trading cryptocurrencies, almost everyone ends up at CEX (Centralized Exchange). However, what lies behind its convenience is not widely known.

**What is CEX**

CEX, simply put, is "the brokerage firm of the crypto world." Centralized exchanges like Gate.io manage your digital assets and private keys collectively, holding all trading records. The platform operator controls all transaction processing.

**Ease of Use and Convenience as Major Strengths**

The reason CEX has become mainstream is clear. It allows even beginners to trade easily, offers high liquidity, and enables smooth conversion from fiat currency to cryptocurrencies. It also features advanced functions like futures trading and margin trading. The support system is comprehensive, making it reliable when you encounter problems.

**Major Risks of Centralized Management**

However, there are issues that should not be overlooked in exchange for convenience. Concentrating all assets in one place creates vulnerabilities to cyberattacks and system failures. If the platform itself is attacked, users' assets are also at risk.

**Regulatory Compliance Making Procedures More Complex**

Additionally, to comply with regulations in various countries, identity verification procedures have become more complicated. Requiring personal information registration can also compromise privacy.

CEX is indeed an excellent entry point for cryptocurrency trading. However, understanding its structure and limitations is essential for making wise choices.