Centralized Crypto Exchanges: Custody, Trading, and Exchange Features
Summary
The guide introduces the centralized exchange model using OKX as an example. A company operates the venue, holds customer assets in custodial wallets, applies identity checks, and provides access to spot and derivatives markets. It contrasts this setup with decentralized exchanges, noting that centralized platforms may offer simpler onboarding, deeper liquidity, and faster execution, while custody means users rely on the exchange to safeguard assets.
It outlines common trading steps and features, including order types, listings, staking products, APIs, and a separate non-custodial wallet for Web3 applications. Security topics include proof of reserves, cold storage, two-factor authentication, and withdrawal controls. The document provides fee, asset, and trading-pair figures and compares several exchanges, but does not explain how those figures were verified or give a rigorous method for comparing execution quality, solvency, or safety. Its descriptions and ratings are broad, partly promotional claims; exchange features and regulatory status may vary by region and change over time.
Key ideas
- A centralized exchange operates custody, identity checks, and trading infrastructure on behalf of users.
- Centralized venues can provide convenient access, liquidity, and trading tools, while introducing dependence on the custodian.
- Order selection and checking trade details are basic parts of using an exchange.
- Proof of reserves, cold storage, two-factor authentication, and withdrawal controls are among the described security measures.
- Exchange comparisons require current, independently verified data on fees, liquidity, security, and regional availability.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.