Centralized Finance

Last updated:

Centralized Finance Overview

What do we mean by Centralized Finance?

Centralized exchanges are digital marketplaces where cryptocurrency trading takes place. These exchanges offer beginner investors a familiar, friendly way of trading and investing in cryptocurrencies.

Centralized Finance, often abbreviated as CeFi, refers to traditional financial systems and services where transactions are facilitated and governed by central institutions, like banks or centralized exchanges.

Unlike decentralized finance (DeFi) which operates on decentralized networks or blockchain technology, CeFi systems rely on intermediaries to execute and manage transactions. A notable example within the cryptocurrency domain is centralized exchanges, which act as gatekeepers for buying, selling, and trading digital assets, as opposed to decentralized exchanges which operate without a central authority.

With the rise of Web3, VCs (venture capitalists) are increasingly investing in centralized platforms and services that bridge the gap between the traditional financial world and the emerging decentralized ecosystem.

Popular Apps on Centralized Finance

0 Apps total

Frequently asked questions