Centralized Exchanges in Traded Value

Research Question: Centralized Exchanges (CEX)
Name
Institutional Affiliation
Research Question: Centralized Exchanges (CEX)
Unlike decentralized exchanges (DEX), centralized exchanges (CEX) are owned and managed by a single entity or organization, and the responsibility of verifying and facilitating trades is not distributed (Powell & Curry, 2022). The top five CEXs in traded value for September 2022 include Binance, OkX, Bybit, FTX, and AAX (“Top global centralized exchanges”, n.d). CEXs provide a platform for users to seamlessly get started with trading crypto by directly converting FIAT currencies such as USD, EUR, and AUD into crypto. For instance, from the list of the five CEXs, Binance allows users to trade crypto with other FIAT currencies such as AUD, BRL, EUR, and other 8 others. OkX has USD and KRW while Bybit and AAX allow users to exchange crypto with USD only (“Top global centralized exchanges”, n.d). There are a number of ways one can buy crypto using both FIAT and stablecoins. For FIAT, most exchanges allow credit card and wire transfer while stablecoins such as USDT and BUSD are also accepted means of buying crypto.
Buying crypto using credit card on Binance and most exchanges requires users to log in to their accounts and click “Buy Crypto”, then select “Credit/Debit Card.” Next, users will be prompted to choose their preferred FIAT currency then input the amount of purchase. After entering ...