Centralized exchanges are platforms where many of the world’s most popular cryptocurrencies can be purchased with fiat currency, traded and even staked for rewards.

Each platform has different fees that it charges its customers to trade, with many exchanges moving towards zero fees as competition in the space heats up.

These service providers are governed by a centralized authority — as opposed to a decentralized exchange — and requires submitting personal information to set up accounts to transact and use certain functionalities.

This is necessary to prevent fraudulent activites like money laundering and theft to take place and helps to promote security on the exchanges themselves.