CeFi (Centralized Finance)
CeFi
Centralized financial services built around crypto assets.
CeFi is crypto finance run by companies. They hold assets for users, manage compliance, and offer features like trading, staking, and lending. It is convenient and often cheaper for fiat moves, but it adds counterparty risk. Use strong account security and withdraw to your own wallet when you can.
Frequently asked questions
What are the pros of CeFi?
Simple onboarding, customer support, and fiat ramps. It can be faster for some tasks than using self custody and on chain apps.What are the risks?
Platform failure, poor risk controls, and asset freezes. Use reputable firms and diversify across providers.How can I reduce risk?
Withdraw to self custody when not actively trading, enable 2FA, and review proof of reserves where available.