Managing a portfolio of digital assets is operationally complex and investors demand a comprehensive set of capabilities such as custody, trading, investment products, advisory and efficient fiat on-off ramps. In this regard, many CEXs integrate these solutions into a single platform, which greatly reduces the technical complexity of owning and managing tokens native to different blockchains. This value proposition is clear when considering the alternative: where investors manage multiple wallets and directly participate in multiple liquidity pools across different blockchains. While some investors will have the skills to do so, the steep learning curve suggests that CEXs will remain the preferred platform for many.
Centralized exchanges (CEX) will lead the recovery of cryptocurrencies with the right regulations
