CeFi
Centralized Finance. Financial services that operate through centralized intermediaries such as exchanges or lending platforms, as opposed to decentralized protocols.
Why It Matters
CeFi (Centralized Finance) refers to platforms that offer financial services managed by centralized entities. This matters as it contrasts with the decentralized finance (DeFi) model, allowing users to choose the type of services based on their comfort with risk and control.
Example
For instance, a centralized exchange like Coinbase allows users to trade cryptocurrencies easily, but they don’t control their private keys. Users trust the platform to manage their assets securely.
Beginner Context
For beginners, understanding CeFi helps in navigating the cryptocurrency landscape. It provides insight into how centralized entities can simplify access to crypto while raising issues of control and trust.
Mike Starr
Founder, CryptoWizardTools · M.S. Organizational Management
Last reviewed: August 2026
Related Terms
Cross Chain
Refers to the ability of two or more separate blockchains to communicate and exchange data or assets with each other. Cross-chain bridges enable tokens to move between networks like Ethereum and Solana.
Protocol
The set of rules that define how data is transmitted and validated on a blockchain network.
Slippage
The difference between the expected price of a trade and the actual execution price, often caused by low liquidity or high volatility.
Seed Phrase
A series of 12 or 24 words generated by a cryptocurrency wallet that serves as a backup to restore access to the wallet. It must be kept secure and private.
Peer-to-Peer
A decentralized network where participants interact directly with each other without intermediaries.