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
Wash Trading
A form of market manipulation where a trader simultaneously buys and sells the same asset to create artificial trading volume. Wash trading is used to make a project appear more active than it really is, and is illegal in traditional finance.
Airdrop
A distribution of free tokens or coins to wallet holders, often used as a marketing strategy or to reward early adopters of a protocol.
Paper Wallet
A physical document containing a cryptocurrency public address and private key, used as a form of cold storage.
Ledger
A record of all transactions. In blockchain, the distributed ledger is maintained across all nodes in the network.
APR
Annual Percentage Rate. The simple annual interest rate earned or paid on an investment, without accounting for compounding.