Exchange
An exchange is a platform where you buy, sell, and trade crypto. There are two kinds: centralized (CEX) — a company that keeps an order book, holds your fu
An exchange is a platform where you buy, sell, and trade crypto. There are two kinds: centralized (CEX) — a company that keeps an order book, holds your funds, and handles fiat — and decentralized (DEX) — smart contracts on a blockchain where you trade directly from your wallet.
Why it matters
Centralized exchanges are the main on-ramp from money to crypto (and where KYC applies), but they hold your coins and have been hacked. Decentralized exchanges offer permissionless trading with no custody — usually at the cost of liquidity and ease of fiat. Which one you use is largely a security and privacy decision.
Related terms
decentralized exchange ·
KYC · cryptocurrency