What is a crypto exchange?

A cryptocurrency exchange is an online platform that allows users to buy, sell, and trade cryptocurrencies. These exchanges act as intermediaries, matching buyers and sellers and facilitating the transfer of digital assets. There are centralized exchanges (CEX) such as Coinbase and Binance, where users deposit their funds into the exchange’s wallets, and decentralized exchanges (DEX) like Uniswap and PancakeSwap, where users trade directly from their wallets, without a centralized authority. Crypto exchanges typically offer a variety of cryptocurrencies and trading pairs, as well as advanced trading tools, security measures, and liquidity options.