A cryptocurrency exchange (digital currency exchange) is a specialized trading platform where the buying, selling and exchange of digital currencies takes place. The platform acts as an intermediary between market participants: it accepts orders, matches the counter orders of buyers and sellers and records the final price of a trade. In essence, an exchange performs the same functions as classic stock or currency trading systems, but works with crypto assets.

What types of crypto exchanges exist

• Centralized (CEX) — operated by a company that holds users' funds and runs the trading engine.
• Decentralized (DEX) — trading happens directly between wallets via smart contracts, without a single custodial intermediary.

Exchanges offer various trading pairs, order types and market analysis tools. When choosing a platform, participants usually assess its reliability, liquidity, fee levels and approach to the security of asset storage. Since an exchange concentrates significant volumes of funds, account protection, two-factor authentication and the operator's reputation are of key importance to the user.