An exchange is a platform where cryptocurrencies can be bought, sold, or traded.
A cryptocurrency exchange is a digital marketplace where traders can buy and sell cryptocurrencies using different fiat currencies or altcoins. Cryptocurrency exchanges are online platforms that act as an intermediary between buyers and sellers of the cryptocurrency. They provide a range of services including cryptocurrency to cryptocurrency transactions, fiat to cryptocurrency transactions, and vice versa. Some of the most well-known exchanges include Coinbase, Binance, and Kraken. There are also decentralized exchanges (DEXs) like Uniswap and Sushiswap that allow for direct peer-to-peer cryptocurrency transactions without the need for an intermediary.
Exchanges can be classified into 2 main categories: