What Is a Crypto Exchange?
A cryptocurrency exchange is a venue—often a company or protocol—that matches buyers and sellers of digital assets. Rules, custody, and regulation vary widely by jurisdiction.
Centralized exchanges (CEX)
CEXs hold customer assets in custodial wallets, offer fiat on-ramps in some regions, and maintain order books. Users face counterparty risk if the platform fails or is hacked.
Decentralized exchanges (DEX)
DEXs on various blockchains let users trade via protocols and smart contracts or native exchange features. Users retain more custody responsibility and must understand slippage and issuer trust.
Summary
Evaluate licensing disclosures, insurance (if any), withdrawal policies, and security history. Never invest more than you can afford to lose.
References
Related reading
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