What is a crypto exchange?

What Is a Crypto Exchange?

A crypto exchange is a platform where you can buy, sell, or trade cryptocurrency. You deposit fiat (e.g. INR) or crypto, place orders, and the exchange matches you with other users or with its own order book. Centralized exchanges (CEXs) are run by companies and hold your funds in custody. Decentralized exchanges (DEXs) are smart contracts; you connect a wallet and trade without handing over custody.

Centralized vs Decentralized

CEXs are easier for beginners: sign up, complete KYC, deposit INR, and trade. They offer liquidity and support. The downside is you trust the platform with your coins. DEXs let you keep custody but require a wallet and understanding of gas and slippage. Many users combine both.

Choosing an Exchange

Look for regulated platforms where you are (e.g. in India, use one that complies with local rules). Check fees, supported coins, and security (2FA, cold storage). Never share your password or 2FA codes. For large holdings, consider moving crypto to your own wallet.