What Is a Cryptocurrency Exchange?
Cryptocurrency exchanges are online platforms or intermediaries used to trade digital assets. In comparison with traditional exchanges, which are centralised entities, cryptocurrency exchanges can either be a centralised exchange (CEX) or a decentralised exchange (DEX).
How Does a Cryptocurrency Exchange Work?
After a user opens an account with a cryptocurrency exchange, they can buy or sell digital assets like Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), or Dogecoin (DOGE), for example. Depending on the exchange, these cryptocurrencies can be exchanged using fiat currencies like the US dollar or another form of cryptocurrency (altcoins).
Some exchanges offer a variety of products and services, ranging from financial services to payment solutions, while others simply facilitate the trading of digital assets. However, the more established an exchange, the more likely it is to offer a variety of digital assets and services like decentralised finance (DeFi), non-fungible token (NFT) trading, and access to decentralised apps (dapps).
Learn more about the Crypto.com Exchange here.
