How Cryptocurrency Exchanges Work

A cryptocurrency exchange is a platform where users buy, sell or swap digital assets. Centralized exchanges hold user funds and match orders in an order book. Decentralized exchanges let users trade directly from their own wallets using smart contracts.

Things to check before using one

• Whether it is licensed or permitted in your country.
• Fee schedule and withdrawal costs.
• Security practices and history.
• Whether you control your own keys.