What Is Crypto Exchange? Meaning & Example
Definition
A crypto exchange is a platform where you can buy, sell and trade cryptocurrencies. Centralized exchanges hold customer funds, while decentralized exchanges let users trade from their own wallets.
Related terms
A crypto wallet is software or hardware that stores the keys needed to access and move your crypto. The wallet does not hold coins itself; it holds the keys that control them.
LiquidityLiquidity describes how easily an asset can be bought or sold quickly without greatly moving its price. Highly liquid markets have many buyers and sellers and tight spreads.
DeFi (Decentralized Finance)DeFi refers to financial services such as lending, borrowing and trading built on blockchains using smart contracts. It aims to work without traditional intermediaries but carries technical and platform risks.
What is Crypto Exchange?
A crypto exchange is a platform where you can buy, sell and trade cryptocurrencies. Centralized exchanges hold customer funds, while decentralized exchanges let users trade from their own wallets.
Can you give an example of Crypto Exchange?
You might deposit dollars on an exchange, buy crypto, then withdraw it to your own wallet.