Crypto exchanges are online platforms where you can buy, sell, and trade cryptocurrencies like Bitcoin, Ethereum, Solana, and others — similar to how stock exchanges work for stocks.
There are two main types of crypto exchanges: 1. Centralized Exchanges (CEXs):
These are run by companies that act as intermediaries to facilitate trades.
Examples:
- Binance
- Coinbase
- Bybit
- Kraken
- KuCoin
Key Features:
- Easy to use and beginner-friendly
- Offers fiat-to-crypto trading (e.g., USD to Bitcoin)
- High liquidity and fast transactions
- Require KYC (identity verification)
2. Decentralized Exchanges (DEXs):
These operate without a central authority, allowing peer-to-peer trading via smart contracts on a blockchain.
Examples:
- Uniswap (Ethereum)
- PancakeSwap (BNB Chain)
- dYdX
- SushiSwap
Key Features:
Higher risk of slippage and scams if you’re not careful
No need for KYC
Users control their own funds (non-custodial)
Typically used for DeFi tokens or altcoins