A crypto exchange is an online marketplace where cryptocurrencies are acquired and swapped.

These exchanges typically fall into two main types: centralized and decentralized.
Centralized exchanges (CEXs) operate like traditional financial institutions, offering intuitive tools and assistance to users.
However, they involve third-party custodianship, which makes them vulnerable to security breaches and fund losses.
Conversely, decentralized exchanges (DEXs) offer a trustless, peer-to-peer trading environment. Using blockchain technology and smart contracts, DEXs enhance security but may challenge beginners due to technical interfaces.

Choosing a crypto exchange depends on user needs and priorities. Knowledge of both types assists in effective trading.