Exchange

Exchange is a digital marketplace where individuals can trade cryptocurrencies for other assets, such as fiat currencies or alternative cryptocurrencies. It functions similarly to a stock exchange, providing liquidity and a venue for price discovery through the interaction of buyers and sellers. Exchanges can be centralized, where a company operates the platform, or decentralized, where transactions occur directly between users. They typically offer various trading pairs, enabling users to convert one asset into another. Security, fees, and ease of use are critical factors when choosing an exchange, as these elements impact the trading experience and the safety of funds.