What is cryptocurrency exchange, A cryptocurrency exchange is a digital marketplace where users can buy, sell, and trade cryptocurrencies like Bitcoin, Ethereum, and altcoins. Exchanges facilitate transactions using trading pairs such as BTC/USD or ETH/USDT. There are two main types: centralized exchanges (CEXs) that hold user funds, and decentralized exchanges (DEXs) that operate via smart contracts. Key features include wallet integration, KYC/AML compliance, order books, and trading engines. Crypto exchanges are vital for liquidity and price discovery, supporting both retail and institutional traders in the global digital asset ecosystem.