What is Cryptocurrency Exchange ?
                     What is 
cryptocurrency 
exchange?
What is a Crypto Exchange?
• A crypto exchange is a platform on which you can buy and sell cryptocurrency. You can use 
exchanges to trade one crypto for another converting Bitcoin to Litecoin, for example or to buy 
crypto using regular currency, like the U.S. Dollar. Exchanges reflect current market prices of the 
cryptocurrencies they offer. 
Source: time.com
Conversion
• You can also convert cryptocurrencies back into the U.S. Dollar or another currency on an 
exchange, to leave as cash within your account (if you want to trade back into crypto later) or 
withdraw to your regular bank account.
Source: time.com
What to Look for in 
an Exchange?
Accessibility
• Your location may prevent you from buying and selling crypto on certain exchanges due to state 
or national regulations. Some countries, like China, have banned citizens from accessing crypto 
exchanges at all. 
Source: time.com
Security
• Cryptocurrency isn’t backed by any central institution, and your cryptocurrency holdings aren’t 
protected the same way as money in the bank or traditional investments. 
• Some exchanges, like Coinbase and Gemini, keep any balances in U.S. Dollars you hold with 
them in FDIC-insured bank accounts. 
Source: time.com
Fees
• Fees are another thing to consider, but don’t necessarily let a high fee structure turn you off an 
exchange. 
• Exchange fees may be a fixed price, but are often a percentage of your trade. Some exchanges, 
like Cash App, charge fluctuating fees based on price volatility. 
Source: time.com
Liquidity
• If you plan to buy, sell, or trade your crypto, the exchange you choose should have enough 
trade volume to ensure your holdings are relatively liquid, meaning you can sell them when you 
want. Again, this can be an instance where size matters. 
Source: time.com
Coins offered
• Not every exchange offers each of the thousands of cryptocurrencies that exist. 
• If you’re interested in a popular coin like Bitcoin or Ethereum, you’ll probably find it on any 
given exchange you’re considering. But newer altcoins, coins with a very small market cap, or 
meme coins may require a bit more shopping around. 
Source: time.com
Educational tools
• A big priority for crypto beginners when it comes to choosing an exchange is the opportunity to 
learn more about different coins, digital assets, and blockchain technology. 
Source: time.com
Storage
• Storage can be a divisive topic among cryptocurrency enthusiasts. Many believe in the “not 
your keys, not your coins,” adage, or the belief that you should hold the public and private keys 
associated with your crypto holdings yourself, rather than keeping them within your account for 
the exchange to custody.
Source: time.com