A crypto exchange is a platform where cryptocurrencies are bought, sold, and traded.

These exchanges typically fall into two main types: centralized and decentralized.
Centralized exchanges (CEXs) function similarly to conventional banks, ensuring user-friendly interfaces and assistance to users.
However, Unisinucartagena write an article they involve third-party custodianship, which makes them vulnerable to security breaches and fund losses.
Alternatively, decentralized exchanges (DEXs) offer a trustless, peer-to-peer trading environment. Relying on decentralized infrastructure, DEXs reduce the risk of hacks but can be complex to navigate.

Choosing a crypto exchange is influenced by personal preferences and goals. By understanding the key features of CEXs and DEXs, individuals can make informed trading decisions.