Level 1 — Understanding Crypto
What is a crypto exchange?
4 minute read
From money to crypto
Illustrative example · not live data
Deposit money
Buy on an exchange
Keep there or withdraw
A crypto exchange is a website or app where you buy, sell and trade cryptocurrencies — similar to an online stockbroker.
You deposit regular money (like pounds or dollars) by bank transfer or card, then use it to buy crypto. The exchange holds your coins in an account until you sell them or move them to your own wallet.
Well-known exchanges include Coinbase, Kraken and Binance. They differ in fees, the coins they offer, and how beginner-friendly they are.
Two things to know: exchanges charge fees on every trade, and if an exchange is hacked or goes bust, coins kept on it can be lost. That's why many people move larger amounts to their own wallet (covered in the next lesson).
Key points to remember
- An exchange is where you buy and sell crypto
- You deposit normal money, then trade it for coins
- Exchanges charge fees on trades
- Coins left on an exchange carry some risk