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What Is a Crypto Exchange?

Modified on Sat, 19 Apr at 1:41 AM

Want to buy, sell, or trade crypto? Then you’ll need a crypto exchange. It’s the main gateway between traditional money and digital assets — and it comes in several forms.

In this article, we explain what a crypto exchange is, how it works, and the difference between centralized and decentralized platforms.

What is a crypto exchange?

A crypto exchange is an online platform that allows users to buy, sell, and swap cryptocurrencies. You can use it to convert fiat (like euros or dollars) into crypto — and vice versa.

Exchanges can also offer wallets, charts, staking, and trading tools — depending on the platform.

Types of crypto exchanges

  • Centralized Exchange (CEX): Operated by a company that manages user accounts and funds (e.g. Coinbase, Binance, Floin)
  • Decentralized Exchange (DEX): Peer-to-peer platform running on smart contracts (e.g. Uniswap, PancakeSwap)
  • Hybrid: Combines features of both for improved control and convenience

CEX vs DEX – Key Differences

  • Ease of use: CEXs are beginner-friendly, DEXs require wallet knowledge
  • Custody: CEXs hold your assets, DEXs give you full control
  • KYC/Regulation: CEXs require identity checks, DEXs usually don’t
  • Speed & liquidity: CEXs often offer better performance and deeper markets

How to choose the right exchange

  • Check security features and regulatory compliance
  • Make sure it supports the coins and tokens you want
  • Look at trading fees, fiat options, and support

Floin Insight

Floin is a VASP (Virtual Asset Service Provider)  based in Liechtenstein — with a strong focus on compliance, transparency, and user experience. Whether you're new to crypto or looking for a secure trading environment, Floin offers a smooth and trustworthy platform for your crypto journey.

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