Exchange
A platform for buying, selling, and trading cryptocurrencies. It can be centralized (CEX) or decentralized (DEX).
How it works
A crypto exchange brings buyers and sellers together. Orders collect in an order book with bids on one side and asks on the other, and a trade occurs when they meet. The venue takes a fee from turnover.
Exchanges come in two types, and the difference is fundamental. On a centralised venue the company holds the funds and trading runs on its internal ledger — fast and convenient, but the coins are not yours until you withdraw them. On a decentralised one a smart contract settles trades and the coins stay in your wallet.
The phrase “not your keys, not your coins” came from experience rather than ideology. Mt. Gox in 2014, QuadrigaCX in 2019, FTX in 2022 — each time users saw a balance on screen that no longer existed in fact.
How to compare venues
- A licence in your jurisdictionIn the EU that means MiCA registration. A licence does not guarantee your funds are safe but it gives a defined process if something goes wrong.
- Order book depth for your pairA venue's large total turnover means nothing if your pair has a thin book: your execution price will be worse than the one displayed.
- Deposit and withdrawal termsThe fee for withdrawing euros and the available networks for stablecoins affect the outcome more than a difference in trading fees.
- Proof of reservesRegular publication with independent verification beats a one-off report, though it is not a full audit of liabilities.
What to watch for
Separating by purpose removes most of the risk: an exchange is a place to trade, a wallet is a place to store. Keeping the amount you are trading with this week on a venue is reasonable; keeping an entire portfolio there for years means taking on a risk nobody pays you for.
Our exchange ranking compares venues by turnover, licences and available products. We do not compare fees and say so plainly: we have no comparable data on them, and we will not invent it.