Crypto Exchange

A crypto exchange, or more specifically a Centralized Crypto Exchange (CEX), is a platform that allows users to transfer FIAT funds, buy, sell, or transfer cryptocurrencies.

It also works in the other direction, enabling users to send cryptocurrencies to be converted into FIAT currency (like Dollars, Euros, etc.) and then transferred to their accounts.

These platforms sometimes offer more complex transactions such as staking or taking leveraged positions.

The most popular exchanges include Binance (though it has a controversial reputation), Coinbase, and perhaps the most reputable, Kraken.

In most countries, operating such a platform requires a license, as the operator can move (and thus potentially misappropriate) clients' funds.

There are also Decentralized Crypto Exchanges, which allow the direct exchange of cryptos without the need for an intermediary.

A CEX is one solution for converting fiat money into crypto. While it's possible to keep your cryptos on these platforms, it's not always advised. Doing so means entrusting your assets to them, much like a traditional bank, and this is precisely what many seek to avoid with cryptocurrencies – remember the mantra, "no your keys, not your cryptos."