{"id":158682,"date":"2026-06-02T14:51:44","date_gmt":"2026-06-02T11:51:44","guid":{"rendered":"https:\/\/cryptonisation.pro\/en\/?p=158682"},"modified":"2026-06-03T23:03:49","modified_gmt":"2026-06-03T20:03:49","slug":"crypto-exchange","status":"publish","type":"post","link":"https:\/\/cryptonisation.pro\/en\/crypto-exchange\/","title":{"rendered":"What is a crypto exchange and how does it work?"},"content":{"rendered":"<p>In this article, you will find answers to the following questions: what is a crypto exchange, what types of exchanges exist and how they differ; how all types of cryptocurrency exchanges work; and how to choose a crypto exchange.<\/p>\n<div id=\"1\"><\/div>\n<h2>What are cryptocurrency exchanges?<\/h2>\n<p>Crypto exchanges are digital platforms that allow you to trade cryptocurrencies (that is, buy and sell them for fiat currency, as well as exchange one cryptocurrency for another).<\/p>\n<div id=\"2\"><\/div>\n<h2>Types of crypto exchanges<\/h2>\n<p>The main difference between exchanges is the level of control over users\u2019 funds and the degree of intermediation in transactions. That is why crypto exchanges are usually divided into three categories:<\/p>\n<ul>\n<li><span class=\"bold\">Centralized exchanges (CEX)<\/span> store users\u2019 funds in their own wallets, similar to banks. Users transfer control of their assets to them, and the exchanges provide the trading infrastructure. The most well-known examples are Binance, Coinbase, Bybit, and OKX;<\/li>\n<li><span class=\"bold\">Decentralized exchanges (DEX)<\/span> do not hold funds. Users connect their personal crypto wallets to them and trade directly via <span class=\"termin-desc\">\n    <span class=\"termin-desc-title\" data-open-termin-desc>smart contracts<\/span>\n    <span class=\"termin-desc-modal-backdrop\" data-close-termin-desc><\/span>\n    <span class=\"termin-desc-modal\">\n        <span class=\"termin-desc-modal-title\">\n            <span>Smart contract<\/span>\n            <svg data-close-termin-desc width=\"24\" height=\"24\" viewBox=\"0 0 24 24\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n                <rect width=\"1\" height=\"19\" rx=\"0.5\" transform=\"matrix(0.707107 -0.707107 -0.707107 -0.707107 18.3652 19.0708)\" fill=\"#B8BABE\"\/>\n                <rect width=\"1\" height=\"19\" rx=\"0.5\" transform=\"matrix(-0.707107 -0.707107 -0.707107 0.707107 19.0723 5.63574)\" fill=\"#B8BABE\"\/>\n            <\/svg>\n        <\/span>\n        <span class=\"termin-desc-modal-content\">a blockchain-based program that automatically enforces the terms of a transaction as specified in its code. When the specified conditions are met, the contract automatically triggers the necessary actions\u2014such as transferring cryptocurrency between parties\u2014without the need for intermediaries.<\/span>\n        <span class=\"termin-desc-modal-btn\" data-close-termin-desc >Close<\/span>\n    <\/span>\n<\/span>. Users\u2019 funds always remain under their personal control. The most well-known examples are Uniswap, Jupiter and PancakeSwap;<\/li>\n<li><span class=\"bold\">P2P platforms (Peer-to-Peer)<\/span> function as a bulletin board where cryptocurrency buyers and sellers set their own prices, payment methods, and other terms. In this case, the platform does not execute the transaction but merely acts as a guarantor through an <span class=\"termin-desc\">\n    <span class=\"termin-desc-title\" data-open-termin-desc>escrow account<\/span>\n    <span class=\"termin-desc-modal-backdrop\" data-close-termin-desc><\/span>\n    <span class=\"termin-desc-modal\">\n        <span class=\"termin-desc-modal-title\">\n            <span>Escrow<\/span>\n            <svg data-close-termin-desc width=\"24\" height=\"24\" viewBox=\"0 0 24 24\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n                <rect width=\"1\" height=\"19\" rx=\"0.5\" transform=\"matrix(0.707107 -0.707107 -0.707107 -0.707107 18.3652 19.0708)\" fill=\"#B8BABE\"\/>\n                <rect width=\"1\" height=\"19\" rx=\"0.5\" transform=\"matrix(-0.707107 -0.707107 -0.707107 0.707107 19.0723 5.63574)\" fill=\"#B8BABE\"\/>\n            <\/svg>\n        <\/span>\n        <span class=\"termin-desc-modal-content\">a mechanism whereby funds are temporarily held in a special account until the terms of the transaction are met, after which they are automatically transferred to the recipient.<\/span>\n        <span class=\"termin-desc-modal-btn\" data-close-termin-desc >Close<\/span>\n    <\/span>\n<\/span>. Most often, they are part of the functionality of CEX exchanges. For example, major P2P services are available on Binance, Bybit, and OKX exchanges.<\/li>\n<\/ul>\n<div id=\"3\"><\/div>\n<h2>How a crypto exchange works<\/h2>\n<p>Below, we\u2019ll break down how each type of exchange works.<\/p>\n<h3>How a centralized exchange (CEX) works<\/h3>\n<p>Most beginners start with a CEX. The exchange acts as an intermediary: <span class=\"bold\">it holds funds, matches buyers with sellers, and guarantees the execution of the trade.<\/span> The entire process from registration to the first purchase can be summed up in five steps:<\/p>\n<ol>\n<li><span class=\"bold\">Registration and verification.<\/span> The user creates an account on the exchange and goes through the <span class=\"termin-desc\">\n    <span class=\"termin-desc-title\" data-open-termin-desc>KYC<\/span>\n    <span class=\"termin-desc-modal-backdrop\" data-close-termin-desc><\/span>\n    <span class=\"termin-desc-modal\">\n        <span class=\"termin-desc-modal-title\">\n            <span>KYC (Know Your Customer)<\/span>\n            <svg data-close-termin-desc width=\"24\" height=\"24\" viewBox=\"0 0 24 24\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n                <rect width=\"1\" height=\"19\" rx=\"0.5\" transform=\"matrix(0.707107 -0.707107 -0.707107 -0.707107 18.3652 19.0708)\" fill=\"#B8BABE\"\/>\n                <rect width=\"1\" height=\"19\" rx=\"0.5\" transform=\"matrix(-0.707107 -0.707107 -0.707107 0.707107 19.0723 5.63574)\" fill=\"#B8BABE\"\/>\n            <\/svg>\n        <\/span>\n        <span class=\"termin-desc-modal-content\">the process of verifying a customer's identity on an exchange. To complete KYC, you must provide identification documents such as a passport, ID card, or driver's license.<\/span>\n        <span class=\"termin-desc-modal-btn\" data-close-termin-desc >Close<\/span>\n    <\/span>\n<\/span> verification process \u2014 uploading a photo of their passport or ID and taking a selfie. On most platforms, basic verification takes between 10 minutes and several hours, while advanced verification (to increase withdrawal limits) can take up to 48 hours (in my experience, basic verification has never taken more than 15 minutes, but I\u2019ve sometimes had to wait several days for advanced verification). Identity verification is mandatory on most CEX exchanges, although there are a few platforms where verification is optional (BingX, MEXC);<\/li>\n<li><span class=\"bold\">Depositing funds.<\/span> To start trading, you need to deposit money into the exchange. There are three ways to do this: bank card, bank transfer, or a cryptocurrency transfer from another wallet;<\/li>\n<li><span class=\"bold\">Placing an order.<\/span> The trader selects a trading pair, for example, BTC\/USDT (buying Bitcoin with the Tether stablecoin), and creates an order to buy or sell. The order enters the <span class=\"termin-desc\">\n    <span class=\"termin-desc-title\" data-open-termin-desc>order book<\/span>\n    <span class=\"termin-desc-modal-backdrop\" data-close-termin-desc><\/span>\n    <span class=\"termin-desc-modal\">\n        <span class=\"termin-desc-modal-title\">\n            <span>Order book<\/span>\n            <svg data-close-termin-desc width=\"24\" height=\"24\" viewBox=\"0 0 24 24\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n                <rect width=\"1\" height=\"19\" rx=\"0.5\" transform=\"matrix(0.707107 -0.707107 -0.707107 -0.707107 18.3652 19.0708)\" fill=\"#B8BABE\"\/>\n                <rect width=\"1\" height=\"19\" rx=\"0.5\" transform=\"matrix(-0.707107 -0.707107 -0.707107 0.707107 19.0723 5.63574)\" fill=\"#B8BABE\"\/>\n            <\/svg>\n        <\/span>\n        <span class=\"termin-desc-modal-content\">a table that displays all current limit orders from traders in real time.<\/span>\n        <span class=\"termin-desc-modal-btn\" data-close-termin-desc >Close<\/span>\n    <\/span>\n<\/span>, where all active buy and sell orders are stored;<\/li>\n<li><span class=\"bold\">Executing a trade. <\/span> The exchange matches the order with a counter order via a matching engine. On large CEXs like OKX or Bybit, this happens in milliseconds. For each executed trade, the exchange charges a commission \u2014 typically between 0.1% and 0.2% of the transaction amount<\/li>\n<li><span class=\"bold\">Storage or withdrawal.<\/span> After purchase, the cryptocurrency appears in the exchange account balance. The user can leave it on the exchange for further trading or withdraw it to a personal crypto wallet, gaining full control over the assets. Storing it on the exchange is more convenient for active trading, but withdrawing it to your own wallet is safer, as the security of your funds does not depend on the exchange\u2019s operational status or policies.<\/li>\n<\/ol>\n<h3>How a Decentralized Exchange (DEX) works<\/h3>\n<p>On a DEX, there is no registration, no verification, and no deposit. Here, the process looks completely different:<\/p>\n<ol>\n<li><span class=\"bold\">Connecting a wallet.<\/span> Instead of creating an account, the user connects their crypto wallet (e.g., MetaMask or Trust Wallet) to the exchange\u2019s website. In this case, the user\u2019s wallet is their \u201caccount\u201d \u2014 that is where their cryptocurrency is stored;<\/li>\n<li><span class=\"bold\">Swap.<\/span> The user selects which cryptocurrency they want to swap (e.g., ETH for USDC), specifies the amount, and confirms the swap. There is no order book here; instead, liquidity pools are used \u2014 shared \u201creserves\u201d of cryptocurrencies that are replenished by other users. The exchange rate is determined by the ratio of coins in the pool: for example, if there is less ETH and more USDC in the ETH\/USDC pool, the ETH rate increases. If both coins decrease proportionally, the rate remains unchanged. The swap fee is usually around 0.3%, plus the network fee (or gas fee);<\/li>\n<li><span class=\"bold\">Cryptocurrency in your wallet.<\/span> No \u201cwithdrawal\u201d is required. After the exchange, the cryptocurrency is immediately transferred to the user\u2019s wallet. This is a key difference from CEX: on a DEX, funds are never transferred to a third party.<\/li>\n<\/ol>\n<div class=\"alert-info\">DEX is an option for more advanced users, as it requires a deeper understanding of the <span class=\"termin-desc\">\n    <span class=\"termin-desc-title\" data-open-termin-desc>blockchain<\/span>\n    <span class=\"termin-desc-modal-backdrop\" data-close-termin-desc><\/span>\n    <span class=\"termin-desc-modal\">\n        <span class=\"termin-desc-modal-title\">\n            <span>Blockchain<\/span>\n            <svg data-close-termin-desc width=\"24\" height=\"24\" viewBox=\"0 0 24 24\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n                <rect width=\"1\" height=\"19\" rx=\"0.5\" transform=\"matrix(0.707107 -0.707107 -0.707107 -0.707107 18.3652 19.0708)\" fill=\"#B8BABE\"\/>\n                <rect width=\"1\" height=\"19\" rx=\"0.5\" transform=\"matrix(-0.707107 -0.707107 -0.707107 0.707107 19.0723 5.63574)\" fill=\"#B8BABE\"\/>\n            <\/svg>\n        <\/span>\n        <span class=\"termin-desc-modal-content\">a distributed database in which transactions are grouped into blocks. These blocks are added sequentially to a shared ledger and are linked together in a specific way that makes it impossible to retroactively delete or modify records.<\/span>\n        <span class=\"termin-desc-modal-btn\" data-close-termin-desc >Close<\/span>\n    <\/span>\n<\/span> and cryptocurrencies. I only started experimenting with DEX after two years of trading on centralized exchanges.<\/div>\n<h3>How P2P exchanges work<\/h3>\n<p>P2P is not an exchange in the traditional sense, but rather a platform that acts as an intermediary between two people. Most often, P2P sections are integrated into large CEXs (OKX P2P, Bybit P2P), but there are also standalone platforms (e.g., Bitpapa). P2P exchanges operate as follows:<\/p>\n<ol>\n<li><span class=\"bold\">User registration and verification.<\/span> As a rule, registration requires the same KYC verification as on CEX exchanges. The platform must know both parties to the transaction to minimize fraud;<\/li>\n<li><span class=\"bold\">Selecting a listing.<\/span> The buyer sees listings from sellers: each specifies their exchange rate, the available crypto amount, and accepted payment methods (credit card, bank transfer, cash, e-wallets). The exchange rate is set by the seller, so it can be either higher or lower than the market rate;<\/li>\n<li><span class=\"bold\">Escrow transaction.<\/span> When the buyer initiates a transaction, the platform locks the seller\u2019s cryptocurrency in an escrow account, and the seller cannot withdraw it until the transaction is completed. The buyer transfers fiat money directly to the seller (to a bank card, bank account, or via another available method). The seller confirms receipt of payment, and the platform releases the cryptocurrency from the escrow account to the buyer. If a dispute arises, the buyer or seller files a complaint, and the platform\u2019s support team investigates the situation;<\/li>\n<li><span class=\"bold\">Receiving cryptocurrency.<\/span> After payment is confirmed, the cryptocurrency is transferred to the buyer\u2019s personal wallet. The entire transaction takes 5 to 30 minutes.<\/li>\n<\/ol>\n<h3>How Different Types of Exchanges Work: A Comparative Table<\/h3>\n<table>\n<tbody>\n<tr>\n<th>Criterion<\/th>\n<th>CEX<\/th>\n<th>DEX<\/th>\n<th>P2P<\/th>\n<\/tr>\n<tr>\n<td>Who controls the funds<\/td>\n<td>Exchange<\/td>\n<td>User<\/td>\n<td>Escrow \u2192 user<\/td>\n<\/tr>\n<tr>\n<td>Verification required (KYC)<\/td>\n<td>Yes<\/td>\n<td>No<\/td>\n<td>Yes<\/td>\n<\/tr>\n<tr>\n<td>Transaction speed<\/td>\n<td>Milliseconds<\/td>\n<td>1\u201330 seconds<\/td>\n<td>5\u201330 minutes<\/td>\n<\/tr>\n<tr>\n<td>Purchase with fiat<\/td>\n<td>Yes (card, bank transfer)<\/td>\n<td>No (crypto only)<\/td>\n<td>Yes (directly to seller)<\/td>\n<\/tr>\n<tr>\n<td>Who is it for<\/td>\n<td>Beginners and advanced users<\/td>\n<td>Advanced users<\/td>\n<td>Beginners and advanced users<\/td>\n<\/tr>\n<tr>\n<td>Examples<\/td>\n<td>Binance, Coinbase, Bybit<\/td>\n<td>Uniswap, Jupiter<\/td>\n<td>Binance P2P, Paxful<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<div id=\"4\"><\/div>\n<h2>Markets on crypto exchanges<\/h2>\n<p>The cryptocurrency industry includes several types of markets tailored to different goals, strategies, and user experience levels. Most major CEX exchanges (Binance, Bybit, OKX) offer access to multiple markets on a single platform.<\/p>\n<h3>Spot market<\/h3>\n<p>The spot market is the main and simplest market on any crypto exchange. Here, you can immediately buy or sell cryptocurrency at the current market price. Most transactions take place on the spot market: a trader places an order, the exchange executes it, and the cryptocurrency is immediately credited to the account.<br>\nSome platforms offer leveraged trading on the spot market. This type of trading is called margin trading \u2014 the exchange provides the trader with borrowed funds, increasing the size of their <span class=\"termin-desc\">\n    <span class=\"termin-desc-title\" data-open-termin-desc>position<\/span>\n    <span class=\"termin-desc-modal-backdrop\" data-close-termin-desc><\/span>\n    <span class=\"termin-desc-modal\">\n        <span class=\"termin-desc-modal-title\">\n            <span>Position<\/span>\n            <svg data-close-termin-desc width=\"24\" height=\"24\" viewBox=\"0 0 24 24\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n                <rect width=\"1\" height=\"19\" rx=\"0.5\" transform=\"matrix(0.707107 -0.707107 -0.707107 -0.707107 18.3652 19.0708)\" fill=\"#B8BABE\"\/>\n                <rect width=\"1\" height=\"19\" rx=\"0.5\" transform=\"matrix(-0.707107 -0.707107 -0.707107 0.707107 19.0723 5.63574)\" fill=\"#B8BABE\"\/>\n            <\/svg>\n        <\/span>\n        <span class=\"termin-desc-modal-content\">a market transaction that shows which asset you bought or sold and in what quantity.<\/span>\n        <span class=\"termin-desc-modal-btn\" data-close-termin-desc >Close<\/span>\n    <\/span>\n<\/span>.<\/p>\n<div class=\"alert-info\">For example, with a $1,000 deposit and using 5x leverage, a trader can open a $5,000 position. If the asset\u2019s price rises by 10%, the profit will be $500. However, losses also increase proportionally: if the price moves 10% against the position, the loss will be the same $500 \u2014 that is, half of the deposit. If the loss reaches a critical level, the exchange automatically <span class=\"bold\">closes the position (this is called liquidation). <\/span> When a position is liquidated, the trader loses their invested funds.<\/div>\n<p>Due to the increased risk of losing funds, margin trading is considered a tool for experienced traders, not for beginners.<\/p>\n<h3>The derivatives market<\/h3>\n<p>Derivatives are contracts whose value is tied to the price of an underlying asset (e.g., Bitcoin), but the trader does not buy or sell the cryptocurrency itself. Instead, they trade a contract on changes in its price. This allows them to profit from both rising and falling markets. The most popular derivative instruments on crypto exchanges are futures and options.<\/p>\n<h4>Futures<\/h4>\n<p>A futures contract is an agreement under which a trader commits to buying or selling a cryptocurrency at a specific price at a specific time in the future. Typically, a futures contract has an expiration date (for example, in a month or a quarter), after which the contract is automatically settled. However, a unique instrument has emerged in the crypto market that is not found on traditional exchanges: perpetual futures. These are contracts with no expiration date that can be held indefinitely.<br>\nFutures allow you to:<\/p>\n<ul>\n<li><span class=\"bold\">Profit from both rising and falling prices<\/span> \u2013 open a long position (bet on a price increase) or a short position (bet on a price decrease). In the spot market, you cannot profit from a price drop, but futures offer this opportunity;<\/li>\n<li><span class=\"bold\">Use leverage<\/span> \u2013 on some exchanges, leverage can reach up to 125x, which multiplies both potential profits and losses;<\/li>\n<li><span class=\"bold\">Hedge risks<\/span> \u2013 protect your <span class=\"termin-desc\">\n    <span class=\"termin-desc-title\" data-open-termin-desc>crypto portfolio<\/span>\n    <span class=\"termin-desc-modal-backdrop\" data-close-termin-desc><\/span>\n    <span class=\"termin-desc-modal\">\n        <span class=\"termin-desc-modal-title\">\n            <span>Crypto portfolio<\/span>\n            <svg data-close-termin-desc width=\"24\" height=\"24\" viewBox=\"0 0 24 24\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n                <rect width=\"1\" height=\"19\" rx=\"0.5\" transform=\"matrix(0.707107 -0.707107 -0.707107 -0.707107 18.3652 19.0708)\" fill=\"#B8BABE\"\/>\n                <rect width=\"1\" height=\"19\" rx=\"0.5\" transform=\"matrix(-0.707107 -0.707107 -0.707107 0.707107 19.0723 5.63574)\" fill=\"#B8BABE\"\/>\n            <\/svg>\n        <\/span>\n        <span class=\"termin-desc-modal-content\">the combined total of all crypto assets held by an investor or trader.<\/span>\n        <span class=\"termin-desc-modal-btn\" data-close-termin-desc >Close<\/span>\n    <\/span>\n<\/span> from short-term price drops. For example, if your spot portfolio starts to lose value, you open a short position on futures for the same assets. The market falls\u2014the spot price drops, but the short position generates a profit, offsetting the losses.<\/li>\n<\/ul>\n<div class=\"alert-warning\">The futures market is not for beginners. It requires significant experience in risk management.<\/div>\n<h4>Options<\/h4>\n<p>An option is a contract that gives a trader the right, but not the obligation, to buy (call) or sell (put) a cryptocurrency at a specific price by a specific date. For this right, the trader pays a premium \u2014 a fixed amount upon opening the contract.<br>\nThe key difference from futures is that if the market moves in the wrong direction, the trader simply does not exercise the option and loses only the premium paid, rather than the entire position. This makes options a more flexible hedging tool, but also more complex to understand.<br>\nCryptocurrency options are offered by platforms such as Deribit (the largest by options trading volume), as well as Binance and Bybit. This instrument is designed for professional traders with a deep understanding of market strategies.<\/p>\n<h3>Markets on crypto exchanges: a comparison<\/h3>\n<table>\n<tbody>\n<tr>\n<th>Criterion<\/th>\n<th>Spot<\/th>\n<th>Futures<\/th>\n<th>Options<\/th>\n<\/tr>\n<tr>\n<td>Essence<\/td>\n<td>Buying\/selling cryptocurrency at the current price<\/td>\n<td>Contract for the future price of an asset<\/td>\n<td>Right (not obligation) to buy\/sell at a fixed price<\/td>\n<\/tr>\n<tr>\n<td>Ownership of the asset<\/td>\n<td>Yes, cryptocurrency is credited to the balance<\/td>\n<td>No, only the contract<\/td>\n<td>No, only the contract<\/td>\n<\/tr>\n<tr>\n<td>Profiting from a price drop<\/td>\n<td>No<\/td>\n<td>Yes (short position)<\/td>\n<td>Yes (put option)<\/td>\n<\/tr>\n<tr>\n<td>Maximum loss<\/td>\n<td>Purchase amount<\/td>\n<td>Entire position (liquidation)<\/td>\n<td>Only the premium paid<\/td>\n<\/tr>\n<tr>\n<td>For whom<\/td>\n<td>Beginners and advanced traders<\/td>\n<td>Experienced traders<\/td>\n<td>Experienced traders<\/td>\n<\/tr>\n<tr>\n<td>Examples of platforms<\/td>\n<td>Binance, Coinbase, Bybit<\/td>\n<td>Binance, Bybit, OKX<\/td>\n<td>Deribit, Binance, Bybit<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<div id=\"5\"><\/div>\n<h2>How to choose an exchange<\/h2>\n<p>There are dozens of crypto exchanges on the market, and they all differ significantly from one another. Let\u2019s take a look at the main criteria to consider when choosing a platform.<\/p>\n<h3>Reputation and age<\/h3>\n<p>The longer an exchange has been operating without major scandals, the better. For example, Binance was launched in 2017, Coinbase in 2012, and Kraken was founded in 2011.<br>\nIt\u2019s also worth checking whether the platform has been hacked in the past and how it handled those incidents. For example, in 2019, the Binance exchange <a href=\"https:\/\/www.coindesk.com\/markets\/2019\/05\/07\/hackers-steal-407-million-in-bitcoin-from-crypto-exchange-binance\" rel=\"nofollow noreferrer noopener\" target=\"_blank\">lost $40.7 million due to a data breach<\/a>, but fully compensated users for their losses from the <a href=\"https:\/\/academy.binance.com\/en\/glossary\/secure-asset-fund-for-users\" rel=\"nofollow noreferrer noopener\" target=\"_blank\">SAFU<\/a> insurance fund.<\/p>\n<h3>Licenses and regulation<\/h3>\n<p>Reliable exchanges obtain licenses in heavily regulated jurisdictions. Coinbase, for example, <a href=\"https:\/\/www.coinbase.com\/legal\/licenses\" rel=\"nofollow noreferrer noopener\" target=\"_blank\">is licensed in the US<\/a> and <a href=\"https:\/\/www.coindesk.com\/policy\/2025\/06\/20\/coinbase-wins-european-mica-license-in-luxembourg\" rel=\" rel=\" noopener target=\"_blank\">has obtained<\/a> a license <a href=\"https:\/\/eur-lex.europa.eu\/eli\/reg\/2023\/1114\/oj\/eng\" rel=\"nofollow noreferrer noopener\" target=\"_blank\">MiCA<\/a> license in the EU, while Kraken <a href=\"https:\/\/www.theblock.co\/linked\/124437\/kraken-subsidiary-crypto-facilities-receives-fca-approval-in-the-uk%22\" rel=\"nofollow noreferrer noopener\" target=\"_blank\">is registered in the UK (FCA)<\/a>. Having a license means that the exchange undergoes audits, complies with KYC\/AML requirements, and is responsible for the safety of user funds.<\/p>\n<h3>Fees<\/h3>\n<p>Fees vary across different platforms and typically range from 0.01% to 0.5% per trade. However, on average, major platforms charge around 0.1% of the transaction amount (this is the rate, for example, at <a href=\"https:\/\/www.binance.com\/en\/fee\/schedule\" rel=\"nofollow noreferrer noopener\" target=\"_blank\">Binance<\/a> and <a href=\"https:\/\/www.bybit.com\/en\/help-center\/article\/Trading-Fee-Structure\" rel=\"nofollow noreferrer noopener\" target=\"_blank\">Bybit<\/a>).<br>\nAt first glance, 0.1% doesn\u2019t seem like much. But with active trading, commissions add up much more noticeably: for example, 10 trades a day at $1,000 each amounts to $10 a day, or about $300 a month. That\u2019s why many exchanges offer loyalty programs that reduce commissions as trading volume increases or when internal tokens are used. For example, on <a href=\"https:\/\/www.binance.com\/en\/support\/faq\/how-to-use-bnb-to-pay-for-fees-and-earn-25-discount-115000583311\" rel=\"noopener \u201cnofollow\" target=\"_blank\">Binance, paying fees in BNB gives a 25% discount <\/a>, and on <a href=\"https:\/\/www.bybit.com\/en\/help-center\/article\/Introduction-to-Bybit-VIP-Program\" rel=\"nofollow noreferrer noopener\" target=\"_blank\">Bybit, there is a VIP program<\/a> with reduced rates for active traders.<\/p>\n<div class=\"alert-success\">I personally trade on Bybit, and there my VIP-3 level allows me to pay a 0.075% fee instead of the standard 0.1%.<\/div>\n<h3>Liquidity and Trading Volume<\/h3>\n<p>The higher the trading volume, the easier it is to buy or sell cryptocurrency at market price without significant <span class=\"termin-desc\">\n    <span class=\"termin-desc-title\" data-open-termin-desc>slippage<\/span>\n    <span class=\"termin-desc-modal-backdrop\" data-close-termin-desc><\/span>\n    <span class=\"termin-desc-modal\">\n        <span class=\"termin-desc-modal-title\">\n            <span>Slippag\u0435<\/span>\n            <svg data-close-termin-desc width=\"24\" height=\"24\" viewBox=\"0 0 24 24\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n                <rect width=\"1\" height=\"19\" rx=\"0.5\" transform=\"matrix(0.707107 -0.707107 -0.707107 -0.707107 18.3652 19.0708)\" fill=\"#B8BABE\"\/>\n                <rect width=\"1\" height=\"19\" rx=\"0.5\" transform=\"matrix(-0.707107 -0.707107 -0.707107 0.707107 19.0723 5.63574)\" fill=\"#B8BABE\"\/>\n            <\/svg>\n        <\/span>\n        <span class=\"termin-desc-modal-content\">the difference between the expected transaction price and the actual price at which the trade was executed. For example, you want to buy an asset for $100, but due to market movements, the order is executed at $101\u2014the $1 difference is the slippage.<\/span>\n        <span class=\"termin-desc-modal-btn\" data-close-termin-desc >Close<\/span>\n    <\/span>\n<\/span>. For example, the daily trading volume of the largest exchange, Binance, is $17,249,792,492.46, so trading there is quite convenient.<\/p>\n<div class=\"alert-info\">Liquidity is especially important for beginners. For this reason, I once started learning to trade specifically on exchanges with high trading volumes.<\/div>\n<h3>Security<\/h3>\n<p>The basic requirements for any reliable exchange are two-factor authentication (2FA), storing the majority of funds in <span class=\"termin-desc\">\n    <span class=\"termin-desc-title\" data-open-termin-desc>cold wallets<\/span>\n    <span class=\"termin-desc-modal-backdrop\" data-close-termin-desc><\/span>\n    <span class=\"termin-desc-modal\">\n        <span class=\"termin-desc-modal-title\">\n            <span>Cold wallet<\/span>\n            <svg data-close-termin-desc width=\"24\" height=\"24\" viewBox=\"0 0 24 24\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n                <rect width=\"1\" height=\"19\" rx=\"0.5\" transform=\"matrix(0.707107 -0.707107 -0.707107 -0.707107 18.3652 19.0708)\" fill=\"#B8BABE\"\/>\n                <rect width=\"1\" height=\"19\" rx=\"0.5\" transform=\"matrix(-0.707107 -0.707107 -0.707107 0.707107 19.0723 5.63574)\" fill=\"#B8BABE\"\/>\n            <\/svg>\n        <\/span>\n        <span class=\"termin-desc-modal-content\">a method of storing cryptocurrency in which private keys are kept offline (without an internet connection), which significantly reduces the risk of hacking and theft.<\/span>\n        <span class=\"termin-desc-modal-btn\" data-close-termin-desc >Close<\/span>\n    <\/span>\n<\/span> (i.e., wallets without internet access), and an insurance fund in case of a hack.<br>\nFor example, Binance has the <a href=\"https:\/\/www.theblock.co\/post\/389567\/binance-finalizes-1-billion-safu-reserve-conversion-into-bitcoin\" rel=\"nofollow noreferrer noopener\" target=\"_blank\">SAFU fund (~$1 billion)<\/a>, and Coinbase has <a href=\"https:\/\/www.coindesk.com\/markets\/2019\/04\/02\/255-million-coinbase-confirms-extent-of-crypto-insurance-coverage\" rel=\"nofollow noreferrer noopener\" target=\"_blank\">$255 million in hot wallet insurance through Lloyd\u2019s of London syndicates<\/a>. The effectiveness of such funds was demonstrated by <a href=\"https:\/\/www.cnbc.com\/2025\/02\/24\/bybit-replenished-reserves-after-record-breaking-1point5-billion-hack.html\" rel=\"noopener \u201cnofollow\" target=\"_blank\">the Bybit hack in February 2025 \u2014 when $1.5 billion was stolen from the exchange<\/a>, but it fully restored its reserves within 72 hours without freezing withdrawals.<\/p>\n<h3>Availability in your region<\/h3>\n<p>Before registering, it\u2019s important to check three things: whether the platform is available in your region, whether it supports your local currency and bank cards, and whether there are any restrictions on specific features. For example, the global version of Binance is not available in the U.S. \u2014 American users can only use the separate Binance.US platform with limited functionality. Coinbase, on the other hand, is focused on the U.S. market and for a long time did not support direct transfers in hryvnias or rubles. In a number of countries (China, Algeria, Nepal), crypto exchanges <a href=\"https:\/\/en.wikipedia.org\/wiki\/Legality_of_cryptocurrency_by_country_or_territory\" rel=\"nofollow noreferrer noopener\" target=\"_blank\">are banned by law<\/a>. Even if an exchange is technically accessible, you should make sure it supports a deposit method that works for you \u2014 such as a bank card, local bank transfer, or e-wallet.<\/p>\n<h3>Intuitive interface<\/h3>\n<p>For a beginner, it is important that the exchange offers a simple buy\/sell mode, not just a professional trading terminal with charts. Most major platforms (Binance, Bybit, Coinbase) offer both options. The availability of a user-friendly mobile app is also crucial, as many users trade from their phones.<\/p>\n<figure>\n<p class=\"centered\"><a href=\"\/image-cache\/1536\/wp-content\/uploads\/2026\/03\/chto-takoye-kriptobirzha-i-kak-ona-rabotayet-1.jpg.webp\"><img decoding=\"async\" class=\"alignnone\" src=\"\/image-cache\/1120\/wp-content\/uploads\/2026\/03\/chto-takoye-kriptobirzha-i-kak-ona-rabotayet-1.jpg.webp\" alt=\"Bybit Professional Trading Terminal\" srcset=\"\/image-cache\/320\/wp-content\/uploads\/2026\/03\/chto-takoye-kriptobirzha-i-kak-ona-rabotayet-1.jpg.webp 320w, \/image-cache\/480\/wp-content\/uploads\/2026\/03\/chto-takoye-kriptobirzha-i-kak-ona-rabotayet-1.jpg.webp 480w, \/image-cache\/640\/wp-content\/uploads\/2026\/03\/chto-takoye-kriptobirzha-i-kak-ona-rabotayet-1.jpg.webp 640w, \/image-cache\/768\/wp-content\/uploads\/2026\/03\/chto-takoye-kriptobirzha-i-kak-ona-rabotayet-1.jpg.webp 768w, \/image-cache\/960\/wp-content\/uploads\/2026\/03\/chto-takoye-kriptobirzha-i-kak-ona-rabotayet-1.jpg.webp 960w, \/image-cache\/1120\/wp-content\/uploads\/2026\/03\/chto-takoye-kriptobirzha-i-kak-ona-rabotayet-1.jpg.webp 1120w, \/image-cache\/1440\/wp-content\/uploads\/2026\/03\/chto-takoye-kriptobirzha-i-kak-ona-rabotayet-1.jpg.webp 1440w, \/image-cache\/1536\/wp-content\/uploads\/2026\/03\/chto-takoye-kriptobirzha-i-kak-ona-rabotayet-1.jpg.webp 1536w\" sizes=\"(max-width: 767px) calc(100vw - 32px), (max-width: 991px) calc(100vw - 48px), 750px\"><\/a><\/p><figcaption>Bybit professional trading terminal<\/figcaption><\/figure>\n<figure>\n<p class=\"centered\"><a href=\"\/image-cache\/1536\/wp-content\/uploads\/2026\/03\/chto-takoye-kriptobirzha-i-kak-ona-rabotayet-2.jpg.webp\"><img decoding=\"async\" class=\"alignnone\" src=\"\/image-cache\/1120\/wp-content\/uploads\/2026\/03\/chto-takoye-kriptobirzha-i-kak-ona-rabotayet-2.jpg.webp\" alt=\"Simple Buy\/Sell Mode on the Bybit Exchange\" srcset=\"\/image-cache\/320\/wp-content\/uploads\/2026\/03\/chto-takoye-kriptobirzha-i-kak-ona-rabotayet-2.jpg.webp 320w, \/image-cache\/480\/wp-content\/uploads\/2026\/03\/chto-takoye-kriptobirzha-i-kak-ona-rabotayet-2.jpg.webp 480w, \/image-cache\/640\/wp-content\/uploads\/2026\/03\/chto-takoye-kriptobirzha-i-kak-ona-rabotayet-2.jpg.webp 640w, \/image-cache\/768\/wp-content\/uploads\/2026\/03\/chto-takoye-kriptobirzha-i-kak-ona-rabotayet-2.jpg.webp 768w, \/image-cache\/960\/wp-content\/uploads\/2026\/03\/chto-takoye-kriptobirzha-i-kak-ona-rabotayet-2.jpg.webp 960w, \/image-cache\/1120\/wp-content\/uploads\/2026\/03\/chto-takoye-kriptobirzha-i-kak-ona-rabotayet-2.jpg.webp 1120w, \/image-cache\/1440\/wp-content\/uploads\/2026\/03\/chto-takoye-kriptobirzha-i-kak-ona-rabotayet-2.jpg.webp 1440w, \/image-cache\/1536\/wp-content\/uploads\/2026\/03\/chto-takoye-kriptobirzha-i-kak-ona-rabotayet-2.jpg.webp 1536w\" sizes=\"(max-width: 767px) calc(100vw - 32px), (max-width: 991px) calc(100vw - 48px), 750px\"><\/a><\/p><figcaption>Simple buy\/sell mode on Bybit\u00a0<\/figcaption><\/figure>\n<h3>Availability of educational materials<\/h3>\n<p class=\"p1\">A crypto exchange is a tool that requires learning, which is why many major exchanges offer free educational resources to help beginners understand the basics of using the exchange. For example, <a href=\"https:\/\/academy.binance.com\/en\" rel=\"nofollow noreferrer noopener\" target=\"_blank\">Binance Academy<\/a> contains over 400 articles, video courses, and interactive lessons \u2014 ranging from basic concepts to advanced trading strategies. Some exchanges also launch Learn &amp; Earn programs, in which users receive small amounts of cryptocurrency for completing training modules. For a beginner, having a clear educational resource on the exchange can be just as important as a user-friendly interface.<\/p>\n<figure>\n<p class=\"centered\"><a href=\"\/image-cache\/1536\/wp-content\/uploads\/sites\/6\/2026\/05\/crypto-exchange-1.jpg.webp\"><img decoding=\"async\" class=\"alignnone\" src=\"\/image-cache\/1120\/wp-content\/uploads\/sites\/6\/2026\/05\/crypto-exchange-1.jpg.webp\" alt=\"How to Choose a Crypto Exchange: 8 Key Criteria\" srcset=\"\/image-cache\/320\/wp-content\/uploads\/sites\/6\/2026\/05\/crypto-exchange-1.jpg.webp 320w, \/image-cache\/480\/wp-content\/uploads\/sites\/6\/2026\/05\/crypto-exchange-1.jpg.webp 480w, \/image-cache\/640\/wp-content\/uploads\/sites\/6\/2026\/05\/crypto-exchange-1.jpg.webp 640w, \/image-cache\/768\/wp-content\/uploads\/sites\/6\/2026\/05\/crypto-exchange-1.jpg.webp 768w, \/image-cache\/960\/wp-content\/uploads\/sites\/6\/2026\/05\/crypto-exchange-1.jpg.webp 960w, \/image-cache\/1120\/wp-content\/uploads\/sites\/6\/2026\/05\/crypto-exchange-1.jpg.webp 1120w, \/image-cache\/1440\/wp-content\/uploads\/sites\/6\/2026\/05\/crypto-exchange-1.jpg.webp 1440w, \/image-cache\/1536\/wp-content\/uploads\/sites\/6\/2026\/05\/crypto-exchange-1.jpg.webp 1536w\" sizes=\"(max-width: 767px) calc(100vw - 32px), (max-width: 991px) calc(100vw - 48px), 750px\"><\/a><\/p><figcaption>Things to consider when choosing a crypto platform<\/figcaption><\/figure>\n<div id=\"6\"><\/div>\n<h2>Conclusion<\/h2>\n<p>Crypto exchanges allow you to buy, sell, exchange, and store digital assets.<br>\nWhen choosing a platform, it\u2019s important to consider security, fees, available trading pairs, user-friendliness, and the exchange\u2019s reputation. Beginners should pay special attention to the availability of educational materials, demo accounts, and quality customer support.<br>\nOnce you understand what a crypto exchange is and how it works, you\u2019ll be able to start your journey into cryptocurrencies with greater confidence.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In this article, you will find answers to the following questions: what is a crypto exchange, what types of exchanges exist and how they differ; how all types of cryptocurrency exchanges work; and how to choose a crypto exchange. What are cryptocurrency exchanges? Crypto exchanges are digital platforms that allow you to trade cryptocurrencies (that [&hellip;]<\/p>\n","protected":false},"author":86,"featured_media":158802,"parent":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[9],"tags":[],"class_list":["post-158682","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-exchanges"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/cryptonisation.pro\/en\/wp-json\/wp\/v2\/posts\/158682","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptonisation.pro\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptonisation.pro\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptonisation.pro\/en\/wp-json\/wp\/v2\/users\/86"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptonisation.pro\/en\/wp-json\/wp\/v2\/comments?post=158682"}],"version-history":[{"count":5,"href":"https:\/\/cryptonisation.pro\/en\/wp-json\/wp\/v2\/posts\/158682\/revisions"}],"predecessor-version":[{"id":158814,"href":"https:\/\/cryptonisation.pro\/en\/wp-json\/wp\/v2\/posts\/158682\/revisions\/158814"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptonisation.pro\/en\/wp-json\/wp\/v2\/media\/158802"}],"wp:attachment":[{"href":"https:\/\/cryptonisation.pro\/en\/wp-json\/wp\/v2\/media?parent=158682"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptonisation.pro\/en\/wp-json\/wp\/v2\/categories?post=158682"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptonisation.pro\/en\/wp-json\/wp\/v2\/tags?post=158682"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}