What is a crypto exchange and how does it work?

A crypto exchange is a platform where you buy, sell, and trade cryptocurrencies like Bitcoin and Ethereum. It works similarly to a stock exchange. You create an account, verify your identity, and deposit money (fiat currency or crypto). The exchange matches buyers and sellers, taking a small fee for each transaction. There are two main types: centralized exchanges (CEX) like Coinbase and Kraken, which hold your funds and handle transactions, and decentralized exchanges (DEX) like Uniswap, which use smart contracts and let you trade directly from your wallet. Most beginners start with CEX platforms because they're user-friendly and regulated, though they require trusting the platform with your money.