What is the difference between a private crypto exchange and a public exchange?

A public exchange is open to anyone with internet access and basic identity verification. Examples include Coinbase and Kraken, which operate under regulatory oversight and list cryptocurrencies for public trading. A private exchange restricts access to accredited or institutional investors, offering customized services, higher trading limits, and often better liquidity for large transactions. Private exchanges typically handle over-the-counter (OTC) trading, meaning trades occur directly between parties rather than through a public order book. Public exchanges suit retail investors seeking accessibility and transparency, while private exchanges cater to institutions and high-net-worth individuals prioritizing discretion and personalized support. Both serve important roles in cryptocurrency markets, with public exchanges driving price discovery and private exchanges facilitating bulk transactions.