Understanding Cryptocurrency Exchanges: A Beginner's Guide

Exchange refers to the act of giving or receiving something in return for another thing. In the context of cryptocurrency, exchange typically refers to a platform or service that allows users to buy and sell cryptocurrencies using fiat currencies (such as US dollars) or other cryptocurrencies.

For example, if you want to buy Bitcoin with US dollars, you would need to find an exchange that supports both Bitcoin and US dollar transactions. You would then need to create an account on the exchange, deposit your US dollars, and use those funds to buy Bitcoin.

Exchanges can also be used to trade one cryptocurrency for another, such as exchanging Ethereum for Bitcoin. Some popular cryptocurrency exchanges include Coinbase, Binance, and Kraken.