What does exchange mean?

Websites where you can buy and sell cryptocurrency. There are several different types of cryptocurrency exchanges that have developed in the past several years.

The most widely used are the centralized exchanges such as Coinbase and Kraken, where fiat currencies can be deposited and withdrawn, and the exchange will hold assets in segregated accounts.

Another type of centralized exchange is meant primarily for trading cryptocurrencies. Bittrex and Poloniex are good examples of this type of exchange, which typically allows for the exchange of dozens, if not hundreds of different cryptocurrencies.

A third type of exchange is the decentralized exchange, where the exchange doesn’t hold customer funds, but only acts as a matchmaker between buyers and sellers. 0x is one such example that uses an order book to provide decentralized trades. Kyber Network is another which provides complete trustless decentralized trades right on the blockchain.