Exchange
In short
A crypto exchange is a marketplace matching buyers and sellers. It custodies customer funds, runs the order book and earns fees per trade.
Centralized exchanges (Kraken, Coinbase etc.) are the usual entry point: deposit fiat, buy, hold or withdraw to your own wallet. "Not your keys, not your coins" remains the rule to remember.
Can an exchange go bankrupt — and what does that mean for my money?
Yes, it has happened (FTX 2022). Exchange balances are claims, not custodied coins — large holdings belong in your own wallet.
Related terms
Information, not investment advice. More of this? The newsletter.