Crypto exchanges are platforms where buyers and sellers of cryptocurrencies can trade the value of digital assets. The platform serves as the meeting point for making diverse crypto transactions. There are two main types of exchanges CEX and DEX.
The centralized exchanges are usually controlled by a central authority and act as middlemen in bitcoin transactions.
Centralized exchanges prevent money laundering by following strict KYC, Anti-money laundering rules, etc. This tight security enables users to trade bitcoin and confidently make other transactions.
Decentralized exchanges, on the other hand, support peer-to-peer transactions. There is no need for a middleman in this type of exchange. Users are responsible for their security using wallets and private keys.
Each of these exchanges allows users to sell bitcoin and other digital assets, but they must pay a specified transaction fee for using the platform.