Exchange

An exchange is a platform that enables you to exchange one currency for another currency. It is a place where people can buy currency – whether fiatFiat, or fiat currency, is a currency that exists and has value merely because it's home government says so. A fiat curr... Click for full definition or cryptocurrency.

In the traditional finance world, you might visit an exchange in order to buy another country’s money. For instance, if you’re an American and traveling to Europe, you would use an exchange to change some of your dollars into Euros.

In crypto, the concept is the same. You can change from fiat currency into any cryptocurrency that exchange supports. You can also change from one crypto to another (for instance, buying Ethereum tokens using Bitcoin).

There are a lot of different exchanges out there, operated by different companies. Here in the US, Coinbase and Gemini are 2 of the most popular. There are also other exchanges such as Bittrex, Binance, Kraken, etc. There are quite a few, so you’re able to take your pick. Not all exchanges offer the exact same set of currencies, however, so sometimes traders and investors will have accounts on several exchanges and will move funds between them in order to buy particular cryptos or, in some cases, to take advantage of a lower price.