A cryptocurrency exchange is a platform where users can buy digital currency for fiat or other cryptocurrencies. Exchanges are perfect for traders, as they offer a wide variety of options, such as low trading fees, and good liquidity.
However, they require users to provide identifying information, such as a passport or driver's license, as per KYC and AML compliance regulations. Additionally, exchanges are susceptible to hacking and have custody risk since users can leave their digital assets there.
The most popular exchanges are Binance