Bitcoin Exchanges

A Bitcoin exchange is a platform where you can buy, sell, or trade Bitcoin using fiat currency (USD, EUR, etc.) or other cryptocurrencies. Exchanges match buyers and sellers and typically charge a small fee per trade.

Maker fees apply when your order adds liquidity to the order book (e.g. a limit order that does not fill immediately). Taker fees apply when your order matches an existing order immediately (e.g. a market order). Maker fees are usually lower because makers improve market depth.

Exchanges hold your private keys, meaning you do not have direct custody of your Bitcoin. Most reputable exchanges use cold storage and insurance, but exchange hacks do occur. The Bitcoin community saying "not your keys, not your coins" reflects this risk — consider withdrawing to a self-custody wallet after purchase.

KYC (Know Your Customer) is an identity verification process required by financial regulations in most countries. Exchanges collect your name, address, and a government-issued ID to comply with anti-money laundering (AML) laws. Without KYC, exchanges may limit withdrawal amounts.

Centralised exchanges (CEXs) are run by companies that hold your funds and match orders internally. Decentralised exchanges (DEXs) use blockchain smart contracts to swap assets peer-to-peer without a custodian, giving you full control of your keys throughout the trade.