What is a Crypto Exchange?

A crypto exchange is an online platform where users can buy, sell, and trade cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and thousands of other digital assets.

There are two main types of exchanges:

• Centralized Exchanges (CEX) – These are managed by companies and offer user-friendly services, secure wallets, and trading tools (e.g., Binance, Coinbase, WazirX).
• Decentralized Exchanges (DEX) – These work without a middleman and allow peer-to-peer trading (e.g., Uniswap, PancakeSwap).

What You Can Do on a Crypto Exchange:

• Buy crypto using INR, USD, or other fiat currencies
• Trade between cryptocurrencies (e.g., BTC to ETH)
• Sell crypto and withdraw money to your bank account
• Use features like staking, futures, or crypto SIPs

Are Crypto Exchanges Private or Government-Backed?

Crypto exchanges are mostly private companies, not owned or operated by any government.

Private Ownership

• Platforms like Binance, Coinbase, WazirX, CoinDCX, and CoinSwitch are privately owned tech companies.
• They are founded by entrepreneurs and backed by venture capital or public investors (in the case of listed companies like Coinbase).

Regulated but Not Government-Run

• While they are not government-backed, many operate under government regulations in their respective countries.
• For example:
  • Coinbase is registered and regulated in the U.S.
  • CoinDCX and WazirX comply with Indian KYC/AML norms
  • Binance, though global, faces regulatory oversight in several regions