What is an exchange?

Exchanges are most commonly defined as buyers and sellers trading any asset based on current market value. The most notable exchanges are the National Association of Securities Dealers Automated Quotations Systems (NASDAQ) and the New York Stock Exchange (NYSE). Cryptocurrency exchanges are also knowns as digital currency exchanges (DCEs). Exchanges of cryptocurrencies are similar to other fiat exchanges.Generally in cryptocurrency there are two types of exchanges

Some cryptocurrency exchanges allow fiat money to be converted to cryptocurrency and vice versa, others only allow exchanges between different cryptocurrencies. Once purchased, the currency is then transferred directly to your virtual wallet where it is stored.