Exchange is a digital marketplace that enables buyers and sellers to trade cryptocurrencies or other digital assets for fiat money or other cryptocurrencies. So, The exchange plays the role of an intermediary between buyer and seller.
There are two types of exchanges. A Centralized Exchange (CEX) is a platform where the exchange acts as a middleman to facilitate transactions. On the other hand, Decentralized Exchange (DEX) is a peer-to-peer cryptocurrency platform without a central authority.
Furthermore, Crypto exchanges have been some of the biggest winners in the crypto boom. Some of the biggest centralized exchanges are Binance, Coinbase, and Kraken.