Crypto and derivatives · updated October 21, 2026
What is a crypto exchange and how to choose a safe one
A crypto exchange is where you swap regular money for cryptocurrency and back, or one cryptocurrency for another. It works like a stock exchange: buyers and sellers place orders, the platform matches them and takes a fee.
How it works
You open an account, verify your identity (KYC), deposit money by bank transfer or card and buy. The coins usually stay in the platform's custodial wallet until you withdraw them to your own wallet. In the EU, since 30 December 2024, platforms offering crypto services must be licensed under the MiCA regulation, which among other things requires client assets to be kept separate.
Worth knowing
The real cost is not just the fee on the price list: the gap between the buy and sell price (spread) and the withdrawal fee count too.
When crypto exchange can fool you
The platform can fail: FTX, one of the largest exchanges at the time, went bust in November 2022 and clients could no longer withdraw their money. Unlicensed platforms: check the register of the regulator in your country. "Instant buy" buttons: often come with a much wider spread than a normal order.
Related terms
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Questions about crypto exchange
How do I check whether an exchange is licensed in the EU?
The EU securities regulator ESMA publishes a register of providers licensed under MiCA. Each country also has its own national regulator you can check.
Should I move my coins off the exchange?
For large amounts held for a long time, your own wallet is safer, as long as you know how to keep your recovery phrase. For small amounts or frequent trades, many people leave them on a licensed platform.
These explanations are for information only. They are not a recommendation to buy or sell.
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