What is Exchange
Cryptocurrency exchanges are digital marketplaces where digital currencies are traded. Cryptocurrencies can be exchanged for fiat currencies such as USD or Euros, or for other digital currencies.
Crypto exchanges can be centralized (CEX) or decentralized (DEX). Centralized exchanges act much like the traditional exchanges. They are intermediaries that enable trading one currency for another for a fee. The fee can be a fixed rate or a percentage of the transaction. Some of the most prominent centralized exchange platforms are Binance, Coinbase, and Kraken.
For decentralized exchanges, there is no intermediary. DEX transactions are governed by smart contracts.