What is a cryptocurrency exchange and how does it work?

A cryptocurrency exchange is a digital marketplace where users can buy and sell cryptocurrencies for other digital or traditional currencies. It acts as a middleman between buyers and sellers, enabling these two parties to get their desired currencies in exchange for one another. The exchange platform facilitates the trade and ensures that all transactions are processed securely. A buyer and seller must agree on both the price and the amount of cryptocurrency they want to exchange. After both parties have agreed upon the terms of the transaction, the buyer can transfer funds to the exchange, which will then use its resources to facilitate the purchase or sale of the cryptocurrency.