A cryptocurrency exchange, or a digital currency exchange (DCE), is a business that allows customers to trade cryptocurrencies or digital currencies for other assets, such as conventional fiat money or other digital currencies. Exchanges may accept credit card payments, wire transfers or other forms of payment in exchange for digital currencies or cryptocurrencies. A cryptocurrency exchange can be a market maker that typically takes the bid–ask spreads as a transaction commission for is service or, as a matching platform, simply charges fees.
1. Buyer and Seller agree to terms
2. Buyer submits payment to Crypto Exchange
3. Seller delivers to buyer
4. Buyer approves delivery
5. Crypto Exchange releases payment to seller