Education

💱 Exchanges

What exchanges do

Exchanges are platforms where you trade government currency for bitcoin and back — the main doorway between the banking system and the bitcoin network. In most countries they're regulated financial businesses: expect identity verification (KYC) when you sign up, and tax reporting on your activity.

Choosing one

Reputation and regulation first. Prefer long-established, licensed exchanges in your jurisdiction. The history of crypto is littered with flashy platforms that vanished with customer funds — Mt. Gox and FTX being the canonical warnings.
Compare real costs. Fees hide in spreads, not just fee schedules. Compare the all-in price of a small test purchase.
Check withdrawal policies. A trustworthy exchange makes it easy to withdraw bitcoin to your own wallet. Treat any friction there as a red flag.

Using one safely

Enable two-factor authentication — an authenticator app, not SMS.
Use a unique password and a dedicated email address.
Start small until you're comfortable with the whole cycle: deposit, buy, withdraw.

The golden rule

An exchange is a place to trade, not a place to store. Coins left on an exchange are an IOU from a company; coins in your own wallet are yours unconditionally. Buy, then withdraw to keys you control — that single habit protects you from the largest losses in crypto history.