{"id":14324,"date":"2026-05-27T07:41:16","date_gmt":"2026-05-27T07:41:16","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/glossary\/crypto-exchange\/"},"modified":"2026-05-27T07:41:16","modified_gmt":"2026-05-27T07:41:16","slug":"crypto-exchange","status":"publish","type":"glossary","link":"https:\/\/lemonn.co.in\/blog\/glossary\/crypto-exchange\/","title":{"rendered":"Crypto Exchange"},"content":{"rendered":"

A crypto exchange<\/a> is an online platform where users can buy, sell, and trade cryptocurrencies. Exchanges act as marketplaces connecting buyers and sellers, providing liquidity<\/a> and price discovery for digital assets<\/a>.<\/p>\n

What Is a Crypto Exchange?<\/h2>\n

A crypto exchange allows users to:
\n– Buy crypto using fiat currency (INR, USD) or other crypto
\n– Sell crypto and receive fiat or other crypto
\n– Trade one cryptocurrency<\/a> for another
\n– Some exchanges offer advanced features like futures trading<\/a>, staking, and lending<\/p>\n

Types of Crypto Exchanges<\/h2>\n

**Centralised Exchanges (CEX):**
\n– Operated by a company that holds users’ funds (custodial)
\n– Examples in India: CoinDCX, WazirX, ZebPay, Mudrex
\n– Global examples: Binance, Coinbase, Kraken
\n– Require KYC (PAN, Aadhaar in India)
\n– Easy to use but require trust in the exchange operator<\/p>\n

**Decentralised Exchanges (DEX):**
\n– Operate via smart contract<\/a>s on the blockchain
\n– No company controls funds; users trade wallet-to-wallet
\n– Examples: Uniswap, SushiSwap, dYdX
\n– No KYC but requires blockchain knowledge<\/p>\n

How CEX Order Books Work<\/h2>\n

Centralised exchanges use order books to match buyers and sellers. When you place a buy order at Rs 30 lakh for 1 BTC, it is matched with the lowest sell order at that price or below. Exchanges charge a trading<\/a> fee (typically 0.1% to 0.5% per trade).<\/p>\n

Crypto Exchange Regulation in India<\/h2>\n

In India, crypto exchanges must:
\n– Register as Reporting Entities under PMLA (Prevention of Money Laundering Act)
\n– Conduct KYC for all users
\n– Report suspicious transactions to the Financial Intelligence Unit (FIU-IND)
\n– Collect and deposit 1% TDS on crypto<\/a> transactions above Rs 50,000<\/p>\n

Practical Example<\/h2>\n

Kavya wants to buy Bitcoin<\/a>. She downloads the CoinDCX app, completes KYC using her PAN and Aadhaar, deposits Rs 50,000 from her bank account, and buys Bitcoin at the prevailing market price. The BTC is held in her CoinDCX custodial wallet. She can later withdraw it to her personal hardware wallet.<\/p>\n

Key Takeaways<\/h2>\n

– Crypto exchanges are platforms for buying, selling, and trading cryptocurrencies
\n– Centralised exchanges (CEX) require KYC and are custodial; DEXs are non-custodial and permissionless
\n– In India, registered exchanges must comply with PMLA and collect 1% TDS<\/a> on qualifying transactions
\n– Trading fees are typically 0.1% to 0.5% per transaction on major exchanges
\n– “Not your keys, not your coins”: funds on a centralised exchange are at risk if the exchange fails<\/p>\n","protected":false},"excerpt":{"rendered":"

A crypto exchange is an online platform where users can buy, sell, and trade cryptocurrencies. Exchanges act as marketplaces connecting buyers and sellers, providing liquidity and price discovery for digital assets. What Is a Crypto Exchange? A crypto exchange allows users to: – Buy crypto using fiat currency (INR, USD) or other crypto – Sell […]<\/p>\n","protected":false},"author":3,"featured_media":0,"menu_order":0,"template":"","meta":{"_uag_custom_page_level_css":"","footnotes":""},"class_list":["post-14324","glossary","type-glossary","status-publish","hentry"],"blocksy_meta":[],"uagb_featured_image_src":{"full":false,"thumbnail":false,"medium":false,"medium_large":false,"large":false,"1536x1536":false,"2048x2048":false,"web-stories-poster-portrait":false,"web-stories-publisher-logo":false,"web-stories-thumbnail":false},"uagb_author_info":{"display_name":"Team Lemonn","author_link":"https:\/\/lemonn.co.in\/blog\/author\/ashu\/"},"uagb_comment_info":0,"uagb_excerpt":"A crypto exchange is an online platform where users can buy, sell, and trade cryptocurrencies. Exchanges act as marketplaces connecting buyers and sellers, providing liquidity and price discovery for digital assets. What Is a Crypto Exchange? A crypto exchange allows users to: – Buy crypto using fiat currency (INR, USD) or other crypto – Sell…","_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/14324","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/glossary"}],"author":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/users\/3"}],"version-history":[{"count":0,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/14324\/revisions"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=14324"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}