What is a crypto exchange? How buying and selling crypto works
By SendPay Business · · 2 min read
A crypto exchange is a platform where people buy, sell and swap cryptocurrencies, either for other crypto or for ordinary money like pounds, euros or dollars. It's the main way most people get into and out of crypto.
Centralised and decentralised
A centralised exchange is run by a company: you open an account, pass identity checks, and the company holds the crypto for you. A decentralised exchange runs on a blockchain: you trade straight from your own wallet, with no account, but also no one to help if something goes wrong.
How prices are set
Most exchanges match buyers and sellers in an order book, so the price is whatever the last trade was. Simpler apps show a single buy or sell price instead, with their margin built in.
How exchanges make money
- A trading fee on each buy or sell.
- A spread between the buy and sell price.
- Fees for depositing or withdrawing money or crypto.
- Extras such as cards or premium accounts.
What to check before using one
Whether it's registered where you live, how it holds customers' crypto, the full cost of a trade including the spread, and how easy it is to withdraw. Crypto prices can fall as well as rise, and crypto isn't usually covered by deposit protection.
Launching your own
SendPay Crypto Exchange platforms let your customers buy, sell and hold crypto alongside cash under your brand, powered by licensed partners. It is free to design and preview, and you only pay when you publish. SendPay tells you in writing which licences apply before you pay.
Build it
Create your own financial platform.
Pick a template, name it, brand it, preview every page before you pay. Your brand, your users, your fees.
Build my platform →Questions people ask
What could my own crypto exchange earn?
Work out monthly profit from trading fees and a spread, after your costs.
Crypto exchange business calculator →How much did I make on a trade?
The free calculator works it out, fees included.
Crypto profit calculator →Read next
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.