Cryptocurrency Exchange A cryptocurrency exchange is a digital platform that facilitates the buying, selling, and trading of cryptocurrencies. These exchanges enable users to convert digital assets into fiat currencies or other cryptocurrencies. Explanation Cryptocurrency exchanges operate similarly to traditional stock exchanges but deal exclusively with digital assets. They provide a marketplace for traders to engage in transactions, offering various tools and features to support trading activities. Practical Example A trader uses a cryptocurrency exchange to buy Bitcoin using U.S. dollars and later sells it for Ethereum, leveraging market fluctuations for profit.