Cryptocurrency Exchanges: What They Are, How They Work, and Which Ones to Avoid
When you buy Bitcoin or swap Ethereum for a new memecoin, you’re using a cryptocurrency exchange, a platform that lets users trade digital assets like coins and tokens. Also known as crypto trading platform, it’s the bridge between your wallet and the market—whether you’re holding long-term or day trading. But not all exchanges are built the same. Some are giant, regulated companies like Binance and Coinbase. Others are tiny, anonymous DeFi platforms that vanish overnight with your money.
The biggest risk isn’t price drops—it’s centralized exchange, a platform that holds your crypto for you, like a bank failing or scamming you. Thodex in Turkey stole $2 billion. Flybit stopped letting users withdraw. Parallel Finance locked up users’ assets after shutting down its NFT lending. These aren’t glitches—they’re patterns. On the flip side, decentralized exchange, a peer-to-peer trading platform that doesn’t hold your funds like Tinyman on Algorand or PumpSwap on Solana give you control, but come with their own dangers: fake tokens, zero liquidity, and smart contract bugs.
Regulation matters. Iceland’s ISX is the only legal crypto exchange in the country because it follows local banking rules. Nigeria’s Central Bank went from banning crypto to licensing exchanges—now banks can finally support them. India? No legal protection, heavy taxes, and no safety net. Your jurisdiction decides whether you’re trading in a sandbox or a minefield.
What you’ll find here isn’t a list of top exchanges. It’s a collection of real stories—platforms that died, scams that exploded, and niche tools that actually work. You’ll see why a $0 trading volume isn’t just boring—it’s dangerous. Why a popular name on CoinMarketCap doesn’t mean it’s real. And why sometimes, the safest move is to walk away.
- By Eva van den Bergh
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- 4 Dec 2025
OFAC Sanctions and Iranian Crypto Access to Exchanges: How Restrictions Block and Bypass Digital Asset Flows
OFAC sanctions have blocked Iranian access to major crypto exchanges, but users adapt through peer-to-peer trading, decentralized platforms, and privacy coins. A cat-and-mouse game continues as sanctions evolve and evasion tactics grow more sophisticated.