How does crypto exchange work?

Among other things, cryptocurrencies and other digital assets are designed to enable peer-to-peer value exchange just like cash, but in the digital realm. This means you can trade cryptoassets for anything you want, and you can do so without using intermediaries like banks or payment apps. For example, if someone paints your house, you could potentially negotiate to send the person an agreed amount of crypto as payment. This would be effectively no different than handing over cash in exchange for the house-painting service.

Conversely, if you're looking to buy crypto, you could offer the seller an agreed amount of cash (or any other good or service) in exchange for the agreed amount of crypto.

Read more: How to send and receive crypto.

Of course, since most people don't use crypto as a medium of exchange in their daily lives (at least not yet!), it's generally harder to find peer-to-peer sellers/buyers than it is to, for example, trade in local currency. This brings us to the concept of 'liquidity.'