Lesson 7: What an exchange is — Baskin Logic Crypto Academy

An exchange is a shop that holds accounts. You send value in. They keep a balance in their books.

Their books are not the blockchain. If you leave value there, they hold the keys. The school does not name shops.

That is the object. A counter, not a wallet you control. The school does not tell you what to buy.

Key terms

Crypto exchange: A crypto exchange is a business or app where people buy, sell and swap crypto.
Exchange vs. wallet: An exchange is a business where you buy, sell and trade crypto, and it usually holds your coins for you.
KYC: KYC, short for know your customer, is the process companies use to check who you are, usually with a photo ID and personal details.
Custodial vs. non-custodial wallet: A custodial wallet is one where a company holds the keys for you, like an account on an exchange.

Five questions from this lesson. Your score stays on this device.

Show the answers

A shop that holds accounts. An exchange is a shop that holds accounts for its customers.
In its own books. The exchange keeps a balance in its own books, and its books are not the blockchain.
The exchange. If you leave value there, they hold the keys.
KYC, or Know Your Customer. KYC rules mean many exchanges check your identity.
No. The school does not name shops. It teaches what an exchange is.

Written and reviewed by Joshua Baskin, founder. Last reviewed October 2, 2026. How we check facts · Report an error

This lesson explains a basic idea and does not quote outside figures. Terms follow our glossary, and rule pages link to the official text.