A cryptocurrency exchange operates similarly to a stock exchange. It connects users who are looking to trade their funds with other users. A user needs to have an account on the exchange and a virtual wallet to start trading. With a unique wallet address and crypto funds in their wallet, a user can exchange their coins for other coins that they desire.
Transactions are extremely simple and instant. Due to the decentralized nature of blockchain technology, there are no mediators and therefore, there is an obvious improvement in efficiency and reduction in costs.