Baskin Logic Crypto Academy

Lesson 7 · Logic path

What an exchange is

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Baskin Logic Crypto Academy. One idea. Then we stop.

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.

City rooftops under a pink sunset sky

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.

Check what you learned

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

1. In this lesson, what is an exchange?

2. Where does an exchange keep your balance?

3. If you leave value on an exchange, who holds the keys?

4. Many exchanges ask for your ID before you can trade. What is this called?

5. Does this school name exchanges to use?

Show the answers
  1. A shop that holds accounts. An exchange is a shop that holds accounts for its customers.
  2. In its own books. The exchange keeps a balance in its own books, and its books are not the blockchain.
  3. The exchange. If you leave value there, they hold the keys.
  4. KYC, or Know Your Customer. KYC rules mean many exchanges check your identity.
  5. No. The school does not name shops. It teaches what an exchange is.
Logic · Up nextNext: Lesson 8 — What not your keys means

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