A crypto exchange is a company or platform where you can buy, sell and swap crypto. You can exchange krónur for crypto, crypto back into krónur, or one coin for another. Most crypto exchanges also hold the crypto for their customers.
How does a crypto exchange work?
Usually you open an account, verify your identity and deposit money from your bank account. Then you choose a coin and an amount, and the exchange handles the trade. It earns money from fees, which are often built into the price as a SpreadSpreadThe difference between the buying and selling price of the same asset at the same time, often used to charge for crypto trades..
There are two main types:
- A centralised exchangeCentralised exchange (CEX)A crypto exchange run by a company that carries out the trades and holds the crypto on behalf of its customers. is run by a company that carries out the trades and holds the assets, much like a bank.
- A decentralised exchangeDecentralised exchange (DEX)An exchange run by smart contracts, where people swap crypto straight from their own wallets with no company in the middle. is a program on a blockchain where people swap crypto straight from their own wallets, with no company in the middle.
Why does a licence matter?
In the EEA, a company that buys, sells or holds crypto for others needs a licence as a crypto-asset service provider (CASPCASP (crypto-asset service provider)A company licensed under MiCA to provide crypto-asset services, such as buying, selling, custody or transfers.) under MiCA. In Iceland, these licences are granted by the Central Bank of Iceland (Seðlabanki Íslands), under a law that took effect on 1 January 2026. Companies licensed in another EEA country can also offer their services here.
A licensed exchange is supervised. Among other things, it must verify who its customers are and keep their assets separate from its own. Myntkaup holds such a licence from the Central Bank of Iceland. How to check if a crypto provider is licensed shows how to check any other provider.
Everything in Myntkaup Learn is written and regularly reviewed by the Myntkaup editorial team. It is for education and is not investment advice. Editorial policy. Updated 18 October 2026.