Modulis 1 · First steps

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What Is a Cryptocurrency Exchange and Why Do You Need One

Video · 2 min.

What is a crypto exchange?

Gabby's first search result for a crypto exchange was a fake one, and she almost sent euros there. We compare a CEX (a shop with a cashier: passport, euros, the exchange holds your coins) with a DEX (a vending machine: no passport, no euros, you hold everything), explain KYC, SEPA vs card, and the two checks that protect you.

Narrated, with light music

The full lesson with numbers and rules is below.

Watch on YouTube

After this module

You'll buy your first cryptocurrency yourself, move it to your own wallet, and check every step without anyone's help. This is the foundation you'll build everything else on.

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CEX vs DEX — what's the difference?

There are two ways to buy and sell cryptocurrencies. Think of it like this:

CEX (centralized exchange) — this is like a bank for cryptocurrencies. You create an account, verify who you are (like showing your passport at a bank), and can buy crypto with euros. The exchange holds your money, the way a bank holds your savings.

Examples: Nexo, Kraken, Coinbase, Revolut. (Binance stopped serving EU customers on 2026-07-01 — more on that below.)

DEX (decentralized exchange) — this is like a marketplace where people trade directly with each other. There's no middleman. You connect your own wallet and swap currencies yourself.

Examples: Jupiter (Solana), Uniswap (Ethereum), Orca (Solana).

A simple analogy

CEX = a bank. Someone else holds your money. DEX = a marketplace. You control your own money and trade directly.

	CEX	DEX
Sign-up	Required (show ID)	Not required
Accepts euros	Yes	No
Who controls the money	The exchange	You
Speed	Fast	Very fast (Solana)
Fees	0.1–3%	0.05–0.3%

Why do we start with CEX?

The answer is simple — CEX accepts euros. You can't buy cryptocurrencies on a DEX if you don't already have some cryptocurrency. You need to start with a CEX.

Think of it this way

It's like a currency exchange counter at the airport. First you go to the counter and exchange your euros. Only then can you buy things abroad. A CEX exchange is that first "exchange counter."

Our path:

Euros in the bank → CEX exchange (Nexo or Kraken) → SOL or ETH
SOL/ETH → Wallet (Jupiter Wallet ad or MetaMask)
Wallet → DeFi protocols (Kamino, Orca, Aave, Uniswap)

First check — is the exchange even legal in the EU?

Before you look at fees or convenience, check one thing: is the exchange allowed to operate in the European Union at all?

Since 1 July 2026, every crypto-asset service provider in the EU must hold a MiCA CASP licence. Before signing up, look the platform up in the ESMA MiCA CASP register (esma.europa.eu). If it isn't there:

it is operating in the EU unlawfully;
MiCA protections do not apply to your assets;
the platform can be forced to stop serving you and close your positions, and your funds may be stuck in a wind-down process.

This is not hypothetical

That is exactly what happened to Binance on 1 July 2026 — it withdrew its MiCA application and left the EU: new sign-ups, euro deposits, and buying were blocked for EU customers. Of roughly 1,100–1,300 providers previously active in the EU, only about 200 obtained a licence; out of the world's 100 largest exchanges, just 16 (figures as of September 2026 — the register keeps changing, so check it yourself).

What to actually do: open the ESMA CASP register, type in the exchange's name, and see which EU country licensed it. Revolut, for example, holds its own MiCA CASP licence (issued by CySEC in Cyprus). Note that some platforms operate under a partner's licence rather than their own — in that case calling them "a licensed exchange" is inaccurate, and it's worth checking who actually custodies your assets.

KYC — why the exchange asks you to verify your identity

KYC (Know Your Customer) — this is just like at a bank, where you have to show your passport before opening an account. The exchange is required to know who you are. It's there for security and to comply with the law — and at the same time it's a signal that you're choosing a regulated platform, not some anonymous corner of the internet.

What you'll need to provide:

A passport or ID card
A photo of yourself (selfie) with the document
Sometimes — proof of address (e.g., a utility bill)

How long it takes: anywhere from 10 minutes to 24 hours.

How do euros turn into cryptocurrency?

Fiat (traditional currency, e.g. euros or dollars) — this just means the ordinary currencies we use every day. On the exchange, you convert euros into cryptocurrency:

SEPA transfer — a bank transfer, free, but you need to wait 1–2 business days
Card — fast (within a few minutes), but with a ~1.5% fee
Revolut/bank transfer — depends on the exchange

What is SEPA?

SEPA is the European bank payment system that lets you send euros between banks cheaply or for free. It's like a regular bank transfer, just covering the whole SEPA area (the EU and a few neighboring countries).

Next step: Now you understand what exchanges are. In the next lesson we'll show you exactly how to buy SOL or ETH through Nexo — step by step.

Quick check

What's the main difference between a CEX and a DEX?

Practice task

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Take a close look at exchanges — no need to buy anything

The best way to understand exchanges is to see them for yourself. This exploration task takes about 10 minutes and needs no money or sign-up.

Always type an exchange's address in by hand, never click through a search ad — fake exchange copies are one of the most common scams. Nothing needs to be bought in this task.

This is learning, not investing — use only small amounts you treat as tuition.

You just checked two exchanges' licences in the ESMA register and compared them by KYC, fees, and SEPA — and picked the one that suits you. Most people never do this and just go with the first one they find.

Why DeFi Instead of a Bank?Nexo — Buying With Euros

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