Crypto exchanges are the online marketplaces where people can convert traditional money into Bitcoin, Ether, and other digital currencies. Like traditional banks, they allow customers to set up accounts, store funds, and make payments. Unlike bank deposits, crypto funds are not federally insured.

Proponents of crypto emphasize that digital currency is easier to monitor than traditional currency because transactions are recorded on a blockchain. However, complex transactions can pass through anonymous digital wallets. And software exists to allow users to switch between cryptocurrencies without identity checks.