A cryptocurrency exchange or a digital currency exchange (DCE) is a business that allows customers to trade cryptocurrencies or digital currencies for other assets, such as conventional fiat money or other digital currencies. They can be market makers that typically take the bid-ask spreads as transaction commissions for their services or simply charge fees as a matching platform.
Proof of Reserves is a good way for crypto exchanges to show their clients and regulatory authorities that they have enough funds to cover all their liabilities and operate transparently and honestly.
