Exchange

An exchange is a platform where crypto is bought, sold and swapped, and where crypto is often converted into ordinary money. Many exchanges ask users to identify themselves. As a result, an exchange is often an important point in a route, without that in itself saying anything about the nature of a transaction.

What it may indicate

A transaction that ends at an exchange can be a lead, because data are more often known there. That need not mean anything; most exchange transactions are everyday activity. What a specific movement means only emerges from further investigation.

A followed flow of funds ends at an exchange where the balance may have been converted. Such an endpoint can give direction to follow up questions, but in itself it says nothing yet about exactly what happened.

What is a crypto exchange?

A platform where crypto is bought, sold and swapped, and often converted into ordinary money.

Why does an exchange matter when tracing?

Because exchanges often hold user data and are a point where crypto leaves the chain, an exchange can be a useful lead. What a movement means still emerges only from further investigation.