The architecture of a crypto exchange typically includes the following key elements: User Interface (UI): The front-end component that enables users to interact with the exchange platform. It provides functionalities for registration, account management, trading, depositing, and withdrawing cryptocurrencies. Order Matching Engine: The core component responsible for matching buy and sell orders placed by users. It matches the bid and ask prices, executes trades, and maintains an order book that reflects the current market depth. Wallet System: The secure storage and management system for users' digital assets. It includes hot wallets (online wallets connected to the internet) and cold wallets (offline wallets for enhanced security). The wallet system handles depositing and withdrawing cryptocurrencies. Trading Engine: The component that executes trades based on the order matching results. It calculates the fees, verifies the availability of funds, updates user balances, and records transaction history. Liquidity Management: The system that ensures there is sufficient liquidity on the exchange to facilitate trading. It may involve establishing partnerships with liquidity providers or implementing market-making algorithms.