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Is there any API to help exchange ether or tokens online which will help in coding an exchange. For bitcoin one can generate a wallet address, is it possible to generate a wallet address for Ethereum with the help of api?

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If you want to make your own system as one of the node of ethereum platform, you can download the ethereum wallet from this link: https://www.ethereum.org/

If you want to create accounts on ethereum platform using Java, then you can use web3j.

Java 8: org.web3j core 3.2.0

If you are not that much tech savvy, then you can simply go to any exchange site which provide Ether transaction and signup.

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