Edges of two-dimensional (2D) halide perovskites are found to exhibit unusual properties such as enhanced photoluminescence lifetime and reduced photoluminescence emission energy. Here, we report the formation mechanism and the dynamic nature of edge states on exfoliated 2D halide perovskite thin crystals. In contrast to other 2D materials, the edge states in 2D perovskites are extrinsic and can be triggered by moisture with a concentration as low as ∼0.5 ppm. High-resolution atomic force microscopy and transmission electron microscopy characterizations reveal the width of the low-energy states is ∼40 nm wide. A temperature-dependent photoluminescence study suggests the edge states are a combination of several lower-energy states. Importantly, we demonstrate that the charge carriers on the dynamically formed edge states are not only long-lived but also highly mobile and can be conducted along the edges effectively with high mobilities of 5.4–7.0 cm² V^–1 s^–1. This work provides significant insights on the origin of the edge states in 2D perovskites and provides routes to manipulate their optical and electrical properties through controlling their edges.