DEX (Decentralized Exchange)

A Decentralized Exchange (DEX) is a platform for cryptocurrency trading that operates without a central authority or intermediary. Users can trade directly with each other, enabling peer-to-peer transactions. DEXs allow users to retain control of their funds and execute trades in a secure and private manner.

Unlike centralized exchanges, which rely on a third party to hold users’ funds and facilitate trades, DEXs use smart contracts to automate the matching and execution of trades. This eliminates the need for users to deposit their funds onto the exchange, reducing the risk of hacking or theft.

DEXs are considered more secure and transparent than centralized exchanges, as they minimize the risk of funds being lost or stolen. Additionally, DEXs promote decentralization and financial sovereignty by giving users full control over their assets.

Overall, DEXs offer a decentralized, secure, and transparent way to trade cryptocurrencies without relying on intermediaries.