DEX stands for Decentralized Exchange. It’s a type of cryptocurrency exchange that operates without the need for an intermediary authority that conducts transactions.
In contrast to centralized exchanges (CEXs), which operate much like traditional stock exchanges, DEXs allow for direct peer-to-peer cryptocurrency transactions to take place online securely and without the need for an intermediary. The transactions on a DEX are facilitated through smart contracts and automated processes.
DEXs offer several benefits, such as increased privacy and control over one’s funds, reduced reliance on third parties, and often lower transaction fees. However, they may also have downsides, such as lower liquidity and trade volume, slower transaction speeds, and a more complex user interface. They are an essential part of the DeFi (decentralized finance) ecosystem.
Example of DEXs:
Ethereum Blockchain: UniSwap, Sushiswap
Binance Smart Chain Blockchain: PancakeSwap, BakerySwap
Donate with Cryptocurrency!