What is a DEX?

Decentralized exchanges, or DEXs, are peer-to-peer marketplaces where cryptocurrency trades occur directly between traders. A major advantage of DEXs is that they help fulfill one of cryptocurrency’s core possibilities: fostering financial transactions that aren’t officiated by third parties.

By interacting with the smart contracts that power the trading platform, decentralized exchanges enable users to conduct transactions directly from their wallets. Traders are in charge of protecting their funds and are accountable for their loss if they commit errors like misplacing their private keys or transmitting funds to the wrong addresses.