What is a Dex and how does it work?

Unlike centralized exchanges (CEXs), DEXs do not require a trusted third party, or intermediary, to facilitate the exchange of cryptoassets. A core tenet of crypto is the disintermediation of finance, because it increases the economic freedom of individuals everywhere in the world no matter who they may be.

What is a decentralized exchange (DEX)?

A decentralized exchange (or DEX) is a peer-to-peer marketplace where transactions occur directly between crypto traders. DEXs fulfill one of crypto’s core possibilities: fostering financial transactions that aren’t officiated by banks, brokers, or any other intermediary. Many popular DEXs, like Uniswap and Sushiwap, run on the Ethereum blockchain.

What are the benefits of trading on a Dex?

Trading on a DEX comes with many benefits that make it attractive to cryptocurrency users. Most importantly, DEXs disintermediate the exchange ecosystem, removing middlemen and allowing free, direct trade between parties.

What are the different types of Dex?

There are various types of DEXs, that can be divided in these categories: In a DEX that uses on-chain order books, there are network nodes that are assigned to maintain the record of all orders. It also requires the operation of miners to confirm each transaction.