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 is a crypto Dex and how does it work?

A DEX doesn't offer custody of users’ crypto assets. Instead, users directly hold all their assets in their own wallets at all times. The largest crypto DEXs had begun to challenge some of the largest centralized exchanges (CEXs) in terms of trading volume by late 2021, according to a report by global accountancy KPMG.

How does a decentralized crypto exchange work?

How A Decentralized Exchange Works The most defining characteristic of decentralized crypto exchanges is having no third parties involved in transactions initiated on such platforms. Instead, trades are made directly between users through an automated process — this method of exchange is called peer-to-peer, or P2P.

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.