What is a Dex (decentralized cryptocurrency exchange)?

DEX stands for decentralized cryptocurrency exchange. A self-custody crypto wallet is required to trade on a DEX. DEXs are most popular on the Ethereum network. Bitcoin (BTC) has limited DEX options as the chain doesn't support smart contracts. DEXs offer more trading pairs and lower fees than most exchanges.

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.

Can you add a cryptoasset to a Dex?

Because anyone can add a cryptoasset to a DEX, scams are ever present. Any legitimate project will spawn dozens of scam projects with the same name or slightly different names to try and trick you into swapping your cryptoassets.

How do cryptocurrency exchanges work?

These rates vary according to which exchange you are buying and or selling from. A user or trader will either hold cryptocurrency - some exchanges don’t allow the use of fiat currencies - or buy currency directly from the exchange to begin trading. In both instances, the user will need to have a wallet.