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.

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.

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.