What is a decentralized exchange (DEX)?

A decentralized exchange (DEX) has distinct advantages over centralized exchanges. However, before using a DEX for all of your cryptocurrency transactions, you should be aware of the limitations. A DEX is commonly used to purchase tokens, not coins. These tokens can only be purchased with native currencies of blockchains, like Ethereum.

What is a Dex & how do I use it?

A DEX is commonly used to purchase tokens, not coins. These tokens can only be purchased with native currencies of blockchains, like Ethereum. Centralized exchanges, like Coinbase or Gemini, are usually used to purchase cryptocurrencies with cash. Only some of the most popular tokens may be listed on centralized exchanges.

What are the advantages of a Dex exchange?

Which leads us to the third big advantage — privacy. Unlike centralized exchanges, a DEX doesn’t necessarily require the user to go through the know your customer (KYC) process, meaning you do not hand over your documents to any one entity, and thereby risk giving access to others if that entity is hacked.

What is a cross-chain Dex (Dex)?

The common theme among them is that orders are executed on-chain (with smart contracts) and that users do not sacrifice custody of their funds at any point. Some work has been done on cross-chain DEXs, but the most popular ones revolve around assets on a single blockchain (such as Ethereum or Binance Chain ).