Decentralized exchanges, also known as DEXs, are peer-to-peer marketplaces where cryptocurrency traders make transactions directly without h
What are Decentralized Exchanges?
Decentralized exchanges (DEXs) are platforms that use smart contracts to facilitate peer-to-peer trading without the need for a central authority. Instead of relying on intermediaries, users trade directly from their own wallets, maintaining full control of their funds. However, this also means they're responsible for any mistakes—like losing private keys or sending assets to the wrong address.
In contrast, centralized exchanges (CEXs) are operated by companies that manage user funds and oversee transactions. Similar to traditional banks, they offer added security, user-friendly interfaces, and sometimes even insurance on deposits. Because of these conveniences and their regulatory compliance, centralized exchanges handle the majority of crypto trading volume.
While CEXs prioritize ease and security, DEXs offer greater privacy and autonomy, giving users more control—along with more responsibility.