A Decentralized Exchange (DEX) is a type of cryptocurrency exchange that operates using blockchain technology. Unlike centralized exchanges, where transactions are processed and controlled by a single entity, DEXs are decentralized and run on a network of computers.
In a DEX, users have control over their assets and can directly trade with each other without the need for intermediaries. This provides greater security and privacy, as users are not required to deposit their assets with a central authority. Instead, assets are stored in their own digital wallets and traded directly on the blockchain.
DEXs have the potential to offer a more secure and decentralized alternative to centralized exchanges. By removing the need for intermediaries, DEXs can provide greater transparency, security, and accountability. Additionally, DEXs can offer greater accessibility and lower barriers to entry, as users can trade from anywhere in the world with an internet connection.