A DEX (Decentralized Exchange) is a platform that allows users to trade crypto directly, providing secure and efficient decentralized crypto transactions. Discover the best DEX options for seamless trading.
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Questions & Answers
What is a decentralized exchange
A decentralized exchange (DEX) is a platform that allows users to trade cryptocurrencies without intermediaries. It operates using smart contracts on blockchain networks like Ethereum and BNB Chain.
How does a DEX work?
DEXs use automated market makers (AMMs) or order book models to facilitate peer-to-peer trading. Liquidity is provided by users who deposit funds into liquidity pools.
What is the difference between a DEX and a CEX?
A DEX is non-custodial, meaning users control their funds, while a centralized exchange (CEX) holds users’ assets. DEXs offer more privacy but may have lower liquidity than CEXs.
Are DEXs safe to use?
DEXs eliminate third-party risks but can still be vulnerable to smart contract bugs and liquidity issues. Always verify the platform’s security and avoid unknown projects.
What are the most popular DEXs?
They can be, but always use trusted platforms, secure your wallet, and be cautious of scams.