Decentralized Exchanges (DEX)

Decentralized exchanges (DEXs) are cryptocurrency trading platforms that allow users to trade assets directly with one another without relying on a central authority. DEXs operate on blockchain technology, using smart contracts to facilitate trades, which removes the need for intermediaries like centralized exchanges. Because they are non-custodial, users retain full control over their funds, reducing the risks associated with hacking and third-party control. DEXs typically offer greater privacy, as they don't require personal identification, and they provide more security since users hold their own private keys.

Example

Uniswap, a popular DEX on the Ethereum network, allows users to swap ERC-20 tokens directly from their wallets.