Decentralised Exchange (DEX)

What Is a Decentralised Exchange (DEX)?

Decentralised exchanges (DEXs) act as an alternative to centralised exchanges (CEXs); they are non-custodial and allow users to operate anonymously. Cryptocurrency trades are typically handled by the user and their cryptocurrency wallet.

As decentralisation is an important part of cryptocurrency and the Web3 movement, main exchange methods are moving towards a more decentralised nature, as it enhances one’s security and anonymity. DEXs also offer different tokens that centralised exchanges typically may not, as anyone can list a token on a DEX. On the other hand, centralised exchanges have a more rigorous screening process.

There are many examples of DEXs, such as Uniswap, Spookyswap, QuickSwap, and JOE.

Key Takeaway

A decentralised exchange (DEX) is a cryptocurrency exchange not handled in a centralised manner, as it acts in a non-custodial and anonymous way to swap cryptocurrencies.

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