DEX

A DEX (decentralized exchange) is a cryptocurrency trading platform that operates without intermediaries or central control. Unlike traditional exchanges (CEX), a DEX uses smart contracts on a blockchain, allowing users to trade directly from their own wallets without depositing funds on external servers.

The main advantages of DEXs are greater privacy, security, and no need for registration. Common models include Automated Market Makers (AMM), where trading occurs through liquidity pools, and order book DEXs, which function similarly to traditional exchanges but in a decentralized manner. Downsides include often higher transaction fees and lower liquidity compared to centralized exchanges.