A Decentralized Exchange (DEX) is a cryptocurrency exchange platform that operates on a decentralized network.
A DEX enables users to trade cryptocurrencies directly with each other, without the need for intermediaries such as centralized exchanges. This provides a more secure and transparent platform for trading, as users have full control over their funds and transactions. In a decentralized exchange, transactions are processed through a blockchain network, ensuring that they are recorded in a secure and transparent manner. This eliminates the risk of centralized servers being hacked, which is a common concern with centralized exchanges. Additionally, users have full control over their private keys, ensuring that their funds are always secure. Another advantage of DEXs is that they are not subject to government regulations, making it easier for users to trade cryptocurrencies without the fear of censorship or restrictions.