Decentralized exchanges (DEXs) are platforms that allow users to trade cryptocurrencies directly with one another without relying on a central authority or intermediary. Built on blockchain technology, DEXs use smart contracts to automate and secure transactions, offering greater privacy, control, and security.
Unlike centralized exchanges (CEXs), DEXs don’t hold user funds, which reduces the risk of hacks and custodial loss. Popular DEXs like Uniswap, SushiSwap, and PancakeSwap have enabled peer-to-peer trading, liquidity provision, and even yield farming, all while keeping users in control of their assets.
As DeFi continues to grow, DEXs play a crucial role in shaping a more open and accessible financial future.
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What Are DEXs and Why They Matter
Decentralized exchanges (DEXs) are platforms that allow users to trade cryptocurrencies directly with one another without relying on a central authority or intermediary. Built on blockchain technology, DEXs use smart contracts to automate and secure transactions, offering greater privacy, control, and security.
Unlike centralized exchanges (CEXs), DEXs don’t hold user funds, which reduces the risk of hacks and custodial loss. Popular DEXs like Uniswap, SushiSwap, and PancakeSwap have enabled peer-to-peer trading, liquidity provision, and even yield farming, all while keeping users in control of their assets.
As DeFi continues to grow, DEXs play a crucial role in shaping a more open and accessible financial future.