Glossary

Decentralized exchanges, or DEXs, are platforms which enable peer-to-peer transactions of cryptocurrencies to occur without the need for brokers.

A decentralized exchange (DEX) is a digital marketplace that allows direct trading of 

 without having to trust a third party in order to swap tokens. DEXs offer many advantages, such as reduced transaction fees, more autonomy over one’s holdings, and less red tape around exchanges and transactions. Using a decentralized exchange can also mean faster liquidity of funds and fewer regulations. This makes the DEX the choice trading tool for more experienced crypto investors.

What’s the Difference Between CEX and DEX?

, enabling investors to execute trades without a mediator. That’s how they’re able to keep their fees so low — there’s no middleman taking a cut from each trade. Seasoned traders better experienced at navigating choppy waters are better suited to using a DEX.

Centralized exchanges are run by a financial organization, such as a bank, that gives the exchange its legitimacy and oversees all trades. They charge a percentage of the amounts exchanged during any trade as a fee for the provided services. Centralized exchanges usually have to adhere to more rigid regulations. They’re the easier and safer choice for beginning traders who are learning the ropes.

DEXs work by allowing direct transactions and reducing regulatory rules around them. Like all trading platforms, they have both pros and cons. To find out more, read 

. In the meantime, here's a quick summary.

DEXs have come a long way since their inception. Here are the top two exchanges trending today:

 is powered by smart contracts on Ethereum. It offers the benefits of a decentralized exchange, along with the speed and ease of use of a centralized exchange.

An exchange offering its members trading options without any fees or platform charges, 

 is a self-proclaimed public welfare exchange working as a tool for fast and easy transactions.

Decentralized Exchange (DEX)

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