What is DEX?

DEX (from English. decentralized exchange is a decentralized exchange that allows users to exchange cryptocurrencies without intermediaries. Unlike centralized exchanges, where all transactions pass through a single server, on DEX users interact directly with each other. This provides a higher level of security and privacy.

How does DEX work?

On DEX, users can create orders to buy or sell cryptocurrencies. When the order of another user meets the conditions of your order, the exchange takes place. For this purpose, smart contracts are used-programs that automatically fulfill the terms of the transaction.

To work with DEX, you will need a cryptocurrency wallet that supports working with the blockchain that your chosen DEX\runs on. You must also have access to the Internet.

Advantages and disadvantages of DEX

• Advantages:

High level of security. Since DEX does not have a single server, hackers cannot access all data at once.

Privacy policy. Users do not disclose their personal data when registering on DEX.

No intermediaries. Users exchange cryptocurrencies directly, which reduces user fees.

• Disadvantages:

Difficulty using. DEX can be difficult for beginners to use due to the lack of an intuitive interface.

Low liquidity. Some DEX platforms may not have enough users to exchange information quickly.

Risk of loss of funds. Due to the complexity of using DEX, they may be subject to user errors that may lead to loss of funds.

Popular DEX's

Here are some popular DEX's:

• Uniswap;

• Sushiswap;

• PancakeSwap;

• 1inch Exchange.

These DEXs support a wide range of cryptocurrencies and have a user-friendly interface. However, before using any DEX, it is recommended to study its features and risks.

It is important to remember that DEX is a new and growing segment of the cryptocurrency market. Therefore, before you start working with them, you need to carefully study their features and possible risks.