A decentralised exchange (DEX) is an increasingly popular method to trade cryptocurrencies. Unlike a traditional or centralised exchange (CEX), a DEX does not have a company or intermediary settling trades between buyers and sellers. Instead, a DEX uses software and coding to automatically match buyers and sellers and finalise the peer-to-peer (p2p) exchange transaction.
At least $18 billion worth of digital assets changed hands every day in the crypto market in May 2022 (TheBlockCrypto), a number that has crept higher over the years as more people and institutions buy and sell coins over crypto exchanges.
More than a fifth of that volume or about $4 billion, according to the same source, took place across decentralised exchanges, known in the crypto industry as DEXs.
In this article, you will learn:
- What the modern decentralised exchange (DEX) looks like and how it works
- A brief history of decentralised exchanges (DEXs) and the different types of DEXs that exist as a result
- How a DEX differs from a CEX
- Some of the best DEXs and how to use them
- Why DEXs are important
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