What is a DEX (Decentralized Exchange)?. A DEX lets users trade directly from their wallets using smart contracts. There is no central custodian.
How it works
Liquidity pools or on‑chain order books quote prices. Trades settle on the blockchain, and fees go to liquidity providers or the protocol.
Why it matters
DEXs enable permissionless markets and composable financial tools.
Common pitfalls
- Fake token listings masquerading as official
- Phishing sites with similar URLs
- Granting unlimited token approvals
Quick example
You connect a wallet, select a pair, review slippage, and sign a transaction that swaps tokens on‑chain.
See also
- Liquidity Pool
- Slippage
- Gas Fee
TL;DR: What is a DEX (Decentralized Exchange)? defined in plain English with practical next steps.
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