Glossary - ChicksX

Decentralized Exchange (DEX) is a platform that allows direct cryptocurrency trading between users without intermediaries, enhancing security and privacy.

Decentralized Exchange (DEX) is a cryptocurrency trading platform that operates without a central authority. Users trade directly with each other using automated smart contracts on the blockchain. This eliminates the need for intermediaries, reducing the risk of hacking or fraud typically associated with centralized exchanges. DEX platforms offer greater privacy since users maintain control of their private keys and personal information. Liquidity is often provided by user-generated pools, rather than a central order book. While DEXs offer enhanced security and transparency, they may face challenges like lower liquidity and more complex user interfaces compared to centralized exchanges.