DEX
A decentralized exchange: a crypto marketplace running from user wallets via smart contracts — no deposit, no signup, no counterparty you must trust.
A DEX (decentralized exchange) lets users trade directly from their wallets through automated smart contracts. Instead of a company’s order book, DEXs usually use automated market makers (AMMs) — pools that always price both assets and let anyone trade at the current rate.
Why DEXs are the DeFi backbone
No signup, no withdrawal freeze, no custody of your coins. Your wallet signs each trade. Anyone can list a token, and liquidity providers earn fees by staking both sides of a pool.
Trade-offs
You pay for the censorship resistance with slippage on large orders, permanent-loss risk for providers, and less support if things go wrong. DEX volume is a key signal of on-chain activity.
Related terms
DeFi, Liquidity, Smart Contract, Wallet, Exchange