🔁 “What is DEX?” Understand it as an automatic cryptocurrency market, without a seller at the counter!
Have you ever been to a market or an e-commerce platform (Shopee, Tiki…) to trade goods, right?
On the blockchain, if you want to exchange cryptocurrencies, you will need a special “market” called DEX, short for Decentralized Exchange, which is a decentralized trading platform.
💡 Simply put:
DEX is a place:
Where you can swap tokens instantly.
No registration, KYC, or paperwork like centralized exchanges (CEX).
Trades are automated through smart contracts with no one in control.
🧩 Examples of prominent DEXs:
Uniswap, PancakeSwap, SushiSwap, Curve, etc.
Running on blockchains like Ethereum, BNB Chain, Polygon...
🔧 How it works:
DEX uses the AMM (Automated Market Maker) mechanism instead of a “seller” quoting prices; the system automatically prices based on the ratio of tokens in the “pool.”
Users can contribute tokens to the pool to earn transaction fees (called liquidity providing).
⚠️ But also be aware:
No one holds your money = you must protect your wallet and private key yourself.
It’s easy to encounter junk tokens, scams, and sending transactions to the wrong address means… losing everything.
High slippage if liquidity is low.
✅ In summary:
DEX is an automatic cryptocurrency trading platform, without intermediaries where you can swap tokens directly on the blockchain, safely and anonymously, but you must take 100% responsibility for yourself.
