#CEXvsDEX101

A DEX (Decentralized Exchange) is a cryptocurrency exchange that operates without a centralized intermediary, allowing users to trade directly with each other. Unlike centralized exchanges, DEXs do not require users to provide personal data, and transaction management is carried out through smart contracts on the blockchain.

Features of a DEX:

Decentralization:

There is no central entity controlling the exchange, which reduces the risk of manipulation and censorship.

Peer-to-Peer:

Transactions are made directly between users, without the intervention of an intermediary.

Smart Contracts:

Exchanges are managed through smart contracts, which are programs that run automatically on the blockchain.

No KYC:

Users are not required to provide personal data to trade, which provides more privacy.

Liquidity:

DEXs often rely on liquidity provided by users, who can earn rewards for it.