#CEXvsDEX101 A Decentralized Exchange (DEX) facilitates direct, peer-to-peer cryptocurrency trading without a central intermediary. Unlike centralized exchanges, users retain full control of their funds in their own crypto wallets, enhancing security and privacy. DEXs operate via smart contracts on blockchains, automating trades. This eliminates the need for KYC checks and reduces counterparty risk. Examples like Uniswap and SushiSwap use liquidity pools. While primarily crypto-to-crypto, DEXs embody the decentralized ethos of digital assets, offering transparent and permissionless financial transactions.