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A peer-to-peer exchange that allows buyers and sellers to trade cryptocurrency directly with each other, without the need for an intermediary.

This is the opposite of a centralized exchange (CEX) which requires an intermediary to handle the crypto assets for the users.

The advantage of DEX’s are:

  • Anonymous, no KYC and AML needed.
  • A variety of tokens available
  • Often easy swaps from any token into another token, in addition to fixed pairs, thanks to the AMM.
  • Your tokens are in your wallet

Typical drawbacks of DEX’s are:

  • High slippage due to low liquidity
  • Anyone can add tokens and pairs, including scams and rugpulls (see rug).
  • Higher DEX fees and, in the case of ETH mainnet, high gas fees, especially in busy times.
  • It takes longer for transactions to confirm and they might fail if the exchange rate changes.
Decentralised Exchanges

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