A decentralized exchange or DEX is a cryptocurrency exchange where users can buy or sell digital assets in a peer-to-peer format without the intervention of a central authority or intermediary. A DEX offers a P2P marketplace for crypto traders to conduct trades without giving up control over their private keys or ownership of crypto assets.
Decentralized exchanges are powered by smart contracts, letting buyers and sellers of cryptocurrencies interact directly. Most DEXs are non-custodial, not needing access to the private keys of their users’ crypto wallets. Crypto decentralized exchanges offer faster access as they do not have KYC norms to register and start trading, unlike centralized crypto exchanges.