A Decentralized exchange or
DEX is a type of a pair matching that allows users to trade cryptocurrencies and place orders.
It’s without an intermediary institution controlling their funds or managing the ledger. Crypto excites people because it is a way to trade value directly. Blockchain allows strangers to trust each other without the need for a central institution.
It is an amazing technology with the potential to change the way we think about trade and structure our economy.
Ironically, you have to use a real currency i.e. euros, dollars, yens or any other to enter the crypto ecosystem. This entry is usually done through a number of centralized exchanges like Coinbase or Kraken. To enter a decentralized ecosystem, you have to trust a centralized institution. It manages your accounts, takes your information and is vulnerable to hacks and slowdowns.
In this article, we elaborated on the basic components of a DEX, looked at the benefits of what can a DEX bring to its users and explained the current situation with Decentralized Exchanges. Also, we show the most popular ERC20 token DEXs' and try to look at some of the major technical problems of a DEX.
Please have a read and share your experience or piece of advice with decentralized exchanges:
https://bestcoininvestments.com/what-is-a-dex-decentralized-exchange/Thank you!
