How do decentralized exchanges work?

[kezimo]

If it involves real money there will be legal stuff involved, so how could you do a decentralized exchange?

[1714777474]

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[1714777474]

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[atrocityx]

If it involves real money there will be legal stuff involved, so how could you do a decentralized exchange?

https://medium.com/@theblocknetchannel/understanding-a-decentralized-exchange-eee9e1043f45  heres an article I had bookmarked, hopefully it'll give a good breakdown.. to answer your question specifically though you'd likely have to have an entry point like a purchase of BTC/ETH/whatever pair before going to the exchange, since for an exchange to be decentralized, it would require trading directly from a wallet, and wallets don't support USD/whatever currency.

[Ciremik]

FYI, some decentralized exchanges like bisq requires users to deposit escrow and it would be held until transaction completes and both parties agrees.

[HabBear]

If it involves real money there will be legal stuff involved, so how could you do a decentralized exchange?

There's no such thing as a decentralized exchange. The point of an exchange is that it creates a marketplace for people to (literally) exchange different things. This requires that these prospective buyers and sellers congregate in the same place to conduct the transaction. Exchanges are always centralized.

And yeah, there's legal stuff involved. That's what makes it real, everything else is make believe.

[UltimaTradr]

It's better to use Paxful.com than any other exchange