Definition
Decentralized Exchange. A cryptocurrency exchange that operates without a central authority, allowing users to trade directly from their wallets using smart contracts.
Why It Matters
DEXs give users full control of their funds during trading, eliminating the risks associated with centralized exchanges holding customer assets.
Example
Uniswap is a popular DEX on Ethereum where users can swap tokens directly from their MetaMask wallet without creating an account.
Related Terms
DeFi
Liquidity Pool
Smart Contract