Decentralized exchanges are a staple of the on-chain crypto experience and one of decentralized finance’s first major use cases. DEXes have come a long way since Uniswap opened its first liquidity pools on the Ethereum (ETH) blockchain. Still, the lawless world of DeFi continues to confuse and discourage newcomers from dipping their toes in often-troubled waters.
With growing fears around crypto exchanges following the collapse of Sam Bankman Fried’s FTX disaster, self-custody and DeFi trading seem like a simple solution. For people looking to trade crypto assets without using centralized exchanges like Coinbase or Binance, a DEX provides everything they could need.
What exactly is a decentralized exchange, and how do they work? Why would I trade digital assets on a mysterious DEX instead of a trusted CEX?
Most importantly, are decentralized exchanges safe?
What is a Decentralized Exchange?
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