A decentralized exchange (DEX) is a digital platform that enables users to trade cryptocurrencies directly with one another, without relying on a central authority or intermediary. DEXs operate using smart contracts and blockchain technology, allowing for peer-to-peer transactions that enhance privacy and security. Unlike centralized exchanges, DEXs do not hold users’ funds, reducing the risk of hacks or theft. Users maintain control of their private keys and assets throughout the trading process. While DEXs offer greater transparency and censorship resistance, they may have lower trading volumes and fewer features compared to centralized exchanges. Popular DEXs include Uniswap, SushiSwap, and PancakeSwap.