What is Decentralized Exchange (DEX)?

A decentralized exchange (DEX) is a financial services platform for buying, trading, and selling digital assets. On a DEX, users transact directly on the blockchain in a peer-to-peer (P2P) fashion without the need for a centralized intermediary. DEXs do not serve as custodians of users' funds, and are often democratically managed with a decentralized governance structure. Without a central authority charging transaction fees for services, DEXs may be cheaper than their centralized crypto exchange counterparts.