What is DEX?
Decentralized exchange is an exchange market where transactions happen from peer-to-peer on the blockchain without any third party intermediaries such as brokers, banks, institutions or any central organization. The transaction on DEX is between one cryptocurrency to another cryptocurrency, for instance, from ETH to Bitcoin or vice versa. Unlike, the centralized exchange (CEX) where one can trade from fiat currency to cryptocurrency (such as trading USD to Bitcoin) and vice versa. DEX transactions are more safe and secure because it operates on the blockchain. DEX has several advantages: First, it maintains security and privacy of the individuals trading on the exchange. Anonymity is the biggest benefit that attracts investors all across the world and earns trust of the DEX concept and system. It does not require any personal information or documentation of the users for registration unlike CEX. Second, DEX is relatively less vulnerable to hacking. DEX funds are stored in traders’ wallet unlike a ‘honeypot’ in the exchange or third party’s custody offering an attractive target for hacking. Your funds are in your control. Third, many exchanges are under the control of governments for instance Coinbase operates under U.S. government regulations and have the provisions to deny users their service. DEX on the other hand, does not require any regulations from any government. The known DEX examples available are UNISWAP, SUSHISWAP, Ox Protocol, and PANCAKESWAP etc. The UNISWAP charges is one of the largest DEX built of Ethereum blockchain. The fees are different on every DEX, for instance, UNISWAP charges (UNI 3.05%), pancake swap charges (cake), sushiswap charges
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