What Are Decentralized Exchanges (DEXs) and How Do They Work?Trade crypto without a middleman

Cryptocurrency trading is evolving fast—and Decentralized Exchanges (DEXs) are leading the change. Unlike traditional exchanges, DEXs let users trade directly from their wallets without giving control to a centralized entity.

Let’s dive into what makes DEXs unique and how they work.

What Is a Decentralized Exchange (DEX)?

A DEX is a peer-to-peer platform that allows crypto traders to swap digital assets without needing a central authority like Binance or Coinbase. Instead, trades are executed using smart contracts on blockchain networks.

Popular DEXs include:

• Uniswap (Ethereum-based)
• PancakeSwap (BNB Chain-based)
• SushiSwap
• Curve Finance

How Do DEXs Work?

1. Smart Contracts
   All trades are handled by blockchain-based code, ensuring automation and trustlessness.
2. Liquidity Pools
   Users deposit tokens into pools, allowing others to trade from these pools. In return, depositors earn a portion of the trading fees.
3. Wallet Connection
   Traders connect their crypto wallets (like MetaMask or Trust Wallet) to the DEX interface to execute trades.
4. No Custody
   Your assets remain in your control—DEXs never take custody of your funds.

Benefits of Using DEXs

• Privacy: No need to create an account or verify identity.
• Security: Funds are not stored on centralized servers, reducing hacking risks.
• Control: You remain in charge of your crypto at all times.
• Token Access: Access to new or low-market-cap tokens not listed on centralized platforms.

Challenges of DEXs

• User Experience: Might be complex for beginners.
• Transaction Fees: Especially high on networks like Ethereum during congestion.
• Slippage: Price difference between expected and actual trade due to low liquidity.

Steps to Use a DEX

1. Download and install a wallet (e.g., MetaMask).
2. Fund it with crypto (e.g., ETH for Ethereum-based tokens).
3. Visit a DEX like Uniswap.org.
4. Connect your wallet.
5. Select tokens to trade and execute the swap.

Relax and Recharge with Flutter Bees

Exploring DEXs can be exciting—but a bit overwhelming too. Take a break with the Flutter Bees

• Tap your way to calm in the Clicker Game
• Defend your hive in the Bee Hive Defense Game
• Watching gameplay earns you points and helps complete tasks