Get Tangem

What is а DEX?


A decentralized exchange (DEX) is a service using  smart contracts for executing crypto transactions. Unlike centralized exchanges (CEX), DEXs do not store customer cryptocurrency and do not perform customer verification (KYC procedure).

DEXs are useful for exchanging tokens, while most DEXs exchange tokens within the same network. Not so many DEXs provide exchanges between different networks. It is worth noticing that DEXs don't allow for exchanges between fiat and crypto. If you want to buy bitcoins for dollars, you would need a centralized exchange.

To put it simply: there are centralized (CEX) and decentralized (DEX) exchanges for exchange and other operations with crypto. To work with CEXs, you need to have a service custodial wallet and to pass identity verification. You don’t need all of this for DEXs, but DEXs do not exchange crypto for fiat.

Requires a CEX wallet for tradingIntegrates with your wallet
Collects and processes clients personal dataDoesn’t collect and process clients personal data
Provides all kinds of tradesDoesn’t provide fiat trade
Can block a transaction or a client accountCan’t block a transaction or a client account
Operates non-transparently, can manipulate the marketOperates transparently using smart contracts
Requires skills to work withEasy to use
Offers different complicated trading tools: margin trading, different types of orders, order books. Some CEXs offer crypto depositsDon’t have complicated trading tools. Provides staking and farming
Completes transactions very quickly within the exchange systemTransactions are made in blockchain, which slows down trading: you have to wait for transaction confirmation. Doesn’t support high-frequency trading 
Provides support service and arbitration to help in disputable situationsDoesn’t provide support service and arbitration. You are responsible for your transactions