# What is DEX?

> Decentralized Exchange

These are platforms where users can trade their digital assets directly with each other without an intermediary institution or bank.

## Overview
Unlike traditional exchanges, you do not entrust your money to a company on decentralized exchanges. Transactions take place on the blockchain through automated rules called smart contracts. This way, you retain full control, and no one can freeze your account.

*Analogy: It is similar to two people meeting on the street and trading products directly with each other instead of going to a bank branch.*

## How it works
You connect your digital wallet to the platform, select the assets you want to trade, and confirm the transaction to execute the swap.

## Where it is used
It is used in the trading of crypto assets and the world of decentralized finance (DeFi).

## Commonly confused with
It should not be confused with centralized exchanges (CEX); on centralized exchanges, your assets are under the company's control.

## Frequently asked questions
**Is it necessary to sign up to use a DEX?**
No, you only need to connect a digital wallet; no identity information is required.

**Is a DEX safe?**
Since there is no intermediary, you have control over your assets, but one should be cautious against smart contract vulnerabilities.


## Related terms
- [Smart Contracts](/en/dictionary/smart-contracts/)
- [dApps](/en/dictionary/dapps/)
- [Digital Privacy](/en/dictionary/digital-privacy/)

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Source: TreScout Dictionary · https://trescout.com/en/dictionary/dex/