# What is DEXs?

> Decentralized Exchanges

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

## Overview
On traditional exchanges, you conduct your transactions through a company's servers. DEXs remove this company from the equation and execute transactions directly via smart contracts on the blockchain. This ensures that you always retain control of your assets.

*Analogy: While a traditional exchange is like waiting in line at a bank branch to exchange currency, DEXs are like two people shaking hands on the street to trade directly.*

## How it works
You connect your digital wallet to the platform, select the asset you want to trade, and once the transaction is confirmed, the trade occurs automatically.

## Where it is used
They are used in cryptocurrency markets, decentralized finance (DeFi) projects, and transactions where users prioritize privacy.

## Commonly confused with
They can be confused with centralized exchanges (CEX).

## Frequently asked questions
**Do I need to trust someone when using DEXs?**
No, you do not need to trust a person, but rather the code itself (smart contracts).

**Do I pay a transaction fee?**
Yes, there are transaction fees (gas fees) paid to miners or validators on the network.


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

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