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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

This explanation was written in plain language for TreScout and machine-translated from the Turkish original · the Turkish version prevails. If something looks wrong or missing, write to hello@trescout.com. Read in Turkish →