A DEX, or decentralized exchange, allows users to trade cryptocurrencies without relying on a central authority or intermediary. This peer-to-peer model enables users to connect directly and handle transactions on their own. DEX platforms operate on blockchain technology, ensuring transparency and security. Users retain control of their private keys, reducing the risk of hacks or malicious activities often associated with centralized exchanges. Trading on a DEX typically involves using smart contracts, which automate the transaction process and eliminate the need for trust in a third party. This decentralization also promotes greater privacy, as users can trade without providing personal information. While DEXs offer advantages like lower fees and increased accessibility, they can also come with drawbacks, such as lower liquidity and more complex user interfaces compared to centralized platforms. Overall, decentralized exchanges represent a shift toward a more open and user-controlled trading environment.