A decentralized exchange or DEX is a place where people swap crypto without a company in control. It is not same like normal exchange where one firm hold everything. This is automatic system. On a DEX there is no middle man. People trade direct with each other by blockchain system. The trade run by smart contracts. This make the platform safe and open. Everyone can check the rules, and nobody can hide change. DEX do not keep user funds. Users always control their wallet. They only connect when they want trade. This lower chance of hack or stealing. It also mean user no need to trust one company.
Most DEX are on Ethereum, Binance chain. Solana; Sunswap, Sunpump meme etc on Tron are some examples. They allow many token to trade. Anyone who have wallet and net can join. They are global and open for all. They not ask ID or long check. This is why many people in poor bank area like them. They give user free way to buy and sell crypto from any place. It works fine. Smart contract match buyer and seller. In some DEX, people deal peer to peer. In others, they use liquidity pool. Pool are token locked inside smart contract. People put token there and earn fee. Trader then swap one token with other by pool. This system is fast and auto. That’s why people like it and accepting it more and more. Price set by formula not by company. Formula is simple and I shall discuss it in another day. This stop market cheat and make more fair. DEX are also cheap because they not need office or staff. They just run by network. But DEX also have issues. They are not always easy for beginner. Fee can go high when network full. Smart contract also may have bug. Still, benefit is strong. User keep control and get privacy. They can trade global with safety from any part of the World
