What is a Decentralized Exchange (DEX)?

A decentralized exchange (DEX) is a type of cryptocurrency exchange that facilitates trustless trading through the implementation of smart contracts. Without a central authority, DEXs allow for direct peer-to-peer transactions that are secured by the blockchain and recorded transparently on the public ledger. Another benefit is that many decentralized exchanges work with non-custodials wallets, so users are always in full control of their private keys and crypto assets.