Decentralised Exchanges (DEX) Explained

What you’ll learn

• •A DEX is not a company — it's smart contracts on a blockchain that let you trade directly from your own wallet.
• •Most DEXs price trades using liquidity pools and an Automated Market Maker (AMM), not an order book.
• •Benefits: you keep custody throughout, no ID is typically required, and far more tokens are listed than on a CEX.
• •Because listing is permissionless, anyone can list a scam token — there's no vetting team catching it for you.
• •DEX trades cost network gas fees and carry a steeper learning curve, with real, unforgiving room for costly mistakes.
• •Beginners generally do best starting on a reputable CEX and moving to DEXs once comfortable managing a wallet.