What is a decentralized exchange?

A decentralized exchange (DEX) is a blockchain-based trading platform that allows users to trade cryptocurrencies and digital assets without using a centralized third-party. DEXs are not owned or operated by any single entity and they often provide better security and privacy compared to centralized exchanges as they don’t require users to reveal their identities to trade. Additionally, DEXs are more resistant to hacking attacks due to their decentralized nature.