A decentralized exchange (DEX) is a type of online exchange that operates in a blockchain network, instead of a central authority. This means that the dexs are decentralized, which
This is how a decentralized exchange works:
- User creation
: A user creates an account on the platform of their choice.
- Deposit funds :
.
- Order book
: When a user requests a request to buy or sell an asset, his application coincides with the application for another user in the order book.
- Financing markets : The liquidity group provides funds for users to exchange assets at favor prices. When a merchant wants to buy an asset, the liquidity provider provides pool funds until trade is resolved.
- Exchange rates :
Various benefits on traditional exchanges:
- Lower costs :
2.
.
Examples of popular decentralized exchanges include:
1.
2.
.
When choosing a decentralized exchange, consider factors such as:
1.
- Rates : Understand the rates associated with trade on the platform.
- Security : Verify safety measures instead to protect user assets.
- User experience : Look for an easy to use interface and rapid execution speeds.
Understanding how decentralized exchanges work, you can make decisions about what Dex is the best demand for your commercial needs.