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What Is a Decentralized Exchange (DEX)?

You probably know the drill with cryptocurrency exchanges. Sign up with your email, come up with a strong password, verify […]

Instructor Gergő Várhegyi
Updated May 14, 2022

About Course

You probably know the drill with cryptocurrency exchanges. Sign up with your email, come up with a strong password, verify your account, and start trading cryptocurrency.

Decentralized exchanges are like that, minus the hassle of sign-ups. In most cases, there’s no depositing or withdrawing crypto. The trade happens directly between two users’ wallets, with limited (if any!) input from a third-party.

Decentralized exchanges can be a bit trickier to get the hang of, and they might not always have the assets you want. But, as the tech and interest in it grow, these may very well become integral components in the cryptocurrency sphere.

 

Contents

Introduction
Defining decentralized exchanges
How a centralized exchange works
How a decentralized exchange works
On-chain order books
Off-chain order books
Automated Market Makers (AMM)
Pros and cons of DEXs
Pros of DEXs
Cons of DEXs
Closing thoughts

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Course Content

What Is a Decentralized Exchange (DEX)?
You probably know the drill with cryptocurrency exchanges. Sign up with your email, come up with a strong password, verify your account, and start trading cryptocurrency. Decentralized exchanges are like that, minus the hassle of sign-ups. In most cases, there’s no depositing or withdrawing crypto. The trade happens directly between two users’ wallets, with limited (if any!) input from a third-party. Decentralized exchanges can be a bit trickier to get the hang of, and they might not always have the assets you want. But, as the tech and interest in it grow, these may very well become integral components in the cryptocurrency sphere.

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What Is a Decentralized Exchange (DEX)?
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6 Lessons
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