--- title: "Decentralized Exchange (DEX)" url: "https://www.unknowngravity.com/en/glosario/exchange-descentralizado-dex" site: Unknown Gravity published: "2025-06-07T15:29:32+00:00" modified: "2026-07-15T10:51:28+00:00" language: en-US description: "Decentralized Exchange (DEX) is a cryptocurrency exchange platform built on a blockchain, which allows users to perform peer-to-peer (P2P) trading directly from your unguarded wallets, without the…" section: "Home > Decentralized Exchange (DEX)" --- # Decentralized Exchange (DEX) GLOSSARY · BLOCKCHAIN & WEB3 Platform for exchanging cryptocurrencies without intermediaries or central custody. WHAT IS IT? · FOR DUMMIES A **DEX** is like a cryptocurrency market where you can buy or sell without having to give your money to a company. There are no bosses or banks here: you connect your wallet, choose what you want to change and do the transaction directly with other people. Everything works with automatic rules in the blockchain, without intermediaries to control your money. WHAT IS IT? · PRO **Decentralized Exchange (DEX)** is a cryptocurrency exchange platform built on a **blockchain**, which allows users to perform **peer-to-peer (P2P) trading** directly from your **unguarded wallets**, without the need to delegate funds to a centralized entity. Unlike the **CEX (Centralized Exchanges)**, DEXs operate through **Smart Contracts** that execute operations automatically and in a transparent manner. The architecture of a DEX eliminates the risk of custody, since the assets remain in the user's possession until the exact moment of exchange. Liquidity in a DEX can be managed using different models: - **Order book on-chain/off-chain** (e.g. dYdX, 0x Protocol) - **Automated Market Makers (AMM)** such as Uniswap, Curve or Balancer, where they are used **Liquidity Pools** instead of peer-to-peer orders. DEXs offer **access without permissions**, relative anonymity (without mandatory KYC in most cases), and resistance to censorship. They are essential in the DeFi ecosystem and allow trading of ERC-20 tokens, internetwork swaps (via bridges), and even leveraged positions without the intervention of custodians. In addition, they allow open listings, making it easier for new tokens and projects to appear without bureaucratic barriers. However, using DEX also involves risks: **possible errors in smart contracts**, **low liquidity in some pairs**, **slippage in large orders**, and **lack of support in case of problems**. Despite this, its adoption is growing thanks to its decentralized nature, user privacy and its central role in the Web3 infrastructure. ## 01 / Key points - Exchange platform without intermediaries, built on smart contracts - No need to give up custody of the funds - It works through AMMs or decentralized order books - Compatible with wallets such as MetaMask, WalletConnect or Ledger - Key to the DeFi ecosystem, Web3 and emerging tokens ## 02 / Advantages - **User autonomy**: you keep full control over your funds - **Global and permissionless access**: you don't need to register or sign in - **Real decentralization**: no single points of failure or censorship - **Open listings**: any token can be freely exchanged - **DeFi integration**: swaps, staking, farming, lending and more from the same environment ## 03 / Disadvantages - **Lower liquidity compared to CEX in some pairs** - **High slippage** in large transactions or with illiquid tokens - **Dependence on smart contract security** - **Absence of customer support**: the user is responsible for their actions - **More complexity for beginners**, especially in networks and fees RELATED CONCEPTS [Centralized Exchange (CEX)](/en/glosario/exchange-centralizado-cex) [Exchange (Cryptocurrency Exchange)](/en/glosario/exchange-intercambio-de-criptomonedas) [Liquidity Pool](/en/glosario/liquidity-pool-fondo-de-liquidez) [Smart contract](/en/glosario/smart-contract) [Smart Contract](/en/glosario/smart-contract-contrato-inteligente) [Wallet](/en/glosario/wallet) [DeFi (Decentralized Finance)](/en/glosario/defi-finanzas-descentralizadas) [Token](/en/glosario/token) [CASP (Crypto-Asset Service Provider)](/en/glosario/casp-proveedor-servicios-criptoactivos) KEEP LEARNING [DeFi: What decentralized finance is and how does it work](/en/articulos/defi-que-son-como-funcionan-finanzas-descentralizadas) [Tokenomics that work: How to design an economy that doesn't collapse in 6 months](/en/articulos/tokenomics-que-funcionan-como-disenar-una-economia-que-no-se-derrumbe-en-6-meses) [Comparison of smart contracts programming languages](/en/articulos/lenguajes-programacion-smart-contracts) [What Do Blockchain Developers Do?](/en/articulos/que-hacen-los-desarrolladores-blockchain) [How to convert Web2 users to Web3 without them running](/en/articulos/como-convertir-usuarios-web2-en-web3-sin-que-salgan-corriendo) RELATED SERVICES [DeFi protocols](/en/servicios/protocolos-defi) [Development of smart contracts](/en/servicios/company-development-smart-contracts) [Token development](/en/servicios/desarrollo-de-tokens) [Web3 Development](/en/servicios/desarrollo-web3) [Blockchain consulting for companies](/en/servicios/consultoria-blockchain) [Full glossary](/en/glosario) This entry is informative. It is not legal, tax or investment advice. The rules cited change: check the current version on [BOE](https://www.boe.es) and [EUR-Lex](https://eur-lex.europa.eu).