DEX means decentralized exchange. Instead of transferring assets to a company-administered account, you connect a wallet and authorize the actions needed to interact with exchange contracts or infrastructure on a blockchain network.
What makes it different
- The operation starts from a wallet you control.
- There is no equivalent custodial CEX account balance.
- Settlement and its result are recorded on the network.
- You review and sign approvals or transactions.
- You must retain wallet access and verify the network, token, contract, and amount.
Simple example
- Choose the token you provide and the token you want.
- The interface obtains a quote and displays operation details.
- Your wallet presents what must be approved or signed.
- The network confirms the transaction and the received asset appears in your wallet.
Self-custody
Keeping control removes the prior deposit into a DEX account, but it also makes you responsible for protecting keys and reviewing every signature.
A DEX can provide direct access and on-chain transparency, but smart contracts, liquidity, tokens, interfaces, and user error still create risks.