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What Is a Decentralized Exchange (DEX)?

By Rachel Warren – May 21, 2025 at 2:19PM | Fact-checked by Frank Bass

Key Points

  • DEXs allow direct asset trades via smart contracts, eliminating central intermediaries.
  • Users contribute to liquidity pools on DEXs, earning from transaction fees.
  • Decentralized exchanges offer control over assets but require knowledge of their complexity.
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