Arken Academy

What is a Decentralized Exchange? Decentralized Exchange, or DEX meaning in the crypto market, is a marketplace for crypto traders where transactions occur peer-to-peer or between trading partners without intermediaries or financial institutions such as banks, brokers, or payment processors. This is made possible through the mathematical mechanism called Automated Market Maker (AMM), which allows the freedom for all kinds of transactions that connect people globally without any restriction. Now let’s look at how Decentralized exchange vs Centralized exchange is different. While the DeFi market is becoming a competing alternative to ordinary Centralized Exchange, DEX plays a crucial role in driving the DeFi market forward. In comparison, DEX typically offers lower servicing fees, faster processes, and a wider service area. Furthermore, traders can get access to all kinds of crypto assets on DEXs, compared to CEX, which only limits some tokens. However, in exchange, crypto traders have