Cryptocurrency Q&A
How does a crypto Dex work?
How does a crypto Dex work?
EthereumEmpress
Mon Jul 15 2024
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6 answers
1300
Could you please elaborate on how a crypto decentralized exchange, commonly referred to as a "Dex," operates? I'm particularly interested in understanding the underlying principles and mechanisms that facilitate trading without the involvement of traditional intermediaries. Does it utilize smart contracts or any other specialized technology? Also, how does it ensure the security and privacy of transactions while maintaining liquidity? I'd appreciate a concise yet comprehensive explanation of its functionality and the benefits it offers over traditional exchanges.
6 answers
Dario
Wed Jul 17 2024
Contrary to centralized exchanges (CEXs), where the platform typically holds users' crypto assets, DEXs do not provide custody services.
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CryptoLegend
Wed Jul 17 2024
Instead, users maintain complete control of their digital assets, storing them securely in their own wallets at all times.
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DigitalLordGuard
Wed Jul 17 2024
This self-custody model ensures users retain ultimate ownership and responsibility for their crypto holdings.
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Valentina
Wed Jul 17 2024
The growth of DEXs has been remarkable, with some of the largest platforms beginning to rival the trading volumes of traditional CEXs.
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Carlo
Wed Jul 17 2024
In the realm of cryptocurrency exchanges, decentralized exchanges (DEXs) operate with a distinct approach to asset custody.
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