What Are Decentralized Exchanges?

To put it simply, decentralized exchanges (DEXs) enable users to buy and sell cryptocurrencies with one another without the need for brokers. Users merely need to connect their crypto wallet to a DEX, such as Uniswap (CRYPTO: UNI) or PancakeSwap (CRYPTO: CAKE), select their crypto-crypto trading pair of choice, such as between Bitcoin and Ethereum, enter the amount, and hit the swap button. There are a lot more coins and tokens available on these exchanges, making them ideal for the adventurous investor.

Programming code that enables applications to self-execute agreements, otherwise known as a smart contract, automatically ensures the BTC trader obtains ETH and the ETH trader obtains BTC. Moreover, some wallets like TrustWallet are DEXs themselves with the function built-in, so one can simply perform the swaps directly inside the wallet instead of connecting to a platform.

But know that more than 100 million investors visit DEX platforms, with transactions amounting to over $4 billion per day. So what's behind the sudden surge in popularity? 

Continue reading

Source Fool.com