Decentralized Exchange: Demystifying the process

Decentralized exchanges permit people to invest in exchanging crypto tokens directly among themselves. The article explains the complete landscape of this exchange type for informational purposes. Let’s dive into the panorama of the decentralized exchange beginning with the understanding of this term. What is a decentralized exchange? Decentralized exchange is one of the three current types of crypto exchanges, namely decentralized finance or DEX, Centralized or CEX, and Hybrid exchange. Unlike other exchanges, it is a place where users can swap the desired crypto token with their peers without the involvement of any intermediary.  So, this allows users to perform direct transactions securely without the hustle of signups and the exhausting wait for days. But, how does it all work? Centralized and decentralized exchanges are related. To have an accurate understanding of decentralized exchange, one needs to know centralized exchange sufficiently. For this purpose, we’ll quickly be reviewing the definition and functioning of centralized exchange first. What is a centralized exchange? The influence of the ‘centralized’ in centralized crypto exchange refers to the involvement of the third person or intermediary. Like the example of a bank set up where a person puts his trust in a bank for money, both the buyers and sellers in cryptocurrency exchange believe in the third person for handling and dealing their investment, asse...