What is a decentralized exchange (DEX)?
Updated: 2026-10-07 · MarketRadar Whale
A decentralized exchange lets you trade straight from your own wallet with no middleman; a smart contract does the exchange's job.
Liquidity pools
Instead of an order book, many DEXs use pools that users have funded; price comes from the ratio of the two coins in the pool.
Slippage
The larger your order relative to the pool, the worse the price. For small tokens this is a real problem.
Benefits and risks
- Your funds stay in your hands.
- Anyone can create a token, so fake tokens are common.
- A wrong address or a malicious approval cannot be undone.
Free ranking of the top 100 Hyperliquid whales with profit and account value, plus a Telegram bot to follow any wallet.
Live ranking Telegram botFrequently asked questions
On a CEX your money sits with the exchange; on a DEX it stays with you.
A personal wallet and some of the network's base coin for fees.
Keep reading
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