With the Blockchain.com DEX, you can swap thousands of tokens on the Ethereum and Polygon blockchains right from your Blockchain.com DeFi Wallet and without ever giving up control of your crypto.
What is a decentralized exchange?
A decentralized exchange is a peer-to-peer marketplace where crypto can be traded directly between buyers and sellers.
Unlike centralized exchanges where the transfer of funds is managed by an intermediary or custodian, decentralized exchanges allow you to trade directly from your wallet by interacting with self-executing agreements written in code called smart contracts. These smart contracts automatically establish the price of cryptocurrencies, facilitate trades, and settle transactions directly on the blockchain.
The result is a highly efficient trading experience where you maintain complete control over your funds from beginning to end.
What are the benefits of a decentralized exchange?
Reduced counterparty risk: As there are no intermediaries or custodians involved in decentralized exchanges, there’s less risk that one of the parties involved is unable to fulfill their obligations.
More tokens: Decentralized exchanges allow you to access essentially any token that’s minted on the blockchain they’re built on. There are also new tokens being listed all the time, increasing the opportunity to get in early on projects.
Greater access: Anyone with an internet connection can trade on a decentralized exchange. This has made them particularly popular in countries where many don’t have access to traditional financial services.