Decentralized Exchanges allow users to trade cryptocurrency without the need for a central exchange to hold their funds or information. Instead of trusting a centralized service, users trust the underlying technology and peer-to-peer network that powers cryptocurrencies such as Bitcoin and Ethereum. Decentralized exchanges may be less expensive than traditional exchanges because they do not require the overhead costs associated with operating a fully staffed company, or they could also be more expensive due to gas fees that users must pay when sending transactions through networks like Ethereum. Some decentralized exchanges only support specific types of tokens while others aim to be truly universal and can handle any digital asset.
Topics related to decentralized exchanges include distributed ledgers, smart contracts, open source, and atomic swaps.