Cryptocurrency Q&A
How does dex swap work?
How does dex swap work?
Luca
Tue Oct 08 2024
|
7 answers
1724
Excuse me, could you please explain how a decentralized exchange, or DEX, swap works in simple terms? I'm curious to know how users can trade cryptocurrencies without relying on a centralized authority like a traditional exchange. Is there a peer-to-peer system involved, and how does the process of matching buyers and sellers occur? Also, I've heard about smart contracts playing a role in DEX swaps. Could you elaborate on that aspect as well? Thank you in advance for your insights.
7 answers
CryptoProphet
Thu Oct 10 2024
It operates through the utilization of liquidity pools, which are collections of digital assets that traders can use to execute trades.
Was this helpful?
68
94
Federico
Thu Oct 10 2024
Smart contracts, which are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code, are also integral to the DEX swapping process.
Was this helpful?
339
36
FantasylitElation
Thu Oct 10 2024
These contracts ensure that the terms of the trade are fulfilled automatically, without the need for intermediaries or trusted third parties.
Was this helpful?
269
54
GangnamGlitzGlamour
Thu Oct 10 2024
User transactions are recorded on a decentralized blockchain, providing transparency and immutability to the trading process.
Was this helpful?
349
97
Dario
Thu Oct 10 2024
Decentralized Exchange (DEX) swapping is a revolutionary method of trading cryptocurrencies that does not rely on centralized intermediaries.
Was this helpful?
295
26
Load 5 more related questions
