To put it simply, decentralized exchanges (DEXs) enable users to buy and sell cryptocurrencies with one another without the need for brokers. Users merely need to connect their Crypto wallet to a DEX, such as Uniswap (CRYPTO: UNI) or PancakeSwap (CRYPTO: CAKE) , select their crypto-crypto trading pair of choice, such as between Bitcoin and Ethereum , enter the amount, and hit the swap button. There are a lot more coins and tokens available on these exchanges, making them ideal for the adventurous investor.
Programming code that enables applications to self-execute agreements, otherwise known as a smart contract, automatically ensures the BTC trader obtains ETH and the ETH trader obtains BTC. Moreover, some wallets like TrustWallet are DEXs themselves with the function built-in, so one can simply perform the swaps directly inside the wallet instead of connecting to a platform.
But know that more than 100 million investors visit DEX platforms, with transactions amounting to over $4 billion per day. So what's behind the sudden surge in popularity?
For further details see:
What Are Decentralized Exchanges?