A Decentralized Exchange (DEX) is a digital platform that allows users to trade cryptocurrencies directly with each other, without the need for a central authority or intermediary. DEXs operate using blockchain technology and smart contracts to facilitate peer-to-peer transactions, enhancing privacy and security. Unlike traditional exchanges, users retain control of their funds, reducing the risk of hacks or mismanagement by a central party. DEXs are popular for their transparency, global accessibility, and resistance to censorship, though they may have lower liquidity and slower transaction speeds compared to centralized exchanges.