A Decentralized Exchange (DEX) is a platform that allows users to trade cryptocurrencies directly with one another without the need for a central authority or intermediary. This means that users maintain control of their funds and private keys, enhancing security and privacy. DEXs operate on blockchain technology, enabling peer-to-peer transactions and often using smart contracts to facilitate trades. Unlike traditional exchanges, which require users to deposit funds into a centralized account, DEXs allow for trades to occur directly from users' wallets. Popular examples of DEXs include Uniswap and SushiSwap, which utilize automated market-making algorithms to provide liquidity and enable seamless trading experiences.