Decentralized exchanges (DEXs) are platforms that allow 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 typically use smart contracts on blockchain networks like Ethereum to facilitate trades automatically. Unlike traditional exchanges, which require users to deposit funds into their platform, DEXs enable peer-to-peer transactions. This reduces the risk of hacks and fraud associated with centralized exchanges. Popular DEXs include Uniswap and SushiSwap, which offer various trading pairs and liquidity options for users.