DEX
In short
A DEX (decentralized exchange) is a trading venue as a smart contract: you swap directly from your wallet, with no account and no one custodying your coins.
Instead of an order book, most DEXes use liquidity pools with an automatic pricing formula. Pros: self-custody, any token tradable. Cons: gas costs, slippage, scam tokens.
What is the biggest beginner mistake on a DEX?
Buying fake tokens: same name, different contract. Always verify the official contract address.
Information, not investment advice. More of this? The newsletter.