Bancor Network is a decentralized exchange offering unique single-sided liquidity and impermanent loss protection. Learn how it works, how it compares to Uniswap, and whether it's right for your crypto trading strategy.
DEX Explained: What Decentralized Exchanges Are and Why They Matter
When you trade crypto on a DEX, a decentralized exchange that lets users trade directly from their wallets without surrendering control. Also known as non-custodial exchange, it removes banks, brokers, and middlemen from the process—putting you in full charge of your money. Unlike centralized platforms like COINBIG or NovaEx, a DEX doesn’t hold your funds. You sign trades yourself using your private key. That means no hacks on their servers can steal your crypto—but it also means if you mess up, there’s no customer support to save you.
Most DEXs run on DeFi, a system of open financial tools built on blockchains like Ethereum and Kusama. That’s why you’ll see tools like Balancer V2, an advanced automated market maker that lets you swap tokens with multi-asset pools. or Karura Swap, a DeFi exchange on Kusama offering cross-chain swaps without KYC. These aren’t just apps—they’re protocols that run 24/7, powered by smart contracts. And they’re not for everyone. If you’re new, you might get lost in gas fees, slippage, or fake tokens like PEACH or WTAO that look real but have no liquidity or team behind them.
What makes a DEX powerful is also what makes it dangerous. You can trade anything—like the BarterDEX, the first atomic swap platform that let users trade across blockchains without intermediaries. But you’re also exposed to scams, rug pulls, and bots that front-run your trades. That’s why this collection includes real-world breakdowns: why Wrapped TAO is risky, how Gnosis Chain’s gasless swaps work, and why some DEXs like Domitai don’t even exist. You’ll find guides on safe trading, warnings about fake tokens, and deep dives into platforms that actually deliver. This isn’t theory. It’s what people are using—and losing—right now in 2025.
Uniswap is the largest decentralized exchange for swapping crypto tokens without intermediaries. The UNI token lets users vote on protocol changes. Learn how it works, its risks, and why it dominates DeFi.