How it works
DEXs can use automated market makers, order books or aggregators. Users often retain control of their wallet while interacting with the protocol.
What to check
Check contract addresses, supported networks, liquidity and token approvals. Also confirm whether the interface routes through other protocols or bridges.
- Verify contracts and tokens
- Review approvals
- Check liquidity before trading
Limits and risks
Self-custody reduces exchange-custody risk but increases smart-contract, token and transaction-signing risk. A DEX cannot protect users from buying a malicious token.
Primary sources
Bitcoin Developer Reference↗Ethereum developer documentation↗FATF: Virtual Assets↗General information only. Investment products can lose value, and terms, fees and regulation can change.