# What is a CEX/DEX? A DEX (Decentralized Exchange) is a cryptocurrency trading platform that operates without a central authority, intermediary or custodian. Unlike traditional centralized exchanges (CEXs), such as Binance, Bybit, and Coinbase, DEXs run on blockchain technology using smart contracts to facilitate peer-to-peer (P2P) trading directly between users' wallets. In other words, a DEX fulfills one of crypto's core responsibilities: to enable financial transactions without the use or supervision of a middleman. Popular DEX platforms include Uniswap, PancakeSwap, Raydium, and Jupiter. ## How DEX trading works When you trade on a DEX, you interact directly with smart contracts deployed on the blockchain. Your tokens never leave your wallet custody until the exact moment of trade execution. Your wallet must be connected to the DEX interface to initiate trades. Each transaction requires blockchain gas fees. ## DEX vs CEX comparison Centralized Exchanges (CEX) characteristics: * Require account creation and often KYC verification * Hold custody of your funds while trading * Can freeze accounts or halt trading * Offer customer support and insurance * Generally higher liquidity and tighter spreads Decentralized Exchanges (DEX) advantages: * No account registration required * You maintain custody of your funds at all times * Cannot be shut down by any single authority * Available 24/7 without maintenance windows * Access to new tokens immediately upon launch * Privacy-focused trading without KYC requirements --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.wingbits.com/tge-mainnet/what-is-a-dex.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.