A decentralized crypto exchange operates on blockchain technology, enabling direct peer-to-peer cryptocurrency trading without central authority involvement. These platforms use smart contracts for order matching, settlement, and fund management, reducing risks of fraud and manipulation. Decentralized exchanges offer transparency, high security, and user autonomy by allowing traders to retain custody of their assets. They are scalable and integrate features such as cross-chain trading, liquidity pools, and governance tokens. By removing intermediaries, decentralized crypto exchanges foster trustless ecosystems where transactions occur directly between users, ensuring greater privacy and resistance to censorship.
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