DeFi Exchanges

A DeFi (Decentralized Finance) exchange is a platform that allows the trading of crypto assets in a decentralized manner, that is, without intermediaries such as banks or traditional brokers. These exchanges use smart contracts on a blockchain (usually on Ethereum or other compatible blockchains) to automate and guarantee transactions between users.

The best-known DeFi exchanges are DEXs (Decentralized Exchanges), such as:

Uniswap

PancakeSwap

SushiSwap

Curve Finance

Main features:

1. No need for custody: You maintain full control of your funds, using a wallet (such as MetaMask or Trust Wallet) to interact with the platform.

2. Decentralized liquidity: The use of liquidity pools allows anyone to provide liquidity and earn rewards for it.

3. Transparency and Immutability: All transactions are recorded on a public blockchain.

4. Global accessibility: No need to create accounts or go through KYC (Know Your Customer) processes.

Differences from centralized exchanges (CEXs):

Security: In a DEX, the user keeps the assets under their control; in CEXs, custody must be entrusted to the exchange.

Anonymity: There is no need for verified identity in DEXs.

Speed ​​and costs: Depend on the blockchain used. Some networks may have high fees or slow down in times of congestion.

Cautions when using DeFi exchanges:

Network fees: In blockchains like Ethereum, fees can be high depending on demand.

Smart contract risks: Vulnerabilities in the code can be exploited.

Liquidity risks: Markets with little liquidity can cause large price variations (slippage).

Scams and fake projects: Always check the token contract before trading.

If you are interested in using a DeFi exchange, it is recommended to study how wallets and smart contracts work and always operate with caution.