What Is a Decentralized Exchange?
Today, cryptocurrency exchanges fall into two main categories: CEX (Centralized Exchanges) and DEX (Decentralized Exchanges).
CEX platforms like Huobi, OKX, and Binance are well-known examples where users trade assets held by the exchange. While CEXs offer high liquidity for large trades, they come with risks—users don’t own their assets outright.
👉 Why trust matters in crypto trading
Key Difference: In a DEX, your funds remain in your wallet until the trade executes. No intermediaries hold your coins, reducing risks like hacks or platform insolvency.
How to Use a Decentralized Exchange
Getting Started with Uniswap
Uniswap, a leading DEX, operates as a DApp (Decentralized Application). To access it:
- Visit the official website or use a wallet’s DApp browser (e.g., via TokenPocket’s "Discover" page).
Trading on Uniswap
Step 1: Token Selection
- Choose the pair (e.g., USDT to ETH).
- Enter the amount.
Step 2: Authorization
- First-time trades require approving the smart contract to access your tokens (a one-time fee per token).
Step 3: Adjust Slippage
- Set tolerance for price fluctuations (default: 0.5–1%). Higher slippage is needed for low-liquidity tokens.
Step 4: Execute Trade
- Confirm the transaction via your wallet. The tokens transfer directly to your wallet post-trade.
Viewing Your Assets
After trading, refresh your wallet app (e.g., TokenPocket) to see the new tokens. Manually add tokens using their contract addresses (see appendix).
FAQs
1. Is Uniswap safe?
Yes, but always verify contract addresses to avoid scams.
2. Why does my transaction fail?
Low slippage settings or insufficient gas fees can cause delays. Increase slippage or gas if needed.
3. How are fees calculated?
DEX fees include network (gas) costs and a 0.3% liquidity provider fee on Uniswap.
Appendix: Top Token Contract Addresses
Ethereum Mainnet
- USDT:
0xdac17f958d2ee523a2206206994597c13d831ec7 - ETH: Native currency (no contract)
Binance Smart Chain
- BUSD:
0xe9e7cea3dedca5984780bafc599bd69add087d56
👉 Explore more tokens securely
Key Takeaways
- DEXs empower users with self-custody and transparency.
- Always double-check contract addresses and liquidity before trading.
- Start small to familiarize yourself with gas fees and slippage.
Note: Avoid sharing sensitive wallet details or responding to unsolicited offers.
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