# Decentralized Exchange (DEX)

*Crypto & Digital Assets — Finicade finance glossary*

A decentralised exchange lets people trade directly from their own wallets through smart contracts, with no custodian and usually no identity checks. Most use automated market makers rather than order books. What you gain is self-custody and access to any token; what you accept is smart contract risk, front-running by MEV bots, and no recourse whatsoever if you send funds to the wrong contract.

**Also known as:** DEX, Uniswap, on-chain exchange

**Related terms:** [Automated Market Maker](https://finicade.com/glossary/automated-market-maker), [Liquidity Pool](https://finicade.com/glossary/liquidity-pool), [Crypto Exchange](https://finicade.com/glossary/crypto-exchange), [Smart Contract](https://finicade.com/glossary/smart-contract), [MEV](https://finicade.com/glossary/mev)

Source: https://finicade.com/glossary/decentralized-exchange