What is DEX (decentralised exchange)?
An exchange that runs as a smart contract instead of a company — you trade from your own wallet against pooled liquidity. No sign-up, no custody, no support desk.
A DEX — decentralised exchange — replaces the company with a smart contract. You trade directly from your own wallet against pooled liquidity supplied by other users; prices are set algorithmically, custody never changes hands, and there's no sign-up, no KYC, and no support desk when something goes wrong. Uniswap is the archetype.
The genuine advantages — self-custody throughout, access to tokens long before any CEX lists them — come welded to the risks: that early access is where rug pulls and honeypots live, slippage replaces the spread as your hidden cost, and every trade needs gas. Australians also can't deposit AUD into a DEX — fiat enters through a registered exchange first. The full mechanics are in our DEX guide.
See it in practice
Related terms: CEX (centralised exchange) · DeFi · Slippage · full glossary
FAQ
Are DEXs legal for Australians to use?
Using one isn't illegal, but most DEXs operate outside Australia's regulatory perimeter — no licensee, no dispute scheme, no recourse. Tax obligations apply in full to every swap, exactly as on a CEX.
Why did my DEX trade cost more than the quoted price?
Slippage and gas. Thin pools move against your order as it executes, and network fees apply regardless of trade size — check both before confirming, not after.
General information only, not financial advice. Definitions are maintained in our fact database and reviewed with the daily rebuild.