A decentralized exchange, or DEX, lets you exchange crypto through blockchain-based trading systems. You typically use a wallet rather than deposit funds into a conventional exchange account. DEXs are useful for swapping supported tokens, accessing onchain markets and, on some platforms, providing liquidity.
DEXs and swap aggregators serve different roles
A DEX provides a trading market, often through liquidity pools or an order book. A swap aggregator compares routes across several markets to find an available exchange path. Some interfaces combine these functions. Check whether you are using a single market or a service that routes orders through multiple liquidity sources.
Compare the swap you want to make
- Network and assets: confirm both tokens are supported on the intended blockchain.
- Amount received: compare the final quote after trading and network fees.
- Liquidity: assess how much your trade changes the price.
- Order controls: look for slippage settings, limit orders or scheduled purchases if you need them.
A low headline fee does not always produce the best quote. A deeper pool or a better route can give you more tokens after costs. Slippage tolerance limits the unfavorable change you accept between the quote and execution.
Separate swapping from providing liquidity
Swapping exchanges one asset for another. Providing liquidity deposits assets into a market to help other users trade, with a different set of returns and risks. Yield farming platforms cover that second activity in more detail.
Choose a compatible crypto wallet, check the token’s full contract or mint address and read the final request before signing. If the assets are on different networks, you may need a cross-chain route rather than an ordinary same-chain swap.