Decentralized Exchange

A form of market making done via a smart-contracts. In this setup the order-book is based on peer-to-peer transactions instead of through a central party like a crypto exchange. This contrasts with AMM (automated market makers) who don't have an order book and instead use liquidity pools.

Decentralized exchanges lack the ability to withdraw currencies like dollar and Euros because they have no access to the banking system to issue payments.

See also crypto exchange, bucket shop, mixer and money laundering.


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