By connecting to the blockchain network with a cryptocurrency wallet, you can use DEX, a decentralized exchange. This is slightly different from using a centralized exchange, but the basic principles are the same. In this article, we’ll walk through the steps of using a DEX (decentralized exchange) as an example.
Step 1 – Connect Your Wallet: The first step in using a DEX is to connect your cryptocurrency wallet to the exchange. Most often, you will need to use a Web3 wallet supporting the Ethereum 
$3,490 blockchain, such as MetaMask. After connecting your wallet to the DEX, you can view your account balance and interact with smart contracts executing trades on the platform.
Step 2 – Choose Your Trading Pair: Once your wallet is connected, you will need to select the trading pair you wish to transact in. For instance, you can trade ETH for DAI or USDT for WBTC.
Step 3 – Set Quantity and Price: Next, you will need to specify the amount of cryptocurrency you want to transact and the price you wish to pay. Unlike centralized exchanges, DEXs use an automatic market maker (AMM) system, meaning prices are algorithmically determined based on supply and demand. This negates the need to wait for a buyer or seller to match your order, as the transaction will be automatically executed by the smart contract.
Step 4 – Confirm Transaction: After setting the quantity and price for your transaction, you will need to approve it in your wallet. This will involve paying a small gas fee in ETH to cover the execution cost of the smart contract. Once the transaction is approved, the smart contract will automatically execute it.
Step 5 – Receive Your Cryptocurrency: Finally, once the transaction is executed, you will receive your cryptocurrency in your wallet. This process may take a few minutes, depending on the transaction speed of the blockchain.
It’s crucial to remember that using a decentralized exchange can be more complex and may require a bit more technical knowledge than using a centralized exchange. However, the benefits of using a DEX, such as increased privacy, security, and autonomy over your assets, may make the extra effort worthwhile.
Numerous decentralized exchanges are available in the market. One of them is the dYdX exchange, a leading DEX with a mission to create open, secure, and powerful financial products. When you access the dYdX exchange through this link, you can enjoy a lifelong 5% discount on all transaction fees. After clicking the link, you can connect your MetaMask wallet and start trading immediately.
dYdX currently offers secure buying and selling of nearly 40 of the most commonly used cryptocurrencies, including BTC, ETH, SOL, MATIC, XLM, LINK, ATOM, and EOS, with USDT.
