# Overview

Decentralized exchanges are decentralized financial (DeFi) platforms that operate without a central authority, unlike centralized exchanges, allowing users to transact peer-to-peer from wallet to wallet whilst maintaining complete control of their assets.

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There are a number of DeFi applications built on the Avalanche blockchain that offer different services and features like lending and swapping crypto, staking Avalanche native tokens, many of which also allow cross-chain trading.

DEXes help to reduce the risk of price manipulation, as well as hacking and theft because crypto assets are never in the custody of the exchange itself.

### Key Takeaways For Creators and Collectors

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Complete decentralization is not possible for the time being as it’s still necessary to use centralized exchanges to initially fund a wallet in exchange for fiat currency. Still, creators and collectors can benefit from these platforms by being able to:

* **Trade cryptocurrency with cryptocurrency** to receive the equivalent value thereof and diversify your portfolio with smaller token not found on centralized exchanges
* **Incredibly high interest staking to make more cryptocurrency** from your portfolio as opposed to simply “hodling” it long-term in your wallet (holding on for dear life)
* **Supply tokens as collateral to earn interest and enable lending** or borrow tokens against your collateral

\* high-interest Defi products are risky, DYOR before investing

_‍Want to learn more about decentralized exchanges?_&#x20;

Check out our comparison of leading Avalanche DEXes.
