A DEX, which stands for Decentralized Exchange, allows traders to place buy and sell orders without the need to store their coins on the exchange itself. Instead, each user maintains possession of their own coins in their personal wallet. On a decentralized exchange, users create buy and sell orders, and when these orders are matched, they validate the transactions, and their respective wallets execute the coin transfers.
BarterDEX is an example of a decentralized exchange developed by the Komodo project, utilizing their associated token called KMD. It is an open-source software that employs atomic swaps, a technique enabling trading between two blockchain networks without relying on a third-party intermediary like a traditional exchange.
Komodo developers implemented a novel system resembling full relay nodes along with a non-relaying node. This setup ensures that all buy and sell orders are visible to traders, and frequent updates are disseminated across the network.
When using BarterDEX, it is important to note that a wide variety of cryptocurrencies are available. However, some coins may have lower trading volumes, which can result in slower transaction outcomes if not market bought.
Furthermore, it is advisable to securely store the twelve-word mnemonic phrase provided when using the BarterDEX app. This phrase grants access to your portfolio data, trade history, a debug menu, and a settings section where you can customize themes, language preferences, and other configurations.