How are you all? I hope everyone is doing well, So today I will talk about a very important topic, Today I will talk about how decentralized exchange (Dex) works, Those who are new to the crypto market, They all know in detail about centralized exchanges, then the question arises for a long time, how decentralized works, Like CEX when we transact, someone buys and someone sells, Now DEX is sold as soon as it is sold, and as soon as it is bought, The short name of decentralized exchange (DEX) is a cryptocurrency exchange,

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Where it is not managed by any central authority or party, it usually works based on a blockchain technology,
Since DEX has no regulator, anyone can create a new coin and list it on DEX,
For example, if you create a new coin, it can be listed on any network, such as TRON Blockchain, now you can list it on any Swap or (DEX) supported by Tron Blockchain. You can,
Suppose you have created a token, named the token ABCD, then given the total supply of the token as 100K, now you can start trading by selecting any amount of price you want,
The price depends on the amount of liquidity,
For example, if you bring 10% of the token to the market first, and keep the token price at $1, then you have to add 10% of the token, that is, 10K Token and $10K to the liquidity,

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That means you have to add liquidity in a 1:1 ratio, and if you want to set a higher price, then you have to increase the amount of liquidity from the amount of your token, 1Token:$2 ratio,
Now after the token trading starts, if someone buys your token for $1 per token, someone buys 1k tokens for $1K, then the price of this token will increase by +10%, and the price of the token will be $1.10, this increases the amount of liquidity, and the amount of tokens decreases, which causes the price of tokens to increase, then if that person sells the tokens he has again,
This will reduce the amount of liquidity, and the price will decrease again, this is how the token pump is dumped,
This is how decentralized exchanges work,
I hope everyone understands, I'm ending here today, everyone be well, Allah Hafez