Orderbook DEX

An orderbook decentralized exchange (DEX) is a type of cryptocurrency exchange that operates on a blockchain and allows users to trade assets without the need for a central intermediary. It uses an order book to match buyers and sellers, similar to centralized exchanges. However, unlike centralized exchanges, an orderbook DEX allows users to retain control of their private keys and assets at all times, providing a higher level of security and decentralization.

Orderbook DEXes differ from automated market maker (AMM) decentralized exchanges in that it allows traders to set a variety of orders like limit orders. A limit order is an instruction to buy or sell a certain asset at a specified price or better. For example, a trader might place a limit order to buy 1 BTC at $50,000 or less. This order will remain in the order book until it is filled by another trader who is willing to sell at that price or a better price.