A decentralized cryptocurrency exchange, commonly referred to as a P2P exchange, is a platform that enables users to directly trade cryptocurrencies with each other without involving a third party or centralized authority. The exchange acts as a mediator between the buyers and sellers and facilitates the transaction, but does not hold the users' funds. As a result, users maintain control over their cryptocurrencies and manage their own wallets. P2P exchanges provide enhanced privacy, security, and flexibility when compared to centralized exchanges.