The decoy is the cheapest thing in the buy menu that changes what the other team does. It does not take space and it does not do damage — it buys hesitation, and occasionally it buys information, which on an eco round is the only currency you have.
A thrown decoy emits fake weapon fire matching what you are carrying, and shows on the enemy radar the way a spotted player does. To a defender listening to a site they cannot see, a decoy in a corridor is a player in that corridor — and the only way to be sure is to go and look, which is exactly the several seconds you wanted from them.
That last detail is the one people miss. A decoy thrown while holding a pistol sounds like a pistol, which on a round where the enemy expects rifles fools nobody. Switch to the weapon you want them to hear before you throw.
For every other grenade the lineup exists because landing on the exact spot matters. For a decoy what matters is that it ends up somewhere plausible — a place a real player would be shooting from — and somewhere the defender cannot immediately see is empty. So decoy lineups here are less about pixel alignment and more about showing you the spots that read as convincing from the other side of the map.
The corollary: a decoy sitting in the open in the middle of a site where everyone can see it is not a player, it is a $50 announcement that you are elsewhere. Placement out of line of sight is the entire skill.
Defensively a decoy does something the attacking version cannot: it makes a site look held when it is not. A lone CT rotating away from a site can leave a decoy behind, and the attacking team now has to decide whether the noise is a player. Even a few seconds of caution is enough time for the rotation to complete, and $50 is nothing against the alternative of holding a site alone.
The same trick works in reverse for information: a decoy thrown into a space you are about to enter frequently draws a reaction — a molotov, a spray, a callout you can hear — that tells you somebody is there before you walk into them.
A decoy fools players who cannot check, and only for as long as they cannot check. Against an opponent with a teammate free to look, the illusion lasts a few seconds. That is genuinely all you are buying, and at $50 it is often enough — but do not build a round around the assumption that it will hold. Use it to buy the seconds you specifically need, and have a plan for the moment it stops working.