Top 10 Decentralized Crypto Exchanges You Need to Know About

The active use of the top 10 decentralized crypto exchanges has transformed how we trade cryptocurrencies. These platforms facilitate direct peer-to-peer crypto transactions. They are used mainly for their lower fees and privacy.

This post highlights the standout features that showcase the best decentralized crypto exchange. Every exchange has something to offer. This includes robust security measures, user-friendly interfaces, etc.

Let’s dive in.

What is Decentralized Crypto Exchange?

A decentralized cryptocurrency exchange (DEX) is a platform where users trade cryptocurrencies. The trade occurs directly between users with zero central authority. This setup enhances privacy and security. Users control their funds and personal data.

However, unlike centralized exchanges, decentralized exchanges don’t hold user assets. This significantly reduces the risk of fraud and hacking.

DEXs make use of Blockchain technology, which ensures secure and transparent trades. The platforms count on on-chain smart contracts to automate and verify transactions. This makes the trading process efficient and trustless.

Top decentralized exchanges share no similarities with traditional exchanges. They don’t hold or store personal information or user funds. Instead, users execute trades directly from wallet to wallet.

How Does Decentralized Crypto Exchange Work?

As mentioned briefly earlier, a decentralized cryptocurrency trading platform uses Blockchain technology. This technology facilitates trading, and here’s how it works:

1. Smart Contracts

Smart contracts are self-executing programs that automate every action required in a Blockchain transaction. The terms of the agreement in a smart contract are written directly into code.

In other words, smart contracts automate and secure crypto transactions on a DEX. Transactions take place without intermediaries and transparently.

2. Liquidity Pools

Some top decentralized exchanges make use of liquidity pools to authorize trading. Users can lock their funds into such pools to provide liquidity. These users, in turn, earn fees from any trade that occurs using their liquidity. This is a system that supports efficient and continuous trading.

3. Peer-to-Peer Trading

This term refers to the ability of users to connect and trade directly with one another. The users of a decentralized exchange use their private wallets to initiate and complete transactions.

Peer-to-peer trading is a setup that reduces transaction costs. This is because there is no need for a middleman during such transactions.

4. Trading Process

If you want to make a trade, you place an order. But this order is not sent to a central server. It is posted directly on a Blockchain. The order becomes visible to every participant within the network.

5. Order Matching

Some of the best decentralized crypto exchanges match orders via a peer-to-peer process. This process can be executed through several mechanisms. One of such mechanisms is known as AMMs (automated market makers).

These systems utilize liquidity pools, ensuring a counterparty always exists for trades.

6. Wallet Integration

Every user of a decentralized trading platform must connect their Blockchain wallets to such platforms. This connection enables them to launch trades directly from their wallets.

However, no decentralized crypto trading platform holds user funds. This means the assets are secure in a user’s wallet until the user initiates the trade.

7. Settlement

As soon as an order is matched, smart contracts kick into action and execute the trade. The Blockchain records such transactions. The assets will then be transferred directly between the user’s Blockchain wallets.

Related Read: Impact of AI on Cryptocurrency Exchange Development

Benefits of Investing in Decentralized Crypto Exchange

There are several benefits you enjoy when you invest in a decentralized platform for cryptocurrency. Here they are, arranged in no particular order:

1. Privacy

Top decentralized exchanges don’t require much personal information from users. This means you can execute trades without going through extensive identity verification procedures. This leads to personal data protection and anonymity.

2. Reduced Costs

Transaction fees on any decentralized crypto exchange app are low, with zero intermediaries. However, this is not the case with centralized exchanges, known for their exorbitant fees.

Central authorities are absent, which also reduces costs. This streamlines operations in a decentralized trading platform.

3. Enhanced Security

Every transaction occurs through on-chain smart contracts. The best decentralized exchange platform does not hold user funds directly. This significantly reduces the risk of hacks.

Users can maintain control of their funds and private keys. This minimizes security breaches to a great extent.

A top blockchain app development company will incorporate security elements when creating apps for clients.

4. Global Access

The top decentralized exchanges function on a peer-to-peer basis via the World Wide Web. There are no geographical restrictions, except in countries where cryptocurrency trading is prohibited.

This makes even the best decentralized crypto exchange platform available to people with an internet connection. This increases financial inclusivity.

5. Censorship Resilience

The best decentralized crypto exchanges are not susceptible to government control or censorship. This is essential in regions with limited or restricted access to traditional financial systems.

6. Direct Trading

Decentralized crypto exchanges facilitate the direct exchange of assets between users. This leads to more efficient markets and better price discovery without needing a third-party intermediary.

7. Market Fairness

Decentralized exchange platforms promote equitable trading environments. This is due to the use of automated systems and smart contracts. As a result, the market dictates prices with no interference.

8. Integration with DeFi

Many of the best decentralized cryptocurrency exchanges integrate with broader DeFi ecosystems. They offer additional services like borrowing, lending, and yield farming. This enhances investment opportunities and returns.

9. Token Variety

Decentralized exchange platforms support a variety of tokens and cryptocurrencies. This also includes those that are not even listed on centralized exchanges. It enables you to access unique investment opportunities.

Related Blog: How to Pick the Best Crypto Exchange Development Services

Top 10 Decentralized Crypto Exchanges

The following are the top 10 decentralized crypto exchange platforms. This is based on their trading volume and robust platforms:

1. Coinbase

Many crypto traders consider Coinbase to be the best decentralized crypto exchange. This is because the platform provides support for a large number of currencies. It has strong security, and its advanced trading options are user-friendly. It was established in 2012.

Coinbase helps insure digital funds in its care on behalf of users. Users can fund trading accounts via several payment methods. This includes ACH transfer and wire transfer. The platform also stores United States dollar balances in FDIC-insured bank accounts to prevent loss.

Coinbase has a 24-hour trading volume of $2,111,361,948. It has 589 markets (cryptocurrency trading pairs) and three fiat currencies. However, despite its highly liquid exchange, Coinbase lacks top-notch customer service.

Additionally, the default wallet of this decentralized cryptocurrency exchange is a custodial account. This means there is no control over traders’ private keys. Its transaction fees start from 0.00 percent to 0.60 percent.

2. Uniswap

Uniswap is a well-known decentralized trading platform and automated maker. The platform was established in 2018 and has over 30 tokens. It allows liquidity providers, investors, and developers to get involved in crypto trading and investing.

Uniswap’s ecosystem helps its users to buy, sell, and earn numerous assets, including NFTs (non-fungible tokens). It integrates with several DeFi applications and in-built tools such as Rotki, Future Swap, Boardroom, Unbound Finance, etc.

Uniswap allows investors to participate actively in the crypto trading platform’s governance. This takes place via an on-chain governance process.

The platform also encourages DeFi development. It allows designers, web3 developers, educators, and users to join the Uniswap community using Discord, Reddit, Uniswap Grants Program, etc.

Uniswap has a trade volume of over 489 billion, 300+ integrations, and 4,400 Community Delegates.

Some of the advantages of using Uniswap include:

• Secure network
• It has an enormous market capitalization
•  It offers users with governing rights.

But some of the disadvantages Uniswap is known for include:

• Zero KYC process
• Has the risk of liquidity loss
• Slow network speed

Uniswap asks for 0.3 percent as fees for every transaction executed on the platform.

3. Crypto.com

Crypto.com was established in 2016 and is one of the top decentralized exchanges worldwide. It supports more than 350 cryptocurrencies and is accessible globally. It is the best decentralized crypto exchange app due to its enormous digital trading/investing ecosystem.

Crypto.com has its own Blockchain, i.e. Crypto.org Chain. It has a native token known as CRO and a crypto visa card. The platform’s mobile app offers several features and products that benefit users immensely.

This means you can sell, buy, trade, and even make money on your crypto. You can also make payments in crypto. Crypto.com has a 24-hour trading volume of $2,962,998,703.It functions in 711 markets.

However, despite Crypto.com’s support and offering of a wide range of crypto-related products, it has poor customer support.

Transaction fees on Crypto.com start from 0.00 percent to 0.075 percent.

4. PancakeSwap

PancakeSwap may have been founded in 2020. However, it is presently one of the top 10 crypto exchanges Binance Smart Chain offers. This crypto platform has a large number of investors.

Investors can sell, buy, or deposit any currency coin on smart contracts. They have to connect their digital wallets to the platform with no need for registration.

PancakeSwap is compatible with several crypto wallets such as Coinbase, Metamask, BraveWallet, Blockto, etc. The top decentralized exchange platform works on Binance and Ethereum, the two leading blockchains.

Pancake also offers users the opportunity to win money as digital assets. The assets can be won through predictions, trading competitions, pottery, and lotteries.

Crypto investors can also acquire PancakeSwap’s native coin. But they need to provide funds in the liquidity pool.

PancakeSwap has successfully facilitated more than $600 billion in total trading volume since it was founded. It boasts at least a $1.3 billion stake in liquidity pools and has one million monthly active users.

Some of the benefits of using PancakeSwap include:

• Low transactional costs
• Availability of diversified services
• User-friendly interface

But some of the DEX’s platform’s disadvantages include:

• Incompatibility with BTC
• Functions only on the web

PancakeSwap has over 50 tokens, and its fees start from 0.01 percent.

5. SundaeSwap

SundaeSwap is a decentralized crypto trading platform where users can sell, swap, or buy digital currencies. You can also automate liquidity pooling on this top decentralized exchange platform.

Users of SundaeSwap can connect numerous digital wallets. Such digital wallets include:

• CardWallet
• NuFi
• Name
• FlintWallet
• Begin
• Gero Wallet
• Typhoon

You can use any of these wallets to trade on SundaeSwap. The platform’s protocol functions on the Cardano Blockchain. This makes it easier to monitor your liquidity position live on the top decentralized exchange.

This protocol also promotes democratizing the profitability and ownership of cryptocurrency trading. When a user connects a digital wallet to the ISO, they get rewards. Such rewards qualify the user for many winnings on the decentralized crypto exchange.

Some of the benefits of using SundaeSwap include:

•  Access to quantitative ISO rewards
• Precise and user-friendly interface
• Backed by prominent cryptocurrency partners

However, SundaeSwap still has limited wallet options. With over 24 tokens, the exchange’s fees start at 0.10 percent.

6. GMX

GMX is one of the best decentralized crypto exchanges that uses its own coins. These are GLP and GMX, both acting as liquidity providers and governance assets. The leading marketplace offers users with optimal costs and reduced liquidation risks.

GMX, founded in 2021, has a user-friendly swap interface on Arbitrum and Avalanche. Crypto traders can sell and buy prominent digital coins such as AVAX, Ethereum, and Bitcoin. This enables compatibility with popular digital wallets like WalletConnet, MetaMask, and Coinbase.

Crypto traders using GMX enjoy the following benefits:

• Low transaction costs
• Available on application and web
•  Access to voting and governing rights

However, GMX only integrates with three cryptocurrency wallets. There is also zero fraud and grievance redressal. GMX has more than 30 tokens and its fees start from 0.10 percent. Its total trading volume is $220,280,937,879.

7. IDEX

IDEX is a decentralized platform for cryptocurrency powered by the Ethereum blockchain. It is a pioneer exchange compatible with real-time currency trading.

The protocol supports several digital wallets. These include Coinbase, Keystore File, Trust, MetaMask, WalletConnect, and BitKeep. Crypto traders can also sell and buy digital money. All they have to do is provide their Mnemonic phrase or private key to connect their wallets.

IDEX was established in 2017 and has more than 26 tokens. You can stake your money on farms, liquidity pools, referrals, and trade. When you do, you may unlock rewards as much as 50 percent of the cost.

This top decentralized exchange offers crypto traders with real-time insights into prevailing digital market conditions. This makes it possible for traders to search for current positions of their desired currency.

Some of the benefits of using IDEX include:

• Security with open-source smart contracts
• Highly intuitive,  user-friendly interface
• Gas-free transactions
• One-click onboarding
• Slick mobile experience

But IDEX, with a 24-hour trading volume of $204,232,874, only works on the web. It also has limited options of pairing and is only compatible with ERC20.

8. Curve Finance

Curve Finance is a renowned decentralized cryptocurrency exchange. It is more popular among users who trade stablecoins. It was initially set up for Ethereum. But nowadays, the decentralized exchange supports 11 blockchains. This includes Fantom and Avalanche.

Curve Finance Focuses solely on stablecoin exchanges. It offers minimal slippage and low fees to crypto traders. This makes the platform perfect for traders who desire efficient trading. It has a TVL (total value locked) of $4.22 billion. This makes Curve one of the top 10 crypto exchanges today.

Curve also has a native token (CRV), which is a governance token. This additional layer of engagement gives holders a say in the platform’s future. This DEX also integrates with other DeFi protocols, such as Convex Finance. This integration multiplies rewards for stakers of CRV.

Curve’s trading fees start at 0.04 percent, with a 24-hour trading volume of $242,520,647.85.

9. Kraken

Due to its low fees, Kraken is considered as a top decentralized exchanges crypto app. Experienced crypto traders use Kraken because of its advanced order types, futures trading, and support margin. It was founded in 2011 and has its headquarters in San Francisco.

Kraken has two feature-rich platforms: the main trading platform and Kraken Pro. The latter is a professional-grade trading platform. It comes with 13 order types, customizable chart analysis tools, and comprehensive insight into the order books. It is also loved for its high-speed execution.

Kraken has a 24-hour trading volume of $350,122,461. It has 215 cryptocurrencies and functions in 644 markets. Transaction fees range from 0.00 percent to 0.40 percent.

However, it is not available in all the states within the United States. It also has limited account funding options.

10. Gemini

If security is your biggest concern, you may consider Gemini as the best decentralized cryptocurrency exchange. This platform was founded in 2014 and has robust security protocols. It insures user funds and is SOC 2-certified. This implies that third-party auditors verify its security frameworks.

Users of Gemini are encouraged to activate two-factor authentication as additional security. You can review and approve any device used to log onto your trading account.

Gemini’s professional-grade trading dashboard is a dream come true for experienced traders. It supports more than 70 tokens and digital currencies. Transaction fees start from 0.0 percent to 0.40 percent for active traders. However, for most transactions, the fees requested start at 1.49 percent.

Gemini has a $67.32 million 24-hour trading volume. It is available to all users in the United States. All funds held in hot wallets are insured. However, its significant downsides include support for fewer cryptocurrencies and high fees on most trades.

Conclusion

The best decentralized crypto trading platform offers a unique blend of innovation, security, and autonomy. The top 10 crypto exchanges in this post showcase their strengths and weaknesses. Check them out and use anyone that appeals to your needs or preferences.

Discover the most user-friendly and intuitive decentralized crypto exchange, designed for traders and investors of all levels. Get in touch with companies such as Debut Infotech offering cryptocurrency exchange development services today to discuss your DeFi development project needs.

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