A crypto exchange is quite similar to a stock or currency exchange. A decentralized crypto exchange lets you trade cryptocurrency without having a broker. Before you start your crypto trading journey, you must explore the best decentralized crypto exchange.
Our team has researched and handpicked some reliable decentralized crypto exchanges that can enhance your trading experience. Continue reading to learn more about these exchanges.
Decentralized Crypto Exchange Overview
A decentralized crypto exchange is a cryptocurrency trading platform that allows people to buy, sell, and swap digital assets directly with crypto traders. That means the best decentralized crypto exchange doesn’t require codified authorization by a broker.
DEXs run under blockchain technology and are fully automated. So, users can trade directly by using their wallets. With the rise of DeFi, decentralized crypto exchanges take a significant role in secure trading.
Best Decentralized Crypto Exchange
It can be a bit challenging to find the best decentralized crypto exchange as a beginner. Here is the list of our handpicked DEXs that can enhance your crypto trading experience:
1. PancakeSwap
PancakeSwap is one of the major DEXs with over total $2.3B value locked. Built on the Binance Smart Chain, PancakeSwap is popularly known for low transaction fees. Besides that, investors prefer this DEX platform because of its user-friendly interface.
PancakeSwap also stands out because of its unique ‘yield farming’ feature. Investors can maximize returns within the DeFi market.
| Pros | Cons |
| 100% ownership and control over digital assets | Doesn’t have a mobile app |
| Offers relatively lower trading fees | Limited customer support |
| No KYC or registration required |
2. UniSwap
Launched in 2018, UniSwap is the best decentralized crypto exchange with over 30 tokens. UniSwap is built on Ethereum and uses an Automated Market Maker (AMM) model. This DEX stands out because of its advanced liquidity solutions.
Unlike other DEX platforms, UniSwap has a beginner-friendly interface and low trading fees. Besides that, you can also diversify your portfolio with the wide selection of Ethereum tokens available.
| Pros | Cons |
| Clear and user-friendly interface | Limited asset support |
| Relatively lower trading fee | |
| A huge range of Ethereum-based tokens |
3. Orca
Orca is another best decentralized crypto exchange built on the Solana blockchain. Orca is popularly known for high-speed transactions and reduced cost. This DEX platform targets people who prefer ease of use, speed, and low fees.
Orca is a non-KYC crypto exchange and ideal for privacy-focused individuals. If you are a beginner, Orca can be the right decentralized crypto exchange.
| Pros | Cons |
| User-friendly interface | Limited features |
| Fast and cheap transactions | |
| Comes with cloud security |
4. Aerodrome
Aerodrome is a newcomer and is live in the Base network. Even though Aerodrome is still in the early stages, it has built a strong reputation for DeFi liquidity mining and incentivized liquidity. Aerodrome has the potential to become one of the best DEXs in the coming years.
According to some reports, Aerodrome is projected to reach over $15 million in annual revenue as the platform grows. This DEX platform can be the ideal one for newbie and seasoned investors.
| Pros | Cons |
| Good liquidity incentives | Possible liquidity risk |
| Low transaction fees | |
| Good for a newbie investor |
5. dYdX
Originally built on Ethereum, dYdX is another best decentralized crypto exchanges for crypto investors. dYdX is popularly known for high-performing trading. The advanced trading features and deep liquidity made dYdX the favorite choice among professional traders.
dYdX is a very popular DEX platform with over $100 million in annual revenue. This crypto exchange’s massive features and opportunities attract professional traders.
| Pros | Cons |
| Advanced derivatives trading options | Complex for newbie traders |
| Low transaction fees | |
| Advanced cutting-edge technology |
6. Jupiter
Last but not least, Jupiter is built on the Solana blockchain and can be a good option for newbie investors. Jupiter is a quick, cheap, optimized option because of the Solana DeFi ecosystem.
Whether you are a beginner or an experienced investor, Jupiter can be your one-stop DEX platform. Jupiter is expected to make over $20 million in annual revenue.
| Pros | Cons |
| Has a community-driven growth | Limited customer support |
| Beginner-friendly interface | |
| Relatively low trading fees |
Benefits of Investing in The Best Decentralized Crypto Exchange
Investing in the best decentralized crypto exchange can unlock different benefits. Before choosing a decentralized crypto exchange to start your trading journey, you must learn about these benefits:
- Privacy: Reliable decentralized crypto exchanges don’t ask for personal information. That means you don’t have to provide KYC to execute trades. DEXs are best for personal data protection.
- Reduced Cost: Most DEX platforms come with low transaction fees, making them a better option than centralized exchanges. The absence of centralized authorities reduces the cost.
- Direct Trading: Another amazing benefit of investing in the best decentralized crypto exchange is direct trading. You can discover everything by yourself without a third-party involvement.
- Advanced Security: Even DEX transactions come through on-chain smart contracts. As most decentralized exchange platforms don’t hold funds directly, it reduces the risk of hacks. You can control your funds by using private keys.
- Token Variety: Decentralized exchanges are well-known for supporting a variety of cryptocurrency tokens. So, you can explore new investment opportunities.
- Global Access: When you choose a decentralized crypto exchange, there are no geographical restrictions, except in those countries where crypto trading is prohibited.
Conclusion
The best decentralized crypto exchange can enhance your overall trading experience. However, you have to consider some crucial factors while choosing a DEX platform. If needed, you can also seek help from an expert.
FAQs
Q: What is the best decentralized crypto exchange?
There are different options for decentralized crypto exchange platforms like Orca, PancakeSwap, or dYdX.
Q: What is the difference between centralized and decentralized crypto exchanges?
Centralized crypto exchanges are easy to use, while decentralized crypto exchanges follow the crypto-to-crypto model. However, decentralized crypto exchange platforms are more secure and have 100% user freedom.
Q: Which blockchain is completely decentralized?
Bitcoin’s blockchain is completely decentralized, as the users can retain control. All transactions are recorded permanently in Bitcoin.