Cryptocurrency trading is one of the essential niches in the industry. Every cryptocurrency holder has at least one interaction with the cryptocurrency exchange. If we delve into the current trading situation, we may find several important issues that plague traders-availability, transparency, and security.
They are still intermediaries between users and the blockchain. Most regular exchanges are custodians, which means they store users’ funds on servers. It seems insecure, but the centralized encryption platform tries to provide first-class security solutions.
The decentralized cryptocurrency exchange (DEX) is an ideal alternative to today’s cryptocurrency trading platform and is currently catching the wave of the times.
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- 1 What is DEX?
- 2 Centralized Exchange vs. Decentralized Exchange
- 3 Which DEX is the best choice?
- 4 Conclusion
What is DEX?
As mentioned above, DEX stands for decentralized cryptocurrency exchange. DEX is a platform that allows two independent participants to conduct cryptocurrency transactions without interference from a third party, in other words, in a peer-to-peer (P2P) manner. In order to interact with DEX perfectly, you need to obtain a digital wallet.
The absence of intermediaries increases the security of the transaction process and the anonymity of users. However, some decentralized exchanges require KYC and collect personal information (such as IDEX, BinanceDEX, etc.)
Since there is no central authority in DEX, it is more difficult to manipulate the market.
The most popular DEX is built on the Ethereum blockchain. Over time, other distributed ledgers (such as TRON, BinanceChain, EOS, and many other platforms) managed to provide an appropriate environment for decentralized cryptocurrency swaps.
Centralized Exchange vs. Decentralized Exchange
In order to protect users from any form of fraud, centralized exchanges provide 2fa, cold storage, whitelisting, etc. Nevertheless, there is always the possibility of being hacked.
Following the password motto code is the law, DEX cannot access user funds. The transaction is carried out directly between the two parties and reflected in the blockchain;
Veterans in the cryptocurrency industry such as Bitfinex, HitBTC, and Bittrex provide a variety of trading tools, such as margin trading, OTC, dark pools, etc.
DEX is relatively new in the market. This kind of exchange is not as rich as a centralized exchange. DEX usually provides a limited number of trading pairs, and most of the time the assets traded on DEX are built on the same blockchain.
Large CEXs provide a lot of liquidity for digital assets.
Attracting liquidity is a major weakness of decentralized exchanges. Since most DEXs become sensitive only to the encrypted assets of a specific blockchain, the choice of trading assets is limited.
Centralized exchanges charge higher fees;
On the contrary, DEX only asks for a lower commission, because there is no need to pay a lot of labor.
The team behind New York-based Uniswap DEX introduced the liquidity agreement of the same name established on the Ethereum blockchain. Uniswap is a liquidity pool and decentralized exchange of ERC-20 tokens, which can provide effective and stable transactions without interference from third parties.
Uniswap recently launched Uniswap V2, which has made significant improvements in security and usability. From now on, token-to-token exchanges can be carried out directly (without intermediate Ethereum steps). Since there is no longer a need to pay miner fees, transaction fees will be reduced. The interface of Uniswap V2 is the same as the design of the original V1 platform.
According to Dune Analytics data, in the past 24 hours and last week, Uniswap accounted for 49.9% of the DEX market share.
#2. Kyber Network
With the famous “full-chain liquidity protocol”, Kyber Network allows instant ERC-20 token exchange. In short, Kyber Network aggregates liquidity from multiple platforms and provides it to a single network so that users can seamlessly transfer their tokens in one transaction.
Kyber Network is an important part of Ethereum and the crypto community. It aims to demonstrate the benefits of decentralization by providing transparency and trust between traders.
Kyber is not a regular decentralized exchange, but a protocol that can be implemented on any blockchain that supports smart contract functions. With this in mind, various decentralized applications (dApps), DEX (Uniswap, Oasis), and digital wallets (Coinbase Wallet, Trust Wallet) all use the Kyber protocol for better performance.
How to buy Tron coins in a simple but decentralized way? Just visit TronTrade – a decentralized exchange for TRX and Tron coin-based tokens. The intuitive user experience and smart design will provide each user with a high-quality trading experience.
TronTrade is the first decentralized exchange to support TRC-10 tokens. The platform is community-centric and provides 24/7 customer support. No need to create an account in the exchange. All you need is a complete Tron coin wallet to help you interact with DEX.
IDEX is the first well-known Ethereum decentralized exchange, providing a wide range of trading pairs. In addition to various ERC-20, there are also Tether, USDC, TUSD, and DAI markets. The design of the platform is very native, so it is easy to master.
IDEX charges 0.2% to traders and 0.1% to market makers. Consider that users must pay miner fees to place their transactions on the blockchain.
If you have any questions about withdrawals, deposits, mortgages, and other aspects, IDEX will provide a good FAQ and guide section.
However, IDEX requires users to pass strict KYC (Know Your Customer) procedures, which raises concerns about the decentralization of exchanges. Nevertheless, IDEX is more secure than most centralized trading platforms.
IDEX will launch IDEX 2.0, which will provide better scalability, better security features, and lower costs. The platform is currently available in demo mode.
Please follow the announcement! IDEX recently posted a fraud alert tweet about fraudulent mobile apps on Google Play.
dYdX claims to be “the most powerful open trading platform for encrypted assets”, and it has the power to conquer the decentralized exchange market. dYdX is another Ethereum-based DEX that provides such a rare service for decentralized platform options such as margin trading and derivatives. dYdX can conduct margin trading with a leverage of up to 4 times.
In April 2020, dYdX introduced a perpetual contract market, allowing you to trade any non-Ethereum-based assets. This is a truly impressive solution, as traders can now trade Bitcoin– USDC trading pairs with up to 10 times leverage. dYdX also provides loan options to attract more liquidity to the exchange. The design of DYdX is both clever and simple. Therefore, traders can enjoy perfect trading experience.
#6. Bancor Network
When you open Bancor DEX, the first thing that comes to mind is its simplicity. The user glance / the user interface is very intuitive, and the team behind the project also provides immediate support. Just like many other decentralized exchanges, Bancor is built on the Ethereum blockchain.
It differs from other DEXs in that it can exchange digital assets of different distributed ledgers. Thanks to the use of the real Bancor protocol, users can seamlessly exchange Ethereum to grapefruit coins and vice versa.
Bisq is one of the best-decentralized Bitcoin exchanges, as well as trading protocols, desktop applications and free software.
The platform allows you to buy and sell bitcoins in exchange for domestic currency or other digital assets. Bisq supports multiple payment methods, so buying cryptocurrencies in a truly decentralized manner will not be a problem.
Based on the Tor network, Bisq has the same censorship resistance as the main chain. The transaction details only apply to the counterparty. It seems that the main disadvantage of Bisq DEX is the complexity of the transaction process.
Therefore, the exchange is very suitable for professional traders rather than cryptocurrency novices. Please also note that the transaction may take a long time to process, so if you want to perform an instant encryption exchange, you may need to make other plans.
To perform such exchanges, you need to obtain an Ethereum wallet, such as Mist, MetaMask, etc. DEX will detect the network and automatically connect to the network, and the system will check for synchronization.
You can buy and sell the following tokens on the OasisDEX exchange: Ethereum, MKR, gold tokens, REP, ICN, 1ST, SNGLS, VSL, PLU, and DAI. Just like other DEXs, Oasis does not support fiat currencies.
The main advantage of this token exchange platform is its high security. Other benefits of OasisDEX also include the ability to extend trading pairs to all tokens built on the ERC20 protocol, lower handling fees for deposits and withdrawals, and the ability to quickly trade.
Binance Exchange entered the cryptocurrency industry in 2019. Since then, it has become the world’s leading cryptocurrency exchange. The platform seems to be working hard to conquer the cryptocurrency market and has achieved remarkable success. In 2019, Binance launched its own decentralized exchange based on the BinanceChain blockchain. There are currently 25 trading pairs available decentralized cryptocurrency Exchange.
Some community members claimed that the degree of dispersion of BinanceDEX has not achieved the expected effect. However, the exchange is very popular and is constantly upgrading and enhancing trading functions.
Which DEX is the best choice?
The encryption industry and other digital entities use fraudulent network technologies to attract bad actors. I would like to remind you that please do your own research before investing funds in any cryptocurrency project. There are a few points to check.
The reputation of the exchange
Read user reviews on the Internet to determine whether the DEX platform is worthy of your trust. User opinions are usually the most reliable search criteria.
However, we have to face the reality: if the service fails them, users usually write negative feedback. Under these circumstances, one should try to evaluate a platform with an unbiased and focused eye.
This parameter is very important. For example, not all cryptocurrency exchanges can use Visa and Mastercard payment cards. In addition, when using a bank card, you must go through multiple levels of verification. Therefore, when choosing a decentralized cryptocurrency exchange, please always pay attention to the payment rule to avoid further problems.
Most exchanges, including decentralized exchanges, charge fees. Before storing encrypted assets and conducting transactions, it is vital to understand them. decentralized cryptocurrency Exchange Ethereum-based DEX will charge miner fees, so you should carefully study all conditions before interacting with the exchange.
Each exchange has its own exchange rate. Since these exchange rates are set by themselves, sometimes they may be quite different. Naturally, it makes sense to compare them and choose the most profitable exchange rate for yourself.
The decentralized exchange strives to make it available to anyone in the world, regardless of nationality and place of residence. However, a small part of DEX still emphasizes that users in certain countries cannot access them.
The best-decentralized exchanges aim to enhance the decentralized financial industry and provide users with transparent and secure transactions. Just like DEX, is a non-custodial cryptocurrency exchange that allows you to buy, sell, and exchange more than 160 cryptocurrencies immediately. You can choose to use a credit card (Visa, Mastercard), bank transfer, or Apple Pay to purchase cryptocurrency decentralized cryptocurrency Exchange.
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