The best decentralized crypto exchanges
Decentralized Exchange (DEX) — a crypto exchange, which is based on blockchain technology. DEX excludes intermediaries from the exchange chain allowing users to trade their coins directly (peer-to-peer) through smart contracts or other algorithms based on a distributed registry.
How do decentralized exchanges differ from centralized exchanges?
The main difference is that decentralized exchanges have no single point of failure. Centralized (CEX) exchanges store funds and personal data of users on one or more servers, which makes them vulnerable to cyber attacks. Users of decentralized crypto exchanges independently store private keys to crypto wallets and have full control over their accounts. Any outside interference is excluded: the wallet cannot be blocked or hacked. In addition, there is no need to disclose personal information to trade on DEX exchanges.
Another difference is that centralized exchanges act as intermediaries in transactions between users. Exchange operation becomes isolated from the community, and there is no transparency of transactions. Due to the absence of intermediaries and, consequently, lower maintenance costs, decentralized platforms can offer lower fees.
The most popular decentralized exchanges
Binance DEX
A decentralised platform from the creator of one of Binance’s most popular and sought-after crypto exchanges, launched in early 2019 at the initiative of the community. Binance DEX runs on Binance Chain, a blockchain developed by the company itself.
In addition to the main wallet, Binance DEX integrates hardware and mobile crypto wallets Trust Wallet, SafePal, CoolWallet S, Math Wallet, Meet.one and Equal via Wallet Connect.
The main currency of the exchange in which settlements are made is Binance Coin (BNB). Several trading pairs are also supported with BTC and stablecoins. Users can issue and manage their own tokens based on Binance Chain: transmit, freeze, burn and create trading pairs. Users do not pay a fee for creating an order. Binance Chain has a remarkable feature: if the private key to the wallet is lost, the tokens will be burned in the blockchain, which eliminates the possibility of their future use.
IDEX
One of the largest DEX platforms operating on the base of Ethereum blockchain using smart-contracts. IDEX became the world’s first decentralized crypto exchange that supports ERC-20 tokens. The exchange has trading pairs with TUSD, USDC and EURS stablecoins.
The IDEX ecosystem is built on top of the Aurora DAO platform, which includes IDXM, AURA and Boreal cryptocurrencies. Each of them has its own goal. AURA allows you to run your own masternode and get a percentage of the fee amount, IDXM cryptocurrency, issued by IDEX, provides discounts on fees up to the fact that traders can trade for free, and Boreal — stablecoin, designed for p2p-credit and discounts on trading.
IDEX differs from other decentralized platforms in its hybrid model: signed transactions between users can only be transferred to a smart contract by the exchange itself, which makes it only partially decentralized. The exchange acts as a transaction arbitrator, which checks transactions after authorization by users to follow the queue order and synchronizes the exchange and smart contract balances. This makes the crypto exchange more convenient for users.
Waves
Decentralized crypto exchange, based on the popular platform of the same name. Waves uses its own blockchain and wallet for trading, with the help of which it is possible to produce tokens based on the platform. The platform has wide functionality and uses Tradingview software for displaying charts, which allows you to connect trading bots and trade via API.
The key advantage of this exchange is support for a large number of cryptocurrencies (Bitcoin. Ethereum. Litecoin. Bitcoin Cash) and fiat currencies, including U.S. dollar. Waves is based on a hybrid model: the exchange becomes a controller, because to make the exchange requires a desktop application or web client wallet Waves.
ForkDelta
ForkDelta was formed as a result of the EtherDelta DEX fork. Its distinctive feature is the open source code and its focus on the crypto community, which makes the platform one of the most democratic among known DEX exchanges. ForkDelta bypasses its predecessor in many ways: the exchange has a simpler and more intuitive interface, offers lower fees and a large list of cryptocurrencies for trading. The platform regularly supports airdrops, so that the tokens received for free can be exchanged as soon as they arrive in your wallet.
The disadvantages of ForkDelta are that there is no possibility to trade bitcoins on the exchange, and fees are higher than on other decentralized crypto exchanges.
Bisq
Bisq is a decentralized open source crypto exchange. Bisq does not have a browser version of the platform, so you can only trade through a cross-platform decentralized application (dApp).
The reason for Bisq popularity is its support for trading in bitcoins and fiat currencies. The application offers a wide range of payment methods. Bisq uses end-to-end encryption routed by the Tor infrastructure to protect transaction confidentiality. The exchange does not provide automatic order matching, so users manually select the appropriate sell/buy offers in the market. As a result, trading is slower but more secure.
Bisq is similar to the decentralized version of LocalBitcoins, but with its own peculiarities. Compared to similar platforms, fees are lower: the total fee of sellers per transaction is 0.33% vs. 1%, and that of buyers is 0.98%. In addition, sellers on centralized exchangers need to pass verification procedure.
Newdex
At the heart of Newdex is a system of multichains: the crypto exchange operates on two blockchains, EOS and TRON, supports the exchange of tokens issued on these platforms, as well as trading pairs with stablecoins tied to dollar and euro.
The Newdex interface is similar to Binance exchange. Built-in wallet allows you to track your own performance: RAM, process and data rate, which is an integral part of the EOS blockchain. Newdex is fully decentralized: order matching and settlements are performed on a blockchain. All transactions are transparent and can be monitored in real time.
0x Protocol
0x is not an exchange in the traditional sense. It is a protocol on the Ethereum blockchain that allows exchanging cryptocurrencies without an orderbook. The platform is more focused on the creation of products and development of decentralized exchanges, and it also provides other platforms with liquidity. It develops solutions for business: crypto platforms for NFT-trading, decentralized credit tools and mechanisms for creating stablecoins.
The distinctive feature of 0x Protocol is that it supports off-choice order matching, while control and regulation is carried out inside the blockchain.
DDEX
A young but fast-growing crypto platform offering a simple and convenient way to exchange digital assets. The DDEX ecosystem is built on top of the Hydro protocol, which fully controls order matching and performs all calculations at a blockchain level created specifically for the development of decentralized exchanges.
A key feature of DDEX is the support of margin trading with leverage and spot contracts. The exchange operates on the Ethereum blockchain, so the main settlements are made in ETH. It also supports some altcoins based on Ethereum and compatible with the ERC-20 standard: EOS, BAT, 0x and TRON.
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