Decentralized Exchanges (DEXs) have emerged as a popular alternative to centralized exchanges due to their unique features and advantages. Unlike centralized exchanges that require third-party services to hold user funds, DEXs allow users to trade cryptocurrencies directly in a peer-to-peer (P2P) automated system. This eliminates the risk of hacking or manipulation, making DEXs safer and more private.
Additionally, users can trade anonymously without giving away personal information, further enhancing their security. While centralized exchanges offer more services like margin trading and derivatives, they are more susceptible to hacks and manipulation due to their centralized nature. On the other hand, DEXs offer anonymity, security, and lower transaction fees. They are also not governed by any government or territory, allowing for greater trading freedom.
In this article, we will explore the seven best decentralized exchanges and their unique features and advantages. But before we delve into the list, let’s first understand the different types of DEXs available, so that you can choose the best one according to your needs.
Types of Decentralised Exchanges (DEXs)
There are three primary types of decentralized exchanges available in the market, each offering unique features and advantages. These include Automated Market Makers, Order Books DEXs, and DEX Aggregators. Despite their differences, all three types enable users to trade cryptocurrencies directly with each other using smart contracts.
● Automated Market Makers (AMMs) is the most common type of DEXs, which uses smart contracts to complete orders and track crypto asset prices in real time. Automated Market Makers use community-funded liquidity pools as a platform for trading. There are numerous AMMs with their own liquidity pools, meaning crypto coins’ prices differ on each. This creates an excellent opportunity for traders to buy assets from exchanges with lower prices and sell them into pools with higher prices to make additional
● Order-book (on-chain and off-chain) has some similar features to the CEXs. Users of these decentralized exchanges can place buy orders at the price they are ready to pay for a given crypto asset and sell orders at the price they want to sell their coin. The order book then matches buyers and sellers to execute orders. The interaction between buyers and sellers determines the price of a certain asset in the crypto market.
● DEX aggregators are platforms that consist of data from numerous best dex cryptocurrency exchanges in real-time, allowing traders to see the overview of the market and compare the pricing, etc., without the need to jump between different platforms trying to manually find the most profitable trade.
Now that you can differentiate between the types of decentralized exchanges, we can take a closer look at the best-known and trusted exchanges. You might not have the correct crypto predictions for 2023, but if you keep reading you can learn more about the seven best DEX crypto exchanges.
Top 7 Decentralized Exchanges (DEXs) to Buy Crypto in 2023
With so many options available, it can be overwhelming to make the right choice. But fear not, for we have done the research for you and handpicked the top 7 Decentralized Exchanges (DEXs) for buying crypto in 2023. These exchanges offer a diverse range of features and benefits that can help you trade with ease and confidence. So without further ado, let’s dive into the recap of what each of these DEXs can offer you.
1. Dexilon
Dexilon allows users to stay in control of their funds – the exchange doesn’t get to your crypto assets. They will be stored in a smart contract linked to your crypto wallet. The fees are competitive, with taker fees ranging from 1,5 to 5 bps, with a rebate of 1 bps based on the trading volumes. The platform has been around for a couple of years, but it already offers a range of derivatives – options, futures, exotic derivatives, etc.
Dexilon is also the best decentralized exchange for crypto newbies who want to learn about derivatives but aren’t ready to invest much money yet. Its Testnet version will give you a full trading experience with n risk. Another significant advantage of the exchange is no KYC meaning you save time on getting verified by the platform and start trading/learning much faster.
Pros
- Liquidity incentives
- gasless trading
- Self-custody
Cons
- Limited trading pairs
- Mainnet launch Pending
2. Uniswap
Uniswap is the largest DEX in terms of trading volumes. The platform uses the power of AMM in its trade functions and price determination. The platform was originally based on the Ethereum blockchain but then moved to other blockchain systems.
The unique thing about Uniswap is the extremely easy process of adding new coins to the platform. That’s why it has a huge variety of coins which can be a great opportunity to earn a yield on promising coins. Uniswap users holding its native token, UNI, can participate in the decision-making over the exchange’s governance by voting for the changes and additions to the platform.
Pros
- Easy to use
- Great liquidity
- No KYC/AML
Cons
- Higher risk of fake coins
- Imparmanent Loss
3. RBX
RBXchange is the main product of the RBX ecosystem. RBX multi chain decentralized exchange has been running and growing since 2021. It can trade on 20+ blockchains so that users can trade in one place all their tokens. Includes cross swaps, limit orders, liquidity management, p2p trading, auto slippage and more. Dex is available as a widget to integrate easily on any website and will generate passive income through fee splits.
RBX additionally offers a range of DeFi products for users to trade better: Staking platform, Launchpad and their unique decentralized p2p NO KYC ramp named SkipShift. RBX token is the utility token of the RBX ecosystem that can be staked, and a token is also used as gateway collateral for the P2P trading platform.
Pros:
- Aggregates over 200+ decentralized exchanges
- 20+ chains to trade
- Cross swaps Available
- RBXchange is available as a widget to embed on any website.
Cons:
- Not available as an APP
- Challenger Dex, small but growing quickly
- Cross swaps are currently available only on 6 chains ( ETH, BSC, AVAX, POLYGON, FANTOM and HARMONY )
4. dYdX
dYdX is one of the most popular order-book decentralized exchanges. It uses zero-knowledge-proof technology to give its users access to private and secure trading opportunities. In June 2022, dYdX announced that it was developing its blockchain based on Tendermint, built using Cosmos SDK. It can improve the speed and trading flow of the exchange.
Pros
- Margin trading
- Competitive fees
Cons
- Limited range of crypto trading pairs and swaps
- Complex surface
5. Curve Finance
Curve Finance is known for trading stablecoins and providing its users with DeFi composability – a feature that enables using the funds you deposited to Curve on other DEXs. The exchange has a native CRV token for governance and incentives. For example, they get rewarded by CRV when depositing assets into the liquidity pool.
Pros
- High Liquidity
- Multiple pools
- Multiple chain compatibility
Cons
- DeFi composability has additional risks
- Complex UX
6. SushiSwap
SushiSwap, a decentralized platform founded in 2021, allows users to connect and trade with each other directly using blockchain. SushiSwap forked Uniswap using Uniswap’s code, but added SUSHI token rewards. SushiSwap’s native governance token, SUSHI, rewards liquidity providers. SUSHI holders can keep earning rewards after stopping liquidity, unlike Uniswap (UNI).
Pros
- Liquidity Pools
- Low Fees
- Multiple chains supported
Cons
- Limited market cap
- High Volatility
7. PancakeSwap
PancakeSwap is another AMM decentralzed exchange with access to additional services. For example, they can try staking, NFTs, and yield farming. Users who possess CAKE, the platform’s native token, can participate in the exchange’s strategy by voting. Some other interesting features include PancakeSwap Lotteries, Syrup Pools, and IFOs.
Pros
- Low transaction costs
- High volumes
- Yield Farming
Cons
- Limited liquidity
- Lack of Interoperability
8. DODO
DODO claims to have a unique offering for its users that provides much better prices than traditional AMMs. This method, called the ‘Proactive Mark
et Maker Algorithm,’ also helps small projects enter the market much more easily. Another distinctive feature is SmartTrade which helps users find the best swap rate in different liquidity sources. Like PancakeSwap, DODO’s users can influence the platforms’ decision-making with the native token, DODO.
Pros
- Proactive Market Maker
- Mutiple Chains
- Low transaction fees
Cons
- Limited Tokens
- High Volitility
Final Thoughts on Decentralized Exchanges
As we have seen, the emergence of Decentralized Exchanges (DEXs) has brought about significant developments in the cryptocurrency trading industry. With promises of greater security and user-friendliness, DEXs offer a viable alternative to traditional centralized exchanges.
However, despite their growing popularity, centralized exchanges still dominate the market due to their brand recognition, larger trade volumes, and user confidence. Nonetheless, the increasing number of Decentralized Exchanges in the market suggests that this trend could soon change as DEXs continue to improve their functionality and user experience. As such, it’s essential to keep an eye on the development of the DEX market as it promises to revolutionize the cryptocurrency trading industry.
