If you are using cryptocurrencies or considering entering this market, you need an exchange platform. These sites are marketplaces that bring together those who want to sell their crypto to those who want to buy them. In a way, they are similar to casino online sites in that they bring players and game studios together. Although there are many exchanges in the market that you can use, the largest of them are “centralized”, that is, they have a central and fixed server. However, one of the most exciting aspects of blockchain technology is that it is decentralized, and it is possible to find exchanges that fit this description. In this article, we feature the best and most popular of them.
What is a decentralized exchange?
Before we get started, let’s give a brief overview of what decentralized exchanges (DEX) are. Most of the sites on the internet are hosted on computers called “servers”. These are physical devices controlled by “humans”. For the same reason, it is possible for both employees and governments to access them and get hold of the information they store. This is how even big exchanges like Binance and CoinBase work.
Decentralized exchanges run directly on the blockchain, that is, a distributed digital database among multiple users. They do not have central servers. In fact, they don’t even have a server in the traditional sense: it’s the users themselves who host the exchange. It will not be possible to seize such a site. Decentralized applications are the most exciting aspect of blockchain technology, and exchange sites are only a small part of it.
So what DEXs are the most popular? We got the trading volume data that forms the basis of this list from sites like Coinmarketcap and Coingecko: the more trades are made on an exchange, the more popular it is. However, keep in mind that these numbers are determined daily and may change at any time. In other words, a different DEX could become much more popular at any time.
This is a swap site, meaning it was set up primarily to swap a particular crypto with another crypto. The daily trading volume is over $1.7 billion, and a total of 644 markets are supported. Uniswap may have the simplest design we’ve ever seen: its main screen is just a swap box with two sections. You enter the crypto you have at the top and the crypto you want to swap at the bottom. Uniswap finds the best possible offer by searching the Ethereum, Polygon, Optimism and Arbirtum networks. The site also offers different pools, but its main purpose is to allow you to exchange crypto tokens with each other.
dYdX supports 10 different markets and has a daily trading volume of just over $1.5 billion. Using the Starkware infrastructure, the exchange allows you to trade perpetual contracts. You can trade with leverage up to 20x. If you do not know what perpetual contracts are, we can say that they are futures that do not have an expiration date. In other words, you are buying an asset (cryptocurrencies) to buy/sell on an unspecified date. dYdX is not for beginners, but it is one of the best options for those who want more than just buying and selling coins.
This exchange supports 4,152 markets and is currently the leader in this regard: there is no other DEX with more markets. Pancake Swap has a daily trading volume of just over $700,000. It is closer to the classic definition of an exchange: it’s primarily used to buy and sell crypto. The platform has 3 million users, and more than 40 million trades are processed every month. However, Pancake Swap also offers skating, yield farming, NFT and pools services. With its simple and useful interface, it is one of the most suitable options for beginners.
Serum DEX runs on the Serum blockchain and can be used as both a DEX and a swap. It supports 113 markets and has a daily trading volume of over $330,000. Exchange’s swap interface is quite simple, and the transaction fees are quite low, but the trading interface can be a bit complex for a beginner. Serum DEX also offers pools, farms, staking features and gives support for new cryptos with features like “AcceleRaytor”. The site also has “bot” support: using them you can automatically use simple or advanced strategies.
Kine is a DEX that does not demand gas fees or slippages for trading, and the peer-to-pool model it uses prevents liquidity problems. A total of 19 markets are supported, with a daily trading volume of just over $300,000. Kine supports ETH, BNB Chain, Polygon and Avalanche blockchains and offers on-chain staking. Also, it has an “NFT Box” feature: this DEX can also be used to buy and sell NFTs.