Decentralized exchanges or DEXs have become popular for their ability to let people buy and sell cryptocurrencies directly with one another without the need for middlemen. A DEX is different from a centralized exchange in that the entire trading process is executed through a smart contract program.
When looking to buy cryptocurrencies through a DEX, the user must have a compatible crypto wallet, which will be then connected to the DEX and the swap can be performed after entering the number of tokens to buy.
As the popularity of crypto DEXs is increasing, so is their number. Today there are multiple decentralized cryptocurrencies exchanges you can choose from. In this article, we will talk about some of the best decentralized exchanges in the market.
1. PurpleX
PurpleX is a new but powerful and feature-rich decentralized exchange for cryptocurrencies. It brings together many advanced technologies including blockchain to build a truly decentralized platform where people can seamlessly swap a large number of cryptocurrencies and digital assets. Based on the Binance blockchain, the Purplex exchange supports cross-compatibility and will also allow crypto trading across different exchanges. In addition, it also inherits Binance’s SAFU (secure asset fund) to protect users’ money on its platform.
2. Uniswap
Uniswap is an extremely popular decentralized crypto exchange built on Ethereum. Uniswap is the decentralized network protocol through which users can swap their cryptocurrency tokens on the Ethereum blockchain. It uses smart contracts and supports all ERC-20 tokens. As a DEX, Uniswap doesn’t charge a fee from people trading on its platform or using its services to trade crypto tokens. It was launched in May 2021 and is already one of the most popular decentralized exchanges for crypto assets.
3. PancakeSwap
PancakeSwap is a decentralized crypto exchange on Binance Smart Chain. It is primarily used for swapping BEP20 tokens. It works similarly to other DEXs and uses smart contracts for the secure and seamless trading of crypto tokens. It is based on the automated market maker (AMM) model, where users are rewarded for trading their tokens against a liquidity pool. In exchange for depositing their tokens into the pool, traders receive liquidity provider tokens or LPs, which they can use to claim rewards including commission in trading fees.
4. Curve
Curve Finance is a relatively newer but fast-growing crypto exchange. It features a simple interface through which users can instantly swap a range of cryptocurrencies using the liquidity pool. All users need to first connect their wallets from the available list. Exchange rates for the available pairs are updated frequently. The top features and benefits of the Curve DEX include high efficiency, low risk, earning through liquidity contribution, and low slippage. The platform is backed by the Curve DAO, which is also responsible to decide the fees and other variables.
5. Balancer
Balancer is one of the less known but equally remarkable platforms for trading cryptocurrencies. It’s a non-custodial liquidity provider that allows peer-to-peer trading of a large number of cryptocurrencies. Supported wallets include Metamask, WalletConnect, Tally, Coinbase and Portis. Because Balancer is built on the Ethereum blockchain, users must have an Ethereum wallet in order to trade on Balancer.
Decentralized exchange is the future of crypto trading. So, which DEX are you going to trade with next?
Original source: www.coins.newbium.com
