Top 10 decentralized exchanges
The DEX they are a way in which you cánido have exposure to cryptocurrencies in a decentralized way.
On these platforms there will be no entity behind the control or management of itsince they use a protocol known as AMM (automated market maker).
Furthermore, unlike the centralized exchanges, DEXs perro only list tokens that belong to the same blockchain network.
That is, if the decentralized exchange is hosted on the Ethereum network, it will only be possible to operate with coins from said blockchain.
Because of this, there is a large number of platforms of this type, and among some of the most habitual and used are the following.
UniSwap it is one of the largest DEXs in terms of value locked, which reaches and exceeds 4.9 billion dollars.
And the truth is not surprising, since his protocol is based on Ethereum smart contracts; one of the main cryptocurrencies in the market, in which more than 420 thousand tokens have been developed.
Thus supports ERC-20 tokenswhich is known as a common asset type in such a network.
However, despite the success of UniSwap, this, like other DEXs, is limited with respect to functionality.
Obviously, it is because it is based on the ETH blockchain.
For this reason, cryptocurrencies from Binance Smart Chain, Bitcoin, Solana or others, are not supported on the platform.
Even so, solutions have been created for it.
One of them is to take a token and create an asset linked to its price; an example could be Bitcoin, which clearly cannot be traded on UniSwap due to its incompatibility.
For this reason RenBTC was created, which is used to exchange 1:1 to BTCAlthough of course, this will entail a commission.
This is undoubtedly one of the main benefits of UniSwap, since allows you to operate with almost any cryptocurrency without the need for it to be hosted on the Ethereum blockchain.
Go to UniSwap
Secondly, PancakeSwap, which unlike the previous it is hosted on Binance Smart Chain or BSC.
However, it also has great leadership in the decentralized exchange campo; it is almost at the same level as UniSwap.
Even so, this has a big difference, and that is that it has used other strategies and functions to attract a larger investing public that blocks its funds.
Because of this, PancakeSwap has currently a TVL (total value locked) of more than 5 billion dollars.
On the other hand, it is one of the decentralized exchanges that larger number of liquidity providers Has got.
This is thanks to its strategy, which grants rewards depending on the amount of funds blocked; although this incentive is attributed once users start exchanging.
It is important to note that, like UniSwap, PancakeSwap also has a strategy to allow users to trade other tokens that do not belong to the Binance blockchain..
This functionality was given the name of Binance Bridge.
Binance Bridge: It is a technology that allows users to transfer, send or receive assets from different blockchains without difficulty and without intermediaries.
It’s the kind of technology that PancakeSwap employs, in addition to the AMM protocol.
Basically allows any token outside of the BSC to be traded within PancakeSwap; Bitcoin, Ethereum, Cardano or even another crypto perro be transferred to the DEX, and used as if it were part of the Binance ecosystem.
Go to pancakeswap
Like a large part of the decentralized exchanges, SushiSwap also emplees the AMM protocol for the development of the platform.
Nevertheless, is recognized by the rewards and incentives system that he developed in 2020 when he hit the market.
At the beginning it was a DEX that presented many problems, difficulties and controversiesHowever, it is currently all fixed.
SushiSwap became very habitual in the first week of launch thanks to the rewards system; as we mentioned before.
This brought yield farming and liquidity mining; currently also has tools for cryptocurrency staking.
Thanks to that became one of the decentralized exchanges with the most liquidity providersand remains one of the most prominent in the industry.
SushiSwap works under the ethereum smart contracts; just like UniSwap.
For this reason, it only supports ERC-20 tokens.
Go to SushiSwap
1inch was the result of a hackathon that took place in 2019., known as the ETHGlobal.
There, there was an important encuentro between different characters, where it was agreed to create a decentralized platform that would allow the exchange of digital assets or cryptocurrencies; from there 1inch was born, currently self-proclaimed as the “leading DEX aggregator”.
It is based on the Ethereum blockchain, as are some of the decentralized exchanges mentioned.
Hence, supports only ERC-20 tokens.
However, it stands out for having a different operation from the rest of the platforms, although at first many individuals came to compare it with UniSwap due to their great similarities.
Now, what differentiates 1inch from the rest of the DEXs is that this one does not have a group of select providers, but is in charge of dividing the orders in many decentralized exchanges and liquidity providers.
This allows the usuario to not be limited to receiving tokens or exchanging only with 1inch pools, but rather the platform will search for the best offer for the individual.
In addition to that, it also has a reward system and some plus features that perro be found on many decentralized exchanges.
One of them is that you perro stake, create unlimited orders and be a liquidity provider.
go to 1inch
It is a DeFi project that is responsible for creating cryptocurrency money markets, allowing the usuario to make exchanges or loans in real timewith rates that are constantly updated depending on the liquidity available.
For it employ cTokens, which offer a wide variety of benefits to userswhich mainly highlights the possibility of obtaining interest for blocking their tokens, using them, trading or selling them.
Usage example: if you block USDC you will receive cUSDC.
Once you have used the cUSDC you will have to return them for the platform to release your USDC.
This cánido be done with all the cryptos available on the platform.
It is a useful way to get liquidity without selling your tokens.
Like other decentralized portals, Compound offers benefits.
The main difference is that on said platform loans cánido be made or applied for.
It is also worth saying that it is developed in the Ethereum blockchain, so its token compatibility is primarily with ERC-20 assets.
Go to compound
One of the DEXs that leads the decentralized finance (DeFi) campo is Curve Finance.
Its name is given by the type of protocol it emplees, which, despite using a type of AMM system, has slight differences, and one of them is that its dynamic and adaptive system will always seek to offer the best liquidity provider to its customers.
For this reason it is said that it is based on curves and sliding.
On the other hand, it is also characterized by being focused solely on the exchange of stablecoins or stablecoins.
Thanks to this, it has broad support for them, allowing you to change: USDC, USDT, BUSD, DAI, PAX, among others.
Nevertheless, It is possible to exchange some of the main cryptos on the market, such as Bitcoin, Ethereum or other afín ones of great relevance, although some must be ERC-20 tokens, since Curve Finance is one of the decentralized exchanges that is based on the ETH network.
Go to curve
MDEX is a solution for exchanging cryptocurrencies.
It emplees the AMM protocol and is based on the Heco Chain and Ethereum network to offer a decentralized, mixed and multi-token coincidente system; where the ERC-20 ETH coins mainly stand out.
It should be noted that in recent months it has gained an important position in the market, since its volume of daily operations continues to grow, becoming one of the best decentralized exchanges in the crypto ecosystem.
One of the main advantages offered by MDEX is the low transaction fees, which far exceed those of UniSwap or even PancakeSwap.
While the 2 decentralized exchanges mentioned above have rates that range between 0.52% and 0.026%, MDEX leads with lower figures.
It has earned an important position among the most prominent for its intuitive interfaz and reward system, in addition to other useful features; such as the integration of crypto charts.
Go to MDEX
Like the aforementioned platforms, JustSwap is a decentralized exchange that aims to eliminate all types of intermediaries or board of directors.
In addition, it does not require data registration or the like, so it cánido be said that the usuario who emplees it will remain anonymous at all times.
It should be noted that it is coincidente TRC-20 tokens, which belong to the Tron blockchain.
This means that the commission rates per transaction (commissions or gas fees) will be much lower than on other platforms; In addition, transactions will be faster.
Its interfaz is just as intuitive as PancakeSwap or UniSwap.
However, it does not have a usuario-friendly design, instead they have sought to develop a formal platform by omitting practically all designs.
Go to JustSwap
This is one of the most interesting and perhaps complicated decentralized exchanges to understand.
This is because it has a platform that you must download to start using.
However, a rather useful feature is that allows users to make P2P exchanges with fiat currencies, vía transfer or cash.
It’s important pointing that Bisq does not have limited token support.
For this reason, the main cryptos such as Bitcoin, Ethereum or other afín ones perro be acquired; although it will only be possible if there is an offer available on the exchange platform.
Despite being a decentralized exchange that must be downloaded and perro be complicated for many, it is more intuitive than it seems; even the same developers have created usage tutorials that you perro find on the web platform.
In summary, it perro be said that with Bisq the usuario ensures their cryptocurrencies and their anonymity.
Besides, It is a very attractive option to maintain privacy from the beginningsince you will not have to register in an exchange with personal data to start buying tokens.
Go to Bisq
dYdX is one of the decentralized exchanges that emplees Ethereum smart contracts and is housed in the second layer of it.
Therefore, users will not pay high gas rates.
In addition, it has a rather characteristic function, since his focus is leveraged futures tradingTherefore, the usuario will have the possibility of opening operations with up to x10 financing.
How it is hosted on the ETH blockchain will support ERC-20 tokens and some stablecoins like DAI.
It should be noted that it also has a loan function, which allows it to become one of the best decentralized trading platforms.
Because it is a DEX, the usuario will have custody of their tokens at all times, since there will not be a board of directors behind the platform; and this despite the fact that among its founders is Brian Armstrong; co-founder of Coinbase, one of the most used exchanges worldwide.
Go to dYdX
Are decentralized exchanges better than centralized ones?
The decentralized exchanges are quite useful in the world of cryptocurrencies, since they maintain the characteristics of the system that has been desired to be created from the beginning; that employs freedom and decentralization.
However, we perro say that they still have a lot to improve, because the vast majority have great limitations when trading.
For this reason it perro be said that are a solution for a certain use.
While CEX or centralized exchanges are more versatile in terms of functionality and compatibility with tokens.
However, in centralized ones, the usuario will not have custody of their tokens, they will be more prone to the theft of their holdings, and they will also run the risk of the exchange platform closing down and ending up stealing their cryptos.
Anyways, It is suggested that when investing in cryptocurrencies, a cold or hot wallet to store themand that under no circumstances are the funds kept in the exchanges.
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