Where to buy or sell crypto safely? For reliable trading and exchanging of digital assets, opt for decentralized exchanges. What are DEX crypto exchanges and what are the best decentralized exchanges? Read this article to learn about cryptocurrency DEX exchanges to make an informed decision.
What is DEX or Decentralized Exchange?
A decentralized exchange (DEX) is an exchange that operates on the basis of a distributed registry, does not store user funds and personal data on its servers, and acts only as a platform for searching for matches in applications for the purchase or sale of user assets. Trading on such platforms occurs directly between participants (peer-to-peer) without any financial intermediaries.
At the same time, most existing exchanges that call themselves decentralized are not really like this: they use their own servers to store trading data and applications for the purchase or sale of user assets, however, private keys are stored by the users themselves.
Now, let’s observe the best exchanges where you can buy and sell crypto without worries.
This is a multi-platform decentralized exchange with the ability to exchange cryptocurrencies for fiat money from the Waves project. Representatives of the project claim that at the moment, trading volumes on the platform account for more than 25% of the total trading volume on all decentralized exchanges.
DEX Exchange is the first decentralized platform where you can conduct transactions with BTC. In DEX, orders are negotiated within a few milliseconds, and the throughput of the exchange is 1000 transactions per second. The operation of DEX is provided by node nodes. Their task is to connect the seller and the buyer, for fixing transactions in the Waves blockchain. For their work, node-getters receive a percentage in the form of a commission from transactions. According to Waves, their DEX trading platform is faster and safer than traditional cryptocurrency exchanges.
EtherDelta is a decentralized exchange that was founded by Zack Coburn Exchange in 2017 for trading Ethereum tokens without intermediaries. She works on Ethereum’s smart contracts. Its main advantage is that users themselves can add a token that is not on the exchange list, so you can buy even the rarest coins here.
The commission for withdrawing funds on the exchange is minimal (from 0.0001 to 0.0003 ETH). The exchange takes 0.3% from each order, but does not charge a commission for depositing and withdrawing funds.
The trading volume on EtherDelta is about $ 7,000,000 a day, according to Coinmarketcap. The exchange supports a huge number of ERC20 tokens issued as part of the ICO. You do not need to wait until they appear in the exchange listing to start trading coins
Our decentralized exchanges list must include Binance DEX. Binance DEX is a decentralized cryptocurrency exchange from the Binance team, built on the Binance Chain blockchain. The developers claim that it will combine the advantages of the usual Binance (high speed, fast execution) and the advantages of a decentralized approach.
From the point of view of trading opportunities, they offer the same thing as on the Binance exchange. The bonus is a quick listing of new tokens.
Binance DEX has the following features:
- Only limit orders are supported;
- GTE (good till expire) orders are supported – valid until the pending order is canceled, IoC (immediate or cancel) – the order is either executed completely when the specified price is reached, or canceled. Since the trading platform works on top of the blockchain, information about orders is confirmed and recorded in the block;
- The deadline for the order is 72 hours. At 24:00 UTC, the order book is automatically scanned and expired orders are deleted by the system.
Commissions are as follows:
IDEX crypto exchange is a relatively young project. This is a decentralized platform for trading Ethereum tokens (ERC20). Despite that, in terms of trading volume, the IDEX Exchange ranks in the first 100, among other platforms for trading digital assets. The decentralized exchange consists of 3 main components:
- Smart contracts – responsible for the safety, regulation, and control of processes;
- Trade engine – providing online trading balance updates;
- Transaction arbitrage – using the speed of centralized exchanges, and the security of decentralized ones.
In general, the IDEX exchange can be called an improved version of the EtherDELTA exchange. There is a more refined and unloaded interface, and also fixed the problem with access to the account. The only minus that can be distinguished is inhibition in work.
One of the oldest and the best decentralized crypto exchanges, GDAX Cryptocurrency Exchange is a division of California-based Coinbase. The abbreviation in the name means Global Digital Assets Exchange. The platform was launched in the spring of 2016. The main difference from Coinbase is that this project focuses on professional traders with rich experience.
It should be noted right away that the platform is available for operation only in 27 countries of the world. People from other countries will not be able to complete the necessary verification.
The exchange provides the opportunity to purchase cryptocurrency for fiat. Available currencies include Euros, US Dollars, and Pounds. Which currency to replenish the balance depends on the region where the trader lives. The British, for example, will be able to use only GB pounds, and the Americans – only the US dollar. Money can be transferred directly from your bank account. But it also requires verification.
GDAX supports 12 trading pairs including BTC / USD, LTC / EUR, BTC / GBP, ETH / USD, and so on.
One of the top decentralized exchanges, Counterparty DEX is an open-source solution that was thoroughly tested and appeared to be a highly reliable option. It’s particularly great for Bitcoin transactions and exchange.
The platform would be equally great for newbies and experienced users as it features a clear interface and intuitive navigation for crypto exchange between users. As for trading fees, we have not been able to find them. When it comes to depositing, the platform supports cryptocurrency transfers only, so it’s not suitable for operations with fiat.
Crypto-Bridge 2.0, a decentralized exchange that supports trading with most of the popular altcoins.
The project has a few peculiar features:
- Elimination of the central point of failure during bidding – all deposits, withdrawals, and all order books are transparently stored on the blockchain.
- It has its own coin – BridgeCoin.
- Use of multi-signature software with an integrated gateway, used by a dozen trusted gateways operating on several continents, which reduces the issues with the withdrawal of supported coins
- Up to 100,000 TPS processing speed.
- Average transaction confirmation time – 3 seconds.
The entire profit of the trading platform is distributed between market makers (25%) and GUS (75%).
The exchange also implements the Market Maker program, where all participants providing liquidity to the exchange receive a fee (25% of the commission). You can become a market maker by creating sell or purchase orders (limit orders). The whole point of the program is that you receive partial compensation of the commission for trading: by paying 0.20% of the commission for trading, you will receive 0.05% for each executed order. In other words, the commission will be 0.15%.
Among disadvantages, we would highlight that there’s no way to trade in fiat and popular currencies are supported not as well as unpopular altcoins.
Bisq (formerly Bitsquare) is a DEX crypto exchange that was launched in 2014 by Manfred Carrer in order to preserve the original idea of Bitcoin even on cryptocurrency exchanges, traditionally distinguished by their centrality.
Bisq connects buyers and sellers directly, and all transactions are carried out directly on the blockchain without the participation of third parties. To conclude a deal, you can either independently place an order in the order book, or select one of the existing orders. Payments are made on special multi-signature wallets, from where cryptocurrencies are transferred to the accounts of new owners.
| – participation of independent users guarantees the ability of deals; |
– high safety & privacy standards; – a wide choice of coins.
| – there are not so many open deals because the website is unpopular; |
– high fees;
– no instant customer support – users have to resolve to FAQ and forum.
Oasis DEX runs on the Ethereum blockchain allowing to exchange any ERC20 protocol tokens. With the help of this financial instrument, you can operate both in large amounts and conduct small transactions.
To work on this exchange, you must have an Ethereum wallet (for example, Mist, MetaMask or Parity Browser). The decentralized application will detect the network and connect to it automatically. The system will check the synchronization.
You can buy or sell the following tokens on the OasisDEX exchange: ETH, MKR, DGD, REP, ICN, 1ST, SNGLS, VSL, PLU, MLN and DAI. Fiat money is not supported.
The main advantage of this token exchange platform is its high security. Other benefits of OasisDEX are:
- the ability to expand trading pairs to all tokens on the ERC20 protocol;
- lack of commission for deposit and withdrawal;
- quick transactions.
AirSwap is a decentralized exchange of ERC20 tokens, which is achieved through the implementation of the Swap protocol – a peer-to-peer Ethereum token exchange protocol.
Unlike centralized exchanges, AirSwap does not use order books, which initially have many flaws in the blockchain, such as delays, scalability, and other flaws.
AirSwap combines the best of both worlds, i.e. out-of-chain and in-chain to help prospective parties negotiate in a fair, secure and confidential manner. AirSwap uses a strong alternative to trading peer tokens – out-of-chain negotiations and in-chain calculations using the Swap protocol.
In the table below you will see why AirSwap is one of the best DEX cryptocurrency trading platforms:
Altcoin.io is a decentralized trading platform that was designed to solve the issues with traditional P2P platforms. It provides plenty of liquidity and reduces the problems typical of P2P websites. The platform features a great interface and is very easy to navigate.
Altcoin.io lets users generate a wallet for atomic swaps by entering a password and receiving 12-word phrase. Atomic swaps make this platform great for instant trading without issues. All transactions are secured and protected – there’s no risk of losing assets.
The number of worthy online decentralized exchanges is growing quickly. For example, John McAfee is planning to launch a great platform for safe and fast crypto exchange, and it promises to become a real hit among traders:
Which DEX is the best?
Once you start choosing a suitable crypto DEX, making an informed decision might be hard. Here’s what you should keep in your mind:
The reputation of the exchange
Read customer reviews on the Internet to decide whether a DEX platform is worth considering. Most often, users’ opinions are the most reliable criterion of search.
This parameter is very important. For example, not all cryptocurrency exchanges work with Visa and MasterCard payment cards. In addition, when using a bank card, you have to go through multi-level verification.
If this is a bank transfer, then the procedure is delayed in time – it may take up to 5 business days. In addition, when using the SWIFT transfer in favor of the cryptocurrency exchange, a problem may arise in the purpose of payment and your bank will not be able to send an international transfer. Therefore, when choosing a cryptocurrency exchange, always pay attention to the methods of depositing and withdrawing funds in order to avoid problem situations.
Each exchange charges fees for transactions and deposit or withdrawal operations. The sizes of these commissions are indicated on the websites of exchanges, therefore it will not be out of place to get acquainted with them.
Each exchange has its own exchange rate. Since these exchange rates are set for themselves, sometimes they can be very different. Naturally, it makes sense to compare them and choose the most profitable for yourself.
Each cryptocurrency exchange has its own rules. In order to perform any operations on most sites, you will need to go through the procedure for confirming personal data, that is, verification. The presence of this step means that only real people are allowed to do all transactions, which reduces the risk of dealing with cybercriminals.
Restrictions on the geographic location
Some cryptocurrency exchanges may have geographical restrictions, which are necessarily indicated on the official website of the exchange. For example, the American cryptocurrency exchange CoinBase is not available to users from Russia and some Asian countries.
Now you know which decentralized crypto exchanges are worth your attention and trust. Good luck with trading!