The Best DEX Exchanges in 2022
Currently, the world of cryptocurrencies is dominated by centralized exchanges (CEX). However, these have been subjected to hacker attacks, as a result of which users lost their money.
Also, some CEXs were caught manipulating the market to extract personal benefits to the detriment of the interests of customers.
Therefore, many traders have been thinking about switching to decentralized exchanges (DEX) for a long time. How do they differ from CEX? What are the best DEX exchanges?
Learn more about the Chinese way of cryptocurrency regulation here.
What are decentralized exchanges?
Any trader needs to work with a secure exchange that has simple, clear functionality and can provide the necessary opportunities for earning. Traditional cryptocurrency exchanges present a vast selection of trading pairs and other tools, and there are a huge number of platforms with convenient functionality.
What is a decentralized network? Learn more here.
But no exchange can guarantee the complete security of funds — numerous criminals on the largest sites can serve as proof of this. We will not deny the fact that any centralized exchange can simply go to the scam, and there have already been such examples.
The real solution to the problem of security and centralization of exchanges is DEXs, or decentralized exchanges. It is almost impossible to hack such an exchange and steal its customers’ money since it works on the blockchain and is cryptographically protected.
At the same time, traders do not need to transfer money to the owners of the exchange during the replenishment of the balance. When trading, they use coins that only they have access to. No one else owns the private key and cannot take over the funds.
Working on the blockchain and not having a control center, a DEX may not have official registration, and it does not need to obey regulatory authorities. Such an exchange cannot be banned or blocked, just like any cryptocurrency.
How does a DEX differ from centralized exchanges?
The key difference between decentralized exchanges and conventional ones is that they are not managed by a single center in the form of an owner or a group of owners. In addition, the exchange is not located on any server but is hosted on a blockchain (sometimes on several at once.) Due to the placement on the blockchain, the security of a decentralized exchange is significantly higher than its more traditional counterpart, and its functionality is performed by smart contracts.
Basic functions such as deposit placement, order reconciliation, and asset exchange are performed by an automated algorithm — the human factor is excluded in all processes. Moreover, even if desired, no one can interfere in these processes. All transactions on such exchanges take place without intermediaries, which reduces costs and increases the speed of operations.
Since decentralized exchanges often operate on a specific blockchain, they are linked to individual cryptocurrencies or tokens. For example, if the exchange is based on the Ethereum blockchain, then operations for its users will be linked to ETH or an ERC20 standard token.
It is important to note that the number of trading pairs on decentralized exchanges is more limited than on centralized ones. But recently, DEXs have started to offer quite extensive opportunities for their users.
What is copy trading and how does it help you? Read more here.
The best DEX exchanges in 2022
Crypton Exchange (CRP.IS)
Crypton Exchange is a decentralized crypto exchange based on the Utopia P2P ecosystem. It is an anonymous platform for buying, exchanging, and withdrawing cryptocurrencies without KYC authorization. At the moment, the following cryptocurrencies are available on the exchange: Bitcoin, USDT, DAI, Monero, Crypton (CRP), and UUSD Stablecoin.
Crypton Exchange is unique in that it offers users the benefits of a digital offshore. Thus, anyone can anonymously store and transfer their digital assets without a trace. In addition, the exchange conducts all transactions at the lowest commissions on the market so that users do not lose funds on transfers and conversions.
Learn more about Crypton Exchange here.
CRP.IS this is not just a decentralized exchange. The platform is unique in that it is backed by the private UTOPIA P2P* ecosystem. Therefore, if the exchange’s domain is blocked within the territory of a state, it will still work based on the ecosystem.
*UTOPIA P2P is a decentralized anonymous ecosystem built based on blockchain. The ecosystem is Web 3.0, available now. The platform is completely free from surveillance and censorship.
Find out other benefits of Utopia P2P here.
Uniswap exchange has been operating since November 2, 2018, and is funded exclusively by a grant from the Ethereum Foundation. It is known for a wide selection of trading pairs. The platform has an open-source code and operates without its token.
A liquidity reserve is created for each pair of ETH/ERC-20 tokens. It is an exchange smart contract containing a certain amount of ETH and ERC-20. The contract works as an automated market maker that determines the exchange rate based on the relative amount of each asset type held in reserve.
At the same time, users do not fill orders, but trade according to the reserve, adding one token and deleting another. The cost depends on the size of the order relative to the size of the reserve. Liquidity providers receive a commission of 0.3% on any transaction.
The KyberSwap project started in 2017, collecting $50 million during the ICO. This platform positions itself as a decentralized exchange and a payment system at the same time. One of its tools is KyberSwap. There, individual users can exchange cryptocurrency in just a few clicks.
The Kyber Network Crystal (KNC) token is used for internal calculations and commission payments. At the moment, 1 KNC costs $0.17. The coin is ranked 120th in the CoinMarketCap rating. Excess KNC is burned and withdrawn from circulation so that the token does not depreciate.
Payment of the commission in KNC gives a discount. Otherwise, the smart contract replaces part of the payment. To make money on the Cyber Network, you need to open your liquidity reserve.
Recently, an option has been added to KyberSwap to place deals on limited orders. No deposit is required, and users receive a 50% discount on a 0.1% commission when paying in KNC.
The Radar Relay platform was launched in October 2017. It is a decentralized exchange using the 0x protocol. With its help, the chain of orders between users is built directly, bypassing the exchange. This requires only the address of the sender and recipient.
The exchange never holds user tokens; trading takes place in smart contracts. Because of this, it is difficult for hackers to track the chain, not to mention launch a successful attack. Therefore, Radar Relay is one of the most reliable DEXs.
It’s easy to find the right pair there. The user needs to choose the available and required tokens, place an order at the market price, or set a limit on opening a position.
The platform does not require any accounts, passwords, or passport photos. In addition, there are no subscriptions, deposits, and fees.
The emergence of decentralized exchanges has become the next stage in the development of cryptocurrency trading and blockchain technologies in general. Today, a lot of users’ attention is focused on them, since DEXs’ characteristics are superior in almost everything to conventional platforms for crypto trading. Their key advantage is a high level of security and full control over their money.
In addition, modern decentralized exchanges become more convenient to use over time. This means that users will have fewer and fewer difficulties in working with them. Therefore, you should take a careful look at the popular DEXs available on the market and choose your option for trading based on personal preferences.