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Best Decentralized Exchanges 2023
Luis Clark
Best for Large Selection of Crypto Products
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Best Exchange to Trade Tokens on the Binance Smart Chain Network
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Best Decentralized Exchange for Bitcoin Trades
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Best Decentralized Exchange for Stablecoins
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In this article, we’ll look at the six best decentralized exchanges in the world today. We considered their fees, supported payment methods, available blockchain networks, security, pros and cons, and much more.
To establish the top decentralized exchanges on our list, we got first-hand experience with each decentralized exchange, studied user reviews of a multitude of trading platforms, and analyzed crypto expert verdicts about all 6 best decentralized crypto exchanges.
Best Decentralized Exchanges: Our Opinion
Based on our analysis of the top decentralized exchanges, our pick as the best decentralized exchange is Uniswap.
This decentralized exchange offers the best of both worlds as it allows users to buy cryptocurrency on its trading platform using fiat currency as you would on centralized exchanges as well as non-custodial wallets. It is also arguably the most popular user option on this list.
Uniswap - Largest Decentralized Exchange Aggregator
The Uniswap decentralized crypto exchange is the largest decentralized crypto exchange and was launched in 2018 by Hayden Adams.
Uniswap supports over 1,000 cryptocurrencies including every ERC-20 tokens.
The exchange facilitates automated transactions between assets on the Ethereum blockchain using smart contracts (liquidity pools).
Liquidity providers who commit their tokens to Uniswap Liquidity pools, earn a percentage of the exchange’s trading fee.
A major perk of Uniswap is that it supports the purchase of cryptocurrencies using credit or debit cards by supporting 3 fiat currencies: USD, EUR, and GBP.
Just like most of the best decentralized crypto exchanges, Uniswap has a governance token, which is called UNI. Since the exchange is not controlled by a central company like most centralized crypto exchanges, UNI token holders take part in the governance of the protocol.
UNI token holders vote on updates to the protocol and other governance proposals.
Uniswap does not depend on market makers to fulfil orders, instead, it uses liquidity pools funded by liquidity providers. Liquidity providers add their tokens to smart contracts and other traders will be able to buy and sell the tokens in adhesion to the constant-product rule.
Uniswap also has an NFT marketplace that supports popular NFT collections like Moonbird, Mutant Ape Yacht Club, Pudy Penguins, etc.
Concerning fees, the fee schedule of Uniswap is straightforward. The exchange charges from 0.01% to 1% on swaps. It does not use a maker or taker or tiered trading fee system. However, a huge back-draw is that on top of the trading fees users have to pay gas fees which can even today be very high.
Key Features of Uniswap
UNI Token
UNI is the governance token of the Uniswap protocol. The token was launched in September 2020.
The token is used to decentralize the governance of the protocol and to also incentivize users who provide liquidity to the exchange.
Uniswap users who hold more than 1% of the total UNI tokens can submit development proposals to the DAO and also vote on other proposals. All UNI token holders can vote on governance proposals.
UNI token holders can earn passive income by staking their tokens in the Uniswap liquidity pool.
We summarized all the Uniswap key features, but we also made an in-depth Uniswap Review page that you can check out.
Uniswap Security
Uniswap is a decentralized exchange and is not registered with any regulatory agency. The platform is also non-custodial, it does not hold and is not responsible for the security of users’ crypto assets in their crypto wallets.
However, the exchange assesses risks presented by external wallet addresses that interact with the Uniswap app to ensure that the addresses are not identified with stolen funds or Ransomware.
The Uniswap code is reviewed by members of the community. The exchange also runs a Bug Bounty program.
For its supported countries, as with most decentralized crypto exchanges, Uniswap is available to users from all over the world.
Pros
- Large decentralized exchange with lots of supported coins and tokens
- Simple trading fee schedule
- Runs a bug bounty program
- Supports credit and debit card payments
- Fiat currencies supported
Cons
- KYC is required to use the fiat payment method
- It does not use the proactive market maker algorithm
- Often comes with high gas fees on top of the trading fee
PancakeSwap - Best Decentralized Exchange for Large Selection of Crypto Products
PancakeSwap is an open-source automated market maker decentralized exchange that was launched in 2020.
It was founded by a group of 12 anonymous developers including 2 co-leaders who were identified as Thumper and Hops.
Since it is a decentralized exchange, the platform can be accessed by users from around the globe. It supports users from Africa, Asia, North and South America, Europe, and Australia.
PancakeSwap does not run on the Ethereum blockchain like other decentralized exchanges such as Uniswap and SushiSwap, rather it operates on the Binance Smart Chain.
PancakeSwap allows users to trade and swap all BEP-20 tokens but at lower trading fees than what is available on the Ethereum blockchain. Gas fees are also almost non-existent – especially compared to all Ethereum-based decentralized exchanges.
The crypto exchange is best for experienced or advanced traders as newbies or traders who are more familiar with centralized exchanges may find the platform confusing to use.
The exchange offers a large selection of crypto products such as staking, yield farming, NFTs, games, PancakeSwap Lottery, prediction markets, Initial Farm offerings, NFT collectibles, Syrup pools, etc.
PancakeSwap decentralized crypto exchange has a native token known as CAKE.
CAKE is the governance token of the PancakeSwap ecosystem. CAKE Token holders enjoy various benefits in the PancakeSwap ecosystem including the right to vote on governance proposals.
The exchange also has an NFT marketplace that runs on the Binance Smart Chain. The PancakeSwap NFT marketplace does not feature popular Ethereum NFTs like Bored Ape Yacht Club, it however has several collections like Pixel Sweeper, Pancake Bunnies, Gamester Apes, etc.
In terms of fees, PancakeSwap charges a flat fee of 0.25% for token swaps.
The exchange does not support fiat currencies but it supports payment via several non-custodial Web3 crypto wallets.
Key Features of PancakeSwap
PancakeSwap Syrup Pools
Syrup pools are one of the easiest ways for PancakeSwap users to earn free tokens on the platform by staking their CAKE tokens.
There are different types of Syrup pools on PancakeSwap, including Manual CAKE, Auto CAKE, IFO CAKE, etc.
The Syrup Pools offer locked and flexible staking. With Flexible staking, the user can withdraw their tokens at any time.
Locked staking on the other hand locks the assets for a fixed duration.
The APY for locked staking is higher than that of Flexible staking. Users can opt for both flexible staking and fixed staking at the same time.
We summarized all the PancakeSwap key features, but we also made an in-depth PancakeSwap Review page that you can check out.
Security of PancakeSwap
The PancakeSwap decentralized crypto exchange is non-custodial. Users are 100% responsible for the security of their crypto assets.
However, the exchange ensures that users’ crypto assets are secure during trades by time-locking all contracts and using multi-sig for all smart contracts.
Pros
- Low fees
- Large selection of cryptocurrencies
- Large selection of crypto products
- No KYC verification required
- It has an NFT marketplace
Cons
- Limited withdrawal methods
- Not Beginner-Friendly
- It does not support fiat currency payments
Biswap - Best Decentralized Exchange to Trade Tokens on the Binance Smart Chain Network
Biswap is a decentralized crypto exchange that allows crypto investors to swap tokens on the Binance Smart Chain Network.
This is unlike most decentralized exchanges that operate on your Ethereum network.
Biswap stands out for its low trading fees and a large selection of crypto-related products and services like a reward pool for liquidity providers and an NFT marketplace.
It also offers yield farms via liquidity pools that enable users to earn interest on held tokens.
Biswap decentralized exchange uses the automated market maker model to enable crypto traders to swap BEP-20 tokens.
Key Features of Biswap
BSW Token
The BSW token is a BEP-20 token issued on the Binance Smart Chain and it is the native asset of the Biswap exchange.
The BSW token is used as a utility token to incentivize network participation and facilitate the general running of the Biswap ecosystem.
BSW holders can stake the token in liquidity pools to earn rewards.
The token has a strong burning mechanism as 50% of trading fees on the platform are used to buy and burn BSW tokens.
Referral Program
Biswap runs a referral program where users receive passive income by inviting their friends to use the decentralized crypto exchange.
Participants earn up to 20% of their referral’s deal token swap fees in the cryptocurrency exchange and 5% of their earnings on launchpools and yield farms.
We summarized all the Biswap key features, but we also made an in-depth Biswap Review page that you can check out.
Security of Biswap
Like other best decentralized crypto exchanges, Biswap offers a non-custodial service. So unlike centralized exchanges, which are responsible for customer funds, with Biswap, the user is completely responsible for the security of their funds.
That said, the crypto exchange has undergone an audit by Certik, a blockchain security firm and it is backed by Binance Labs.
Pros
- Enables liquidity providers to earn rewards
- Supports ample liquidity pools
- Offers low fees
- Biswap offers an NFT marketplace
Cons
- No support for tokens on the Ethereum network
- It is heavily backed by Binance and some users are uncomfortable with that.
Bisq - Best Decentralized Exchange for Bitcoin Trades
Bisq crypto exchange is quite different from other decentralized crypto exchanges.
It is a desktop application (not a web app) that holds a trading protocol that enables users to both buy and sell Bitcoin and other crypto assets as well as trade Bitcoin for other digital currencies between themselves.
This is to eliminate third-party services as you have with most centralized exchanges offering similar features.
Bisq isn’t a firm, it is open-source software released under version 3 of the GNU Affero General Public License.
The project is built as a Decentralized Autonomous Organization (DAO).
Concerning its trading fees, users are charged a flat 1% fee if they opt to pay with BTC. But if they pay with the native token of the platform, BSQ, users are charged 0.5%.
Key Features of Bisq
BSQ Token
The BSQ asset is a colored coin issued in the Bitcoin blockchain. These types of crypto coins (colored coins) are digital assets created with a mark identifying their particular purpose.
So the BSQ token only possesses value within the decentralized exchange. Outside the trading platform, it appears as regular Satoshis.
Users who hold the BSQ token can participate in the Bisq DAO and ecosystem governance. The token also offers several rewards like the reduction of trading fees on the platform.
Bisq DAO
This is a decentralized autonomous organization built as a governance mechanism for the Bisq decentralized exchange.
Unlike centralized exchanges, decentralized exchanges like Bisq cannot be controlled by a single entity, so the trading protocol must be organized by a DAO.
The duties of the decentralized autonomous organization involve being responsible for the growth of the crypto exchange, ensuring the security of the platform against malicious attacks, and managing the exchange’s funding strategy.
Consensus on the DAO is reached through user voting.
We summarized all the Bisq key features, but we also made an in-depth Bisq Review page that you can check out.
Bisq Security
As already mentioned, Bisq, like most decentralized exchanges, is not managed by a central governing body as you would have on a centralized exchange.
It is also under no global or location-specific regulation.
So it implements 3 security measures to ensure the safety of users’ funds.
First, all cryptocurrencies traded on Bisq are held in a secured 2-of-2 multi-signature wallet address.
Second, the cryptocurrency exchange requires that both crypto traders involved in a transaction pay security deposits before a trade can be executed.
This security deposit is refunded to both users after the trade has been completed. The goal here is to ensure that both traders pay what is expected of them without cheating the other party.
Lastly, the Bisq cryptocurrency exchange put in place a three-tier mechanism to manage trade disputes, which includes end-to-end encrypted trader chat, mediation, and arbitration.
Bisq also only supports fiat currency payment methods that do not offer a quick chargeback method like PayPal or credit card payments.
Pros
- Supports fiat currency payment methods
- Offers a native token that offers trading fee discounts
- Supports security measures to prevent chargeback
Cons
- Beginners will find the trading platform difficult to use
- You need to download a desktop application
- Charges high transaction fees.
DYDX: Best Decentralized Crypto Exchange for Perpetual Trading and Margin Trading
Founded in 2017 by Antonio Julian, the DYDX decentralized crypto exchange is built for perpetual trading and margin trading (derivatives trading).
The exchange is based on the Ethereum Layer 2 System StarkWare but there are plans to migrate it to a Cosmos-based blockchain soon.
DYDX is not suitable for beginners as it excels in advanced crypto products. The exchange stands out for high leveraged trading offers and zero fees on perpetual trading.
When compared to other decentralized exchanges like Uniswap, DYDX falls short in fiat currency and crypto availability. DYdX only supports around 35 cryptocurrencies and does not support any fiat currency.
Also, unlike other decentralized crypto exchanges, DYDX does not facilitate trades with the Automated Market Maker (AMM) model. The exchange satisfies the requests of institutional crypto traders using a matching model and a traditional order book.
The exchange has a native token DYDX used for the governance of the protocol.
DYDX has an NFT marketplace that features 4,200 NFTs known as Hedgies. Hedgies are unique collectible avatars that are represented as NFTs on the Ethereum blockchain. DYdX users who hold Hedgies get a boost in one tier in DYDX trading fee discounts.
Concerning fees, the DYDX exchange uses the maker/ taker fee model. DYdX token holders and Hedgies owners enjoy discounts on trading fees.
Now, unlike most decentralized exchanges that do not implement geo-ban, the DYDX exchange does not allow users from certain countries. Users in the affected countries cannot trade, swap, or interact with the DYDX exchange or any of its products.
Affected countries include; The United States, Libya, North Korea, Somalia, Sudan, Yemen, Cuba, Iraq, the Democratic Republic of Congo, Iran, Ivory Coast, Zimbabwe, Mali, Nicaragua, and Burma.
Users from anywhere around the world outside the affected region can use the platform.
Key Features of DYDX
DYDX Token
This is the governance token of the DYDX exchange. The token gives community members the right to govern the DYDX Layer 2 Protocol by voting on governance proposals.
Token holders can vote on important aspects of the protocols including the inclusion of new token listing on the protocol, voting on market makers to be added to the liquidity staking pools, etc.
DYDX exchange offers 3 types of rewards to token holders: Trading Rewards, Retroactive Mining Rewards, and Liquidity Provider Rewards.
Trading rewards are paid to traders on the exchange to encourage the use of the Layer 2 Protocol, to speed up market liquidity processes, and to increase the popularity of the exchange.
Retroactive mining rewards are paid to users who trade on the Layer 2 Protocol and those that have been using the DYDX exchange for a long time.
Liquidity Provider Rewards are paid to users with an active Ethereum address who maintain a minimum Maker volume of 5% in the previous epoch.
We summarized all the DYDX key features, but we also made an in-depth DYDX Review page that you can check out.
DYDX Security
Like most decentralized exchanges, DYDX is not licensed, registered, or regulated by any regulatory authority. It is also a non-custodial crypto exchange and does not control users’ private keys.
The exchange has conducted security audits of the smart contracts on both its Layer 1 and Layer 2 Perpetual protocols
The exchange also has an admin account that can add and remove features from the protocol.
This admin account is an on-chain multi-sig wallet that is publicly auditable. All admin actions on Layer 2 Perpetuals are not immediately approved. They are delayed for 24 days to enable the DYDX team to identify any foul play or malicious attacks.
Pros
- Suitable for perpetual trading and margin trading
- It is best for advanced traders
- It supports 3 fiat currencies
- It offers zero fees on perpetual trading
Cons
- Limited cryptocurrencies available
- It is not Beginner-friendly
- Has some geo-bans in place (for example the USA).
Curve Finance - Best Decentralized Exchange for Stablecoins
Unlike most decentralized exchanges that focus on a variety of tokens on a particular network, Curve Finance is a decentralized exchange built for trading stablecoins on the Ethereum blockchain.
The decentralized crypto exchange also offers supplemental fee income for liquidity providers.
Curve Finance also stands out for its low slippage as it focuses on stablecoins and liquidity providers placing funds in liquidity pools do not face impermanent loss.
The crypto exchange also uses the automated market maker model as it utilizes liquidity pools.
To incentivize liquidity providers to stake their tokens in liquidity pools, Curve Finance, offers rewards to providers.
Concerning fees, Curve Finance charges 0.04% for trades on all liquidity pools.
Key Feature of Curve Finance
CRV Token
Curve Finance offers a native utility token, called CRV, that exists to incentivize liquidity providers on the crypto exchange.
The primary incentive for holding a CRV token is that it boosts the rewards for providing funds to liquidity pools.
It also encourages users to participate in the Curve Finance DAO.
Curve DAO
This is the governance mechanism of the Curve Finance decentralized finance protocol.
To participate in the DAO users must vote-lock their CRV tokens. The DAO does not have any minimum voting power required to vote in the DAO, however, only CRV holders that have a voting power of 2,500 veCRV can create new proposals.
We summarized all the Curve FInance key features, but we also made an in-depth Curve Finance page that you can check out.
Curve Finance Security
Curve Finance is one of the few decentralized exchanges that has been hacked in the past.
In August 2022, Curve Finance underwent a front-end DNS cache poisoning on its website, which resulted in the loss of over $500,000 of investor funds.
That said, Curve Finance has had its core smart contracts audited by Trail of Bits, Quantstamp, and mixBytes.
Pros
- Curve Finance charges low fees
- Offers high rewards for liquidity providers
- Offers low slippage
- Reduced risk of impermanent loss
Cons
- Curve Finance has had major security incidents in the past
- Supports primarily stablecoins.
Comparison Table for the Best Decentralized Exchanges
Exchange | Payment Methods | Withdrawal Method | Platform Apps | No. of Cryptocurrencies | Fiat Currencies Available | KYC Verification | Native Token |
---|---|---|---|---|---|---|---|
Curve Finance | Trezor, Ledger, CoinbaseWallet, Fortmatic, Phantom, Portis, Torus, Frontier, WalletConnect | crypto wallet (swap) | Web | 80+ | Not supported | No | (Yes) CRV |
Uniswap | Bank transfer, credit or debit card, digital currencies (Ethereum mainnet, Arbitrum, Optimism, Polygon via WalletConnect and Coinbase Wallet) | Cryptocurrency wallet | Web (Uniswap app) | Any ERC-20 token | USD, EUR, GBP | No (Third-party KYC) | Yes (UNI) |
PancakeSwap | Blocto, MetaMask, Coinbase Wallet, WalletConnect, Ledger, Trust Wallet | Crypto wallet | Web | All BEP-20 tokens | N/A | No | Yes (CAKE) |
DYDX | MetaMask, Trust Wallet, Coinbase Wallet, imToken, TokenPocket, BitKeep, Rainbow, Coin98, iToken, and WalletConnect | MetaMask, Trust Wallet, Coinbase Wallet, imToken, TokenPocket, BitKeep, Rainbow, Coin98, iToken, and WalletConnect | Mobile/Web | 35+ | N/A | N/A | Yes (DYDX tokens) |
Biswap | MetaMask, Coinbase Wallet, Trust Wallet, SafePal, Brave Wallet, Coin98, OKX, WalletConnect, MathWallet, Gnosis Safe, Brave Wallet, Token pocket, and more | Cryptocurrency wallet | Web | BEP-20 tokens | N/A | N/A | Yes (Biswap BSW Tokens) |
Bisq | Advanced Cash, Alipay, Cash Deposit, Chase QuickPay, Face-to-face, HalCash, Interac e-Transfer, Japan Zengin Furikomi, MoneyBeam, MoneyGram, National Bank Transfer, Perfect Money, Popmoney, PromptPay, Revolut, SEPA, Zelle, and more | Crypto wallet, bank transfer, P2P | Desktop | Bitcoin and others dependent on users | USD, GBP, EUR, YEN, CAD, AUD, BRL, and more | No | Yes (BSQ) |
What is a Decentralized Crypto Exchange?
A decentralized exchange (DEX) is a peer-to-peer marketplace that allows crypto investors to trade cryptocurrencies in a non-custodial way without requiring an intermediary to process transfers or hold funds.
How to Choose the Right Decentralized Exchange?
To choose the right decentralized exchange you need to consider the following factors:
- The blockchain network supported by the cryptocurrency exchange
- Available coins and tokens
- Liquidity of the platform
- Trading fees
- Security of the decentralized exchange
- Payment methods
Final Thoughts
That’s all for the best decentralized exchanges! As already mentioned, our pick is Uniswap as it is a decentralized exchange with features that a great centralized exchange would offer.
However, choose the best decentralized crypto exchanges for your particular needs using the factors mentioned above such as fees, payment methods, supported blockchain networks, security methods and geo-availability.
FAQ
Most frequent questions and answers
Uniswap is arguably better than PancakeSwap as it offers the option of buying digital assets on a decentralized exchange using fiat currency.
We always try to provide the most accurate information available, and make sure our team follow through.
If you want to know more about our Crypto Exchanges Review Methodology follow the link below
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