Looking for the top decentralized exchanges to buy/sell or trade cryptocurrency? look no further. In this articles, I will list out the top decentralized exchanges you can trade cryptocurrency.
Whether you are new in crypto or you are expert, we all need where we can buy/sell or trade cryptocurrency securely. Checking on what has happened to most centralized exchanges so many are afraid to trade cryptocurrency. Exchanges like Binance and Kucoin are some of the successful cryptocurrency exchange in the world.
Centralized exchanges are good but not the best when it comes to safety. Take a look at what happened to centralized exchanges like cryptopia, mt.Gox and Bitfinex hack, where a lot of crypto users funds where stolen from the exchanges wallet.
Despite all, we are still using centralized exchanges because we don’t have many options. Binance, crypto.com, Kraken, Coinbase, Kucoin and others are called “centralized exchanges,” since one company operates them and reaps profit from operating them. What if you don’t want to trade on a centralized exchange? well their is decentralized exchanges or DEXs.
What is a decentralized exchange?
Decentralized exchange (DEXs) aim to tackle the problem of centralized exchanges by building peer-to-peer marketplace. DEXs exchange allow you trade or swap tokens with each other assets whenever you want without a third-party.
You don’t need approval from any government officials or any financial institution such as bank before you can buy/sell or trade crypto. You can trade crypto at anytime and anywhere provided you have internet and a DEXs wallet. A centralized exchange like crypto.com, for instance, act as custodian on your behalf. DEXs let you trade directly with other users, which means that assets token are under your control at all times.
Below are the list of the Top Decentralized Exchanges:
What are the top decentralized exchanges
Binance DEX is an extension of the main Binance.com exchange and provides cryptocurrency traders with further options. The platform doesn’t store your private keys or any other sensitive data, which puts you fully in control of your crypto. The team at Binance have kept to their word and produced a decentralized version of their exchange as promised.
Binance DEX is a marketplace where users trade directly with each other, cutting out any middlemen in the process.
PancakeSwap is a decentralized exchange/Automated market maker (AMM) built on the binance smart chain (BSC) that allows users to exchange token, provide liquidity, staking and earn fees.
The exchange was launch on September 20, 2020 by an anonymous developer. PancakeSwap is similar to that of Sushiswap and Uniswap that was built on Ethereum blockchain. You can trade BEP-20 tokens or add liquidity and earn passive income by providing liquidity pools.
PancakeSwap allows you to farm its governance token-cake or other supported BEP-20 token on the exchange.
You can also earn other tokens aside from cake when you stake in syrup pools.
Uniswap is a decentralized (DEXs) that makes it easy for users to swap an ERC-20 token without the need of a middleman. Unlike most exchanges, which are designed to take fees, Uniswap is designed to function as a tool to trade tokens without platform fees and centralized intermediary. With a DEXs, traders do not have to deposit their tokens on an exchange
Users just need an DEXs wallet like Safepal or Math wallet and they can immediately start swapping tokens. You can connect your crypto wallet to Uniswap.
SushiSwap is an Ethereum-based exchange and automated market maker built on Ethereum that lets you swap a vast array of tokens, as well as engage in other finance services.
The exchange platform launch in September 2020 as a fork of Uniswap, the AMM which has gotten inseparable from the decentralized money (DeFi) development and related exchanging blast DeFi tokens. The Ethereum-based cryptographic money trade, Sushiswap had its spot in DeFi forcibly, taking the spotlight from Uniswap sufficiently long to make what is by all accounts an enduring spot for itself in DeFi. Holders of SUSHI can take part in local area administration and stake their tokens to receive a portion of SushiSwap’s transaction fees.
The SUSHI token can be farmed by participating in the yield farming program.
The SUSHI token may also be staked across various platforms such as Sushi’s very own, SushiBar, or can be used as collateral on platforms such as Sushi’s Yearn ecosystem partner, Aave. Sushiswap takes a 0.3% cut from exchanges happening in its liquidity pools, while its SUSHI token is utilized to compensate clients parts of those charges. SUSHI additionally qualifies clients for administration rights.
SUSHI is currently considered as one of the top level DeFi token in the business. In case you are hoping to purchase or sell SUSHI tokens, you will find it in many exchanges in the market. If you have an account on a centralized exchange, you can purchase SUSHI from Coinbase, Binance, and FTX. For decentralized trade choice, you can exchange SUSHI on Sushiswap, Uniswap, and 1inch.
1inch is a decentralized exchange (DEX) and aggregator that help users with finding the best exchange costs for tokens. The exchange connect a large numbers of decentralized and centralized platform, like Binance, Crypto.com, Kucoin, etc. in order to find the lowest cryptocurrency prices for traders. Rather than trading tokens from a single liquidity pool of a DEX, 1inch will divides orders between numerous other DEXs and private liquidity suppliers to track down the most ideal trade rates.
Compound finance is where you can loan or borrow digital currencies. All you need is an Ethereum wallet, a few assets, and you can borrow or earn interest immediately. You could consider it an open marketplace for money. It allows users to store digital forms of money and earn interest, or get other crypto assets against them. Compound finance uses smart contracts that automate the storage and management of the capital being added to the platform.. The financing costs paid and got by borrowers and moneylenders are controlled by the market interest of each crypto assets. Financing costs are produced with each blocked mined. Credits can be repaid and locked assets can be removed whenever.
Any user can connect to Compound and earn interest using a Web 3.0 wallet, such as Metamask. Compound focuses on allowing borrowers to take out loans and lenders to provide loans by locking their crypto assets into the protocol.
Why are decentralized trading platforms so important?
Decentralized exchanges (DEX) are a type of cryptocurrency exchange which allows for direct peer-to-peer cryptocurrency transactions to take place online securely and without the need for an middlemen. Since the early days of Bitcoin, crypto exchanges were always centralized. Those who remember the early days of Mt. Gox, a cryptocurrency exchange which no longer exists. It was hacked twice in 2011 and 2014, resulting in more than 750,000 Bitcoins being lost.
Decentralized exchanges have revived a fire that was for some time neglected. They bring power to the investor by treating him as the sole owner and operator of his assets. No one else has a say, and neither can anyone restrict the investor’s capital – freezing assets or delaying someone’s transfer is impossible, as it should be. Ownership is strictly defined, and any actions taken are processed by smart contracts and commanded by the user.