With the development of the cryptocurrency industry, decentralized exchanges (DEX) are becoming increasingly popular among traders and investors. Unlike centralized exchanges, DEX allow users to trade cryptocurrencies directly, without intermediaries, ensuring a higher level of security and anonymity.

Contents:

• What are Decentralized Cryptocurrency Exchanges (DEX)?
• Main Criteria for Evaluating DEX
• Top 5 Decentralized Cryptocurrency Exchanges
• Conclusion

What are Decentralized Cryptocurrency Exchanges (DEX)?

Decentralized cryptocurrency exchanges (DEX) are platforms for trading cryptocurrencies that operate based on blockchain technology and smart contracts. The main difference between DEX and centralized exchanges is the absence of intermediaries, allowing users to make transactions directly with each other. This ensures a higher level of security since users keep their assets in their own wallets rather than in exchange accounts.

Advantages of DEX:

1. Security: Users control their funds, reducing the risk of exchange account hacks.
2. Anonymity: No need for identity verification, making trading on DEX anonymous.
3. No intermediaries: Transactions are conducted directly between users.
4. Decentralization: No central governing body reduces the risk of market manipulation.

Main Criteria for Evaluating DEX

When choosing a decentralized exchange, it is important to consider the following criteria:

Top 5 Decentralized Cryptocurrency Exchanges

1. OKX DEX

The OKX platform supports a wide range of services and recently announced the introduction of stricter verification rules. However, these measures did not affect decentralized transactions. You can use the exchange's native wallet OKX Wallet or choose another convenient one. The platform also offers an integrated cross-chain bridge.

Supported cryptocurrencies: over 100,000

Supported blockchains: OKX Chain, Ethereum, Optimism, OKTC, Base, Linea, Sui, Mantle, Arbitrum, zkSync Era, Polygon

Advantages:

1. The platform operates based on a well-reputed exchange; having an account on the exchange is not necessary.
2. Support for many blockchains.
3. Order integration from various exchanges and networks.
4. No additional fees.
5. Interface in Russian.
6. Built-in cross-chain bridge.
7. Ability to place limit orders.
8. High level of security.
9. Listing assets without the need for approval.

Some drawbacks of decentralized exchanges include the absence of leverage and derivative contracts. There may also be low liquidity for some assets. Additionally, fees become visible only when creating an order.

2. 1inch

A liquidity aggregator provides access to decentralized finance through a convenient mobile app with a Russian interface. Users can view data from nearly 400 liquidity sources, choose the best price offers, and trade with maximum benefit.

Fee: no additional fees, all rates usually include DEX fees.

Supported cryptocurrencies: all tokens on 11 blockchains.

Supported blockchains: Ethereum, Polygon, Arbitrum, Gnosis, BNB Chain, zkSync Era, Klaytn, Aurora, Fantom, Avalanche, Optimism.

Advantages:

1. Aggregates liquidity from all available sources.
2. Ability to buy with a card.
3. Convenient interface in Russian.
4. Support for limit orders.
5. Cross-chain bridges available.
6. Ability to earn on staking.
7. Excellent exchange rates.
8. Over 400 tokens.
9. 1inch token holders participate in platform management.

Disadvantages:

Decentralized exchanges can be complex for beginners as they require experience in decentralized finance. Additionally, other exchanges may charge transaction fees.

3. DYDX

The DYDX platform offers a wide range of features for trading perpetual contracts on various tokens. It uses a classic order book mechanism and does not require registration, ensuring quick trading. Limit orders are supported. A unique feature of the platform is the ability to trade with leverage up to 5x for ETH trades. Cross-margin loans are also available, allowing passive income on deposited funds.

The platform plans to move operations to its own blockchain in the Cosmos ecosystem.

Fee: from 0.01% to 0.05%.

Supported cryptocurrencies: trading pairs.

Supported blockchains: Ethereum.

Advantages:

1. Classic trading based on the order book.
2. Support for multiple wallets.
3. Low fees.
4. Rewards and bonuses for activity, as well as passive income in various ways.
5. Free options trading for a month.
6. Accessible mobile app.

Disadvantages:

There are issues with referral program order payments for citizens of some countries. Additionally, trading capabilities are limited, including the absence of swaps and pairs for margin trading.

4. PancakeSwap

PancakeSwap is one of the leading decentralized exchanges, supporting a large number of BEP-20 tokens. The platform also offers the governance token CAKE. In addition to token exchange, PancakeSwap provides additional services such as yield farms, lotteries, and NFT trading.

Fee: 0.25% per trade transaction.

Supported cryptocurrencies: 890
Trading pairs: 1119

Supported blockchains: Ethereum, BNB Chain, Polygon, Aptos

Advantages:

1. Support for BEP-20 tokens.
2. Support for over 50 DeFi tokens.
3. Rewards for clients adding liquidity.
4. Low fees for liquidity pools.
5. Two-factor authentication and the ability to block withdrawals.
6. Ability to purchase tokens with a card.

Disadvantages:

This platform may not be suitable for beginners as there is a risk of impermanent losses. Additionally, it lacks its own wallet and mobile app.

5. Sushiswap

SushiSwap is a decentralized exchange that allows asset swapping on several second-layer platforms and blockchains that support the SushiSwap protocol. The exchange emerged from the Uniswap project, as its open-source code made copying possible. It operates on the 0x protocol and uses ERC-20 tokens. The platform is compatible with Ethereum, Bitcoin, and Litecoin. An interesting feature is community governance: SUSHI token holders, obtained by providing liquidity, have voting rights on key project issues.

Fee: 0.3% per transaction.

Supported cryptocurrencies: 299
Trading pairs: 378

Supported blockchains: Ethereum, BNB Chain, Polygon, Arbitrum, and others.

Advantages:

1. Switching between blockchains.
2. Support for numerous assets.
3. Easy navigation.
4. Ability to purchase tokens with a card.
5. Unique architecture that helps reduce market centralization.
6. Low transaction fees.
7. A wide range of staking and farming tools.

Disadvantages:

There are risks associated with exchange security, as well as difficulties with the reward structure and interest accrual.

Conclusion

Decentralized exchanges continue to gain popularity due to their advantages over centralized platforms. In 2024, the DEX market offers users a wide range of choices, and each of the presented exchanges has its unique features. It is important to carefully choose a platform, considering your individual needs and preferences.