Best Decentralized Exchanges 2022
What is a DEX?
DEX stands for Decentralized Exchange, but if you don't know what centralized and decentralized exchanges are, here is a brief explanation. In general, Token swap platform development an exchange is a market where people have the option to exchange goods, be it stocks, commodities, securities, and among the many things are cryptocurrencies. Centralized exchanges are services where the exchange is the intermediary between you and the person you are trading with. The service will keep both active until you and the other person fulfill your end of the bargain and then release them. Decentralized exchanges are those where a broker is not present, and you are working in a trustless environment. The saving grace is that you rely on atomic swaps and smart contracts to not be gamed.
The best decentralized exchanges
Since decentralized exchanges are not as popular as centralized yet, I compiled a list of the best decentralized exchanges. Note that they are not ordered from best to worst or vice versa.
Wave
You may have heard of the cryptocurrency Wave , and the exchange is based on the same blockchain network. Waves DEX was founded in 2017, and it offered something that most other decentralized exchanges didn't. This popular DEX is decentralized, so the need for a middle man is eliminated and you control your funds on the network.
There are 52 trading pairs on Waves, and while the main reason it exists is for its own cryptocurrency, others are available. You will be able to trade most of the popular currencies like Bitcoin, Bitcoin Cash, Ether, Dash, Monero and some others.
Binance
Yes, I have mentioned a scandal with Binance in the past involving stolen or lost coins. That Binance and this one are different. In all honesty, they both come from the developer team, and the difference is centralization. The Binance exchange that we all know is the centralized one that is one of the most popular exchange platforms in the world.
Idex
If this is your first time trading cryptocurrencies, then Idex may be the best platform to start with. The platform has one of the cleanest and most user-friendly interfaces of any crypto exchange on the market. The idea is to give users a great experience, and the fact that they offer multi-wallet support and around 400 crypto pairs for trading makes Idex a great option. The same can be said even for veteran traders.
Idex manages to do most things well, but there are a few things that people criticize. Even though it is one of the best decentralized exchanges on the market, there is still a centralized aspect to it. A large part of the commercial part is carried out by a centralized entity, which makes it less decentralized than its competitors. The only thing that is decentralized is the funds settlement process carried out with Ethereum smart contracts.
biscuit
If you are looking for a fiat to Bitcoin exchange, then Bisq is a great option. Unlike most other decentralized exchanges available on the market, this one aims to provide its users with the option to sell their Bitcoins for real money. The good thing is that unlike most other centralized and decentralized exchanges, this one allows it without revealing any personal or sensitive information.
Tips for decentralized exchanges
Now that I have outlined what I think are the top decentralized exchanges, here are some tips for choosing the best one for you.
My list of decentralized exchanges is relatively short compared to all the exchanges available on the market, so don't get attached to it at any cost. If none of my suggestions work for you, there are other fish in the sea.
When you choose the exchange platform, please double check if it supports the tokens or fiat currencies you want or hold. The reason for that is not that all decentralized exchanges support all cryptocurrencies.
Some users are more concerned with privacy and security than with reasonable fees or lower fees. If you fall into that category, make sure you target truly decentralized exchanges, like Bisq.
Check the trading volume of the exchange. You may want to sell 50 Bitcoins while I am looking to sell a couple of Ethers. We will both need to check the liquidity of decentralized exchanges to ensure our needs are met.
Conclusion
Decentralized exchanges are not as popular or as widely used as centralized ones. Regardless of that, its popularity has grown quite a bit in recent years. Centralized exchanges are good, but some people are not so comfortable using them due to some aspects that make them prone to hacks or not very privacy oriented.
