Cryptocurrencies are digital decentralised currencies that can be used to make transactions, and investments and hedge against inflation.
There are more than a thousand cryptocurrencies listed on different crypto exchanges where users can buy or sell cryptocurrencies.
Given that they are digital currencies, they can only be traded in a digitalized setting under certain conditions.
Crypto exchanges can either be decentralized or centralized.
In a decentralized crypto exchange, users have the liberty of buying or selling crypto tokens directly from other traders on the platform. In other words, no middleman is presiding over the trades on the decentralized platforms. The system is already programmed to facilitate secure trades among users and has a good user interface as well.
In this article, we will discuss the top 5 decentralized exchanges in October 2022 and the services they offer users.
Top 5 Decentralized Crypto Exchanges In 2022
Binance is undoubtedly the most popular and largest crypto exchange in the world, offering centralised trading on more than a hundred cryptocurrencies.
The Binance Decentralized exchange offers users a P2P experience where they can buy and sell directly from and to one another.
Traders can interact with one another and reach an agreement to buy or sell cryptocurrencies on the Binance P2P. The transaction is secured by an escrow account which locks the money until both parties have confirmed the transaction. This ensures that no party is cheated and the transaction is successfully executed.
The Binance DEX offers more than fifty different currencies for payment and each currency further has more than ten payment method options. Therefore, users can easily transact with their currency with other users in their region.
Traders can purchase different types of crypto including; Bitcoin, Ethereum, Tether, BNB, Dogecoin and many more with fiat money and their identity remains anonymous.
No, you don’t swap pancakes for crypto here if that’s what you think.
Pancakeswap was originally built on the Binance Smart Chain but it has also been integrated with the Ethereum blockchain, making it possible for users to access more tokens and liquidity
Pancakeswap is notably one of the best decentralized crypto exchanges and is specifically used to fish out new cryptocurrencies before they explode.
Due to the exchange’s low transaction fees and seamless listing process, it is always the best choice for new crypto projects making their Initial Coin Offerings (ICO).
Additionally, the process of swapping tokens on Pancakeswap is fast and easy while it offers special swap for stablecoins that have almost free charges and minimum spillage.
Uniswap was launched in 2018 and has since its birth, become one of the largest decentralized exchanges running on the Ethereum blockchain.
Currently, the Uniswap DEX has more than 4,400 community delegates working on the safety of the network, and more than 350 integrations. Uniswap.had processed a transaction volume of more than $1.2 trillion and continues to process more.
Uniswap is commonly known as an abode of many new crypto tokens because holders of a new token not listed on the DEX can easily add the coin by funding the exchange with the same amount of Ethereum, thereby creating a new liquidity pool.
Uniswap DEX houses more than a hundred different ERC-20 tokens which can be traded on the platform with the lowest transaction fees on all transactions.
However, there’s an opportunity for users to stake their tokens and earn interest.
Uniswap offers a governance token, UNI which gives holders the voting power to vote on proposals on the exchange.
Another exchange on the list is the OKX crypto exchange. This exchange is considered one of the best crypto exchanges in the world, given that it has attracted more than 20 million users globally.
OKX operates a centralized exchange where a transaction fee of just 0.10% is charged on each trade of more than 350 listed crypto tokens.
The exchange also offers a decentralized P2P trading platform for popular tokens listed on the exchange such as Bitcoin, Ethereum, Tether and many more.
The OKX DeX allows traders to set prices in their chosen currency, choose payment methods from the listed options on the platform and trade for free.
Traders can only pay if they wish to create advertisements for their trade to create awareness for other traders to find what they’re buying or selling on the OKX DEX.
Traders can make deposits with bank cards, bank transfers, and e-wallets on the platform and also follow each other on the exchange, especially when they share the same trading similarities like using the same payment methods.
Huobi is yet another notable decentralized crypto exchange which gives traders the benefit of P2P trading on some popular cryptocurrencies.
Cryptocurrencies like Huobi token, Bitcoin, Litecoin, Tether and others are offered on the Huobi P2P platform.
Just like other P2P DEX platforms, the majority of the trades are completely free with many payment currencies and more than 60 payment methods for each currency.
Every ongoing transaction on the platform is secured in the escrow account to ensure that both parties are secure until they both confirm the transaction, the funds are then released.
Advertisers who sell their offers on the platform are well-verified and facial recognition software is used to ensure the legitimacy of users and transactions. With these measures in place, the level of privacy on the platform is limited but trust is high.
Additionally, the Huobi exchange has applaudable customer support available to users 24/7 and also a detailed tutorial video which assists new users on how to trade on the decentralized exchange.
Advantages of Decentralized Cryptocurrency Exchanges
There are some benefits users of decentralized cryptocurrency exchanges enjoy which makes DEX their best option for crypto trading.
A good characteristic of most decentralized crypto exchanges is the privacy and anonymity it offers traders. They don’t normally require users to verify their identities or deploy the Know-Your-Customer (KYC) policy.
2. Coin Selection:
Decentralized exchanges make it easy for traders to access emerging coins before they become expensive.
The reason many traders use decentralized crypto exchanges is that the level of coin selection is huge and new coins are easily listed on the platforms.
3. Low Fees:
Decentralised exchanges do not act as middlemen on trades executed on the platform, hence, there’s little work and risk incurred by the exchange. This further results in lower transaction fees on the exchange compared to centralized platforms.
4. DeFi Access:
Major decentralized crypto exchange platforms are the same as Defi platforms that offer crypto staking.
This enables traders to stake their tokens to a liquidity pool and earn interest on their staked crypto.
Decentralized crypto exchanges are often the best choice for crypto traders because there’s no middleman in the exchange, little or no transaction fee, privacy, an enormous coin selection, access to DeFi staking and more.
There are many other decentralized crypto exchanges in the world but the purpose of this article has limited them to five.
Disclaimer: The information in this article is solely the author’s opinion and not financial or investment advice. Kindly make your research before taking any decision.