The Top 5 Decentralized Exchanges – 2021

The Top 5 Decentralized Exchanges – 2021

The Top 5 Decentralized Exchanges – 2021

Digital assets have experienced massive growth and acceptance from a lot of investors globally. Over the years, crypto has proved to be a great investment asset and you can now buy bitcoin and altcoins via several platforms.

With bitcoin being the pioneering digital asset, a lot of other digital assets have also evolved in the past few years. In early 2017, research showed that 720 digital assets had been created since bitcoin was released in 2009. As of now, over 7,000 cryptocurrencies and altcoins have developed.

There are several methods to purchase BTC and invest in digital assets or utilize crypto as a value of money. A lot of people are getting more cognizant of the security threats involved with some of the conventional options, which has led to an increased request of decentralized cryptocurrency trading platforms.

In this article, we will analyze the best five decentralized cryptocurrency trading platforms we have today.

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Why Decentralized Exchanges?

With a centralized trading system, there is a central regulator that is liable for keeping your funds. Centralized exchanges are prone to cyber attacks and millions of dollars of crypto assets have been stolen by hackers from various exchanges over the years.

A decentralized trading platform (DEX) changes the way digital asset transactions are conducted. Decentralized exchanges do not utilize any form of central administration, that is, no third-party system is involved in holding your funds.

Central exchanges with a third-party central body have high-security risks, this has resulted in the cryptocurrency space lacking trust in these trading platforms. However, with decentralized exchanges, you can avoid security threats, concerns about malicious agents, and issues relating to cyber theft.

This is not to say that there are no few disadvantages of decentralized exchanges. Decentralized exchanges are not as fast as centralized exchanges.

Top 5 DEX’s

There are quite a number of decentralized trading platforms. However, there are few popular ones with a good reputation. Below are some of the top decentralized exchanges;

Uniswap

Referred to as Uniswap Exchange Protocol, this platform is typically viewed as a suitable solution for persons who already have some experience in the crypto market. A lot of people find Uniswap to be complex as it is difficult to understand for a beginner. The platform has an exceptional method of offering a decentralized exchange services.

This platform is best for people who are ready to learn about the latest way of making crypto transactions, however, it is usually not for beginners.

To make use of this platform to purchase BTC or trade, download the Uniswap app and register. After registering, link your crypto wallet (for instance, metamask) to your application.

To trade, choose the coin you want to swap from the list and the crypto you want to convert it to.

After you have selected the coin you want to swap for, click on “swap”, preview your trade and then authorize the transaction directly from your wallet.

 

Pancake Swap

This DEX is the latest trading platform that has almost exceeded the volume of transactions on Uniswap. It is established on the smart chain of Binance, therefore, it is easy to convert binance based coins. Due to the Binance chain being not as congested as the ETH chain, the transaction fees are less expensive. This is one of the major reasons for the development of this platform.

This platform has a lot of features that can not be found on other decentralized trading platforms, this includes the lottery feature.

Binance DEX

This decentralized trading platform is one of the leading and reliable platforms for cryptocurrency trades. The platform started as a non-decentralized exchange. With the increasing request for decentralized exchanges, the trading platform released its decentralized exchange system.

The decentralized exchange of Binance has created a system for those who are already conversant with the traditional system. Binance DEX isn’t as decentralized as other options, however, users can keep and control their money, while also making sure that security is prioritized.

It is important to know that Binance also has a P2P option and it’s also one of the best P2P for users to buy Bitcoin.

To make use of Binance DEX, you need to register, confirm your email, and it‘s always advisable to set up 2FA.

Switcheo

This decentralized exchange possesses one of the best user interfaces amongst other decentralized exchanges, and a lot of new coins are added every week. It is an international DEX that enables the trading of major digital assets. This platform has developed remarkably within a year. Over 42,800 crypto traders presently utilize this platform to make trades and this number is still growing.

There are many major factors that this DEX focuses on. These major factors include immediate onboarding, which makes it very easy for new traders to use. The second major factor is to offer a platform that is established on genuine decentralization. This means a higher level of security is added to the platform, which makes sure that each trade initiated on the system is secure.

Switcheo also created an easy link with existing crypto wallets for high security and decentralization.

To make use of switcheo, you need to register and confirm your registered email. You are required to set up your 2FA. Then you can deposit into your wallet to start trading.

 

 

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