10 Best Decentralized Exchanges in 2024 | Expert Reviewed

Best Decentralized Exchanges

Aren’t you looking for the best decentralized exchange platform. Don’t worry we got you covered with the list of best decentralized exchanges to ease your search. Decentralized exchanges were built with the idea of letting their users have full authority over their assets making them act individually. The rising risks of scammers and hacking pushed crypto users to find a secure, trusted path to trade their digital assets. In this blog, we at Coinsclone have summarized the best decentralized exchanges available in the market.

List of 10 Best Decentralized Exchanges

1) Uniswap

In the list of best-decentralized exchanges, UNISWAP outranks other popular Decentralized exchanges by providing competitive features. Uniswap is the world’s first Ethereum-based decentralized exchange that facilitates trading ERC 20 tokens. Using AMMs to self-regulate the platform made them one of the best decentralized exchanges available in the market. After their successful launch, Uniswap introduced UNI tokens, to develop the community by giving governance to the token holders. Additionally, the users of UNI tokens can provide liquidity and trade them to earn rewards.

Pros

  • It is governed by DAO which makes it transparent and efficient.
  • Uniswap is a popular large efficient DEX platform, available in the market.
  • No sign-in or registration is needed, the users can swap tokens easily.
  • Uniswap gained good popularity for its user-friendly services making it an easy-go option for beginners and startups.

Cons

  • The gas fee fluctuates here. Gas fee is the fee charged by a blockchain network, and it changes according to the network’s traffic.
  • They only support Ethereum-compatible cryptocurrencies.

Features

  • The users can stake their digital assets which helps in gaining liquidity and for this the users are rewarded with UNI tokens.
  • The token holders are provided with a decision-making process through voting rights to make the platform more reliable. 

2) dYdX

dYdX is a top decentralized exchange that is evolving in the crypto market. dYdX offers more than 35 big popular cryptocurrencies which makes them the best decentralized exchange to buy cryptocurrencies. They run on the Ethereum Blockchain. This lending platform allows cross-lending and borrowing features. Their decentralized nature, lower gas fees with higher transaction rates make them attractive to their users. dYdX is the second-best Decentralized exchange which has the highest trade volume next to Uniswap.

Pros

  • They offer low trading fees.
  • dYdX is flexible, which means that it can be customized according to the user’s needs and strategies.
  • Users can earn income in many ways, as it provides various earning features.

Cons

  • The users of dYdX only pay a gas fee, and don’t charge any deposit or withdrawal fee.
  • They offer only a limited number of token pairs.

Features

  • They have their in-built unique NFTs called Hedgies, which are ERC tokens.
  • They have their own Android and iOS mobile app, which allows the users to trade and track them from anywhere.
  • Their 2-layer solution provides high transaction speed resulting in lower gas costs.

3) PancakeSwap

One can’t skip PancakeSwap while discussing the best Decentralized exchanges available in the market. PancakeSwap is the most popular decentralized exchange on the BSC (Binance smart chain). Users can stake their Cakes(native tokens) here and earn rewards. Pancake swap allows easy swapping of BEP20 tokens. Compared to other platforms Pancake Swap doesn’t charge much while allowing users to seamlessly trade BSC-based assets.  They also support NFTs, allowing users an option to buy, sell, and earn by doing so.

Pros

  • Cakes can be used for staking or yield farming to earn higher rewards. 
  • Compared to Uniswap, PancakeSwap offers fast trading, transactions, governance benefits, and other user-friendly features.
  • PancakeSwap provides a betting feature where users can earn rewards by predicting the price of BNB.

Cons

  • The security is under question here. Binance smart chain is not as secure as Ethereum.
  • Betting on prices can lead to loss. 

Features

  • They offer various revenue-gaining services like betting, staking, lotteries, and yield farming to earn a passive income.
  • Integration of wallets is enough to start trading, no registration or signing in is required.
  • PancakeSwap supports 50 + DeFi tokens

4) 1 Inch

1 inch is one of the best decentralized exchange platforms that provides various features and benefits. Their 1-inch token is best suitable for staking to earn rewards. The stakeholders are also favored with the governance tokens which provide voting rights.  1 inch also acts as the top dex aggregator in this list of best-decentralized exchanges. This platform lets users compare prices from various DEXs and make them buy at lower prices.

Pros

  • No transaction or withdrawal fee is charged as the digital assets aren’t stored on its server.
  • They support many crypto wallets, giving them access to a wide variety of cryptos.

Cons

  • They are not tailored for beginners, 1 Inch users must be aware of the basic operation of the platform to get easy access.

Features

  • 1 inch has its own wallet where users can stake, and claim rewards.
  • No transaction fee is levied, only a network fee is charged.

5) Vertex

In the list of best-decentralized exchanges, Vertex holds the fifth position. They are best known for their origin story. Earlier, they were created with the Terra space. However, after their downfall, Vertex developers shifted the whole process to the Arbitrum network which then changed their entire goal and structure. The users here stake their VRTX tokens to earn rewards. Vertex became a decentralized platform that would support the functionalities of a centralized exchange.

Pros

  • The users can bridge and connect up to 8 different blockchains, which makes them the best cross-margined decentralized exchange to exist.
  • They offer very fast order-matching mechanisms.

Cons

  • They are not fully launched yet. Only the testnet version is launched, the live version is being built by the developers.

Features

  • They operate on a decentralized liquidity pool, which means that they fully operate on their own without any intermediaries.
  • They ensure fair lending practices, allowing users to lend and borrow cryptos at fair market prices.

6) Orca

Like all other DEX platforms, Orca is built to overcome shortcomings like secure and faster transactions. Orca is one of the best-decentralized exchange platforms to trade cryptocurrencies on the Solana blockchain. Unlike other DEXs, Orca’s innovative UI and design algorithms allow users to view token balances and change language settings within the platform itself. Here you can trade with lower transaction fees compared to other platforms on Ethereum.

Pros

  • Orca doesn’t need to verify KYC or any information before letting you in, this is best for traders who want to trade with anonymity.
  • Users trade directly from their wallets, eliminating the risk of losing funds to third-party mismanagement or hacking.

Cons

  • They can experience network congestion rarely while operating on the Solana blockchain.

Features

  • They are well known for their “Fair Price Indicator” feature. Here the user can check whether the pool offers a fair price this makes them the best decentralized exchange among the other popular ones.
  • The users can easily trade with SOL, ETH, USDC, USDT, and RAY.

7) Balancer

The balancer is one of the best decentralized crypto exchanges that run on the Ethereum blockchain. They use Smart contracts and AMM protocol models to self-regulate the platform. Bal tokens are the platform’s native token. The token holders are rewarded while providing liquidity, and trading. They are also given voting rights to decide the future of the platform. The users can create any of their own pools from the smart, private, and shared pooling models.

Pros

  • The user can select the type of pool they want while creating their own pools.
  • Balancer provides various options where the platform’s user can earn rewards.
  • Even though they are built on Ethereum, no gas fee is charged which makes them the best decentralized exchange among crypto users.

Cons

  • Transaction fees can vary depending on the type of pool the user selects.
  • They have records of hacking in the past. However, this made the developers secure their platform.
  • Like many DEXs, they still don’t have a mobile application. This is a disadvantage for users as it hinders the user from trading from anywhere.

Features

  • Balancer works with a unique feature called CFPM(Constant function Market Maker). This helps minimize additional costs while swapping.
  • They utilize a strong security model which ensures that the users can securely manage their assets.
  • Balancer has an active community that contributes to the platform’s growth and helps to improve the trust among its users.

8) Apex Protocol

Apex protocol is a popular decentralized exchange well known for its elastic AMM model. They possess order book-based trading, and spot trading which makes them an easy-go option for beginners. Users can trade directly on the Ethereum blockchain without any intermediaries. The incorporation of Starkware’s layer 2 scalability mechanism promises security concerns. and APEX tokens are used for staking and to earn rewards.

Pros

  • They are notable for their high security and private features.
  • They prioritize giving high-end performance to their users at lower costs.
  • Apex Protocol use the order book model which adds an advantage to beginners.

Cons

  • They only have limited trading instruments.

Features

  • Users of the platform will be rewarded with tokens while trading and mining.
  • Users can create markets on any assets while maintaining their private keys.

9) Kyber Swap

Kyber Swap holds the ninth position in this list of best-decentralized exchanges. Despite working like every other DEX platform, some unique modifications make them stand out among other best-decentralized exchanges. The earned rewards and the trading fee are paid in KNC(native currency). The liquidity providers earn up to 0.3% for tradable pairs. Kyberswap works with multiple liquidity pools. Unlike Uniswap, Kyberswap works like a DEX aggregator.

Pros

  • They support many popular wallets and allow users to trade without leaving their wallet applications.
  • Kyber Swap supports more than 70 ERC Tokens.
  • They have a mobile application for ease of trading and keeping track.

Cons

  • Kyber doesn’t support assets that aren’t built on Ethereum.
  • Gas fees are fluctuable, it depends upon the traffic over the network.

Features

  • KyberSwap is the core product of the  Kyber network. It is built on an Ethereum blockchain.
  • They provide features of stalking, swapping, and farming to earn rewards.

10) Curve

Curve is one of the most popular decentralized exchanges in the crypto market. The platform is highly trusted and is quite user-friendly for trading stablecoins. The CRV tokens act as governance tokens in this platform. The transaction fees are charged only up to 0.4%. The Curve kind of replicates Uniswap functionality by having an inbuilt AMM feature that runs on Ethereum. The users can also earn the CRV tokens as a reward by providing liquidity, or by participating in yield farming.

Pros

  • The token holders act as voting members on deciding trivial matters.
  • Curve users are left with minimum fees and pool parameters compared to the other best decentralized exchange platforms.
  • Curve offers and supports nearly 45+ popular crypto tokens.

Cons

  • No mobile application is available, meaning that users should access only through the website.

Features

  • The curve is a multichain platform means that they are also supported by different blockchains.
  • The platform is designed with the need to minimize the slippage prices.

The above-mentioned best-decentralized exchanges are based on the research work done from reliable sites like CoinmarketCap. and Coingecko. And discussed the pros, cons, and features of these decentralized exchanges that make them unique to be ranked in this list. While compared to the Centralized exchange, DEX doesn’t have the authority over them to regulate or manage them.

Now you might wonder How to choose the best decentralized exchange for trading. Take a quick glance once over to the next section to answer your query.

How to Choose the Best Decentralized Exchange?

Consider the following 6 steps to choose the best decentralized exchange for overall user experience and profitability.

  1. Choosing an easy user interface for trading, especially if you are a beginner
  2. Opt for higher liquidity as it reduces slippage costs
  3. Finding the best security support system helps in securing funds.
  4. Transaction fees and speed might deal a great place in your exchange, some types will provide lower transaction fees or speed.
  5. Ensure that your platform supports a wide range of tokens.
  6. Checking before committing is the strategy to ensure that your chosen DEX platform has a good reputation and community feedback.

Decentralized Exchanges Legal and Safe?

To answer the above arisen question the legal status of DEX is completely alright and secure. However, DEX’s core feature encompasses the rule of no authority to manage them. That doesn’t mean they don’t have a legal framework to organize them. Confused right?

To be clear the legal framework for decentralized exchange is built by DAO (Decentralized Autonomous Organisation) where the users or certain token holders are said to be given voting rights to decide on the upliftment or the changes the platform requires. 

DEX might sound like an unauthorized and insecure platform. However,  decentralized exchange has a higher level of security than centralized exchanges as the user is solely responsible for their transactions and decisions. No involvement of third-party organizations makes the exchange more secure, as the user has sole authority over the platform. This relatively reduces the risk of hacking. 

What are the Risk Factors of Decentralized Exchanges?

Besides the advantages and high-end features DEX possesses, there are certain drawbacks of decentralized exchanges and risk factors that need to be taken into consideration. Moreover, these types of risks are being defeated by the growing technological advancement. Let’s get a glimpse of those risks and the factors.

Security risks

DEX isn’t completely immune to security threats that arise. DEX operates on a blockchain, if in case there is a breach in the platform, then the DEX platform security is in question here. 

Liquidity

Providing Liquidity in an exchange platform is an important factor. Decentralized exchanges are also vulnerable to risks due to liquidity, as they are lower here compared to the CEX. This can cause issues in slippage and in cases where a large number of trades are done.

Scalability

Blockchains act as a backbone to DEX. However, the incapability of handling a high number of transactions or not being able to be compatible with them might make one think that the system is unreliable.

Scam and frauds

In the case of decentralized exchanges, there is a high chance of being scammed and getting trapped in fraudulent activities. One can create fake liquidity pools or fake tokens or the operator may escape after taking the funds of the investors.

Support system

Centralized exchanges have a third-party intervention where the user can raise a query in case a problem arises. Many CEXs have a separate team to answer the queries of their customers. But DEX doesn’t have the authority where the platform user can connect in case any query or concern arises.

Is It Safer to Use Decentralized Exchanges Compared to Centralized Ones?

Both centralized and decentralized exchanges provide distinct features to their users. However, comparing them might leave investors confused about choosing a type of exchange. Adopting an exchange platform according to their needs will put them at ease. Both exchanges are privileged in their own ways. Here are some common factors a user should know when comparing centralized and decentralized ones.

Privacy

DEX is built with the idea of meeting the core objective of blockchain technology where the user can trade anonymously. In CEX one doesn’t have privacy and there is a need to fill in the basic   KYC details. Meanwhile, DEX can maintain the anonymity of the user as there is no need to sign in or fill in the KYC details. 

User Experience

CEX has a more user-friendly interface. They are built to provide a simple interface where the users can trade easily. However, DEX is continuously trying to build a simple user interface, and getting in contact with smart contracts are bit complex.

Custody

In CEX the entire fund and interaction is under the custody of a third party. But in DEX the entire process is under the control of the user itself. The user can store and move the funds according to his needs. This adds a prominent advantage to team DEX.

Protection

Another advantage of decentralized exchanges is their security feature. In DEX there is no need to disclose anyone about your details or AML standards. However, in CEX one must need to give personal information and trust them single-handedly. This then puts the case which is prone to hacking or involvement of third parties.

By analyzing both team CEX and DEX one might understand the key factors of both exchanges. We might suggest choosing the exchange up to the person’s needs. However, if you want a secured exchange and have a high level of trust issues, DEX seems like a better option.

Conclusion

To put everything in a nutshell, now you might have mastered which is the best decentralized exchange platform to trade and their effect in the Crypto environment. Being a DEX enthusiast you might also have an interest in starting a decentralized exchange anytime. On that aspect, there are numerous Crypto development companies to consider, but wise suggest getting in touch with Coinsclone.

Coinsclone is a reputed DEX development company with nearly a decade of experience. With our best development team and skillful experts, you can build your own DEX platform with ease. You can use our best development team and skillful experts to strategize your business. Using our white label software or clone script, we will help you to start your step on building your DEX platform. Just schedule a free demo with us and get in touch with our experts to start your journey.

Frequently Asked Questions- FAQ

What are best decentralized exchanges for beginners?

Uniswap, PancakeSwap, dYdX, and 1inch are considered the best decentralized exchanges available in the market. They have a large number of users who frequently use them to buy, sell, and trade Cryptocurrency.

Which dex platform has the lowest trading fee?

1 Inch and Curve is considered the platform with lower trading fees among the best decentralized exchange platforms.

Does Binance have DEX?

Yes, Binance DEX it is. Binance DEX allows users to trade cryptos among them following the DEX’s principles.

Also Read: How to Build a DeFi App