What is a decentralized exchange?
They are the most preferred way to trade cryptocurrencies. DEx or decentralized exchange are very popular and usually used to exchange Bitcoins and other cryptocurrencies and easily devoid of any interference of centralized exchanges. They cut the centralization system where there is no third party involved. You only need to get an account registered on your name before trading along with the listing of few cryptocurrencies of your choice. DEx paves a way to transfer or trade the coins on their network with nominal fee with very quick services devoid of any geographical limitations.
What are the benefits?
A. No geographical limitations:
The decentralization of servers enables the system to spread around the globe. So, there are no boundaries and limitations in terms of regions and areas while trading.
B. Very private:
This system is not only decentralized but also it respects your privacy. Many exchanges allow you to create your account without much identification and personal details.
C. No stoppage:
Even if the servers go down, they might work a bit slow, but the network will never stop!
D. Full control:
When you own a DEx account, you will be having the whole authority over it, and that what DEx means. You will be responsible for your actions and will have full control over your funds.
Below is a list of the top DEx where you can create an account to trade crypto. The list does not imply their ranks, however:
Top decentralized exchanges:
1. Waves DEX:
This DEX has a traditional approach to the incoming orders where your orders will be matched with the servers, but since it is a DEX, they won’t have any authority over your money. They provide quite a good amount of security which gives a win-win situation to the traders.
This DEX is mainly focussed on the peer-to-peer trading of ERC20 tokens. It claims itself as Decentralized Ethereum Asset Exchange which will have been gaining positive responses from the traders. It kind of gives a traditional exchange feel, where you have to deposit your coins on their exchange.
Privacy of your keys and coins are a major aspect while trading. Thus, keeping that in mind Bisq has this huge aspect of privacy on its platform. It very privacy-focussed platform. They treat all the transactions on their platform very privately and by no means will be under the scrutiny of governments, central banks etc.
4. Kyber Network:
It boasts itself as a Gen-next DEX, which makes use of smart contracts for trading. It focuses on the ERC20 trading.
It uses the Swap protocol on their platform. It is mainly concerned with the ERC20 tokens, which will give an efficient experience for the traders having the ERC20 tokens.
6. Oasis DEX:
Some efforts are required when it comes to making an account with this DEX since you will have to go for a MetaMask account or by using certain programming languages like solidity, python etc. It provides great benefits to the traders with Ethereum-based ERC-20 tokens.
It is a very different platform for trading cryptos, where privacy is the major feature. The private keys are always with the users. Neither their platform nor their employees have any power over your funds.
8. Counterparty DEX:
It works as per the Bitcoin blockchain to enhance the crypto trading in a peer-to-peer manner. It gives the freedom to create your own digital assets which can be easily traded on their DEx. Their main aim is to create a peer-to-peer ecosystem for the crypto-based trading on the top of Bitcoin blockchain.
It is quite a popular DEx which facilitates you to trade your cryptos in a very private method where you can trade in certain modes like the options of quick and precise trades for the more filtered approach of trading. Week by week they list down the new tokens according to their high or low liquidity.