Given the widespread use of cryptocurrencies, it seems essential to be familiar with decentralized exchanges and their use.
In the rest of this article from Bitdemy, you will learn about the definition, strengths and weaknesses, and a number of decentralized exchanges.
What is a decentralized exchange?
A decentralized exchange, or DEX for short, is an exchange platform that, unlike centralized exchanges,
It does not use traditional, centralized databases to process user transactions and purchases, and all transactions are carried out on the blockchain network.
For this reason, there is no need to go through the sometimes complicated registration and kyc process, and the user simply buy and sell by connecting their wallet to the exchange.
Advantages of decentralized exchanges
- They do not need to go through the registration and kyc process.
- It is not possible to deny access and can ultimately be used by using IP changing softwares.
- They have higher security because the user does not need to deposit crypto into the exchange wallet.
- Respects user privacy and does not require entering personal information
disadvantages of decentralized exchanges
- Usually have higher fees than centralized exchanges
- Most are limited to the spot market and do not allow for other transactions.
- Lack of monitoring of added tokens may lead to fraud in some projects
Several top decentralized exchanges
Uniswap DEX
This decentralized exchange was built on Ethereum in 2018 and is currently the top exchange in terms of daily trading volume.
Uniswap currently supports Ethereum, Polygon, Optimism, Arbitrum One, Base, BNB Chain, Celo, Avalanche, Blast, ZKsync, and Zora networks.
It also supports all popular cryptocurrency wallets, including Metamask, Trust wallet, and more.
Website address: https://uniswap.org
Pancakeswap
This decentralized exchange was created in 2020 using Uniswap codes.
The most important difference of this exchange that year was its support for the Binance Smart Chain network, and it is still a leader in this network today.
Pancake Swap supports BNB Chain, Ethereum, Polygon zkEVM, ZKsync, Arbitrum One, Linea, Base, opBNB, and Aptos networks.
Like Uniswap, it also supports all popular cryptocurrency wallets, including Metamask, Trust wallet, and more.
Website address: https://pancakeswap.finance
Sushiswap
Like Pancake Swap, the decentralized exchange SushiSwap is built using Uniswap code and supports multiple networks and most wallets.
Website address: https://www.sushi.com
Raydium DEX (Solana)
This decentralized exchange called Raydium is currently the top exchange on the Solana network, available at https://raydium.io.
Dedust DEX (TON)
This decentralized exchange only supports the Toncoin network and is currently one of the best exchanges on the Toncoin network.
Website address: https://dedust.io
Sunswap DEX (TRON)
This decentralized exchange only supports the Tron network and is currently one of the best exchanges on the Tron network. https://sun.io
List of decentralized exchanges
You can also see a complete list of decentralized exchanges along with their details by visiting this link (https://coinmarketcap.com/rankings/exchanges/dex).
Further reading: