8 BEST Decentralized Exchanges (DEX) in 2025

A good, decentralized exchange allows you to trade cryptocurrencies without an intermediary. You trade directly with other users and hold your crypto in a non-custodial wallet. Selecting the wrong decentralized cryptocurrency exchange may lead you to lose your funds through smart contract vulnerabilities or when they lack ample liquidity. Additionally, you won’t get the right user interface functionalities that enhance your trading experience.

Hence, I went through numerous exchange platforms and shortlisted the best decentralized exchanges in the market. This review includes the key features, pros and cons, and pricing structure of these platforms which will help you make a well-informed decision. Read more…

Key Takeaway

Decentralized exchanges are non-custodial, meaning that they don’t control your crypto. Some of the best decentralized crypto exchanges are FixedFloat, ChangeNow, and Uniswap. You must understand their risk factors, security issues, and how they differ from centralized exchanges. Important features to consider include their user experience, supported currencies, fees, security of funds, etc., while selecting them.

Best Decentralized Crypto Exchanges: Top List

Decentralized Exchange (DEX)	Spread fee	Number of supported coins	Link
FixedFloat	You can choose between a fixed and float rate as follows. The fixed rate is the network fee + 1% FixedFloat commission. The float rate is a network fee + a 0.5% FixedFloat commission.	Over 60	Learn More
ChangeNOW	You pay a variable network fee depending on the trading volume and the type of cryptocurrency.	Over 1000	Learn More
Uniswap	0.3% liquidity fee	Over 300	Learn More
PancakeSwap	It varies between the V2 and V3 liquidity pools. It’s a 0.25% fixed fee on V2 and in four tiers on V3 as 1%, 0.25%, 0.05%, and 0.01%.	Over 350	Learn More
SushiSwap	0.3% trading fee	Over 400	Learn More

1) FixedFloat

Best for automated trading.

FixedFloat is a decentralized exchange suitable for both beginners and seasoned crypto users. It is non-custodial, meaning you need a separate wallet to swap crypto on the platform. For example, a Trezor Model One hardware decentralized wallet is suitable for offline storage.

I got maximum exchange speed on FixedFloat because it automates all its on-chain processes. All transactions are also peer-to-peer, which eliminates the need for third-party guarantors.

Features:

Crypto swapping: FixedFloat provides a simple interface to help you exchange your crypto. It’s essential to adapt quickly if you are a novice trader.
Transparency: The DEX shows you all the commissions before you confirm a transaction. It’ll inform you of the trading strategies, such as the best option to save.
Automated trading: I could set up custom algorithms for executing trades on FixedFloat. It is suitable for experienced traders who want to optimize the process.
FixedFloat API: It helped me monitor my orders and the exchange rates. You can also manage orders and create new ones after registering to get an API key.
Security: Fixedfloat does not require you to submit any data to trade. The dex exchange guarantees your data security and anonymity without holding your funds.
Payment methods: You need a wallet address with crypto to swap on FixedFloat. So, you have to use other sources to load crypto to your wallet.
Supported cryptocurrencies: FixedFloat supports over 60 cryptocurrencies. BTC, ETH, USDC, ARB, USDT, KCS, TON, and VET support the primary trading pairs.
Customer support: I contacted FixedFloat through email, Twitter, Telegram, and Live chat. A customer support agent engaged me on live chat as I requested more information about swapping fees.

Pros

It does not require KYC verification.
FixedFloat uses the Bitcoin Lightning network for a fast-swapping rate.
You get swift network confirmation that speeds up transactions.
It has transparent pricing.

Cons

I couldn’t trade NFTs using this platform.
It doesn’t allow fiat deposits or currency trading.

Trading fees

FixedFloat helped me transact using the float rate or fixed rate. The lower float rate combines a network fee with a 0.5% commission.

The Fixed rate consists of a network fee plus a 1% commission. They are different because the float rate enables users to use the current network fee at the time of the transaction. The fixed rate will not change as the cost is final when you initiate a transaction and is not dependent on trading volume.

Visit FixedFloat >>

2) ChangeNOW

Best for a simple interface to swap crypto.

ChangeNOW offers a simple and direct interface to exchange hundreds of digital assets. It’s the best dex for crypto to fiat transactions through Mastercard or Visa with any currency your card supports.

The DEX allows easy integration with API for all business transactions. Hence, I can set up crypto payments to receive money from clients. It includes other business tools such as custody storage, white-label solutions, and exchange widgets.

Features

Crypto swaps: ChangeNow reports an average transaction rate of about five minutes. It notified me about a 98% success rate on some of my historic trades.
Upper limit: There is no limit to the amount of crypto you can swap. I could also start trading at a minimum of only $2.
ChangeNow Pro: I benefitted more from its advanced features than the regular account. Some of the features that I liked are AML address checks, low fees, and cashback.
DeFI-based: ChangeNow helped me access other decentralized liquidity providers through Pancakeswap or Uniswap. You also get start-up listings, on-chain txs, and low transaction fees.
Fiat currency: It helped me purchase crypto with up to 50 fiat currencies. The exchange comes with a variety of payment methods to support different fiat currencies from various regions.
Crypto custody: ChangeNow is non-custodial, meaning you don’t need to sign up for an account. I could control all my funds through an external wallet, such as a Trezor or Ledger wallet.
Transparency: The exchange outlined all the fees whenever I traded. It’s vital to ensure the predictability of your transaction cost.
Risk prevention: ChangeNow has an automated risk prevention system. It allowed me to analyze all the transaction logs and identify malicious activities such as scams.
Security: The exchange has no history of lost users’ funds. It implements AML mechanisms to detect malicious transactions and fraud. All my KYB, KYC, and KYT information was never disclosed during a transaction.
Payment methods: This exchange supports multiple payment methods. I could buy and withdraw crypto through Apple Pay, UnionPay, SEPA, Visa, and Mastercard.
Mobile application: The exchange has its mobile application as an Android APK. I could also install it directly through the iOS App Store or, in the case of Android, Google Play Store
Supported cryptocurrencies: It supports over 1000 cryptocurrencies with their crypto pairs.
Customer support: ChangeNow’s automated support system was easy to use and contained the most common questions. You can also contact support through its social media accounts like Instagram, Facebook, X, and Telegram.

Pros

I didn’t need to submit KYC verification to exchange crypto.
It allowed me to trade using float market rates.
ChangeNOW reports a low average exchange time of about five minutes.
I found its web trading platform quite direct and easy to use.

Cons

It has high gas fees for crypto to fiat transactions.
You can only stake its NOW native token on the trading platform.

Trading fees

ChangeNow combines the network and transaction fees for the total. The amount varies between the crypto and their trading pairs. Note that the cost is dynamic depending on the market rate and your trading volume. I recommend you get a breakdown of the total trading fee before you confirm a transaction.

Visit ChangeNow >>

3) Uniswap

Best for access to a vast network of DeFi Apps.

Uniswap is a decentralized crypto exchange that hosts its blockchain in Ethereum. Its native token is also named Uniswap and has the symbol UNI. The DEX supports most digital tokens based on the ERC-20 or Ethereum standard.

I could choose from over eight more chains whenever I trade. Uniswap is the best dex for crypto peer-to-peer networks for swapping digital assets. I could also provide liquidity by joining pools with fellow users who act as liquidity providers.

Uniswap

Features

Uniswap ecosystem: Uniswap allows me the option to build Defi applications using various features. It makes it easy for me to earn or swap crypto on this exchange platform that comes with.
DeFi applications: I noticed that Uniswap has over 300 DeFi applications and supports NFT trading. This is evidence of Uniswap’s goal of uniting liquidity providers, traders, and developers in the same financial marketplace.
Development tools: Uniswap provides developers with various tools to create DeFi applications. These include its open-source code, a Javascript JDK, protocol documentation, and quick-start guides.
Funding: The DeFi developers can apply for money from the Uniswap Grants Program. I found it a crucial motivator for building tools and apps for the Uniswap Protocol and ecosystem.
Governance: Uniswap allows UNI native token delegates and holders to manage its Uniswap Protocol. As a token holder, I can easily participate in the protocol discussions and can propose and confirm upgrades.
Protocol voting: The UNI token delegated me, and I could vote on decisions using Sybil. It is an off-chain interface that automatically confirms decisions based on the highest-voted choice.
Security: Uniswap has no history of direct hacking on its systems. It is the top dex crypto exchange with a bug bounty program allowing independent users like me to find vulnerabilities and earn rewards.
Payment methods: I could buy crypto through a direct bank account transfer or pay with Google Pay, Apple Pay, and credit/debit cards.
Mobile application: Uniswap mobile app is on the iOS Apple App Store or Android’s Google Play Store.
Supported cryptocurrencies: As per my observation, Uniswap has over 300 cryptocurrencies with their crypto pairs.
Customer support: Uniswap receives all complaints through its help center by submitting a ticket as a request. I sent a message to inquire about how to use Sybil, and they responded promptly.

Pros

I could connect it with my wallet without registration.
It has many providers providing liquidity for instant crypto swaps.
Uniswap supports airdrops from the tokens on the platform.
It helped me connect multiple online wallets through its application.

Cons

I couldn’t use fiat currencies on it.
You need ETH to pay the gas fees.

Trading fees

Uniswap charges a network or gas fee to facilitate transactions. It is the percentage commission paid to the network validators, and it varies between the various chains.

Examples of the chains available are Avalanche, Polygon, and Ethereum. Uniswap also collects an additional 0.3% charge that is added to the gas fee.

Link: https://uniswap.org/

4) Pancakeswap

Best for trading NFTs on a DeFi exchange.

Pancakeswap is a decentralized exchange that uses BSC or Binance Smart Chain to facilitate transactions. It’s the best decentralized crypto exchange to earn through various services, such as lottery features, staking, and yield farming. I observed that its native token, CAKE, facilitates most functions, such as liquidity pools.

The decentralized exchange has an automated market maker that determines transaction costs and pricing of its native token. I can access swapping functions using self-executing smart contracts by the Binance Smart Chain (BSC). It’s useful for me to get fast transactions and low trading fees.

Features

Trading: Pancakeswap supports multiple chains on the platform. They help access a wide range of token pairs. Examples include Aptos, opBNB Chain, and Polygon zkEVM chain.
Rewards: The top 100 rated traders on Pancakeswap earn a 3% refund on their transaction costs. I could also access other rewards when I claimed exclusive NFTs.
Crypto swapping: Pancakeswap helped me trade crypto across the available chains. It has a simple and direct swapping interface.
Liquidity pool: I could earn rebates on the transaction fees when I invested in a liquidity pool. It enabled me to collaborate and put up my crypto to facilitate multichain liquidity.
Perpetual trading: Pancakeswap allowed me to trade derivatives on the perpetual section. There is no expiration date for how long you can stake your crypto. Other staking options include yield farming on CAKE and LP tokens.
NFTs: You can buy NFTs on the BNB chain. It also allowed me to upload my own trade on the platform.
Price prediction: Pancakeswap rewarded me when I predicted a token price. It’s part of the revenue-sharing program through decentralized exchange.
Gaming: I could access games that creators and developers post on PancakeSwap. You can also build one if you are a blockchain developer and host it on the platform.
Community: The PancakeSwap community offers resources to learn more about the decentralized exchange. It has over 35 community ambassadors and supports over 15 languages.
Security: PancakeSwap has regular security audits to ensure system and data safety. I also found it valuable for identifying potential cyberattacks, such as Denial of Service hijacks.
Payment methods: The exchange allows you to trade on the platform through a bank transfer, a debit, or a credit card.
Mobile wallet: I could use Pancakeswap as a DApp on wallets such as SafePal, Token Pocket, Coinbase Wallet, MetaMask, or Trust Wallet. They are all available on Android and iOS.
Supported cryptocurrencies: PancakeSwap supports over 350 cryptocurrencies. USDT/WBNB is the most used trading pair on the platform.
Customer support: PancakeSwap currently does not have live customer support. However, I used the frequently asked questions or the troubleshooting guidelines.

Pros

Pancakeswap has a flexible staking model that allows you to withdraw before the set date.
I only had to fill in my AML or KYC information when my transaction was flagged.
It allows you to lend crypto to other users and earn an interest fee.
I could participate in the Bug Bounty program to earn rewards.

Cons

It doesn’t have a standalone mobile application.
You’ll lose crypto if you send it to wallets outside the BSC decentralized protocol without bridging.

Trading fees

PancakeSwap charges a fixed fee of 0.25% when you swap crypto on V2 liquidity pools. V3 pools charge a percentage fee based on four trading volume tiers, starting from 1%, 0.25%, 0.05%, and 0.01%.

Link: https://pancakeswap.finance/

5) Sushiswap

Best for swapping crypto without registration.

Sushiswap is an Ethereum-based decentralized exchange with a native token SUSHI. It also supports other chains, such as Polygon, Binance Smart Chain, and Avalanche. SUSHI token holders can participate in the administration of the network.

The decentralized exchange has user-supported liquidity pools that helped me swap between different assets easily. I could deposit money into the pools to earn a percentage of the commission fees from confirmed transactions. It uses automated maker technology to execute trades, predict token prices, and provide liquidity.

Features

Crypto custody: Sushiswap doesn’t retain ownership of users’ funds as you connect an external wallet. This exchange also gives you control over your private keys.
Leveraged trading options: You can leverage trading or lend your crypto through Kashi. It is Sushiswap’s native application, which has an automated algorithm that sets the interest rates.
Passive income: I received various options to earn crypto, like Sushi Vault, Farm Rewards, or through liquidity provision. For example, I could earn a gas fee commission when I invested in aggregated pools.
Decentralized Finance (DeFi): Developers can create DeFi applications on SushiSwap. The decentralized exchange provides various frameworks, such as BentoBox.
Sushi Academy: The academy teaches more about the decentralized exchange and DeFi. I noticed that it has a variety of resources suitable for both amateurs and advanced users.
Security: The exchange helped me easily manage my coins and private keys. Sushiswap doesn’t work with intermediaries to manage user funds, guaranteeing security and privacy.
Payment methods: It supports credit and debit cards for purchasing tokens.
Mobile application: I downloaded the SushiSwap wallet on Android’s Google Play Store and iOS’s Apple App Store.
Supported cryptocurrencies: It supports over 400 tokens, and you can trade instantly without registration.
Customer support: I joined the SushiSwap Discord community, where admins answered my concerns about gas fees. You can also contact them through their X account.

Pros

I could use its community-driven model for making critical decisions in upgrades or changes.
Its staking boosts network activity and aggregated pools.
I liked its simple swapping interface that helped with fast trading.
The Sushi DApps have applications for market prediction and cross-margin lending protocols.

Cons

There are risks to losing funds over algorithm and smart contracts bugs.
Liquidity pools can lose value based on the automated market makers.

Trading fees

SushiSwap charges a variable Ethereum gas fee plus a fixed 0.3% commission to complete a transaction.

Link: https://www.sushi.com/

6) IDEX

Best for gas-free trading.

IDEX is a decentralized exchange that uses the Binance Smart Chain, Polkadot, and Ethereum chains. It implements order books instead of the standard automated market maker model in decentralized exchanges. I liked its features, such as stop-loss functions, which limited the losses in my trade.

The order book is centralized on the exchange, but the other features are decentralized. It gets me high-speed transactions as the separate order book settles transactions off-chain in an electronic registry. IDEX also has Merkle trees and Layer 2 scaling solutions to speed up bulk transactions.

IDEX

Features

Leverage trading: I could stake to earn up to 20X on the trading options. All staking transactions do not incur commission charges.
Yield farming: IDEX lets you provide liquidity to its pools to earn rewards. For example, its IDEX-USDC pool gave me a whopping 26.3% APR interest.
Data export: The decentralized exchange allowed me to export transaction data to other wallets or software. For example, I could easily export my transaction data on ZenLedger to generate the tax reports.
Wallets: I could connect a wide range of wallets with IDEX. Examples are WalletConnect, TockenPocket, BitKeep, Coinbase, Trust Wallet, or MetaMask.
IDEX token: It is the primary utility token for the decentralized exchange. When staking the token, I earned 40%-50% commission on most of my transaction fees.
Transactions: IDEX does not support front-running because of its channel-based execution. Therefore, bots or others won’t pay high fees to advance in the transaction chain line.
Security: The Ethereum network secures all of its trading features. It guaranteed me self-custody of my funds,along with fully decentralized trading.
Payment methods: I could swap fiat for crypto tokens through your debit or credit cards. It also accepts crypto from external centralized or decentralized wallets.
Supported cryptocurrencies: The exchange allowed me to swap thousands of tokens supported on Binance Smart Chain, Ethereum, and Polkadot.
Customer support: IDEX live chat support responded in less than five minutes after I inquired about leveraged trading. You can also browse through the FAQs (frequently asked questions) in the ‘help’ section.

Pros

It has staking, which you can invest in to earn crypto.
I like its simple interface for quick crypto trading.
It has P2P trading.

Cons

You can’t use fiat currency.
It has high order minimums.

Trading fees

IDEX uses a maker/taker model in two trading categories: limit and pool. Limit trades have a maker fee of 0.125% and a taker fee of 0.125%. Pool trades do not have a maker fee and a taker fee of 0.125%.

You’ll pay a 0.1% commission for pool earnings and 0.025% on pool protocol earnings. IDEX collects limit protocol earnings at a commission of 0.25%. All the transactions incur auto-generated gas fees.

Link: https://idex.io/

7) Bancor

Best for advanced order book-like features.

Bancor is a unique decentralized exchange that is an Automated Market Maker or AMM. It acts as a decentralized exchange aggregator to find the best market rates. Bancor also consists of aggregated pools that support the completion of the transactions.

It is the best-decentralized exchange with single-sided staking and doesn’t require depositing multiple token amounts. Bancor compensated fellow users and me whenever we lost crypto in the aggregated pools. I received BNT tokens, which were convertible to other types of crypto.

Bancor

Features

DeFI protocols: Multiple DeFi protocols exist for on-chain trading and liquidity provision. Some of the protocols are Carbon and ArbFastLane.
Earn interest: Bancor’s liquidity pools can appreciate in value. So I could withdraw my interest and keep my initial deposits. There’s a minimal risk because all losses are compensated.
ArbFastLane: It is a DeFi protocol on Bancor for arbitrage trading. I could access tools such as Fast Lane, Searcher, and Arbitrageur.
Carbon: The DeFi protocol is Bancor’s liquidity provider and supports on-chain trading. I could also use it for other functions like range and limit orders.
Governance: Users in the Bancor DAO community are responsible for managing the exchange’s protocols. They consist of delegates and BNT token holders.
Alerts: I joined Bancor’s Telegram channel, which provided on-chain alerts. It also offers notifications on the exchange’s transactions and trader strategies.
Security: It uses Defi protocols that facilitate the security of transactions. I received all the decentralized security features, such as self-custody and the choice to store my private keys.
Payment methods: The exchange allowed me to buy crypto using a bank transfer or debit and credit card.
Supported cryptocurrencies: Bancor supports over 150 cryptocurrencies.
Customer support: I contacted Bancor support through its Discord channel to ask how to integrate a wallet on the exchange. An administrator got in touch and guided me on connecting my BNT wallet.

Pros

It has a trading API for advanced traders seeking more tools.
The aggregated pools reduce the risk of a cash deficit.
You can stake BNT tokens and earn interest.
I like that it supports automated trading through its DeFi protocols.

Cons

Users report low transaction speeds.
It prioritizes liquidity for EOS and ERC-20 tokens, affecting your trading choices.

Trading fees

Bancor charges a flat rate of 0.1% for any transaction.

Link: https://bancor.network/

8) Changelly

Best for exchanging Bitcoin and its Alt-coins.

Changelly is an instant crypto-swapping decentralized exchange with a variety of products. Using this exchange platform, I can trade crypto using floating or fixed rates. Fixed rates mean that the value of your selected crypto won’t change when you transact. However, floating rates might have variations based on market changes.

It is the best decentralized exchange that allows me to swap over 80 fiat currencies for crypto. Changelly works with third-party liquidity providers to facilitate these crypto-to-fiat transactions. I can also link it with other wallets like Ardor, Edge, or Trezor.

Features

Competitive pricing: Changelly’s algorithm automatically finds the best transaction rates. Since it partners with over 20 other exchanges, such as Bittrex and Binance, I found it easier to get the bst rates on offer.
Transaction speed: The decentralized exchange guarantees a transaction speed of 5 to 40 minutes. I encountered that the speed depended on the network and token that I was trading.
KYC: Changelly requires basic KYC information to trade up to a limit of 10,000 Euros every 48 hours. Based on my experience, I had to provide more data to eliminate the limit.
Margin trading: This wallet allowed me to borrow and trade using crypto assets from brokers. Examples of the available token pairs are EOS/BTC and ADA/BTC.
Leverage trading: The decentralized exchange offers up to 10X leverage. Your limits depend on the cryptocurrency pair that you choose.
Refund policy: I could claim a refund when I sent crypto to Changelly’s on-chain wallets. There are different refund terms based on three categories. They are non-refundable, refundable without an ETA, and refundable with an ETA.
Changelly Pro: I usually sign up on Changelly Pro to access advanced features. They include a simplified fee structure and a more detailed trading terminal.
Security: The dex exchange is non-custodial, which means that crypto transfers are made directly to and from your wallet. The Pro version provided me with advanced security features such as email confirmation and two-factor authentication.
Payment methods: Changelly supports bank transfers and credit or debit cards. Your options will depend on your country or region.
Mobile application: The exchange’s mobile app can be downloaded from Apple App Store and Android’s Google Play Store. I could also download its Android app from the official website.
Supported cryptocurrencies: I could trade over 500 cryptocurrencies, 700 altcoins, and 80 fiat currencies.
Customer support: I learned how to connect my hardware wallet through the web support chat. It is available 24/7 with a chatbot or a personal assistant.

Pros

It has a simple user interface for direct crypto swapping.
I like its high transaction limit and the fact that it requires less KYC information.
Changelly gets high liquidity from its financial partners.
I could install multiple wallets.

Cons

I had to subscribe to Changelly Pro for advanced security features.
It has a high minimum trading amount.

Trading fees

Changelly charges a fixed fee of up to 0.25% on all transactions.

Link: https://changelly.com/

What is a decentralized exchange (DEXs)?

A decentralized exchange is a crypto platform that connects sellers and buyers without an intermediary. It matches the two parties and automates the crypto asset exchange. Decentralized exchanges can also offer other products, such as loans, staking, or yield farming through DeFi protocols.

How do DEX Exchanges Work?

DEX exchanges use Automated Market Makers (AMMs) or a DEX aggregator that automates crypto trading. The AMMs have self-executing smart contracts that are useful in creating liquidity pools to facilitate transactions.

The pools manage the balance between token pairs. For example, ETH/ADA on the same liquidity pool should be almost equal in value. A crypto trader can then swap between the two tokens when they initiate a trade in which they pay a commission fee.

The aggregated pools can be supplied by the token holders or independent entities, who can earn a percentage of the returns. Some DEX exchanges act like a decentralized exchange aggregator to combine the power of multiple exchanges and blockchains.

Centralized vs. decentralized exchanges

The decentralized and centralized exchanges serve the same purpose but have different characteristics. My comparison focuses on the critical differences as follows.

Focus	Centralized exchange (CEX)	Decentralized exchange (DEX)
Custody	Centralized platforms control the crypto deposits, even though they might be in cold storage. The central authority also has more control over user accounts, such as in security and KYC.	A decentralized exchange is non-custodial and lets you manage your crypto deposits. You can then trade directly with peers on the network.
Listed cryptocurrencies	Traditional centralized exchanges have a lower number of cryptocurrencies listed on their platforms. This is because the centralized exchanges take time to review and accept initial coin offerings.	There are fewer regulations in decentralized exchanges, where you’ll find a broader list of cryptocurrencies and their Alt-coins.
Censorship	A centralized exchange is censored by a main authority running the platform. For example, Binance has a central authority that has censorship power.	There is no censorship of decentralized exchange transactions. It’s because no primary authority can limit transactions, unlike centralized exchanges. Many decentralized exchanges operate through community power, which makes popular vote decisions.
Smart contracts	Traditional centralized exchanges have a low risk of security issues from these contracts. This is because transactions are off-chain and only confirmed when complete.	Decentralized exchange transactions are exposed to smart contact vulnerabilities because all the transactions occur on-chain.

The features to consider when choosing a decentralized exchange

Decentralized exchanges offer many opportunities as well as challenges. Security is a key metric you should consider before choosing your preferred exchange. Per my research, the following considerations should be at the top of your list.

User experience: A decentralized exchange should have a simple user interface. I consider it important because it makes everything direct and prevents you from making mistakes.
Supported currencies: The number of supported cryptocurrencies matters because they offer flexibility when swapping tokens. Top decentralized exchanges should also offer fiat currencies.
Fees: The cheapest decentralized exchange offers more value by saving on your trade costs. Some of the standard fees I suggest you monitor are gas, spread, and maker/taker fees.
Customer support: Choose a reliable decentralized exchange that will offer you help when you need it. The best decentralized exchanges that I came across provide real-time assistance so you can address your concerns swiftly.
Security of funds: A decentralized exchange does not have custody of your crypto assets and private keys. Therefore, storing your keys securely would be best to avoid losing access permanently, such as by backing up on the cloud.
Smart contract audits: I suggest you review a decentralized exchange’s smart contract audits to ensure they are updated regularly. The best decentralized exchanges should provide the results after regulated third-party cybersecurity firms audit their activities.
Liquidity: The liquidity of a decentralized exchange impacts your transaction limit. I always consider decentralized exchanges with liquidity supported by a community, provider, or both. It’s because many decentralized exchanges have lower liquidity compared to their centralized counterparts.
Integration with wallets: You can trade with or connect with different wallets. The best decentralized exchanges allow you to connect multiple wallets.
Regulatory compliance: Regulations vary between countries and may also change periodically. The standard rules that a decentralized exchange should comply with are the AML or KYC.
Cross-Chain Swaps: Multiple crypto chains exist, and they support various cryptocurrencies and their altcoins. I noticed that the best-decentralized exchanges offer multiple chains to transact over different networks.

What are the Risk Factors of Decentralized Exchanges?

Decentralized exchanges are risky, and you should be informed to avoid or mitigate possible threats. Here’s our list of the critical risk factors that you should monitor.

Security risks: Decentralized exchanges offer a variety of security advantages, but they are still vulnerable. The most common vulnerability is compromise on smart contracts, which might lead to losing your crypto assets. Some blockchains might also suffer other cybersecurity threats, like malware or denial-of-service attacks.
Liquidity: Liquidity is critical for the completion of transactions. The best-decentralized exchanges use liquidity pools and token holders for liquidity.
However, there is a risk of liquidity deficits, such as when many users confirm trades at once. Your transaction will take longer or get canceled depending on the liquidity levels.
Scalability: The scalability of decentralized exchanges depends on specific blockchains. Blockchain developers and owners should expand their frameworks constantly. It ensures that it can handle many transactions, especially in a busy network.
Scam and frauds: These are part of social engineering techniques that trick you into buying fake tokens or joining fraudulent pools. For example, the founders may take the liquidity funds without permission by withdrawing all the money or dumping their tokens. This leads to a slump in token prices and significant losses for cryptocurrency holders.

How to use a decentralized exchange

You need one of the best-decentralized exchanges and a wallet to start. Here’s how you’ll go about it.

Step 1) Choose a wallet
Select a hardware wallet or a digital one that accepts decentralized exchanges. Examples of hardware wallets are Trezor or Ledger, while digital wallets are Trust Wallet and MetaMask. These wallets use mobile applications or an online web portal.

Step 2) Purchase cryptocurrency or deposit funds
Connect your wallet to a decentralized exchange such as Changelly. Some exchanges don’t ask for KYC information, while others do. Fill it out, if necessary, then connect it to your preferred payment method. Search for your chosen cryptocurrency and confirm your purchase. Wait for the crypto tokens to arrive in your wallet.

Step 3) Explore products on the decentralized exchange
The exchanges have different products, such as the community, DeFi applications, and protocols. Examples are access to games, NFTs, staking, or crypto loans. Remember to use official links to DEX web portals to avoid scams and fraud.

FAQs

Decentralized exchanges rely on commissions or fixed fees to make money. They can also earn with the help of interest generated by providing liquidity pools. You will also come across pro features that provide you with advanced services like analytics or advanced trading tools that help them earn. Meanwhile, some charge for tokens to list like a centralized platform.

The IRS currently does not have the power to monitor or regulate decentralized exchanges. It’s up to you to pay taxes to fulfill your civic duty. However, proposed changes to crypto tax will require them to report capital gains and other earnings. Some countries have local regulations that guide how to pay taxes.

Final verdict

All the sites above are reliable decentralized crypto exchange platforms. However, according to my research, I would like to recommend the top three platforms on this list, and here’s why.

FixedFloat: It is best for automated trading. You don’t need KYC to trade, and it offers low fees.
ChangeNOW: I like its simple interface for swapping crypto. It’s also connected to the top exchanges in the market, like Kucoin, Bitfinex, and Binance.
Uniswap: This platform lets you access a vast network of DeFi Apps. You’ll be able to search the Web3 for NFTs and other tokens.

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