Top Decentralized Exchanges: Where to Trade Crypto Safely in 2024

One of the major concerns with centralized exchanges is the risk of hacks. In some cases, the exchange operators might even steal your assets, as seen in the Mt. Gox and Quadriga incidents.

Centralized exchanges require you to give up control of your assets, leaving you at risk of security breaches or scams. This is why decentralized exchanges (DEXs) allow you to keep control of your assets. These exchanges are becoming increasingly popular in cryptocurrency trading.

But which are the best decentralized exchanges, and are they suitable for you? Decentralized exchanges are revolutionizing finance by enabling direct, peer-to-peer trading without intermediaries. These platforms use smart contracts, automated market makers (AMMs), and liquidity pools to facilitate secure and trustless transactions on blockchain networks.

Check out our expert analysis to find the best DEX that suits your investment goals.

What is a Decentralized Exchange?

A decentralized exchange (DEX) is a platform for trading cryptocurrencies directly between users without intermediaries. Unlike centralized exchanges (CEXs), which control transactions and hold user funds, DEXs operate on blockchain technology, using smart contracts to automate trades.

The main difference between centralized and decentralized exchanges is control. On a CEX, users rely on the exchange to manage their funds and private keys. In contrast, DEXs allow users to maintain control of their assets, providing greater security and privacy.

Using a DEX offers several benefits. Privacy is enhanced because users don’t need to share personal information. Security is stronger since there’s no central authority holding funds. Additionally, DEXs offer transparency and are less prone to censorship, enabling anyone to trade freely.

Criteria for Selecting the Best DEXs

Decentralized exchanges (DEXs) are becoming increasingly popular in the cryptocurrency market due to their security, privacy, and user control. But not all DEXs are the same. Consider these key factors when looking for the best one in 2024 to ensure a smooth trading experience while protecting your assets and personal information.

Security Features
Choose DEXs with strong security measures, such as multi-signature wallets and cold storage. Audited smart contracts and a proven security history are also crucial.

Liquidity
Higher liquidity allows for efficient trading with less slippage. Opt for DEXs with a broad range of trading pairs and active users.

User Interface (UI) and Experience (UX)
A user-friendly interface is essential. Select a DEX that offers an intuitive UI/UX for easy trading and portfolio management.

Trading Fees
DEXs have varying fee models, from percentage-based fees to fixed charges. Compare these fees to match your trading habits and budget.

Decentralization Level
The degree of decentralization varies among DEXs. Ensure the platform is truly decentralized, considering order book hosting and governance.

Privacy and Anonymity
For those who value privacy, pick a DEX that allows anonymous trading and requires minimal personal information.

Cross-Chain Support
DEXs with cross-chain functionality offer more trading opportunities. Look for platforms that support multiple blockchain networks and tokens.

Community and Development
A strong, active community indicates a reliable exchange. Research the development team’s responsiveness and how often the platform is updated.

Reviews and Reputation
Read reviews and testimonials from other users to gauge DEX’s reputation. Positive feedback on security and customer support is a good sign.

Regulatory Compliance
While DEXs offer privacy, be aware of legal regulations in your area. Choose a DEX that complies with these requirements to avoid potential issues.

The Top 10 Decentralized Cryptocurrency Exchanges

These 10 decentralized exchanges (DEXs) offer various features, including advanced portfolio management, low-cost trading, and cross-chain capabilities. Check out our detailed guide to find the best DEX for your investment goals.

1. UniSwap – Biggest Decentralized Exchange

No. of Tokens: 30+

Fees: 0.3%

Supported chains: 6

Governance token: UNI

User rating: 9.4/10

Uniswap is a top decentralized exchange (DEX) and automated market maker (AMM). It enables investors, liquidity providers, and developers to trade and invest in crypto using smart contracts.

The Uniswap ecosystem helps users buy, sell, and earn assets and NFTs. It connects with hundreds of DeFi apps and tools, such as Boardroom, Rotki, Unbound Finance, FutureSwap, Ondo Finance, and MetaMask.

Uniswap also offers investors the chance to participate in governance. Through tools like the governance portal, forum, and snapshot, you can share your views and help shape the platform’s future. This process involves steps like temperature checks, consensus checks, and proposals.

Pros

• Large market capitalization
• Secure network
• Offers governing rights

Cons

• Risk of liquidity loss
• No KYC process
• Slow network speed

2. PanCake Swap – Best for Binance Smart Chain

No. of Tokens: 50+

Fees: starts at 0.01%

Supported chains: 3

Governance token: CAKE

User rating: 8.9/10

PancakeSwap is a leading decentralized exchange on the Binance Smart Chain. It attracts many crypto investors by offering a simple way to buy, sell, and deposit coins. Investors can trade without registering by connecting their digital wallets to the platform.

It works with various crypto wallets, including Metamask, Binance, Coinbase, Opera, MathWallet, BraveWallet, and Blockto. PancakeSwap supports two major blockchains, Binance and Ethereum.

Beyond regular trading, PancakeSwap offers users chances to win digital assets. This can be through trading competitions, predictions, lotteries, and pottery. Investors can also earn the platform’s native coin by providing funds to the liquidity pool.

Pros

• Has an appealing interface
• Offers diverse services
• Low transaction fees

Cons

• Available only on the web
• Not compatible with Bitcoin (BTC)

3. Curve – Best for stablecoins

No. of Tokens: 48+

Fees: starts at 0.04%

Supported chains: 11

Governance token: CRV

User rating: 9.1/10

Curve is a top decentralized exchange (DEX) and rewards platform. It converts your shopping cashback into crypto rewards, which can be changed into currencies like Bitcoin, Ethereum, and Cardano.

You can earn cashback on both debit and credit card spending through Curve. An extra 1.0% cashback on cryptos is available with every Curve purchase.

Curve also features smart rules that allow you to automate your spending. You can set up money rules based on your priorities.

Pros

• Low trading costs
• Versatile swap options
• Great rewards

Cons

• Limited crypto options
• Complex mechanism

4. IDEX – Best for Real-Time Trading

No. of Tokens: 26+

Fees: starts at 0.125%

Supported chains: 5

Governance token: IDEX

User rating: 9.0/10

IDEX is a leading decentralized platform on the Ethereum blockchain that supports real-time trading.

It works with several crypto wallets, including MetaMask, Trust, Coinbase, BitKeep, WalletConnect, and Keystore File. You can buy and sell digital currencies by connecting your wallet using a private key or mnemonic phrase.

Staking in liquidity pools, farms, referrals, or trades allows you to earn up to 50% of the cost in IDEX LP coins.

IDEX also provides real-time insights into the digital market, allowing you to track the current position of your desired currency.

Pros

• Engaging interface
• Secure with open-source smart contracts

Cons

• Limited pairing options
• Only compatible with ERC20
• Web-only platform

5. Balancer – Best Portfolio Manager

No. of Tokens: 50+

Fees: starts from 0.0001% to 10%

Supported chains: 4

Governance token: BAL

User rating: 8.5/10

A balancer is a decentralized exchange that acts like an index fund. It allows users to swap crypto easily using smart contracts and liquidity pools, similar to platforms like Uniswap or Curve. However, Balancer stands out because each liquidity pool can hold up to eight different cryptocurrencies, while other decentralized exchanges typically limit pools to two assets.

This setup allows you to provide liquidity to a pool with multiple assets, effectively diversifying your portfolio. This diversification is similar to how an index fund works, offering a way to reduce the risk of impermanent loss. When adding assets to Balancer liquidity pools, you can choose the ratio and set a lower percentage for more volatile assets.

Balancer also has its own token called BAL. You can buy, swap, and sell BAL like any other token. Additionally, you can earn BAL by providing liquidity to Balancer pools.

6. 1inch – Best for Low Prices

No. of Tokens: 50+

Fees: 0.875%

Supported chains: 2

Governance token: 1INCH

User rating: 9.1/10

1inch is a decentralized exchange aggregator. It searches various Ethereum-based exchanges to find the lowest fees and best prices for your trades.

With 1inch, you can buy, sell, and trade ERC-20 tokens. The platform even allows purchases with a debit or credit card via Moonpay. Since 1inch aggregates prices from multiple exchanges, it supports many cryptocurrencies.

1inch doesn’t charge extra fees but requires you to cover the transaction fees from the exchanges it uses. It supports numerous blockchain networks and cryptocurrencies and is available as a mobile app on both the App Store and Google Play.

Pros

• No transaction or withdrawal fees
• Supports wide range of cryptocurrencies.

Cons

• Not beginner-friendly

7. Defillama – Best aggregator of aggregators

No. of Tokens: 40+

Fees: 0.185%

Supported chains: 17

Governance token: DEFI

User rating: 8.7/10

DefiLlama is a DeFi analytics tool that now offers a DEX aggregator. This tool pulls data from other aggregators like 1inch to provide users with the best deals available.

DefiLlama doesn’t charge extra fees; it earns by referring users to other aggregators. As an aggregator of aggregators, it supports many blockchain networks and chains.

DefiLlama also includes privacy features, such as the ability to hide your IP address. It aggregates prices from platforms like 1inch, ensuring users get the best deals across various exchanges.

Pros

• No additional fees
• Supports many blockchain networks
• Includes privacy features

Cons

• Limited user interface
• May add extra steps in the process.

8. dYdX – Best for Derivative Trading

No. of Tokens: 30+

Fees: 0.05%

Supported chains: 1

Governance token: DYDX

User rating: 8.7/10

dYdX is a decentralized exchange that offers lending, borrowing, perpetual trading, and margin trading. These features are uncommon on other decentralized exchanges, making dYdX ideal for experienced traders.

dYdX has partnered with Starkware, an Ethereum Layer 2 scaling solution, to provide low blockchain gas fees. The exchange offers very low trading fees (up to 0.05%) and supports over 36 cryptocurrencies. It also allows for margin and derivative trading, which is rare for decentralized protocols.

Pros

• Low fees
• Supports margin and derivative trading
• Partnered with Starkware for low gas fees

Cons

• Volatile interest rates for lending
• High risk in margin trading

9. StackSwap – Best Bitcoin Decentralized Exchange

No. of Tokens: 0+

Fees: 0.30%

Supported chains: 10

Governance token: STSW

User rating: 7.9/10

StackSwap is a decentralized exchange built on the Stacks ecosystem, a Layer 2 solution for Bitcoin. It allows users to trade BTC for other cryptocurrencies while exploring the Stacks ecosystem, which enables DeFi on Bitcoin.

StackSwap offers support for BTC trading and access to the Stacks ecosystem, making it a versatile platform for crypto enthusiasts. With low fees of 0.30% on all trades, it’s also a cost-effective option.

Additionally, StackSwap helps AI models to continuously improve the platform’s performance. It ensures a smooth and efficient trading experience.

Pros

• Supports BTC and the Stacks ecosystem
• Low trading fees
• AI-driven platform optimization

Cons

• Small total value locked
• Limited adoption in DeFi

10. Osmosis – Best for Cross-Chain Trading

No. of Tokens: 30+

Fees: 0.30%

Supported chains: 1

Governance token: OSMO

User rating: 8.8/10

Osmosis is a cross-chain exchange built on the Cosmos blockchain. It allows trades between blockchains like Bitcoin, Ethereum, Solana, and Avalanche.

With low fees of just 0.30% per trade, Osmosis provides a cost-effective solution for cryptocurrency trading. The platform has undergone audits by reputable firms such as SlowMist, ensuring its security.

Users have praised Osmosis for its smooth and user-friendly interface, making it a popular choice for cross-chain trading. Though it’s a relatively new platform, its features and performance have garnered positive feedback from the crypto community.

Pros

• Enables cross-chain trading
• Affordable fees
• Easy-to-use interface

Cons

• Newer platform in the market

Conclusion

Choosing the right decentralized exchange (DEX) is important for safe and efficient trading in 2024. The best DEX offers enhanced security, privacy, and control over your assets. Decentralized trading is expected to gain stability as the crypto landscape advances, giving users more freedom and fewer barriers. You can trade with confidence in the ever-expanding world of decentralized finance by choosing a trustworthy DEX, knowing that your information and assets are secure.

Read also: The 5 Best Places to Buy USDT

Frequently Asked Questions

Disclaimer: This article is for informational purposes only and should not be considered financial or investment advice. Always do your own research and consult with a professional before making any trading decisions.