Best Decentralized Exchanges (DEX) 2023

Many people prefer cryptocurrency transactions due to their speed, transparency and privacy. However, a common complaint about cryptocurrency trading has to do with the need to use a custodian or intermediary. By doing so, users are essentially transferring control of their assets as well as their contact information to make trades. Decentralized Finance (DeFi) can offer traders a better solution.

What is a decentralized exchange (DEX)?

A decentralized exchange (DEX) is a peer-to-peer (P2P) trading platform that allows you to make cryptocurrency transactions without an intermediary. DEXs use smart contracts, or self-executing code, to directly complete transactions.

A P2P marketplace, or DEX, is a platform where buyers and sellers of cryptocurrencies directly interact to complete transactions using smart contracts. Both parties retain full control over the private keys of their wallets, which ensures maximum security without the need to provide personal information. The decentralized finance space also offers automated market makers and other innovations to fuel the growth of DEX platforms.

DEXs differ from centralized exchanges, or CEXs, in key ways. CEX exchanges are heavily regulated and run by profit-seeking organizations. In exchange for a high fee, they often offer asset insurance, various security protocols, and a range of banking-type services. The best DEX, on the other hand, puts the user in charge of keeping assets secure and has minimal fees. DEXs are built on blockchains like Ethereum, Polkadot and others.

Types of decentralized exchanges

While there are many DEXs for trading cryptocurrencies, they can all be classified into one of three types: Automated Market Makers, Order Book DEXs, and DEX Aggregators. Each of these types of DEX allows direct trading of cryptocurrencies, although they differ in key parameters.

Automatic market makers

Automated Market Makers, or AMMs, directly address the important issue of DEX liquidity. Other exchanges use a matching process, which means that buy and sell orders must be matched before trades can be executed. However, AMMs use liquidity pools to close trades immediately. The liquidity provider receives a financial benefit for contributing to the pool, often in the form of a transaction fee.

When looking for the best DEX, keep in mind that this is often determined by their total locked value. AMM has one significant drawback - slippage, which occurs when the liquidity pool is insufficient to process trades. Slippage can lead to higher commissions for buyers. The liquidity provider may also suffer non-permanent losses associated with uneven trading activity between two pairs.

DEX with order book

As the name suggests, order book DEXs work with a booking system that logs all open orders. These orders detail how much a trader is willing to pay for an asset, or at what price they are willing to sell an asset.
There are two types of DEX with an order registration system: off-chain and on-chain. On-chain order books allow users to store their assets in wallets by placing open orders on the blockchain. Off-chain order books store orders off-chain, and the blockchain is only used to settle trades. Off-chain order books are generally faster and have lower costs. Often, DEX order books have liquidity issues, especially when dealing with high trading volumes.

DEX aggregators

DEX aggregators directly address liquidity issues through a variety of mechanisms and protocols. They typically raise liquidity from multiple DEXs to keep swap fees low, optimize tokens, and mitigate the risk of slippage. To further address pricing issues and failed transactions, some of these DEXs are replenishing their liquidity pools with assets from centralized platforms. However, they continue to remain non-custodial through a variety of integrations with multiple CEXs.

What to look for when choosing a decentralized exchange

As you can see, there are significant differences in how the various DEXs function. These differences can affect your trading experience, risk exposure, transaction fees and more. It is clear that you need to find the best DEX. But with so many, how do you know which one suits you best?
All DEXs offer enhanced anonymity and privacy. Because no personal information about users is collected, security concerns are minimal. In addition, users have control over their assets and trading fees are minimal. However, some DEXs charge a network fee.
However, there are also many differences between the various DEXs. DEX aggregators have fewer slippage and lack of liquidity issues. This makes them a viable option for those interested in high volume trading. There are also differences in potential network fees. When looking for the best DEX, it's important to understand how the different types work, as well as the features and functions of the individual DEXs you're considering.
Also, if you want to use the best DEX, avoid crypto exchanges that have a reputation for poor customer support.

Security and Privacy

Most DEXs use privacy measures such as self-custody. The importance of using a trading platform that is not a vault is undeniable in light of recent developments in the world of cryptocurrencies.
In order to maintain privacy, most of the leading DEXs do not implement any KYC measures. Effective DEXs should also offer governance clauses as well as community discussions so that users can actively participate in voting and discussing proposals. Through these features, people can voluntarily contribute their suggestions to improve the platform.

Cost and efficiency of transactions

Another important factor to consider when choosing a DEX is the cost and efficiency of transactions.
Some DEXs offer tiered rates to suit traders with different trading volumes. This helps active traders keep fees low and maximize profits, especially as trading fees and gas fees can increase. The best DEXs also offer high transaction processing and order placement speeds at low fees.
Traders involved in dynamic trades across multiple asset categories, chains, and platforms should also look for a multi-chain DEX.

User-friendly interface

For traditional and novice crypto traders looking to get started with DeFi, it is important to look for a DEX that offers an easy-to-use interface, such as the order book interface commonly found on CEX, to reduce the time spent learning how to use the platform.

Trading options

Users may be interested in DEXs that offer various trading options such as spot and margin trading, as well as perpetual contracts. It is also important that the DEX frequently introduces new trading pairs that provide traders with better access to a variety of assets and trading pairs.

Tokens and rewards

Of all the factors to consider, tokens and rewards are probably what most traders are interested in – especially how each DEX helps multiply rewards and earnings while ensuring that these rewards remain valuable over time.
It is very important that DEXs provide access to revenue sharing programs for their community members and token holders. This usually involves the distribution of trading fees accumulated over a certain period of time. Rewards and incentives are usually distributed in the platform's native tokens.

Best Decentralized Exchange Platforms

You can spend a few days learning about the DEXs platforms. However, you can significantly reduce your search volume by focusing on a few top ranking platforms. By familiarizing yourself with their features, you can more easily determine the best decentralized exchange platform for you.

ApeX Pro

Although this is a relatively new platform, ApeX Pro Considered one of the best DEX platforms due to its elastic AMM model, which improves capital efficiency and makes every trade feel like a spot trade. In addition, the order book interface lowers the entry barrier for aspiring crypto traders looking to enter the DeFi market.

Security is not an issue when it comes to ApeX Pro as it integrates StarkWare's second layer scalability mechanism, StarkEx, allowing users to access forced requests to receive their funds even when the DEX is down. In addition, STARK proofs make it easier to accurately verify transactions. In addition, ApeX Pro does not require a KYC process, which means that users can better maintain their privacy.
ApeX Pro achieves dynamic price pegging similar to algorithmic stablecoins through its on-chain algorithms that regulate the liquidity supply, as well as rebasing mechanisms and funding fee differentials. Users can trade any token on the derivatives market with up to 20x leverage. They can also create liquidity pools and add liquidity to any trading pairs, as well as participate in the Trade-to-Earn event to earn BANA tokens and exchange APEX tokens.
ApeX Pro differentiates itself from other DEX platforms by using the Protocol Controlled Value (PCV) model instead of TVL (Total Value Locked). PCV helps ensure that all locked assets in smart contracts belong to the protocol and cannot be withdrawn by users, preventing liquidity providers from removing liquidity in one fell swoop.
Unlike the more well-known DEXs, ApeX Pro does not yet have tiered pricing. However, users can look forward to an upcoming VIP program where the number of APEX tokens will determine the discount applied to maker-taker fees. This will certainly be useful for active traders looking to maximize profits. In the meantime, users can enjoy some of the lowest gas rates available thanks to StarkEx.

Uniswap

If earning interest on your assets is your priority, then the best DEX for you might be Uniswap. This popular platform is the largest DEX with an average daily trading volume of over $4 billion. This is AMM DEX, which manages its decentralized liquidity pools with algorithms that determine the best specific swap rate for each trading pair.

Uniswap allows you to use existing liquidity pools or create your own. Liquidity providers receive a portion of the trading fees. The platform also implements DAO governance, which puts users in control of managing and maintaining the platform.

DeFiSwap

DeFiSwap is one of the best dex in general. It offers liquidity pools through smart contracts supported on BNB Chain, formerly known as Binance Smart Chain. These automated pools allow buyers with liquidity to make exchanges in the cryptocurrency market without having to find a seller. In addition, users can lock their Defi coins (DEFC) for passive interest.
DeFiSwap charges a 10% tax on the exchange or sale of DEFC, which optimizes returns for each liquidity provider. Part of this tax is also directed to liquidity pools. Also, DeFiSwap could be the best DEX overall as it supports the exchange of over 50 tokens and has an easy to use platform.

Corners

For active crypto traders concerned about volatility, Corners could be the best DEX to consider. This is AMM DEX running on the Ethereum blockchain. Unlike other AMMs, Curve encourages stability over volatility. Thus, it reduces the likelihood of slippage and reduces commission fees. CRV token holders can also actively participate in governance through voting rights.

PancakeSwap

PancakeSwap known for its low-cost liquidity pools that minimize the risk of slippage. If you choose this exchange as the best DEX for you, you can enjoy automated trading thanks to its liquidity pools that operate through smart contracts on BNB Chain. PancakeSwap's native token, CAKE, can be used to vote on governance issues, stacking and growing crops. Liquidity providers earn a portion of the assets in the pool and receive a portion transaction fees.

1inch

1inch supports simple cryptocurrency trading and makes our list as the best DEX aggregator. By scanning multiple DEXs for each transaction, it allows users to take advantage of the lowest prices available by creating virtual balances. Users may receive commission from other DEXs, but 1inch does not charge additional fees. In addition, the 1inch liquidity pool helps users to stake on tokens and earn rewards in the form of 1INCH tokens. These native tokens also provide voting rights when listed on an exchange.

kyberswap

Flagship project of Kyber Network, kyberswap, is an AMM that is often compared to Uniswap, although it differs from it in several ways. This might be the best DEX for you because it works with multiple liquidity pools.

Comparatively, its liquidity pools are deeper than many other DEXs on this list. In fact, KyberSwap is used as the underlying protocol for many DeFi applications. Each liquidity provider receives a 0,3% commission when a particular pair is traded. Trading fees are paid in KyberSwap's native token, KNC. These tokens are also used to support user governance and voting rights.

WX.Network

WX.Network, formerly known as Waves, uses Bitcoin, Litecoin and other digital assets. Its main purpose is to issue custom tokens and launch DApps using smart contracts. In addition to supporting cryptocurrency trading, its ICO feature allows for crowdfunding. The platform interface has been designed with ease of use in mind and stands out from other DEX platforms with its unique design. The great thing about WX.Network is that it uses a mix of centralized and decentralized features to reduce slippage.

dYdX

dYdX is the DEX order book. It offers the traditional experience of trading in the cryptocurrency market, as well as some distinctive features. For example, users can leverage up to 5x the amount invested when going short or long ETH.
The platform also supports cross-margin borrowing and lending, so users who keep their funds on the exchange can earn passive income. In fact, even assets that are actively traded can generate income. Other notable features of dYdX include the ability to seamlessly convert supported assets and a trading volume that is second only to Uniswap.

0x

0x is a DEX aggregator operating on the Ethereum blockchain. To keep gas fees as low as possible for users, settlement transactions are processed on Ethereum only. 0x uses relays to generate interest in orders. These repeaters receive a so-called commission ZRX after the completion of transactions. This unique structure is one of the main factors behind 0x's popularity. To reduce the chance of slippage losses, 0x takes advantage of multiple supporting DEXs to provide AMM liquidity. Users can trade, buy and sell most assets on Ethereum.

IDEX

IDEX runs on the Ethereum blockchain and offers unique real-time trading on the cryptocurrency market. Users can make multiple trades at the same time, making it the best DEX for active traders with high trading volumes. Cancellation of orders is carried out without commission. Both market and limit orders are available.
The platform is highly secure with advanced security mechanisms. In addition, IDEX uses both centralized and decentralized exchanges to support trading and improve security. For additional financial rewards, users can stake their assets through a simple process to generate a passive income stream.

AirSwap

AirSwap is a fully decentralized exchange and a relative newcomer to the DEX market. However, it has distinct features that may make it the best DEX choice for you. Since AirSwap runs on the Ethereum blockchain, users are responsible for Ethereum gas fees. However, AirSwap does not charge any transaction fees.
Through the native AST token, users can trade any standard ERC-20 token. Deposits and withdrawals are made instantly, providing a superior user experience. In addition, AirSwap has a simplified interface and a practical transaction tracker. Users hold assets in their wallets until transactions are completed to reduce the risk of a security breach.

DEX.AG

DEX.AG is an aggregator that uses the liquidity pools of some of the other DEXs included in this list. By checking these exchanges before making trades, DEX.AG helps users get the best trading prices. Thus, it provides you with a simplified way to find the best prices, saving you time and energy when making deals. While users may be responsible for transaction fees charged by these other exchanges, DEX.AG does not charge a separate fee.

Balancer

Balancer is an Ethereum-based DEX that executes trades quickly through the use of liquidity pools and smart contracts. As an AMM, Balancer provides numerous liquidity pools to its users. If you are a liquidity provider on Balancer, you can earn passive income staking rewards.
While there are already established liquidity pools into which providers can contribute their assets, users can also create their own pools. Three types of pools are available: smart pool, public pool, and private pool. Of particular note, users can make gas-free transactions by signing messages, despite the fact that the platform runs on the Ethereum blockchain. This functionality is supported by the Balancer-Gnosis-Protocol.

Bancor

Founded in 2017, the company Bancor is one of the first AMMs to operate on the Ethereum blockchain. Trades are completed immediately with automatic liquidity. While this feature may make Bancor the best DEX for many traders, the platform offers other benefits as well. Its native token, BNT, facilitates fast, effortless transactions.

Irreparable losses are prevented with the tokens that are staked. Staking is possible through various liquidity pools. Bancor also ranks among the best DEXs thanks to its excellent rewards for both staking and depositing BNT. Those who simultaneously invest BNT and other crypto assets receive the highest reward. Exchange fees depend on the exchange site used.

Sushi Swap

Sushi Swap evolved from Uniswap and is a great DEX for several reasons. Its source code is forked via Uniswap. In addition, its native token, SUSHI, can be used to generate passive income through staking and to gain governance benefits. The unique architecture of the DEX reduces the centralization of the market. Users can take advantage of existing liquidity pools for fast and hassle-free exchanges, and also have the option to create a liquidity pool for a nominal fee.
The uniqueness of SushiSwap lies in the special “sushi” theme that extends to its graphics and conditions.

Сonclusion

Although there are many DEXs, it makes sense to carefully compare all the possibilities to find the best decentralized exchange for your activities in the cryptocurrency market. Differences in fees, supported tokens, reward mechanisms, high volume functionality, interfaces and more allow you to find a platform that meets your expectations and meets your needs. While you're looking for the best decentralized exchange, consider saving time and energy by narrowing down your search to some of these top options.