In this blog, you are going to know about the Decentralized exchanges or DEXs and what are the top applications (app) in Decentralized exchanges.
Decentralized exchanges or DEXs enable users to buy and sell cryptocurrencies with one another without the need for brokers, and there are different levels of Decentralised exchange app you can use for cryptocurrencies transactions.
With so many apps available, it can be hard to determine which ones work best and what features they offer, but by doing your research you can make sure you’re using one that fits your needs perfectly.
What is a Decentralized Exchange App?
The purpose of DEXs is to provide security and fairness in financial transactions. Additionally, some point out that decentralized exchanges are often faster and less expensive than their centralized counterparts.
Decentralized exchanges, also known as DEXs, have been gaining popularity over the past year thanks to their decentralized nature.
As the name suggests, a centralized exchange is when you must hand over control and custody of your currency to a third party.
You are in full control over a decentralized exchange due to it relying on smart contracts for custody management.
Currently, BitShares and EtherDelta are two popular decentralized exchange applications based on Ethereum’s smart contract platform.
Decentralized exchange apps have been experiencing an upward trend in popularity with more and more people learning how to use them.
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Top Decentralized Exchange App(s)
Explore the best-decentralized exchange app, how do decentralized exchanges work and what are the best-decentralized exchanges.
Here are 10 apps that we recommend as the best DEX applications in today’s market.
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Klayswap is a decentralized cryptocurrency exchange built on top of Ethereum, using its smart contract feature.
It can be used to trade almost any ERC20 token and it uses atomic swaps (through which cryptocurrencies can be exchanged without going through an intermediary) to make sure no one gets scammed.
The team behind Klayswap has worked hard to ensure they meet all security standards while at the same time making it as easy as possible for users to buy or sell crypto.
The app is currently in beta, but already allows buying and selling of Ether, BTC, Litecoin, and USDT via its simple interface.
2) Uniswap (V3)
Uniswap is a non-custodial peer-to-peer trading network on Ethereum. Users can trade any Ethereum ERC20 token with 0% maker fees.
Uniswap also supports cross-chain atomic swaps, meaning users can swap between ETH and any other chain that has a liquidity provider. Currently, only KIN support has been announced. Uniswap is still in beta, so use it with caution.
Possible risk of DEXs like Uniswap is you must rely on your own security measures because they are not strictly regulated like centralized exchanges (though some do provide security audits).
However, if you are careful about using hardware wallets and/or don’t have large amounts of crypto stored in these networks, then there isn’t much to worry about. Check out our guide to storing cryptocurrency for more details.
0x Protocol is a modular, order-matching exchange protocol. IDEX is not owned or controlled by any single party.
Instead, it’s an open and public platform hosted by its users with its source code residing on GitHub where anyone can make their own copy or fork it to create their own modified exchange. This decentralization is both a strength and weakness of IDEX.
On one hand, because there is no central authority that owns or operates IDEX it cannot be shut down by any entity.
On the other hand, if popular enough (which I suspect it will be) there may be a lag due to congestion in non-technical terms: too many people using the site at once for maximum efficiency.
4) Binance DEX
Currently, in beta, Binance’s decentralized exchange (DEX) lets you trade on a DEX in a similar way to how you would trade on its centralized platform. You can also deposit funds directly from your wallet to trade on Binance DEX.
If you want to try using a DEX but don’t want to leave behind all of the security measures of a regular exchange, then check out Binance’s cryptocurrency exchange website and app.
One of our favorite features is that it allows any currency pair to be traded with any other currency pair, for example, trading BTC for ETH or NEO for DASH while many crypto exchanges only allow crypto-to-crypto pairs.
dYdX is an open-source protocol for decentralized exchange on Ethereum that enables anyone to run a decentralized token trading platform or build a decentralized application that uses exchange functionality.
The dYdX protocol brings together two of Ethereum’s most useful features: smart contracts and programmable token standards like ERC20 and ERC721.
dYdX enables trustless peer-to-peer trading of any asset, such as crypto assets and game items.
You can trade your favorite coins without giving up control over them to a centralized third party.
Cryptocurrencies are different from other financial instruments in one fundamental way you have full ownership of your money at all times.
No one can prevent you from sending your cryptocurrency holdings to another wallet or exchange; if you do so without telling anybody else, no one can prevent you from withdrawing it later when you change your mind.
6) Smartlink (Vortex)
Smartlink is an easy-to-use decentralized exchange app that enables users to trade cryptocurrencies, from anywhere in the world.
Unlike centralized exchanges, however, Smartlink functions on a peer-to-peer basis and so does not require registration.
Users can buy or sell any cryptocurrency through their mobile device at any time of day or night all they need is another user willing to transact with them; transactions are typically completed within one minute but are public record and available for view by other network members.
Users do not need to maintain accounts; if they do decide to create one, there’s no delay between account creation and trading users simply connect their wallet address when creating an order.
7) Serum DEX
The serum is a cryptocurrency trading platform built for mainstream adoption. It has no fees, it’s simple to use, and you can trade from anywhere in the world with internet access.
This means you can securely exchange cryptocurrencies without paying hefty commissions or having to deal with banking hours.
Serum offers two native tokens: SGR (Sterling) and REV (Revolution). REV is an ERC20 token that pays users dividends from fees collected by exchanges that integrate with Serum’s technology.
Shapeshift is a quick, easy and reliable platform for exchanging one cryptocurrency into another.
While you do have to provide your email address when signing up, Shapeshift does not collect any personally identifiable information and allows users to remain anonymous.
The conversion rate is reasonable (0.5% fee on all transactions) and once your transaction has been approved it typically takes less than 20 seconds for your new coins to appear in your digital wallet.
9) ApolloX DEX
ApolloX is an e-commerce platform based on blockchain technology that lets buyers and sellers trade without middlemen.
By avoiding intermediaries, ApolloX can offer lower prices for better value, while using community governance to ensure transparency.
Every transaction on ApolloX is transparent and publicly auditable, from product manufacturing to delivery.
This allows sellers to show they’re complying with every nation’s laws and regulations while providing buyers peace of mind as well as a safe place to shop online.
It is an Ethereum-based decentralized exchange app that lets users sell and buy cryptocurrencies in a peer-to-peer fashion.
SpookySwap uses smart contracts to ensure that all transactions take place safely and securely.
With its chat interface, multiple pricing options, and secure trading features, SpookySwap could very well be the top decentralized exchange app on EtherDelta’s market.
It’s available for Android only at present; IOS devices can use it via AirBitz’s Cipher browser plugin.
Decentralized exchange app(s) or different platforms are becoming increasingly common in the cryptocurrency world due to their speed, security, and cost-effectiveness.
Decentralized exchange app(s) or different platforms are quickly gaining traction due to their benefits such as security and cost-efficiency in transactions.
Ideally, decentralized exchanges should have zero downtime, high availability, transparency of operations, immunity to single points of failure, low latency, and high throughput ability.
These characteristics would eliminate the need for a reliable third party while providing an auditable trail of all transactions.
Related Article: What is Decentralised Finance (DeFi)? – Future of Finance
Nitin is a professional data Engineer, Who has a Post Graduation in Data Science and Analytics and working in the healthcare sector. Experts in Data analysis, Machine learning, AI, blockchain, Data related tools, and technologies. He is the Co-founder and editor of analyticslearn.com