Best Decentralized Exchanges for 2024 – Top DEXs Compared

Decentralized exchanges enable investors to buy and sell crypto without going through an intermediary. Not only that but most decentralized exchanges support DeFi products, such as yield farming, staking, and loans.

In this guide, we compare the 10 best decentralized exchanges for 2024. Read on to get started with the best DEX exchange for low fees, supported tokens, DeFi tools, and more.

The Top 10 Decentralized Crypto Exchanges

Listed below is an overview of the 10 best decentralized exchanges to consider today:

  1. OKX – In our view, OKX is the overall best decentralized change. OKX aggregates liquidity pools from dozens of DEX platforms, ensuring that buyers and sellers get the best price possible. Plenty of DeFi tools with higher yields are also supported.
  2. Uniswap – This is the largest decentralized exchange on the Ethereum network. Uniswap is often the go-to place for newly launched ERC-20 tokens, so this is a great option for investing in post-ICO projects.
  3. PancakeSwap – The most popular decentralized exchange for trading Binance Smart Chain tokens, PancakeSwap offers a simple way to trade and earn yields. In addition to low fees, PancakeSwap offers a user-friendly interface that is ideal for newbies.
  4. Huobi (iToken) – This tier-one exchange offers a web 3.0 wallet app that doubles up as a DEX. Branded as iToken, the app supports multiple blockchain standards, enabling investors to engage in cross-chain trading.
  5. Kucoin (Halo)– Similar to Huobi, Kucoin has also launched its own decentralized app – Halo. Also available as a Chrome extension, Halo supports decentralized exchanges, loans, NFTs, dual investments, and much more.
  6. SushiSwap – Founded in 2020, SushiSwap is a popular decentralized exchange that supports over 400 tokens. Users can earn yields on their crypto via liquidity pools and vaults.
  7. ApeSwap – This up-and-coming decentralized exchange offers cross-chain swaps, staking, farming, and many other popular DeFi tools. ApeSwap also enables newly launched crypto projects to host their fundraising campaign on its platform.
  8. dYdX – The unique selling point of dYdX is that its decentralized exchange supports crypto derivatives. The platform offers leverage of up to 20x and often attracts over $1 billion in daily trading volumes.
  9. Kine – Similar to dYdX, Kine is a popular decentralized exchange for trading crypto derivatives with leverage. This cryptocurrency exchange also offers trading signals via its mobile app.
  10. Curve – This decentralized platform not only supports instant, cross-chain token swaps but also liquidity pools with competitive APYs. Some of chains supported by Curve include Ethereum, Polygon, and Kava.

The Best DEX Crypto Exchanges Reviewed

Now that we have summarized the 10 best decentralized exchanges, let’s move on to our in-depth reviews.

1. OKX – Overall Best Decentralized Exchange for 2024

Overall, we concluded that OKX is the best decentralized crypto exchange as well as one of the top peer to peer crypto exchanges in the market. While OKX is best known for its centralized trading suite – which averages $1 billion in daily volume, its decentralized subsidiary is increasingly becoming popular. Put simply, OKX operates as a decentralized exchange ‘aggregator’. This means that it doesn’t directly facilitate trades. Instead, the OKX DEX aggregates prices from over 200 third-party decentralized exchanges. From the perspective of traders, this means that they can secure the best price possible. Not only when buying but selling too.

Moreover, OKX DEX supports 15 blockchain networks, enabling cross-chain trading. For example, this means that an investor can instantly swap USDT (Ethereum) for BUSD (Binance) at the best exchange rate in the market. We also like that OKX clearly displays each DEX in order of price, ensuring full transparency. The way it works is simple; the investor will connect their wallet to the OKX DEX and specify which tokens they wish to swap. Within microseconds, OKX will display which DEX is offering the best price.

OKX DEX review

Through its aggregator protocol, OKX will then facilitate the trade. The required tokens will then be deposited into the connected wallet. In addition to token swaps, OKX is also the best decentralized exchange to earn interest on crypto. Just like its token swap feature, OKX also uses its aggregator protocol to source the best yields possible. For example, suppose an investor is holding BNB in their wallet, and they wish to deposit the tokens into a savings account. Currently, OKX suggests that Alpaca Finance is offering the best rate, with an APY of 22.5%.

In this instance, there is no requirement to create an account with Alpaca Finance. Instead, the process can be completed directly with OKX. On top of savings accounts, OKX also offers access to dual investments, yield farming, vaults, and staking. Each of these tools offers competitive interest rates. The OKX DEX also supports an NFT marketplace and a decentralized wallet. We also like that OKX – like most decentralized exchanges, does not have a KYC policy in place. This means investors can buy, sell, trade, and earn interest on cryptos without revealing their identity.

OKX DEX review

Perhaps the main drawback with OKX is that some of the decentralized exchanges it aggregates prices from are unknown entities. We found that smaller DEXs will often advertise hugely unsustainable yields, so investors will need to do their own homework before proceeding. After all, OKX is essentially a middleman between investors and third-party DEXs. Moreover, OKX commissions are not displayed until the order is created.

DEX Supported Networks DeFi Services Pricing Key Features
OKX Supports 15 blockchain networks across over 200 third-party exchanges. Savings accounts, staking, yield farming, dual investments, vaults, Clearly displayed at the time of the order. Aggregator protocol secures the best swap prices from over 200 DEXs.

Also secures the best yields on DeFi earning tools.

Other services include an NFT marketplace and a DeFi wallet.

Pros pros

  • In our view, the overall best decentralized crypto exchange for 2024
  • Aggregates the best prices from over 200 DEXs
  • Supports 15 blockchain networks, enabling cross-chain swaps
  • Also supports savings accounts, staking, and other DeFi services
  • Growing NFT marketplace

Cons cons

  • OKX commissions are not displayed until the order is created

2. Uniswap – Top Decentralized Exchange for Trading ERC-20 Tokens Anonymously 

According to CoinMarketCap data, Uniswap is one of the largest decentralized exchanges for trading volume. Uniswap notes that since its inception, more than $1.4 trillion worth of cryptos has changed hands on its DEX. Initially, Uniswap specializes exclusively in ERC-20 tokens. In fact, newly launched ERC-20 tokens will often choose Uniswap as their initial exchange listing. However, Uniswap has since integrated other blockchain networks into its DEX. This includes Binance Smart Chain, Polygon, Celo, Optimism, and Arbitrum. This means that Uniswap is one of the best decentralized crypto exchanges for cross-chain swaps.

Uniswap DEX review

Just like OKX, Uniswap operates a no-KYC policy and it is actually one of the most highly-rated exchanges that don’t require ID information. Investors simply need to connect their wallet to Uniswap to begin trading. Uniswap never touches any of the cryptos on its DEX, as all transactions are facilitated by smart contracts. This ensures that investors can trade safely. Additionally, Uniswap also enables investors to provide liquidity for its exchange. As one of the best yield farming crypto platforms, investors will earn a share of any trading fees collected on the provided liquidity. Some of the most popular liquidity pools available include USDC/ETH, DAI/USDC, and WBTC/ETH. The main drawback with Uniswap is that it charges 0.3% in trading fees. Better rates are available elsewhere.

DEX Supported Networks DeFi Services Pricing Key Features
Uniswap Ethereum, Binance Smart Chain, Polygon, Celo, Optimism, and Arbitrum Yield farming 0.3% fee for swapping tokens Largest DEX for swapping ERC-20 tokens

Provide liquidity and earn a share of collected trading fees

Supports cross-chain token swaps

Pros pros

  • Huge liquidity levels when trading popular ERC-20 tokens
  • No KYC or personal information required
  • One of the best decentralized exchanges for yield farming
  • Supports over 300 dApps

Cons cons

  • 0.3% trading fees are considered high

3. PancakeSwap – Leading DEX for Trading and Earning BSC Tokens

PancakeSwap is the best decentralized crypto exchange for trading Binance Smart Chain (BSC) tokens. Put simply, when a newly launched BSC token has completed its presale, PancakeSwap is often the first exchange listing. This makes PancakeSwap a great option for investing in new cryptocurrencies. PancakeSwap has a simple interface, making it simple to buy, sell, and trade BSC tokens. For instance, it’s just a case of connecting a supported wallet, choosing which tokens to swap, and the transaction will be completed near-instantly. When it comes to fees, PancakeSwap charges 0.25% to both buyers and sellers.

Pancakeswap review

According to PancakeSwap, more than 1.4 million traders have used its DEX in the prior month. Not only for trading tokens but yield services too. For example, PancakeSwap supports staking and yield farming. When staking its native token, CAKE, APYs of up to 43.5% are available. One of the best yield farming pools available is BNB/BUSD, with an APY of nearly 30%. Overall, PancakeSwap has over $2.5 billion in total value locked (TVL). That said, it is important to note that PancakeSwap only supports BSC tokens. This means that investors seeking the best altcoins on the Ethereum blockchain will need to look elsewhere.

DEX Supported Networks DeFi Services Pricing Key Features
PancakeSwap Binance Smart Chain Staking and Yield farming 0.25% fee for swapping tokens Supports thousands of BSC tokens

Earn high yields via farming and staking

Completely anonymous – no KYC required

Pros pros

  • Best decentralized crypto exchange for trading BSC tokens
  • Access newly launched BSC projects
  • Earn yields via farming and staking tools
  • No account required – simply connect a wallet to start trading

Cons cons

  • Only supports the Binance Smart Chain
  • Does not support savings accounts

4. Huobi (iToken) – Web 3.0 Wallet With Decentralized Trading and Yield Services 

Huobi is a top-five crypto exchange for trading volume, as per CoinGecko data. This popular exchange has since launched a web 3.0 platform – iToken. In a nutshell, iToken supports a range of decentralized services, from token swaps and wallet storage to NFT investments. iToken can only be accessed via its smartphone app, available for both Android and iOS devices. The app is completely decentralized, meaning that users control their private keys. What we really like about Huobi’s iToken app is that it supports over one million digital assets. This is because iToken is compatible with multiple blockchain networks.

iToken review

This includes Ethereum, Binance Smart Chain, Solana, Tron, and several others. Moreover, we like that iToken comes with 24/7 customer support via the app. However, there are some major drawbacks to the iToken app. First, iToken does clearly display what swap fees it charges. Presumably, this is displayed at the time of placing the order. Second, and most importantly, iToken does not support DeFi earning services. This means that cryptos will sit idle in the iToken app, so opportunity costs need to be considered.

DEX Supported Networks DeFi Services Pricing Key Features
Huobi (iToken) Ethereum, Binance Smart Chain, Solana, Tron, Avalanche, and more None Not stated Supports more than one million tokens

24/7 customer support via the app

Offers a decentralized NFT marketplace

Pros pros

  • Used by over 10 million people and backed by the Huobi exchange
  • One of the best decentralized crypto apps
  • Supports a wide range of blockchain networks

Cons cons

  • Does not support DeFi earning tools like staking
  • Does not display token swap fees

5. Kucoin  (Halo) – Buy, Sell, and Trade Thousands of Tokens Across Seven Blockchain Standards 

Kucoin recently rebranded its decentralized wallet app to Halo. Also available as a Chrome browser extension, Halo doubles up as a decentralized exchange. Halo supports seven blockchain standards, covering Ethereum, Binance Smart Chain, Polygon, KuCoin Community Chain, Avalanche, Arbitrum, and Fantom. This means that Halo users have access to tens of thousands of digital assets, including NFTs.  Halo comes with plenty of features, including a ‘smart wallet tracker’.

Halo Wallet (Kucoin)

This enables users to track which tokens whale investors are buying and selling. Halo also comes with a user-friendly portfolio tracking, dashboard enabling users to assess their investments in real-time. Additionally, Halo also supports staking, ensuring that crypto tokens do not sit idly. Like many decentralized exchanges, Halo does not have a flat commission fee on token swaps. Instead, this is displayed when creating the order.

DEX Supported Networks DeFi Services Pricing Key Features
KuCoin (Halo) Ethereum, Binance Smart Chain, Polygon, KuCoin Community Chain, Avalanche, Arbitrum, and Fantom Staking Not stated Cross-chain token swaps across seven leading blockchain networks

Available as a mobile app or Chrome browser extension

Automatically track whale wallet movements in real-time

Pros pros

  • Free DeFi wallet that doubles up as a decentralized exchange
  • Swap tokens across seven blockchains
  • Staking tool supported for earning yields
  • Great portfolio tracker to keep tabs of crypto investments

Cons cons

  • Does not offer crypto savings accounts
  • Fees are not displayed until creating an order

6. SushiSwap – Trade 400 Crypto Tokens and Earn Yields via Farming and Vaults 

SushiSwap is a popular decentralized exchange that was launched in 2020. Built on top of the Ethereum protocol, SushiSwap supports hundreds of ERC-20 tokens. SushiSwap has since launched a cross-chain feature, enabling users to access other blockchain standards. This includes Aritrum, Polygon, Fantom, Binance Smart, and Optimism. Evidently, there is no support for Bitcoin on SushiSwap. Moreover, just like Uniswap, SushiSwap charges swap fees of 0.3%.

SushiSwap review

In addition to offering a user-friendly interface to swap tokens, we like SushiSwap for its decentralized earning tools. This includes yield farming pools, enabling users to earn interest on any pair supported by the DEX. The most liquidity pools to consider include USDC/ETH, WBTC/ETH, and ETH/USDT. The main drawback with SushiSwap is that both trading volumes and TVL are on the low side. For instance, CoinMarketCap notes that SushiSwap facilitated just under $6 million worth of trading volume in the prior 24 hours.

DEX Supported Networks DeFi Services Pricing Key Features
SushiSwap Ethereum, Aritrum, Polygon, Fantom, Binance Smart, and Optimism Yield farming and vaults 0.3% Buy and sell over 400 tokens without opening an account

Fast execution speeds and transparent fees

Earn interest via liquidity pools and vaults

Pros pros

  • Instantly swap tokens without providing any personal information
  • Support for multiple blockchain networks – including Ethereum and Binance Smart Chain
  • Transparent fees
  • Liquidity pools with competitive yields

Cons cons

  • Limited number of supported tokens when compared to other DEXs
  • 0.3% token swap fee is on the high side

7. ApeSwap – User-Friendly DEX With Cross-Chain Token Swaps and Yield Farming  

ApeSwap is an up-and-coming decentralized exchange that facilitates cross-chain token swaps. This includes tokens operating on Binance Smart Chain, Ethereum, Polygon, Telos, and Arbitrum. One of the best features of ApeSwap is its user-friendly interface. This makes ApeSwap one of the best decentralized exchanges for beginners. Alongside instant and anonymous token swaps, ApeSwap offers plenty of other features. This includes yield farming pools with huge APYs.

ApeSwap review

For instance, LGC/BNB and AVAN/BNB are currently yielding APYs of 109% and 202% respectively. ApeSwap also supports staking pools. Some of the best APYs available include CVL and FRUIT at 47% and 22% respectively. ApeSwap also enables users to lend out their crypto tokens for additional yields. Like many emerging DEXs, ApeSwap is limited when it comes to liquidity and volumes. According to CoinGecko data, just $1 million was traded in the prior 24 hours.

DEX Supported Networks DeFi Services Pricing Key Features
ApeSwap Binance Smart Chain, Ethereum, Polygon, Telos, and Arbitrum Yield farming, staking, and token lending 0.2% Swap tokens across multiple chains at a fee of just 0.2%

Supports a wide range of DeFi earning features, including staking

Great platform for accessing newly launched projects

Pros pros

  • Multi-chain decentralized exchange with competitive fees
  • Deposit tokens into a staking pool to earn huge yields
  • One of the most user-friendly DEXs

Cons cons

  • Very low trading volumes can cause unfavorable slippage
  • Often struggles to attract sufficient liquidity

8. dYdX – Trade Crypto Derivatives With 20x Leverage in a Decentralized Environment

We found that dYdX is the best decentralized exchange for trading crypto derivatives. The platform specializes in perpetual contracts, which are crypto futures without a maturity date. In other words, dYdX enables traders to speculate on the future direction of cryptos without owning anything. Moreover, dYdX offers leverage of up to 20x, which will appeal to high-risk traders. dYdX can be accessed via desktop browsers or an iOS app. The Android app is still in development and will be launched soon.

DYDY review

This decentralized exchange supports a wide range of cryptocurrencies, including Bitcoin, Ethereum, Cardano, Bitcoin Cash, Dogecoin, and dozens more. dYdX will also appeal to seasoned crypto traders that seek high-level charting tools and technical indicators. In terms of fees, there are no commissions to pay when trading under $100,000 within a 30-day period. Anything above this will attract a 0.05% commission, which is reduced as volumes increase. Ultimately, while dYdX is a great option for experienced traders, the platform won’t be suitable for newbies.

DEX Supported Networks DeFi Services Pricing Key Features
dYdX Built on the Ethereum network but offers perpetual contracts from multiple chains None No commissions for 30-day volumes of under $100,000. Trade perpetual contracts on cryptos with leverage of up to 20x

No trading fees on monthly volumes of $100,000 or under

Available via desktop browsers and an iOS app

Pros pros

  • Best decentralized exchange for trading crypto derivatives
  • Access leverage of up to 20x
  • Often attracts over $1 billion in daily trading volume

Cons cons

  • The app for Android devices is still in development
  • Not suitable for beginners

9. Kine – Trade Bitcoin and Other Large-Cap Cryptos With Leverage of up to 200x

Similar to dYdX, Kine is one of the best DEX crypto exchanges for peer-to-peer trading with leverage. That said, while dYdX is capped at 20x, Kine offers leverage of up to 200x. This means that for every $10 staked, trading capital of up to $2,000 is available. Kine claims that it offers guaranteed liquidity and zero-slippage execution, in addition to cross-chain swaps. The latter includes Ethereum, Polygon, Avalanche, and Binance Smart Chain.

Kine decentralized exchange

Trading volumes on Kine are well above the market average, with $300 million worth of cryptos changing hands in the prior 24 hours. Moreover, Kine has already attracted over 100,000 active users, which is impressive considering it was only launched in 2021. Kine has also set up a fiat deposit facility via a Remitano integration. However, this requires users to go through a KYC process.

DEX Supported Networks DeFi Services Pricing Key Features
Kine Ethereum, Polygon, Avalanche, and Binance Smart Chain None 0.050% per slide Offers leverage of up to 200x on large-cap tokens

Supports long and short positions

Low and transparent trading fees

Pros pros

  • Trade crypto derivatives with leverage of up to 200x
  • Commissions of just 0.050% per slide
  • Supports multiple blockchain networks
  • Decent daily trading volumes

Cons cons

  • Not suitable for entry-level crypto traders
  • Does not offer any DeFi earning tools

10. Curve – Cross-Chain Token Swaps Across 11 Networks – Plus Liquidity Pools 

The final option to consider is Curve. Founded in 2020, Curve is a decentralized finance platform that offers token swaps and liquidity pools. The platform supports 11 blockchain networks, including Ethereum, Polygon, Kava, Fantom, and Avalanche. This covers thousands of tradable tokens. Moreover, Curve is also one of the best decentralized exchanges for low-fee trading. On average, the platform charges just 0.04% on token swaps.

Curve.fi review

By providing much-needed liquidity to Curve, investors can earn passive income with competitive APYs. Currently, ETH/vETH2 is yielding an APY of 17.4%. While STBT/3CRV offers an APY of 6.8%. In terms of volumes, Curve attracted over $129 million in the prior 24 hours, which is around its daily average. Like most decentralized exchanges, Curve uses the automated market maker (AMM) model. This means users can swap tokens without needing a seller at the other end of the trade.

DEX Supported Networks DeFi Services Pricing Key Features
Curve Ethereum, Arbitrum, Aurora, Avalanche, Celo, Fantom, Kava, Gnosis, Moonbeam, Optimism, and Polygon Yield farming Averages 0.04% on token swaps Supports 11 blockchain networks for cross-chain trading

Competitive yields when providing liquidity

Token swap fees average just 0.04%

Pros pros

  • Buy and sell tokens from 11 blockchain networks
  • Top-10 decentralized exchange for daily trading volume
  • Traders pay just 0.04% to buy and sell tokens
  • Earn passive income by providing liquidity

Cons cons

  • The user interface is a bit outdated
  • Can be clunky when accessed via a mobile browser

What is a Decentralized Cryptocurrency Exchange?

What are DEXs?

In a nutshell, decentralized exchanges enable traders to buy and sell cryptocurrencies without an intermediary. This is because decentralized exchanges use the AMM model as opposed to centralized order books. In turn, traders can swap tokens on a decentralized exchange without needing another market participant. This is because decentralized exchanges use liquidity pools, enabling investors to buy and sell tokens at the click of a button.

Unlike centralized platforms – such as Coinbase and Gemini, decentralized exchanges do not require users to open an account or provide any personal information. Instead, traders connect their wallets to the decentralized exchange and can begin trading immediately. This is a much safe option when compared to centralized exchanges, as DEXs never touch user funds. On the contrary, all token swaps are conducted by decentralized smart contracts.

Additionally, the best DEXs offer yield services, enabling users to earn interest. This often includes staking, yield farming, dual investments, and more. The main drawback with decentralized exchanges is the industry is still fragmented. This means that many DEX platforms do not attract sufficient levels of liquidity. This can result in unfavorable pricing for traders.

How do DEX Exchanges Work?

A decentralized crypto exchange operates on a blockchain network and uses smart contracts to automate the process of buying and selling cryptocurrencies without the need for a central authority or intermediary.

In this section, let’s take a closer look at how decentralized exchanges work.

Automated Market Maker

As noted above, decentralized exchanges use the automated market maker, or AMM. In simple terms, this removes the need for order books, as found on centralized exchanges. This is because AMMs function via liquidity pools. As such, traders can swap tokens directly from the liquidity pool, so there is no requirement for a seller at the other end of the trade.

OKX DEX

For example, let’s suppose a decentralized exchange enables traders to swap Ethereum (ETH) and Tether (USDT). For the ETH/USDT pool to function, it requires sufficient liquidity. After all, an investor can not swap their ETH for USDT (or visa-versa) if there are not enough deposited tokens in the pool.

This is where investors come in. Otherwise known as yield farming, investors can add funds to DEX liquidity pools to earn income. The decentralized exchange will share some of the trading fees it collects every time somebody uses the liquidity pool to swap tokens.

Anonymous Token Swaps

Decentralized exchanges offer a simple and speedy token swap process. Users simply need to connect their wallet to the DEX, and they can begin trading. Best of all, decentralized exchanges do not hold user funds. In fact, they are not directly involved in a trade. Instead, DEXs operate via decentralized smart contracts.

For instance, let’s suppose a trader wishes to swap BNB for BUSD. Once their wallet is connected and the order is confirmed, the smart contract will deduct the BNB tokens. Simultaneously, the smart contract will then deposit BUSD tokens into the investor’s wallet. This removes the need to trust another market participant, including centralized exchanges and sellers.

Fees

Even the best decentralized exchanges charge fees. Just like centralized exchanges, this is usually a flat commission based on the size of the trade. For instance, Uniswap charges 0.3% per trade.

However, do note that traders also need to cover GAS fees when using a decentralized exchange. This is because each trade deploys a new smart contract that must be executed via the blockchain.

Benefits of Decentralized Cryptocurrency Exchanges

The main benefits of decentralized exchanges are discussed in the sections below.

Anonymity

Decentralized exchanges enable traders to buy and sell crypto without opening an account. And as such, there is no requirement for traders to reveal their identity.

This will appeal to many traders, considering that centralized exchanges often deploy KYC procedures. To trade on a decentralized exchange, traders only need to connect their wallet to the platform.

Safety

It goes without saying that decentralized exchanges are a lot safer than their centralized counterparts. This is because DEXs never hold or control user funds.

Instead, they merely provide an interface for traders to swap tokens via smart contracts. This ensures that traders are always in control of their digital assets.

Cross-Chain Swaps

The best decentralized exchanges facilitate cross-chain swaps. This means that traders are no longer restricted by which tokens they can buy and sell without an intermediary.

For example, OKX enables users to swap BUSD (Binance Smart Chain) with Tether (Ethereum) or  XRP (Ripple) with Polygon (Ethereum).

Earn Passive Income

We also found that top decentralized Bitcoin exchanges enable users to earn passive income.

OKX yield farming

While availability will vary from one DEX to the next, this can include:

  • Staking: At DEXs like OKX, investors can deposit their tokens into a staking pool to earn passive income. Yields will vary depending on the token. Oftentimes, low-cap cryptocurrencies offer the highest yields.
  • Yield Farming: This earning tool requires investors to deposit tokens into a DEX liquidity pool. By providing the DEX with liquidity, the investor will receive a share of collected trading fees.
  • Savings Accounts: Investors can also earn income by depositing tokens into a crypto savings account. The DEX will lend the money to another user via a collateralized loan (usually 50%). The investor will earn interest, covered by the borrower.

Crucially, the above DeFi earning tools ensure that investors can maximize their returns.

Decentralized Exchanges vs Centralized Exchanges

The main difference between decentralized and centralized exchanges is in terms of custodianship.

  • Centralized exchanges are custodians, meaning they are responsible for looking after client digital assets.
  • Decentralized exchanges never hold client assets, even when offering DeFi earning tools. Instead, all transactions are deployed by decentralized smart contracts.

While centralized exchanges attract significantly higher levels of liquidity, investors need to trust that their funds are safe. One only needs to look at the recent collapse of FTX, which resulted in its users losing billions of dollars.

On the flip side, decentralized exchanges are not 100% risk-free. While transactions are executed by smart contracts, there is every chance that hackers will find a vulnerability. If this is the case, user funds are at risk – especially those held in liquidity and staking pools.

P2P Crypto Exchange Fees

As noted earlier, there are generally two fees to consider when trading on a decentralized exchange:

  • Commission: Decentralized exchanges are required to make money to remain operational. As such, traders will pay a small commission when buying and selling cryptos.
  • GAS Fees: Smart contracts keep decentralized transactions safe and private. However, they also attract blockchain GAS fees.

Additionally, an indirect fee to consider is slippage. This is when the traders get a less favorable price due to insufficient levels of liquidity.

Conclusion

Decentralized exchanges are a great alternative to centralized platforms. Not only in terms of anonymity, low fees, and support for multiple blockchain networks – but earning interest too.

In our view, OKX is the best decentralized crypto exchange. The platform aggregates prices from over 200 DEXs, ensuring that traders always get the best deal possible.

OKX also aggregates DeFi yields from the broader market, so investors will secure the higher APYs available. Best of all, OKX does not require users to open an account or provide any personal details.

FAQs

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Kane Pepi
Editor
Kane Pepi
Editor

Kane Pepi is an accomplished financial and cryptocurrency writer who has an extensive portfolio of over 2,000 articles, guides, and market insights. With his expertise in specialized subjects such as asset valuation and analysis, portfolio management, and financial crime prevention, Kane has built a reputation for providing clear explanations of complex financial topics. He holds a Bachelor's Degree in Finance and a Master's Degree in Financial Crime, and is currently pursuing his Doctorate degree, which focuses on investigating the complexities of money laundering in the cryptocurrency and blockchain technology sectors. Kane's wealth of knowledge and experience in the field make…