5 Popular Decentralized Exchanges
Looking for an alternative to trading crypto? Know the five largest decentralized exchanges in terms of trading volume.
According to Atty. Rafael Padilla, a lawyer focusing on blockchain, fintech, and crypto, during the 32nd episode of the BitPinas Webcast, learning how to self-custody is a good way to protect our crypto assets.
To have self-custody means owning and possessing your assets on your own by keeping your own keys or seed phrases. And one way to practice it is by using decentralized exchanges.
Decentralized exchanges (DEXs) do not have a central entity controlling them. This means that you 100% own your funds that is stored in a non-custodial crypto wallet (like MetaMask) because you are the one who will keep the keys. Remember the phrase, “Not your keys, not your wallet”?
With this, BitPinas has listed the five largest DEXs in terms of trading volume, as recorded by CoinGecko.
Table of Contents
UNISWAP
Uniswap is a decentralized marketplace for swapping cryptocurrencies on the Ethereum blockchain. It uses a different type of trading model called an automated market maker (AMM).
Learn more about the Uniswap DEX here.
- Website: https://uniswap.org/
- Number of tokens offered: 1,025
- Available pairs: 1,891
- Trading Fee: 0.01%, 0.05%, 0.30%, and 1.00%. Most pairs have 0.30%.
- Non-custodial wallet needed: Metamask
(Read more: Uniswap Guide, Usecases, and Where to Buy in the Philippines)
CURVE
Curve is another decentralized exchange that uses AMM and was primarily launched for stablecoins. It allows users to swap Ethereum-based token.
- Website: https://curve.fi
- Number of tokens offered: 122
- Available pairs: 256
- Trading Fee: 0.04%
- Non-custodial wallet needed: Metamask
THORSWAP
THORSwap is a decentralized swap platform powered by the THORChain network. It also supports cross-chain L1 swaps between 5,500+ crypto assets across 10 major L1 blockchains in “a decentralized and non-custodial manner.”
- Website: https://thorswap.finance/
- Number of tokens offered: 25
- Available pairs: 32
- Trading Fee: “Competitive” rate for swaps, no fees for withdrawals.
- Non-custodial wallet needed: XDEFI Wallet
PANCAKESWAP
PancakeSwap is another decentralized exchange that operates on the Binance Smart Chain and uses AMM. It supports swapping of BEP20 tokens and offers features like yield farming, staking, and NFT trading.
- Website: https://pancakeswap.finance/
- Number of tokens offered: 302
- Available pairs: 862
- Trading Fee: 0.25%
- Non-custodial wallet needed: Trust Wallet
(Read more: CoinGecko: Uniswap Dominance Holds as Spot Volume Declines)
JUPITER
Jupiter is a decentralized platform designed for the Solana blockchain. It operates as an aggregator, gathering liquidity from various DEXs and AMMs within the Solana ecosystem.
- Website: https://jup.ag/
- Number of tokens offered: 302
- Available pairs: 862
- Trading Fee: 0.30%
- Non-custodial wallet needed: Phantom Wallet
Benefits of Using DEXs
What is an Automated Market Maker?
If you could observe, most decentralized exchanges use an Automated Market Maker model. It is because it offers higher liquidity compared to an Order Book model, which centralized exchanges like Binance, PDAX, and Coins.ph are using. In order book-based trading, a buy order must be matched with a sell order with the same amount of the token to make a successful trade.
DEX users also have full control over their funds. Because DEXs do not have a central entity, assets are held by the users themselves, on their own wallet, and not the decentralized exchange. This also minimizes the risk of hacking, because there is no central authority that holds all the assets.
Because of being decentralized, these exchanges do not need intermediaries, meaning, most transactions and trades are done through peer-to-peer. Which also reduces the transaction fees.
To conclude, DEXs are a living proof of the goal of blockchain technology which is decentralization. Remember, your keys, your wallet.
This article is published on BitPinas: 5 Popular Decentralized Exchanges
Disclaimer:
- Before investing in any cryptocurrency, it is essential that you carry out your own due diligence and seek appropriate professional advice about your specific position before making any financial decisions.
- BitPinas provides content for informational purposes only and does not constitute investment advice. Your actions are solely your own responsibility. This website is not responsible for any losses you may incur, nor will it claim attribution for your gains.
