12 Best Decentralized Exchanges for 2023

Providing access to financial services to everyone is one of the primary goals of the cryptocurrency industry. The first step in making this a possibility is the development of decentralized exchanges. DEXs allow anyone with an internet connection and a crypto wallet to buy and sell digital assets. Read on to learn what decentralized exchanges are and discover the top decentralized exchanges on the market today.

What are decentralized exchanges?

Decentralized exchanges are online trading platforms built on open blockchains that allow for the buying and selling of cryptocurrencies without the need for an intermediary or third party such as a bank. 

A decentralized exchange differs from a traditional stock exchange or a centralized cryptocurrency exchange. With a DEX, users hold power to make decisions regarding the platform. Services are distributed amongst users rather than held by a central authority. This kind of power distribution aligns decentralized exchanges with the principle of cryptocurrencies, which aim to promote decentralization and financial sovereignty above all.

Further, decentralized crypto exchanges are more resilient and more private than traditional finance and centralized exchanges. Users are not required to reveal their identity through a Know Your Customer (KYC) process. Instead, they only need to connect their crypto wallets, look for the crypto they want, and initiate trades. 

Decentralized exchanges mimic the principle of crypto and financial sovereignty in their operations. They also use the technology upon which crypto is built. All DEXes are built on public blockchains. All utilize different aspects of blockchain technology, like smart contracts, tokens, and layers. However, each decentralized exchange differs from another based on its individual features. This varies from the code used to build the DEX to how users interact with the platform. 

What are the different types of decentralized exchange?

In terms of functionality and price determination, there are currently three main types of decentralized exchanges.

• The first and most common ones are Automated Market Makers (AMMs), which utilize algorithms to determine crypto asset prices in real-time. Peculiar about them is the fact that they have no order book that is known from traditional exchanges.
• Next are DEXs that use on-chain order books. These types of exchanges record all possible trades for a particular crypto asset on an order book. The interaction of willing buyers and sellers on the exchange’s order book determines the market price of the assets. Further, the trading information on an on-chain order book DEX is recorded on the blockchain, but assets remain off-chain in user wallets. 
• Another type of DEX utilizes off-chain order books. Most of the time, this implies going against the use of blockchain, which means that some off-chain order books decentralized exchanges use a centralized authority instead when processing transactions. Then after the transactions are recorded in the order book, the actual asset transaction is settled on-chain, which means a blockchain is used for settlement but not for clearing trades. 
• Lastly, we have so-called DEX aggregators. These decentralized exchanges increase liquidity and trading options for their users by compiling data from different DEXes in real time. In this case, traders don’t have to compare data from different platforms but instead can access all information in one place, thereby getting the best price execution. 

Which is the best decentralized exchange (DEX)?

1. Changelly

Konstanit Gladych founded Changelly in 2013 in the Czech Republic. It is a non-custodial cryptocurrency exchange with over 500 cryptocurrencies — including the relatively hard to find cryptocurrency Monero. You can take advantage of instant swaps from one crypto to another at modest fees — fixed 0.25% for crypto to crypto.

Changelly supports many payment services, so you can purchase your crypto with Apple Pay, or a credit or debit card. No Signup or KYC is required for exchanging altcoins (under $150), which is a critical element of its frictionless experience. However, this only applies to a non-custodial wallet. Fiat-to-crypto transactions do require some identity information.

To continue, Changelly offers 24/7 friendly live chat support. The website is user-friendly, and their is a mobile app for Android and IOS. One of the most interesting products that Changelly has is DeFi swap. There are no intermediaries. The user interacts with a smart contract, which defines the rules of the exchange. No middlemen, just transparency, trust, and decentralization.

Smart Router technology gathers and provides the best rates on the market for crypto-to-crypto exchanges. Over 100 DEXs are connected, 3 DEX aggregators are integrated, and Changelly provides their own private liquidity to get the best out of the DeFi sector.

Pros

• Low fees
• Live support
• Non-custodial
• Fast transaction execution

Cons

• Unavailable in many countries (including the U.S.)
• Fiat fees

How to exchange DeFi tokens on Changelly and get $10 cashback:

1. Go to Changelly.com
2. Select the crypto asset that you want to exchange and click on Exchange now button
3. Click on Connect wallet button on the top right corner
4. Enter the wallet address or scan the QR code
5. Swap min $200 and get cashback of $10 directly to your ZenGo wallet

2. Stormgain

Website: https://stormgain.com/#dex

StormGain is an exchange based out of the UK that has a potpourri of features. The exchange offers a simple and robust user experience. Quick registration, wide accessibility, and mobile app agnostic (IOS, Android, Huawei) are some of the first thoughts that come to mind when describing this platform.

In the latest news, StormGain has launched StormGain DEX. Users will be happy to know you can now trade your assets directly on the Ethereum blockchain. StormGain has announced later support for the Binance Smart Chain and Tron Coin. On their flagship DEX, you can trade with user friendly DeFi technology. Using this technology means no additional commissions for depositing or withdrawing funds. Users need only pay the blockchain network fee.

In more exciting news, this also means that users do not need to register or provide personal information to trade on Stormgain DEX. All you need is a wallet. If you are as introverted as many crypto traders, you will enjoy this privacy preserving feature.

Pros

• Quick registration – just connect your blockchain wallet
• No first deposit required.
• No verification needed.
• Keep complete control over your crypto funds
• Trade with leverage of up to 500x

Cons

• No support for BSC
• Fully functional but in Beta phase

How to start trading on StormGain DEX from ZenGo wallet and get a $10 cashback:

1. Create a blockchain wallet ZenGo
2. Signup to ZenGo using THIS LINK, enter the promo code ZENX0B4G and get the cashback of $10 once you swap on $200 or more
3. Go to StormGain DEX website and click on Connect wallet button
4. Connect your ZenGo wallet via WalletConnect
5. Enjoy your anonymous trading directly from your blockchain wallet

3. dYdX

dYdX is a completely decentralized exchange. Users can participate in margin and perpetual trading. The exchange is built on StarkEx, an Ethereum layer-2 solution. The DEX utilizes zero-knowledge-proof technology to ensure decentralization, privacy, and security. 

On top of the already low commissions, token holders can enjoy even more discounts on their trades. However, the exchange recently announced plans to move its function onto its own blockchain in the Cosmos Ecosystem. This will increase speed, customizability, and trading flow. The fourth version of the DEX will implement this change.

Despite the impending move to another chain, the DEX will continue using order books and matching models in its trading function. It will also maintain the use of the exchange’s native token and Hedgies, the platform’s NFTs. Both tokens have governance functions. And both work as incentivization schemes for users utilizing the exchange.

Pros

• Clear interface
• Quick transactions
• Large selection of popular types of trading orders

Cons

• A limited selection of margin trading pairs
• A limited selection of swaps

4. ApeX PRO

Next on our list is ApeX Pro, a non-custodial crypto exchange that offers traders access to derivatives crypto trading, specifically perpetual futures contracts, by utilizing the platforms’ scalability engine, StarkEx, an Ethereum layer-2 solution. 

ApeX users benefit from a no-KYC registration process, which lets them keep a high degree of privacy when trading. Further, the platform offers zero gas fees for trading. It gives leverage and minimal slippage to users via its order book mechanism.

The DEX is multi-chain, making trading tokens from Ethereum, ERC-20, and other tokens from EVM-compatible chains possible. Lastly, the platform has two main tokens, APEX and BANA. The platform uses APEX for governance and user incentivization, while BANA is a reward token in the ApeX Pro ecosystem. 

Pros

• Leverage up to 20x.
• Mobile App iOS/Android: ApeX Pro
• Testnet – demo trading account with no risk
• The possibility of decentralized trading in perpetual contracts for top cryptocurrencies

Cons

• Limited choice of trading instruments

5. OKX DEX

Perhaps unbeknownst to many, OKX actually has a decentralized exchange. OKX DEX is a decentralized exchange built on top of OKX’s enterprise blockchain, OKC. It allows you to swap any token across any chain, without any constraints on trading volume or trading pairs. The best part is you have 10+ chains, 100+ DEX and 100,000+ coins. that you can choose from.

OKX’s X Routing algorithm finds the best price across every DEX. They compare prices from Liquidity Providers (LPs) with the best liquidity pools, split orders, and take into consideration prices, slippage, and network gas fees. Their KYT (Know Your Trade) Risk engine helps you avoid asset losses by detecting unfavorable trading prices, counterfeit tokens, rug pulls, honeypots, and high burn rates.

Trading on OKX DEX offers users a more seamless trading experience and lower trading costs. In contrast to open blockchains like Ethereum, OKC concentrates on offering a better, more specific infrastructure for trading DApps and DEXs. This directly lowers the expenses associated with installing trading DApps for developers and indirectly lowers trading fees for customers.

Pros

• Low trading fees
• Aggregates the best price across multiple chains and DEXs
• Available worldwide

Cons

Low trading volume

6. Curve

Another automated market maker decentralized exchange you should know about is Curve. Curve mainly specializes in the trade of stablecoins. 

Curve, originally built on the Ethereum blockchain, provides extra perks to its users. One of these perks is the ability to use whatever you have invested in the Curve platform on other apps in the DeFi ecosystem. A function called DeFi composability. 

Also, the platform uses CRV, its native token, for governance and as an incentive vehicle for its users. Users can buy or earn CRV through yield farming. When users deposit assets into a liquidity pool, they are rewarded with CRV tokens.

Pros

• Low fees
• Non-custodial
• Many liquidity pools

Cons

• Not very beginner friendly
• If there is an issue with a linked DeFi pool, Curve pools might be affected

7. Balancer

Next on the list is Balancer, a DEX that allows users to trade cryptocurrencies and acts as a liquidity provider platform and an automated portfolio manager.

Balancer was originally built on the Ethereum blockchain. The DEX uses the automated market-making mechanism to establish prices. The platform has two faces, an exchange for traders and an investment fund. This fund allows liquidity providers to own a piece of the platform, should they choose.

Just like other AMM-based DEXs, Balancer has liquidity pools. Here, people can deposit their crypto assets and help manage the ecosystem, especially the price. Furthermore, the users play an active role in making decisions in Balancer. This is done by using the platform’s native token, BAL, which exists to enable platform governance. 

Pros

• Custom automated market makers
• Multi-asset pools

Cons

• High risk of scam tokens
• Not very user friendly

8. PancakeSwap

This popular DEX runs on the BNB Chain. PancakeSwap utilizes the AMM model to make decentralized cryptocurrency trading possible. At the same time, liquidity providers can deposit their crypto assets into liquidity pools, thereby creating liquidity for the DEX. 

In addition to traditional crypto trading and buying, PancakeSwap gives its users access to additional services. Pancake users can take part in yield farming, staking, and trading NFTs. They can also access other features of the platform, like Initial Farm Offerings (IFOs), PancakeSwap Lotteries, Prediction Markets, and Syrup Pools.

Users on the platform also have the right to vote on decisions related to the exchange platform. They do this using CAKE, the platform’s native token.

Pros

• Low slippage
• Low transaction costs
• High transaction volume

Cons

• Network congestion
• High-risk for scam tokens

9. SushiSwap

Another decentralized exchange hosted across multiple chains is SushiSwap. SushiSwap was created as a clone of UniSwap. To this day, UniSwap has an open-source code that lets anyone use the code to create their own DEX. The original founders behind SushiSwap made use of this, copying and implementing the UniSwap code to start SushiSwap.

Regardless of using UniSwap’s code, the platform has unique features like a liquidity mining offering that attracts its own liquidity providers. It also lets its users take part in governance decisions through the platform’s native token, SUSHI. 

Initially built on the Ethereum blockchain, SushiSwap is currently present on 14 other chains. These include Polygon, Arbitrium, Moonbeam, Optimism, and Avalanche.

10. Bancor

The Bancor protocol is a decentralized exchange platform that allows for the instant conversion of crypto assets. It operates on the Ethereum blockchain and uses the AMM model.

Unlike other DEXs, Bancor looks to provide returns to liquidity providers, even small and micro-cap coins. That way, the DEX hopes to provide access to many other cryptocurrencies that may be inaccessible through other decentralized exchanges.

Just like other DEXs though, Bancor embraces the rule of community governance. It does this through the platform’s governance token, VBNT, which enables users to vote on decisions. Other important tokens to the platform include BNT, the platform’s native reserve currency. ETHBNT, a token that represents shares of BNT and ETH in Bancor/Ethereum pools, is also a popular token on Bancor.

Pros

• Impermanent loss protection
• Supports numerous tokens
• Single-sided deposits

Cons

• Third-party centralized trading platforms
• Not very user-friendly

11. DODO

Introducing DODO, a cryptocurrency exchange built on Ethereum and BNB Chain. Its unique algorithm is known as the ‘Proactive Market Maker Algorithm.’ The algorithm is used to provide better price finding and liquidity when compared to other AMMs. The algorithm also facilitates easy market entry for small projects like newly minted assets.

DODO also has a key feature called SmartTrade. This enables a decentralized liquidity aggregation service that routes to and compares liquidity sources to quote the optimal swap rate for trading tokens. Another unique feature of the platform is Crowdpooling. Here, liquidity markets are available, allowing projects to distribute tokens equally without interference from bots. The pooling feature also allows users to create their own market-making strategies.

Users of DODO can vote on governance issues using the platform’s native token, also called DODO.

Pros

• Low transaction fees
• Highly accurate pricing
• No minimum deposit for liquidity providers
• Impermanent loss protection

Cons

• Adoption and TVL continue to drop

12. Uniswap

Third on our list is Uniswap, the biggest decentralized exchange in terms of trading volumes. The platform facilitates crypto trading while utilizing the power of automated market-making in its trade functions and price determination. 

Originally built on the Ethereum blockchain, the platform has since moved to other blockchain ecosystems and layer-2s. It is compatible with ERC-20 tokens. Uniswap runs using two smart contracts. The first is the exchange contract, which facilitates token swaps. The second is the factory contract, used when adding new tokens to the platform.

Uniswap is unique as it allows anyone to add new tokens to the platform. It also enables developers to utilize its open-source code to create their own decentralized exchange. Furthermore, Uniswap allows its users to make governance decisions using the platform’s native token, UNI. Each UNI holder can vote on changes and additions to the platform. 

Pros

• Adequate liquidity
• No registrations
• Friendly UX

Cons

• Gas fees
• High-risk of scam tokens

Decentralized exchanges are here to stay

Decentralized exchanges promise more autonomy and security than centralized exchanges. With 2022 demonstrating the inherent weaknesses in CEXs (namely, their centralization), decentralized exchanges will likely only become more prominent in years to come. Yet, as with any other innovation in the crypto space, users need to research any DEX before trading. As a rule of thumb, make sure to invest only what you are willing to lose. Only trade on decentralized trading venues with code audited by third-party smart contract auditors.

Frequently asked questions