Cryptocurrencies are revolutionizing the tech industry with their decentralized architectures but did you know that most dedicated exchange platforms are actually centralized?
Of course, most popular centralized crypto exchanges are trustworthy although their security is lacking and the increasing number of hacks stands as proof. It’s also worth mentioning, centralized exchanges are exposed to government regulations.
More and more traders choose decentralized exchanges (DEXs) because of their superior level of security and privacy. DEXs don’t need to rely on any third-party services, transactions are cheaper and faster, plus users can transfer funds directly to their hardware wallets, in most cases.
Decentralized exchanges do have some drawbacks though: most of the times, they’re not as user-friendly as centralized exchanges and advanced features like support for stop-loss orders and margin trading are lacking.
Best decentralized exchanges in 2018
With that said, we highly value all the benefits offered by DEXs, so here are the best decentralized exchanges you can use in 2018.
While it’s only been around since September 2017, IDEX is currently one of the most popular decentralized exchanges. It provides support for approximately 200 tokens and an impressive number of features compared to most other DEXs. Among these features, you will find market orders, instant order books, and gas-free cancels.
IDEX has a 24-hour trade volume of over $3.1 million (at the time of this writing) and the platform seems devoted to trading Ethereum and other ERC-20 tokens.
IDEX is associated with the WINGS foundation, so all ICO launched on Wings will receive IDEX support sooner or later. It also offers a staking program and has one of the friendliest interfaces.
OpenLedger is a Denmark-based blockchain company that offers decentralized solutions for the crypto market. OpenLedger DEX is their decentralized exchange powered by BitShare’s graphene technology. To register as a new user on OpenLedger you just need to set up your username and login password.
The current daily trading volume is approximately 47 BTC which is a bit low but expected during the current bear market.
Waves DEX is a decentralized exchange that interestingly, relies on a centralized matching service to provide a faster exchange process.
The service is part of the Waves platform that’s centred on offering a friendly environment for launching new ICOs and crypto projects.
Waves DEX supports all coins built on the Waves platform, including Waves tokens, Litecoin and Zcash. You can trade ETH or BTC for any of the supported coins.
The interface of this DEX is quite friendly and the platform boasts a unique feature. It lets users build and distribute their versions of crypto assets that can be traded on the Waves DEX platform. Right now, Waves DEX has a 24-hour trading volume of $209,527 USD.
Stelar DEX was launched only last year in October and provides support for Bitcoin, Litecoin, Ethereum and Ripple cryptocurrencies. You can trade these coins for various fiat currencies such as the US Dollar, Hong Kong Dollar, Chinese Yuan, and the Japanese Yen.
One of the most noteworthy features of this platform is the atomic pathfinding which allows the platform to find the cheapest asset trading pairs. Right now, the daily trade volume on Stellar DEX is around $890,000.
To trade on this platform you will need to create a key pair consisting of a public key and a secret key. The public key is used to identify your account and also where you will be able to receive funds. To access your account and perform transactions you will need to use the secret key. You should also know an initial deposit of 20 lumens is requires to activate your account and start trading.
Bancor stands out from the crowd (albeit small) of decentralized exchanges because it doesn’t rely on the classic bid/ask model since it doesn’t employ P2P transactions to match buyers and sellers. Instead, users are able to buy and sell integrated tokens on the network straight from the Bancor Wallet. You can even exchange funds from any popular type of credit card to crypto.
Presently, Bancor trade volume over 24 hours is slightly above the $1,286,000 mark.
Bisq is a Tor-powered P2P marketplace that provides support for over 120 cryptocurrencies. To trade on Bisq you will need to download and install their official client.
Bisq, formerly known as Bitsquare, is a peer-to-peer marketplace that uses Tor in order to achieve its truly decentralized and anonymous status. It currently supports up to 126 cryptocurrencies, including two of the most popular ones, Bitcoin and Ethereum.
In order to start trading on Bisq, users simply need to download the official software.
You can expect our list of best decentralized exchanges to grow in the future. Taking all of their advantages into account, it’s not a surprise their popularity is increasing. Even popular centralized exchanges such as Binance and Coinbase are already developing their own decentralized platforms which is an important step towards mass adoption.
DEXs may not be on par with centralized exchanges regarding user-friendliness or collection of features, but most are still in their infancy and more features are already in the works.