Top 5 Decentralized Cryptocurrency Exchanges to Check Out in 2021

Handy Tips / 27.12.2020

No one can argue that 2020 turned out to be a breakout year for the DeFi sector. Looking forward, it appears that things are just getting started. Decentralized cryptocurrency exchanges (DEXs) are now gaining momentum in the sector due to their added security, lower rates, and new features. The only problem is that there are so many DEXs available nowadays. How can you tell what platforms deserve your time and investment? 

It’s now apparent that DeFi users have an excellent selection of DEXs to suit their investment goals. Luckily, you don’t have to wander around the DeFi industry like a blind man feeling out each platform to verify its merits. These platforms are sure to push ROIs to new heights in the coming months due to their unique market strategies. 

Uniswap

Uniswap is the top DEX (decentralized exchange) in the world. DEXs differ from centralized exchanges in that they never hold your cryptocurrency directly. Instead, your trades complete via a peer-to-peer protocol. This strategy makes these platforms more secure for users because hackers don’t have much to gain than massive centralized exchange wallets.

Uniswap is also the number one Ethereum Dapp in the market. It’s home to over one hundred thousand ERC-20 tokens currently. As the first DEX aggregators to allow anyone to create or seed a market, Uniswap plays a vital role in the industry today. New projects seek Unsiwap’s open markets to gain liquidity.

Recently, Uniswap expanded its service to include a yield farming protocol called the Uniswap Money Market. Yield farming protocols allow users to lend their crypto out and receive interest. In Uniswap’s new protocol, users stake their crypto in liquidity pools. Users borrow from these pools. Users receive rewards based on the amount and time they stake their crypto in these pools. 

SYNthetix

SYNthetix is a decentralized, synthetic-asset exchange that brings new flexibility into the sector. The network allows users to create synthetic assets collateralized by the Synthetix Network Token (SNX). Notably, synthetic assets are digital representations that show real-world assets’ prices using ERC-20 tokens. As such, Synths offer multiple advantages over the typical DEX in terms of trading.

To create Synths, users need to lock up SNX in-network smart contracts. These new assets can then be traded globally in the same manner as any other decentralized token. Best of all, the system lets users perform conversions between Synths with the smart contract directly without involving any third-party intermediaries.

SYNthetix offers DeFi staking services to its users. Notably, the staking and transaction fees from this network are distributed to SNX stakers every other week. The platform underwent a major upgrade recently. The Hadar upgrade enabled the tokenization of real-world assets such as oil commodities and stock indexes.

Bisq

Bisq is an open-source desktop application that allows users to trade Bitcoin for Fiat currencies directly. Bisq is one of the only DEXs globally to support fiat conversions without completing KYC requirements. The network’s unique protocol enables it to offer these services to users. Users can fund their transactions via the popular mobile payments app Zelle. 

Bisq is a privacy-centric DEX that incorporates a combination of technologies to keep your identity safe. The network integrates Tor routing to protect your IP address from snoops. Tor routing systems utilize a unique layered internet to protect your identity. They have been in use for years and became famous as the primary way to access the dark web. 

The platform’s design makes trading a bit slower because you need to manually search for orders in their preferred national currency. These delays are a small price to pay for the ability to trade your digital assets on Bisq anonymously. As such, the network is one of the top choices for investors. 

0x

In 2016, the 0x protocol entered service. This network functions as peer-to-peer exchange of digital assets on the Ethereum network. The protocol is open-source and has been vetted by the Ethereum community. Notably, the name 0x is a reference to the first letter of Ethereum wallets. 

0x continues to see growing adoption. The network has approximately $750 million in total volume and over 30 projects built upon it to date. Notably, the Ethereum blockchain is the largest producer of DeFi and DEX networks at this time. Developers continue to build on Ethereum’s ecosystem. Each new platform adds value to the underlying tech. 

Impressively, the 0x API allows developers to discover the absolute best price on every trading pair. To accomplish this task, 0x functions as a liquidity aggregator across different decentralized exchange (DEX) networks. The network’s system utilizes bridge contracts to tap into the liquidity pools of both on-chain DEX networks like Kyber, Uniswap, and MakerDAO’s Oasis. Additionally, 0x users can get pricing from off-chain DEX networks.

IDEX

IDEX is one of the oldest DEXs in the market. As such, IDEX is considered one of the most advanced Ethereum-based DEXs at this time. This non-custodial exchange features real-time trading and boasts a high transaction throughput. The exchange came about as part of the Aurora project. Notably, Aurora is a collection of Ethereum applications and protocols. Together they make up a decentralized banking and finance ecosystem. 

This network includes the IDEX exchange, the Boreal stable currency, the Snowglobe decentralized exchange protocol, and Decentralized Capital. When used together, users enjoy more flexibility than offered by competitors. Additionally, each part of the Aurora project is designed to integrate with others seamlessly. In this way, the entire process is streamlined. 

Top 5 Decentralized Cryptocurrency Exchanges to Check Out

Don’t get stuck in last year’s rut. It’s a new year with fresh opportunities abound. These DEXs are a step ahead of the competition. Familiarizing yourself with these networks is a great way to expand your DEX knowledge and get a real feel for these platforms’ direction moving forward. For now, you are sure to save on all of your trades when you utilize these networks versus centralized options.

David Hamilton aka DavidtheWriter is a long time Bitcoinist and cryptocurrency journalist. Currently, he has over a thousand articles published on blockchain technology. His expertise and experience makes him one of the most reputable writers in the sector.