5 Best Decentralized Exchanges (DEXs) for 2023

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I'm Donny. I'm a world traveler, investor, entrepreneur, and online marketing aficionado who has a big appetite to compete and disrupt big markets. I thrive on being able to create things that impact change, difficult challenges, and being able to add value in negative situations.

Are you trying to decide on a DEX for 2023? I’ve got you covered. DEXs saw $217 billion in transactions in the first fiscal quarter of 2021.

The companies are quickly becoming a standard part of crypto trading, and now more than ever is the perfect time to get started.

I recommend DEXs, as they have fewer fees and allow you to be in charge of your funds. However, choosing a new company can be a long process.

I’ll break down several top decentralized exchanges and help you decide. Do you need an exchange with customer support?

Are fast withdrawals essential to you? Perhaps you need a crypto company that allows you to work globally, or maybe privacy and security are your top concerns.

I’m here to help you find DEXs to match your needs. I considered many factors in making this list, and the following article contains all the tools you need to get started with a DEX or switch to a new one in 2023.

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Top 5 Best Decentralized Crypto Exchanges in 2023

  1. Uniswap – Best overall
  2. dYdX – Best for active traders
  3. Bisq – Best DEX exchange
  4. PancakeSwap – Most popular DEX exchange
  5. KINE Exchange – Best for staking

Methodology

Whatever your interests or requirements are, there’s something in this list for you. A big customer concern with DEXs is fees.

I found companies with low costs that can make your trading easier. Are you worried about reliability, security and ease of use?

Don’t worry because I considered those factors. I also looked into customer service and the number of years in business, and I read third-party reviews to find objective opinions on these top exchanges.

After extensive research, I drafted this final list of top exchanges. Keep reading to discover more about these decentralized crypto exchanges and learn how to choose one.

Uniswap – Best Overall

Uniswap is a DEX for buying and selling digital currencies. The Uniswap Protocol, which is led by a global community of UNI token holders, powers Uniswap.

With over 125 million trades and more than $1.3 trillion in trade volume, Uniswap is a large company with a trusted user base.

Hayden Adams founded the company in 2018 and led the creation of the token UNI. Uniswap is in the Defi product category, as it oversees trades with smart contracts.

It is a decentralized autonomous organization with no central authority and is a rival of KyberSwap and QuickSwap.

Features: With Uniswap, you can buy, sell and trade crypto. The company also facilitates the trade of NFTs. Additionally, you can swap tokens such as Ethereum or CELO.

Fees: Uniswap has three fee levels, ranging from 0.01% to 1.00%. The fees you’ll pay relate to what trading pairs you use.

Account minimum: There’s no account minimum at Uniswap, making it an accessible platform for many users. However, many cryptocurrencies have a purchase minimum of around $15.

Promotion: Uniswap isn’t running any current promotions. Occasionally, it offers free tokens to new users.

Why I chose UniSwap: I’m placing Uniswap at the top of this list because it’s an easily accessible cryptocurrency exchange with a user-friendly interface and a broad customer base.

With Uniswap, you retain control over your funds, and new users don’t even need an account to start trading.

Best for: Uniswap is ideal for beginner crypto traders looking to get started with DEXs.

Pros
  • Crypto wallet support
  • User-friendly dashboard
  • You can easily swap ERC-20 tokens
  • The company has high security and privacy
Cons
  • Little customer support
  • Charges gas fees

dYdX – Best for Active Traders

With the mission statement Trading For Everyone, dYdX seeks to be an exchange accessible to all. You can use hardware wallets and easily translate fiat currencies such as USD to crypto.

Features: Buy, sell and trade crypto with dYdX margin trading or swap tokens. Check out the handy mobile app.

Fees: There are no trading fees at this company.

Account minimum: The account minimum for DYDX is $10.

Promotion: There are no current promotions at DYDX.

Why I chose dYdX: I like dYdX because the Ethereum blockchain secures it, and you won’t lose your money through hackers.

Your funds are in smart contracts and never go through a third-party account.

Best for: dYdX is best for active traders with experience.

Pros
  • Low fees and gas costs
  • Quick withdrawals
  • Accessible mobile app
  • Secure and private
Cons
  • The company doesn’t have fiat support
  • As a disclaimer, be aware that DYDX has a lack of tradable assets

Bisq – Best DEX Exchange

Bisq is a private, decentralized company that’s great for users who want anonymity. You can trade with an order book and get started with crypto.

Features: You can buy and sell crypto through a peer-to-peer network that’s decentralized and private.

Fees: Bisq fees are 0.5% per transaction.

Minimum deposit: The lowest deposit you can make is 0.006 BTC.

Promotion: There are no current promotions at Bisq.

Why I chose Bisq: The company is perfect for trading Bitcoin. It has a secure DEX and low fees.

Best for: Bisq is ideal for people who want high privacy, security and control over their funds. It’s not for people who use smaller coins besides Bitcoin or stablecoins.

Pros
  • Available globally
  • Over 50 payment options
  • Decentralized
  • Top-notch privacy
Cons
  • Not great for active trading
  • Trade with Bitcoin or BSQ only

PancakeSwap – Most Popular DEX Exchange

PancakeSwap is a liquidity protocol on the Binance Smart Chain. It has a large user base and an easy interface.

Features: At PancakeSwap, you can buy, sell and trade crypto from Bancor Network Tokens to Bitcoin. You can also trade non-fungible tokens (NFTs) and swap tokens.

Fees: Fees at PancakeSwap are pricey at 25% per trade.

Minimum deposit: The minimum deposit is low at just $1.

Promotion: There are no current promotions at PancakeSwap.

Why I chose PancakeSwap: I chose PancakeSwap for this list because it’s community governed and offers chances to win new NFTs.

PancakeSwap is a hugely popular company with many trading opportunities on the BNB Chain.

Best for: PancakeSwap is fantastic for new users and people who are actively trading.

Pros
  • User-friendly interface
  • No user registration
  • High APR/APY returns for pools and farms
  • Chances to win prizes
Cons
  • Not a lot of customer support
  • Potential for scams

KINE Exchange – Best for Staking

KINE is a Singapore-based DEX with no gas fees and zero slippage on derivative trading. KINE has a unique coin and offers trade with other currencies.

Features: On KINE, you can buy, sell and trade crypto. You can also participate in crypto staking.

Fees: There are no trading fees at KINE.

Minimum deposit: The minimum deposit at KINE is $0.

Promotion: There are no current promotions at KINE.

Why I chose KINE: KINE is ideal for trading because it has essentially no fees. It’s also the top place for staking, aka locking assets to support blockchain operations.

Best for: KINE is ideal for active crypto traders and people interested in staking crypto.

Pros
  • No fees for trading
  • Great for crypto staking
  • No gas fees
  • Useful mobile app
Cons
  • Limited customer support
  • Limited amount of coin options
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Decentralized Crypto Exchange Guide for Beginners

Consider these factors before you use a DEX.

Factors to Consider Before Choosing a DEX
  • Available Tokens: Are your preferred tokens available? For instance, check if the company offers popular coins such as BTC or ETH.
  • Liquidity. Liquidity refers to how easily you can convert your currency to other forms of crypto. Choose a company with high liquidity so you can move funds around.
  • Security: Crypto isn’t a highly regulated industry, and security is crucial. Check if the company protects against hackers and what’ll happen to your currency if the company closes.
  • Trading Fees: Pesky fees can make trading expensive. Look for a company with a transaction fee of around 0% to 1.5% to prevent overpaying.
  • Volume: Volume refers to how much crypto is bought, sold and traded. What’s the size of your company, and is it large enough to handle high trading volumes?

Understanding Decentralized Exchange Fees

Understand your crypto trading process and learn about the different fees associated with DEXs.

DEX Fees
  • You pay trading fees each time you buy, sell or exchange crypto. DEXs, such as Sushiswap and DODO, often have lower fees than centralized exchanges.
  • Gas fees are blockchain transaction fees that go to network validators.
  • Withdrawal fees occur when you convert crypto to cash, such as USD. For example, Coinbase charges around 1% per withdrawal.
  • You pay network fees to record your transactions on the public blockchain.
  • Liquidity provider fees help compensate liquidity providers when trading coins in a B2B transaction.

How to Open a DEX Exchange Account

Here’s a step-by-step process for opening a DEX crypto account.

  1. Connect your wallet. You can link your bank account or deposit USD directly into the exchange.
  2. Check out your coin options. Compare the prices of popular coins, from Bitcoin to BNT to CRV.
  3. Start buying, trading and selling crypto with other users and companies.

Which Decentralized Exchange is Best for Me?

Choose an exchange based on your needs. Do you mainly trade with Bitcoin? Bisq might be perfect for you.

If you’re new to crypto, the easily accessible dYdX might be a good choice. However, my top choice remains Uniswap, as it combines the best qualities of the other exchanges on this list.

With Uniswap, you can trade nearly any coin, buy NFTs, and enjoy high liquidity.

DEX FAQs

Check out these frequently asked questions about DEXs.

What is a decentralized exchange?

A DEX, such as IDEX or KINE, allows peer-to-peer transactions of crypto assets. A third party never holds your digital assets.

How do decentralized exchanges work?

DEXs work as an intermediary. The company facilitates your trade, but your assets go directly from buyer to seller.

Are decentralized exchanges safe?

DEXs are safer than such centralized exchanges as Binance or Avalanche. Your funds can’t’ be hacked or stolen because your crypto never goes through a third-party account.

Who controls a decentralized exchange?

Crypto doesn’t’ have a central authority, but automated market makers (AMM) like Balancer or Curve Finance use smart 2 contracts to help users trade safely.
 
Blockchains such as Polygon or Fantom can also occur in a decentralized fashion, where all users effectively have control, and there’s no head authority.

What is a DEX aggregator?

A DEX aggregator uses an algorithm to source liquidity pools and data from different DEX exchanges and aggregates the info on a single platform.

Using an aggregator decreases slippage costs and increases liquidity.

LocalBitcoins

Buy and sell bitcoins near you. Fast, easy and private. Join the most trusted Bitcoin marketplace!

We earn a commission if you make a trade, at no additional cost to you.

I'm Donny. I'm a world traveler, investor, entrepreneur, and online marketing aficionado who has a big appetite to compete and disrupt big markets. I thrive on being able to create things that impact change, difficult challenges, and being able to add value in negative situations.

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