Mid Level Reading
08 Aug, 2023

Decentralized Exchange (DEX)

A decentralized peer-to-peer exchange enables direct cryptocurrency trading between users without intermediaries.

Understanding Decentralized Exchanges

A decentralized exchange (DEX) provides an alternative approach to trading cryptocurrencies compared to traditional centralized exchanges.

Conventional exchanges, known as CEXs, buyers and sellers are matched by a central authority, much like securities exchanges.

Advancing Anonymity and Non-Custodial Transactions

In contrast, decentralized exchanges address these concerns by offering potential anonymity and non-custodial transactions. This means that the assets being exchanged are never held by an intermediary.

Many consider DEXs to be a crucial component of the future development of cryptocurrency.

However, truly decentralized offerings, such as Radar Relay built on the 0x protocol, are still in their early stages, resulting in relatively low trading volumes on these platforms.

Balancing Oversight and Decentralization

Additionally, DEXs may encounter challenges from regulators who disagree that decentralized exchanges should be exempt from the same oversight as their centralized counterparts due to the absence of asset custody.

For more information, view our complete list of the best DEXs.

Tradable Coins
  • 37+
  • 0 – 0.10%
  • Orderbook

More details

dYdX is a user-friendly decentralized exchange with over 37 supported cryptocurrencies, including its DYDX token. The platform offers zero deposit or withdrawal fees and competitive trading fees ranging from 0% for makers to a max of 0.1% for takers. DYDX holders can also enjoy up to 50% off transaction costs.

  • High-end security and privacy.

  • User-friendliness.

  • Mobile version.

  • Supports lending and borrowing.

  • Multiple rewards.

  • Limited crypto assets supported.

  • Does not support spot trading.

Tradable Coins
  • 20+
  • 0.1%
  • AMM

More details

Covo Finance exchange is a new exchange that focuses on spot and leverage trading. It supports about 20 markets, including crypto, forex, and metals. It charges 0.1% as trading fees. Users who hold a Covo utility token can get more benefits from the exchange through staking.

  • Low fees.

  • User-friendly interface.

  • Personalized trading options.

  • No central customer support.

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