Despite the efficiency and popularity of most centralized exchanges, the drawbacks are quite noteworthy. The first issue is the overall low security, a point proven by the huge cases of hacks lately in 2018.
Another important drawback is the fact that centralized exchanges are vulnerable to government regulations. These are not issues when it comes to decentralized cryptocurrency exchanges.
Unsurprisingly, most traders and investors prefer decentralized exchanges (DEXs for short) for their excellent transparency and privacy. Besides these main advantages, there are other valuable benefits offered by DEXs.
Since decentralized exchanges don’t require the intervention and the use of third-party services, the transactions are automatically faster and far less expensive than in the case of centralized ones. Also, most decentralized exchanges provide their users with the possibility of directly transferring funds to their hardware wallets.
Here’s a list of our top 3 decentralized exchanges in 2018 created by CoinDiary.net
Launched in September 2017, IDEX is one of the most popular nowadays decentralized exchanges currently in use. Not only does it boasts support for over 220 tokens, but it’s also one of the most feature-packed decentralized exchanges out there. Some of its more advanced features include instant gas-free cancels, instant order books, and market orders.
The platform is highly focused on decentralization and speedness, and it currently has one of the world’s best DEX trading volumes, with 24-hour trade volumes of over $3.6 million according to Coinmarketcap. The platform is mostly dedicated to trading Ethereum and all other ERC-20 tokens.
Another noteworthy fact about this decentralized exchange platform is the fact that it has partnered with the WINGS foundation. This means that all ICO launched on WINGS will eventually find its way onto IDEX.
IDEX is also one of the most accessible platforms of its kind, sporting a user-friendly interface. You will see various Aurora references on the exchange, an all-inclusive decentralized finance hub for dApps.
Bancor is a different type of decentralized exchange service. The most interesting aspect of this exchange is the fact that it does not have typical liquidity problems, as most other DEXs do. It’s not based on the traditional bid/ask model of other decentralized exchanges, as it doesn’t use P2P transactions to match sellers and buyers. This means that users can buy and sell integrated token on the network directly from/to the Bancor Wallet. In fact, it can even exchange funds from any major credit card type to crypto.
Currently, Bancor has a 24-hour trading volume of $1,316,000, making it one of the biggest decentralized solutions for buying and selling tokens at the moment.
Waves DEX is a decentralized exchange service part of the Waves platform with a strong focus on providing an accessible environment for the launch of new ICOs and crypto projects. Quite interestingly, Waves DEX provides the best of both the decentralized and the centralized worlds.
Users can trade either Ethereum or Bitcoin for the Waves tokens, as well as for any other token from the exchange’s list such as Zcash or Litecoin. Basically, any coins built on the Waves platform are supported. One unique feature of the Weaves network is that it allows users to establish and distribute their versions of crypto assets which, in turn, can be traded on the DEX platform.
At the time of this writing, the total 24-hour trade volume on Waves DEX is $5,681,313.
Considering all the advantages that decentralized exchanges have, it’s no surprise that they are becoming more popular . Even big names such as Coinbase and Binance have started to develop their own versions of decentralized exchanges. Even though they may not be as user-friendly or as feature-packed as their centralized counterparts, this is bound to change in the following period.8