A decentralized exchange (DEX) is a peer-to-peer marketplace where you can trade tokens without any intermediaries. They're convenient because you can trade thousands of tokens without having to provide ID, KYC or an email address. Just connect your MetaMask or crypto wallet and you're ready to trade.
However, finding the best DEX can be tough. There are 200+ DEXs according to CoinMarketCap and nearly 300 according to CoinGecko. This post will guide you on the best decentralized exchanges in the crypto world. To create this list we used a number of criteria like popularity, trading volume, features, ease-of-use, reputation, and more.
Here are the 3 best DEXs in the crypto space in 2022:
The 1Inch Exchange scans prices across many DEXs to give you the lowest prices for your trades. Because of that, it has deeper liquidity and less slippage than other DEXs so you always get the best market rates. Since 1Inch is one of the most popular DEXs in the world and gives you the best rates, it's our #1 pick. It supports 10 blockchains including Ethereum, BNB Chain, Polygon, Optimism and Avalanche so you can trade 1000s of tokens.
Uniswap is the largest DEX in the world based on trading volume according to CoinGecko. It's built on the Ethereum blockchain allowing you to trade thousands of ERC-20 tokens in just a few taps. As of this writing, it has $11.34B TVL and $1.53B in 24hr trading volume. You can also trade on Layer 2 networks like Polygon and Optimism to avoid high ETH gas fees. To use it, you just need to connect a wallet such as MetaMask or Trust Wallet.
Pancakeswap is the largest DeFi exchange on the BNB Chain where you can trade thousands of BEP-20 tokens. It's very easy to use and as of this writing, it has 1.9 million users in the last 30 days. The network fees are usually just a few cents, so its attractive if you want to make lots of trades without worrying about high transaction fees. Pancakeswap also has liquidity pools, yield farming, an NFT marketplace, lotteries, and more.
What Is The Largest DEX?
Uniswap is the largest DEX in the world right now with 68% market share on ETH according to Dune. It has 110M lifetime trades with $1.1T in lifetime trading volume. According to CoinGecko, it's followed by Pancakeswap and Curve Finance by highest trading volume.
What To Look For In A DEX
The best decentralized exchanges will offer low fees, lots of trading pairs, anonymity, ease of use, and have lots of users and trading volume. You also want it to have a good reputation and track record but this is harder to judge since the industry is so new. If it checks all of these boxes, you'll minimize your fees, your trades will execute instantly, and you'll have a better trading experience.
What Are The Risks of Decentralized Exchanges?
Using a DEX poses risks. Here are some things to keep in mind:
Decentralized Exchanges remove the need for banks and brokers and have been growing in popularity with the rise in DeFi. There are risks to be aware of when trading on DEXs, but if you take the necessary precautions they can be a great way to trade thousands of tokens anonymously. They also provide many ways to earn passive income and generate yield depending on your risk tolerance.
In our opinion, these are the top platforms based on the data. These DEXs have over 1 million users and the highest market share and trading volume in the world right now.