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Erica StanfordDecentralised Crypto Exchanges
Updated: Nov 15, 2021
With many people taking interest in cryptocurrency, understanding the different types of crypto exchanges is crucial. One platform would be Decentralised Crypto Exchanges — know for its complexities, DEXs rely on automated smart contracts and allows users to use peer-to-peer (P2P) transactions,
Some of the popular examples include the following:
Uniswap
Launch Date:
The first mainstream Decentralized Exchange to capture the imagination of cryptocurrency enthusiasts, after launching in November 2018
About Uniswap:
Based on the Ethereum network, Uniswap allows users to swap tokens directly with the network, with other users providing the liquidity (and being rewarded for it)
In terms of trading volume, Uniswap is among the biggest exchanges in the world
How you can use Uniswap:
You do not need to make an account, but you will need a browser extensions wallet, with MetaMask being the most popular
Trading fees are 0.3% per trade, however, gas fees are separate and can cost $10+
The largest liquidity provider on the Ethereum network
All ERC-20 tokens are compatible in theory, which means thousands of different tokens from many exciting projects
Safe to use, however, when the Ethereum network is clogged, fees are extortionate and can wipe out trading profits
Here’s a great guide on how to use it
SushiSwap
About SushiSwap:
SushiSwap is a fork of Uniswap, meaning they took the open-source code and improved upon it, launching in August 2020
Based on the Ethereum network, SushiSwap allows users to make instant trades between ERC-20 tokens, with network users providing the liquidity
It is in the top five biggest decentralized exchanges
Trading fees are 0.3% per trade
Themed like a Japanese restaurant menu
How you can use SushiSwap:
Users can earn interest by staking tokens to get additional rewards
Bruised reputation due to the Founder attempting and rug pull, failing and then handing the project over to FTX Founder Sam Bankman-Fried
Here’s a guide for using SushiSwap
PancakeSwap
Launch Date:
Launched on September 20th, 2020
About Pancake Swap:
PancakeSwap is a fork of SushiSwap, meaning they took the open-source code, improved it, and...
PancakeSwap runs on the Binance Smart Chain, which makes it much faster and cheaper than its predecessor
0.20% trading fees for all transactions
Tired of high transaction fees on other networks, the developers built PancakeSwap and immediately stole a huge percentage of the DeFi market share, causing a great deal of excitement
How you can use Pancake Swap:
Users can earn CAKE or other cryptocurrencies through the exciting staking model, with coins that won’t be found on any other platform
You don’t need to create an account to use PancakeSwap, but you will need a MetaMask or Binance Smart Chain browser wallet
Want to learn how to use PancakeSwap? This is a great guide
1Inch
Launch Date:
Liquidity aggregator launched in 2019 but really grew in popularity in the second half of 2020
About 1Inch:
Pulls in liquidity from multiple partner exchanges with the aim of making trades faster and with better value due to reduced ‘slippage’
Offers a range of tokens from both the Binance Smart Chain and Ethereum networks
Friendly user interface for making token swaps
1INCH token allows users to reduce trading fees, which are variable depending on the transaction in question
How you can use 1Inch:
You don’t need to make an account, simply choose your network, wallet type, and quickly approve access to the platform
Here’s a guide to get you started