What is a Decentralized Exchange?
Decentralized Exchange, or DEX meaning in the crypto market, is a marketplace for crypto traders where transactions occur peer-to-peer.
Decentralized Exchange, or DEX meaning in the crypto market, is a marketplace for crypto traders where transactions occur peer-to-peer or between trading partners without intermediaries or financial institutions such as banks, brokers, or payment processors. This is made possible through the mathematical mechanism called Automated Market Maker (AMM), which allows the freedom for all kinds of transactions that connect people globally without any restriction.
Now let’s look at how Decentralized exchange vs Centralized exchange is different. While the DeFi market is becoming a competing alternative to ordinary Centralized Exchange, DEX plays a crucial role in driving the DeFi market forward. In comparison, DEX typically offers lower servicing fees, faster processes, and a wider service area. Furthermore, traders can get access to all kinds of crypto assets on DEXs, compared to CEX, which only limits some tokens. However, in exchange, crypto traders have to burden themselves with an impermanent loss which is unavoidable in the DeFi market. Such are the pros and cons of DEX.
With this said, let’s make ourselves familiar with the list of the best Decentralized Exchange examples in the market so far:
dYdX
In this regard, there is also an evolutionary product prevailing DEX in many terms known as DEX aggregator. DEX aggregator offers almost the same services as DEX with much wider liquidity, more tokens, and even lower service fee to users. DEX aggregators achieve this possibility by combining service pools of various DEX together. Thus, there is no harm in choosing the service of DEX aggregator in all terms.
Some of the best DEX aggregators are listed below:
Paraswap
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