Decentralized exchanges offer a secure and private way to trade cryptocurrencies without intermediaries. Understanding features like liquidity, fees, and supported tokens can help traders find the right platform.
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Top-rated decentralized cryptocurrency exchanges
Here’s a breakdown of the top-rated DeFi exchanges with reviews and pros and cons.
Note: details, rates, and fees are subject to change. Always check with the platform for current information.
Balancer
Best decentralized exchange for crypto portfolio management
Balancer serves as a protocol for automated portfolio management, offering multi-asset liquidity pools and dynamic fees. Designed for advanced DeFi users aiming to diversify, Balancer supports ERC-20 tokens and custom pool ratios.
– Pros & Cons
Pros
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Unique multi-token pool structures
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Supports swapping multiple tokens in one transaction
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Dynamic trading fees can reduce costs
Cons
– Why our experts picked it
Balancer’s unique approach to multi-asset pools and on-the-fly fee adjustments provides powerful ways for advanced users to manage diversified portfolios across top decentralized exchanges seamlessly.
Curve
Best decentralized exchange for stablecoins
Curve specializes in stablecoin trading, minimizing impermanent loss and offering low slippage. It excels in efficient swaps for pegged assets like USDC, USDT, and DAI.
– Why our experts picked it
Curve’s stablecoin-focused pools reduce price volatility, making it a top pick for stablecoin holders seeking stable yields on a decentralized exchange.
DeFiLlama
Best decentralized exchange for aggregation
DeFiLlama aggregates liquidity sources (e.g., 1inch) to present the best possible price for each swap. By scanning multiple protocols, it helps traders find optimized exchange rates.
– Pros & Cons
Pros
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No additional aggregator fees
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Supports a variety of blockchains
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Frequently updated analytics
Cons
– Why our experts picked it
DeFiLlama’s aggregator-of-aggregators approach gives broad coverage of the top decentralized exchanges, ensuring you get strong prices with minimal manual searching.
dYdX
Best decentralized exchange for derivative trading
dYdX offers leveraged margin trading, perpetual contracts, and advanced order types, catering to traders who want derivatives without a centralized intermediary.
– Pros & Cons
Pros
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Leverage and margin features for advanced strategies
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Lower gas costs via Layer 2
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Competitive fees and deep liquidity
Cons
– Why our experts picked it
dYdX’s unique derivative focus and Layer 2 integration make it a standout for sophisticated traders seeking more than simple spot swaps on a decentralized crypto exchange.
IDEX
Best decentralized exchange with a hybrid approach
IDEX combines aspects of centralized speed and decentralized security. Users keep custody of their assets, while off-chain order matching leads to quick trades.
– Why our experts picked it
IDEX merges user custody with speed akin to CEXs, appealing to traders who want the best decentralized exchange experience with faster order execution.
Nomiswap
Best decentralized exchange for low fees
Nomiswap focuses on minimal trading fees (around 0.1%), a unique referral program, and CeDeFi features bridging centralized and decentralized finance.
– Why our experts picked it
Nomiswap offers a cost-effective environment for regular traders, combining low fees with liquidity incentives to remain competitive among top decentralized exchanges.
Osmosis
Best decentralized exchange for: Cross-chain trading
Osmosis leverages the Cosmos ecosystem to enable cross-chain swaps with tokens from various blockchains. Intuitive UI helps users trade assets quickly.
– Pros & Cons
Pros
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Low fees for multi-chain transactions
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Strong liquidity in Cosmos tokens
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Simple interface for a cross-chain platform
Cons
– Why our experts picked it
Osmosis’s cross-chain bridging within Cosmos fosters a broad selection of coins. Its user-friendly approach to multi-chain makes it a strong choice for bridging tokens.
PancakeSwap
Best decentralized exchange for Binance Smart Chain
PancakeSwap is one of the most popular dex crypto solutions for the BNB Chain. Low fees, a wide variety of BEP-20 tokens, and yield farming define its ecosystem.
– Pros & Cons
Pros
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Minimal gas fees on BNB Chain
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High liquidity for popular tokens
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Earn options via pools, lotteries, farms
Cons
– Why our experts picked it
PancakeSwap thrives on BSC’s lower fees, making it a top decentralized exchange for rapid, cost-efficient trades and yield farming.
StackSwap
Best decentralized exchange for Bitcoin exchange
StackSwap operates on the Stacks chain, bringing DeFi functionalities—swaps, farming, and AI-driven optimizations—to the Bitcoin network.
– Pros & Cons
Pros
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Focus on Bitcoin-based DeFi
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AI-driven performance improvements
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Low fees in the Stacks ecosystem
Cons
– Why our experts picked it
StackSwap’s bridging of Bitcoin and DeFi stands out, letting BTC holders engage in on-chain trading with minimal friction.
SushiSwap
Best decentralized exchange for crypto yield farming
SushiSwap is known for yield farming, supporting many tokens across multiple chains, plus liquidity incentives and governance participation for token holders.
– Pros & Cons
Pros
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Instant token swaps on various chains
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Farming rewards for liquidity providers
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Governance token for community-driven improvements
Cons
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0.3% swap fee can be higher than some
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Initially forked from Uniswap, so brand confusion
– Why our experts picked it
SushiSwap’s multi-chain presence, yield farming, and active community keep it relevant among the top decentralized exchanges. It appeals to traders and yield farmers alike.
Uniswap
Best decentralized exchange for ERC-20
Uniswap is the largest decentralized exchange globally, facilitating the buying, selling, and trading of ERC-20 tokens on the Ethereum blockchain. Its user-friendly and offers ample liquidity for trades.
– Pros & Cons
Pros
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Trusted and widely used platform
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Low fees (typically 0.3%)
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Supports multiple networks including Ethereum, Polygon, and Binance Smart Chain
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Allows purchases with credit/debit cards via Moonpay
Cons
– Why our experts picked it
Uniswap’s popularity and user-friendly interface make it a great choice for crypto traders at all levels.
What is a decentralized exchange?
A decentralized exchange enables peer-to-peer crypto trades without a centralized authority. Users connect their wallets, trade from personal balances, and maintain control of private keys. They typically operate via smart contracts, ensuring transparent on-chain transactions rather than an intermediary.
Because you hold your own keys on decentralized exchanges, always keep your seed phrase secure – ideally on paper in multiple, secure locations.
How does decentralized exchanges work?
Decentralized crypto exchanges operate with automated market makers or peer-to-peer order books, removing a centralized party. Smart contracts match orders on-chain, with tokens transferred directly between user wallets. Some advanced DEXs use Layer 2 solutions or aggregator services for more efficient, cross-chain trades.
Benefits/Advantage of decentralized crypto exchanges
Control: No third party holds your funds
Security: Less vulnerable to hacks since there’s no single custody point
Privacy: No KYC required for most DEXs
Censorship resistance: On-chain code ensures open access
Risks of decentralized crypto exchanges
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Impermanent loss if you provide liquidity
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Lower liquidity and possible higher slippage than some CEXs
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No formal customer support or recourse if you lose keys
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Smart contract exploits
Centralized vs. decentralized exchanges
A centralized exchange acts as a custodian, controlling your private keys. They often provide higher liquidity and advanced order types but can be hacked. Decentralized exchanges let you self-custody your crypto, which boosts security but can lead to less liquidity or higher slippage.
If you frequently trade altcoins and need advanced order types, a CEX might be more manageable. For maximum security and control, a DEX is ideal.
How to pick a decentralized cryptocurrency exchange?
Focus on liquidity, fees, supported blockchains, and user experience. Check community audits or code reviews for security and confirm that you can trade or stake the assets you prefer. Many top decentralized exchanges also provide governance tokens or yield farming, so weigh the benefits of those features.
Getting started with a decentralized wallet
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Choose a wallet (e.g. MetaMask).
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Download or install the wallet extension/app.
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Secure your seed phrase offline.
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Fund the wallet from another wallet or centralized exchange.
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Connect the wallet to a DEX and trade.
Check your wallet’s network settings before swapping. For example, switching from Ethereum to Binance Smart Chain in MetaMask is crucial to see the correct tokens.
Do decentralized exchanges report to the IRS?
Decentralized exchanges generally don’t collect user data or automatically report trades to the IRS. However, proposed regulations could soon require them to issue crypto tax forms. Always maintain your own records and consult with a crypto tax professional to remain compliant.
Do I need to pay tax on decentralized exchange transactions?
Yes. Whether using a top decentralized exchange or a smaller platform, any crypto trade is generally a taxable event in many jurisdictions. Keep track of cost basis, proceeds, and relevant dates. Our TokenTax platform can integrate your on-chain data to simplify your tax reporting.
Calculate your crypto gains with our free crypto profit calculator.