Our picks: Best decentralized crypto exchanges of 2024
Our crypto tax experts have researched, identified, and reviewed our top selections for today's best DeFi exchanges, including platforms like OKX, Nomiswap, and Uniswap.
Whether you're an experienced DeFi trader seeking exceptional trading features, looking for a balance between low fees and advanced features, or completely new to the DeFi space, our expert reviews will help guide you toward some of the best options.
Always conduct your own research and understand the risks involved before investing in crypto.
Best decentralized crypto exchanges
OKX
Best DeFi exchange for crypto overall
Nomiswap
Best DeFi exchange for low fees
Uniswap
Best DeFi exchange for beginners
Methodology
How our crypto tax professionals selected the best DeFi exchanges
Our process for selecting the best DeFi exchanges involved a comprehensive evaluation of various critical factors tailored to meet the diverse needs of DeFi users. Our team of crypto tax professionals meticulously assessed the following aspects to determine our top recommendations:
Platform Features and User Experience: We thoroughly examined the functionality and user-friendliness of each DeFi exchange and app. This evaluation included an assessment of the trading interfaces, charting tools, order types, and customization options to ensure that users have access to a seamless and intuitive trading environment.
Security: Recognizing the paramount importance of security in the DeFi space, we conducted a rigorous assessment of each platform's security protocols. This included a deep dive into measures such as two-factor authentication, cold storage solutions, insurance coverage, and third-party security audits to identify exchanges prioritizing users' assets' safety.
Cryptocurrency Diversity: To cater to a wide range of DeFi enthusiasts, we evaluated each platform's variety of supported cryptocurrencies. Our goal was to identify exchanges that provide a diverse selection of tokens and trading pairs, empowering users to craft their DeFi strategies with ample choices.
Fees and Costs: We scrutinized trading fees, gas fees, and other associated charges for each DeFi exchange and app. Our objective was to pinpoint platforms with competitive fee structures, ensuring users receive optimal value for their DeFi activities.
Innovation and Unique Offerings: Beyond basic trading functionalities, we identified exchanges that offered innovative features and services, such as yield farming, liquidity provision, governance participation, and NFT trading. These unique offerings enhance the DeFi experience and broaden the appeal to a broad user base.
Community and Governance: We considered the strength of the community and the level of decentralized governance in each platform. Robust communities and transparent governance mechanisms are essential for the sustainability and growth of DeFi ecosystems.
Feedback and User Reviews: User feedback and reviews played a crucial role in our decision-making process. Positive feedback regarding ease of use, security, and overall satisfaction with the platform carried substantial weight in our evaluations.
Total Value Locked (TVL): The amount of assets locked in DeFi protocols is a crucial indicator of a platform's popularity and trustworthiness. We considered the TVL on each platform as a measure of its adoption and success within the DeFi space.
By assessing these factors, our team of crypto tax professionals curated a selection of the best DeFi exchanges and apps for 2024, catering to a broad spectrum of trading preferences, experience levels, and DeFi goals. Whether you're a seasoned DeFi user seeking advanced features or a newcomer looking for simplicity, our expert recommendations are designed to guide you toward the best DeFi exchange for crypto as you use it.
As always, conducting your own research and due diligence before engaging in DeFi activities is essential, as the DeFi space carries inherent risks, including smart contract vulnerabilities and market volatility.
Decentralized exchanges comparison
These decentralized exchanges we've reviewed below cater to various needs, from trading specific tokens to engaging in advanced DeFi features and more advanced leverage trading.
Your choice of the best DeFi exchange for your purposes should align with your experience preferences and experience level, and these reviews will point you in the right direction.
dYdX
Best DeFi exchange for derivatives
dYdX emerges as the preferred destination for traders immersed in the world of crypto derivatives. The platform specializes in perpetual contracts that extend leverage of up to 20x, catering to those inclined towards high-risk trading strategies.
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Pros & Cons
Pros
Recognized as the top decentralized exchange for crypto derivatives trading
Accessible high leverage, reaching up to 20x
Commands substantial daily trading activity
Cons
The Android app is still in development
Tends to be less welcoming to inexperienced traders
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Why our experts picked it
dYdX's focus on crypto derivatives and leveraging positions makes it a top choice for seasoned traders seeking advanced trading options.
Halo
Best DeFi wallet for portfolio management
Kucoin's Halo wallet application connects users to DeFi while accommodating seven blockchain standards. It grants access to a diverse array of digital assets and incorporates functionalities like portfolio tracking and a "smart wallet tracker."
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Pros & Cons
Pros
Supports cross-chain token swaps spanning seven blockchain networks
Delivers a user-friendly interface enriched with portfolio tracking features
Permits staking activities, enabling users to accrue yields
Accessible through a mobile application or a Chrome browser extension
Cons
Does not support crypto savings accounts
The fee structure could be more clear
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Why our experts picked it
Kucoin's Halo application combines decentralized trading with helpful portfolio tracking capabilities, making it an appealing choice for traders and investors alike.
iToken
DeFi wallet with a wide range of crypto
Huobi's iToken application stands out as an adaptable platform that serves as a conduit for decentralized services spanning various blockchain networks. Its expansive catalog exceeds one million digital assets across chains including Ethereum, Binance Smart Chain, Solana, Tron, and more.
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Pros & Cons
Pros
Facilitates transactions across a wide spectrum of blockchain networks
Offers a decentralized app environment where users retain authority over their private keys
Provides continuous customer support via the app
Cons
Lack of educational resources
Somewhat obscure fee structure
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Why our experts picked it
Huobi's iToken app embraces a wide array of cryptocurrencies and follows a decentralized approach, making it a convenient choice to manage diverse digital assets.
Kine
Best DeFi exchange for leverage
Kine distinguishes itself as a peer-to-peer crypto exchange that excels in providing leverage of up to an impressive 200x, catering to traders who desire significant exposure. It lends support to a variety of blockchain networks for seamless cross-chain swaps.
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Pros & Cons
Pros
Offers substantial leverage, reaching up to 200x, particularly for large-cap tokens
Features competitive commission fees
Extends support to multiple blockchain networks
Commands robust daily trading activity
Cons
Not an ideal choice for novice crypto traders
Does not provide DeFi earning tools
Enforces KYC for fiat deposits
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Why our experts picked it
Kine's emphasis on high-leverage options and broad asset support positions it as an attractive destination for traders seeking substantial market exposure.
Nomiswap
Best DeFi exchange for low fees
Nomiswap, introduced in early 2022, establishes itself as a decentralized exchange (DEX) renowned for its innovative approach to trading fees. Users benefit from just 0.1% trading fees.
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Pros & Cons
Pros
Imposes minimal trading fees of just 0.1%
Offers cashback rewards and incentives in the form of NMX, possibly reducing trading expenses to zero
Embodies elements of both decentralized and traditional finance, constituting a CeDeFi hybrid
Features a comprehensive referral program that rewards users generously
Delivers competitive APYs on staking and farming activities
Cons
Currently, its primary support extends to tokens built on BNB Chain, with plans to expand to other blockchains in the future
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Why our experts picked it
Nomiswap's innovative stance on trading fees, complemented by its CeDeFi ecosystem and robust referral program, renders it a compelling choice for traders and investors aiming to optimize their returns while curtailing costs.
OKX
Best DeFi exchange for crypto overall
OKX’s innovative aggregator protocol systematically sources the most favorable prices from over 200 third-party DEXs. Supporting a diverse assembly of 15 blockchain networks for cross-chain trading, OKX offers a range of DeFi services, encompassing savings accounts, staking, yield farming, vaults, and more.
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Pros & Cons
Pros
Enforces an aggregator protocol that orchestrates the aggregation of optimal prices from a vast pool of over 200 DEXs
Extends support to 15 diverse blockchain networks, permitting seamless cross-chain transactions
Offers a wide array of DeFi services, including savings accounts, staking, yield farming, and a burgeoning NFT marketplace
Cons
Commissions on OKX transactions remain undisclosed until an order is executed
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Why our experts picked it
OKX's innovative aggregator protocol, comprehensive support for blockchain networks, and vast array of DeFi offerings combine to make it our foremost choice for decentralized trading in 2023.
PancakeSwap
Best DeFi exchange for BSC
PancakeSwap assumes its role as the preeminent decentralized exchange designed for trading Binance Smart Chain (BSC) tokens. It frequently earns the distinction of being the initial exchange listing for freshly launched BSC tokens.
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Pros & Cons
Pros
Positioned as the top decentralized crypto exchange for trading BSC tokens
Provides access to nascent BSC projects, fostering early engagement
Opens doors to yield generation through farming and staking tools
Streamlined access, as no account creation is necessitated – users can effortlessly connect their wallets to commence trading
Cons
Solely accommodates transactions on the Binance Smart Chain
Does not incorporate support for crypto savings accounts
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Why our experts picked it
PancakeSwap's dedicated focus on BSC tokens coupled with its user-friendly interface amplifies its appeal for enthusiasts and investors exploring cryptocurrencies on the Binance Smart Chain.
SushiSwap
Best DeFi exchange for yield farming
SushiSwap is a major decentralized exchange, supporting support for over 400 tokens. Users can quickly swap tokens without divulging personal information, and they have the option to partake in yield farming pools.
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Pros & Cons
Pros
Facilitates instant token swaps without KYC
Supports a range of blockchain networks, including Ethereum and Binance Smart Chain
Transparent fee structure
Nurtures liquidity pools with competitive yields
Cons
Restricts the number of supported tokens in comparison to other DEXs
The 0.3% token swap fee may be perceived as relatively high
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Why our experts picked it
SushiSwap's simplicity and the array of yield farming possibilities position it as an appealing choice for users who want to trade and accumulate yields on a variety of tokens.
Uniswap
Best DeFi exchange for beginners
Uniswap stakes its claim as one of the foremost decentralized exchanges, with substantial trading volume, particularly for ERC-20 tokens. It integrates multiple blockchain networks, including Ethereum, Binance Smart Chain, Polygon, Celo, Optimism, and Arbitrum.
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Pros & Cons
Pros
Substantial liquidity levels for popular ERC-20 tokens
No KYC
Ranks among the top decentralized exchanges for yield farming activities
Supports over 300 dApps
Cons
The 0.3% trading fees may be considered relatively high
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Why our experts picked it
Uniswap's impressive liquidity and adaptability across diverse blockchain networks cement its position as an optimal choice for trading ERC-20 tokens and partaking in the DeFi ecosystem.
Which decentralized cryptocurrency exchange has the lowest fees?
Nomiswap stands out for comparatively low fees, specifically 0% in swap fees. This platform allows users to trade and swap crypto assets without incurring transaction costs.
Nomiswap is also recognized as a top DEX regarding total value locked (TVL) on the BNB Chain, making it a favorable choice for traders looking for cost-effective trading options.
While Nomiswap primarily supports tokens built on the BNB Chain, it has plans to expand its integration to other blockchains in the future, aiming to become a multi-chain DEX with low fees across various networks.
What are the best DeFi exchanges for beginners?
For beginners, Uniswap and SushiSwap are excellent DeFi exchanges. Uniswap features a user-friendly interface and a straightforward trading process, making it ideal for newcomers. It supports a wide range of tokens and benefits from a strong community presence, providing ample resources for new users.
SushiSwap offers similar advantages, with additional features like yield farming and staking that enable beginners to earn while they learn.
Both platforms emphasize ease of use and community support, making them top choices for those starting their DeFi journey. However, as with any DeFi activity, it's advisable to start small and proceed cautiously due to inherent risks.
What is the safest decentralized exchange?
Uniswap stands out as one of the safer options in DeFi, with several features contributing to its security reputation. First, it is one of the most established and widely used DEXs, with a large user base and a history of successful operation since its launch. This longevity and popularity indicate a level of trust within the DeFi community.
Additionally, Uniswap's smart contract code has been audited multiple times by reputable security firms, which helps ensure vulnerabilities are minimized.
Uniswap's open-source nature allows the community to scrutinize and improve the platform's code and contribute to its overall security.
What is a decentralized exchange?
A decentralized exchange (DEX) is a platform that allows users to trade cryptocurrencies directly with one another without the need for an intermediary or central authority.
These platforms operate using smart contracts on various blockchain networks, which automate and secure transactions directly between users. They afford a degree of anonymity and direct control over crypto transactions.
Centralized vs. decentralized exchanges
The primary difference between centralized and decentralized exchanges is the control over the trading assets. Centralized exchanges hold users’ funds and facilitate trades, offering faster transactions and customer support.
Decentralized exchanges, on the other hand, allow users to maintain control over their funds by interacting directly with smart contracts on the blockchain, enhancing privacy and reducing risks of server downtime and hacks.
Benefits of decentralized exchanges
Decentralized exchanges offer several benefits, including increased privacy, reduced risk of hacking, and control over one's own funds. They also provide access to a broader range of tokens and typically have lower fees than their centralized counterparts.
Additionally, DEXs are known for promoting financial inclusion by providing services regardless of geographical location or financial status.
Taxes and decentralized exchange transactions
Transactions on decentralized exchanges are subject to the same tax regulations as those on centralized platforms. This includes reporting capital gains and losses from cryptocurrency transactions.
It's essential to maintain detailed records of all trades, as each transaction could be a taxable event depending on your jurisdiction. Learn more in our DeFi tax guide, and when in doubt, consult a crypto tax professional.
Final verdict about the best DeFi exchange in 2024
OKX: Best DeFi exchange overall
OKX stands out as the best overall DeFi exchange in 2024 due to its innovative aggregator protocol, which sources optimal prices from over 200 third-party DEXs. Supporting 15 blockchain networks for cross-chain trading, OKX offers a comprehensive range of DeFi services, including savings accounts, staking, yield farming, vaults, and more.
Nomiswap: Best DeFi exchange for low fees
Nomiswap, introduced in early 2022, is renowned for its innovative approach to trading fees, offering users just 0.1% trading fees. With a CeDeFi ecosystem, a robust referral program, and competitive APYs on staking and farming, Nomiswap is a cost-effective and feature-rich choice.
Uniswap: Best DeFi exchange for beginners
Uniswap is an excellent option for beginners, offering a user-friendly interface and a straightforward swapping process. It supports a wide range of tokens, making it accessible to users looking to start their DeFi journey. Uniswap's liquidity and adaptability across various blockchain networks make it an optimal choice for trading ERC-20 tokens and participating in the DeFi ecosystem.
Best decentralized exchange FAQs
Here are answers to frequently asked questions about the best DeFi exchange for crypto and what is the best DeFi exchange. DeFi users will also find our comprehensive DeFi tax guide helpful when strategizing and preparing their crypto taxes.
What crypto exchanges are decentralized?
Decentralized crypto exchanges (DEXs) operate without a centralized authority or intermediary. Some well-known decentralized exchanges include Uniswap, SushiSwap, Curve, PancakeSwap, and dYdX.
What are the benefits of decentralized cryptocurrency exchanges?
Decentralized cryptocurrency exchanges offer several advantages. Firstly, they provide greater user control and privacy because users trade directly from their wallets, reducing the risk of hacks or data breaches associated with centralized platforms.
Secondly, DEXs often have lower fees since they eliminate intermediaries, making them cost-effective for traders.
Additionally, decentralized exchanges are accessible to a global user base. They also contribute to the overall decentralization and security of the cryptocurrency ecosystem by reducing single points of failure.
Finally, DEXs support a wide range of tokens, promoting innovation and diversity within the crypto space.
Is Coinbase decentralized?
Coinbase’s retail trading platform at Coinbase.com is a centralized exchange.
Coinbase Wallet, however, is a decentralized self-custody platform that allows users to engage directly with the blockchain and retain complete control over their private keys and digital assets.
What is a P2P crypto exchange?
A Peer-to-Peer (P2P) cryptocurrency exchange operates as a platform where users can directly engage in digital currency trading with one another.
Through these platforms, users can browse listings created by sellers and choose the one offering the most suitable payment method, all while retaining complete control over their assets.
