Looking to buy, sell, and trade cryptocurrency on a decentralized exchange?
Our team of experts have surveyed the market to find the best decentralized exchanges for investors. By the time you’re finished reading, you’ll understand which exchanges offer the best prices and features for investors like you.
| Quick Look: Best Decentralized Exchanges |
|---|
| Uniswap: Most popular |
| Curve: Best for stablecoins |
| 1inch: Best for low prices |
| PancakeSwap: Best for Binance Smart Chain |
| dYdX: Best for derivative trading |
| IDEX: Best hybrid exchange |
| Balancer: Best exchange and automatic portfolio manager |
| Defillama: Best aggregator of aggregators |
| Osmosis: Best for cross-chain trading |
| StackSwap: Best Bitcoin exchange |
The top 10 decentralized cryptocurrency exchanges
Uniswap
Most popular
Uniswap is the world’s biggest decentralized exchange. You can use Uniswap to buy, sell, and trade ERC-20 tokens on the Ethereum blockchain.
To start using Uniswap, simply plug in your Ethereum wallet. You can then get started trading cryptocurrencies and adding your crypto into Uniswap’s liquidity pools to generate yield.
Because Uniswap is so popular,the platform provides ample liquidity for users to carry their trades. In addition, the exchange is considered very user-friendly!
What’s great about Uniswap:
- One of the most trusted decentralized exchanges
- Low fees (typically 0.3%)
- Easy-to-use interface
- Support for Ethereum and EVM-compatible networks (Polygon, Optimism, Avalanche, Binance Smart Chain, and more!)
- Buy crypto with credit/debit card with Moonpay!
CoinLedger rating: 9.4/10
Why didn’t Uniswap get a higher rating?: Like other decentralized exchanges, Uniswap can be intimidating for beginners new to crypto. In addition, credit/debit card purchases can be expensive (up to 3.25% fees).
Curve
Best for stablecoins
Curve is a decentralized exchange originally designed to allow users to swap stablecoins of similar value. This design helps to help protect liquidity providers and mitigate impermanent loss.
Curve is considered one of the safest and most trusted decentralized exchanges in the space. As a result, many investors put their stablecoins with Curve to earn low risk staking rewards!
What’s great about Curve:
- Trusted exchange in the DeFi space
- Very low fees (around 0.04%)
- Curve offers APYs up to 10% on cryptocurrencies like sETH!
CoinLedger rating: 9.1/10
Why didn’t Curve get a higher rating?: Curve is a complex platform that is recommended only for experienced DeFi users. In addition, Curve is primarily designed for stablecoin trading and supports a limited number of cryptocurrencies.
1inch
Best for low prices
1inch is a decentralized exchange aggregator. That means the platform searches different decentralized exchanges on the Ethereum blockchain to find the lowest fees and best prices for your trades.
1inch allows users to buy, sell, and trade ERC-20 tokens. The exchange even allows you to make purchases with a debit/credit card through Moonpay!
What’s great about 1inch:
- Because 1inch is an aggregator that pulls prices from other exchanges, it supports a wide range of cryptocurrencies!
- 1inch does not charge additional fees — however, you are required to pay for transaction fees from the exchanges that 1inch aggregates from.
- 1inch supports hundreds of blockchain networks and cryptocurrencies!
- 1inch is available on mobile on the App Store and Google Play!
CoinLedger rating: 9.1/10
Why didn’t 1inch get a higher rating?: Like other decentralized exchanges, 1inch is not a good fit for beginner investors. In addition, some DeFi users have turned to platforms that aggregate prices from aggregators like 1inch (such as Defillama).
PancakeSwap
Best for Binance Smart Chain
PancakeSwap is a decentralized exchange built on the Binance Smart Chain (BSC). The platform was founded in 2020, at a time when Ethereum-based exchanges like Uniswap suffered from slow transaction speeds and high gas fees.
Today, PancakeSwap has billions of dollars in liquidity. The platform’s straightforward UI allows users to buy, sell, and trade BSC-based assets. Because the platform is built on the BSC, users pay very low blockchain gas fees.
What’s great about PancakeSwap:
- Low fees (0.25% on spot trading). In addition, Binance Smart Chain has lower gas fees than other blockchains!
- PancakeSwap has passed security audits from companies like Slowmist.
- PancakeSwap offers high APYs from pools and farms!
CoinLedger rating: 8.9/10
Why didn’t PancakeSwap get a higher rating?: At this time, PancakeSwap only supports the Binance Smart Chain. Also, some commentators have criticized the Binance Smart Chain for being more centralized than other blockchains.
dYdX
Best for derivative trading
dYdX is a decentralized exchange that supports lending, borrowing, perpetual trading, and margin trading. These types of transactions are not available on other decentralized exchanges, making dYdX a good option for experienced traders.
In addition, dYdX has partnered with Starkware — an Ethereum Layer 2 scaling solution. As a result, the exchange features low blockchain gas fees.
What’s great about dYdX:
- Very low fees (up to 0.05%)
- More than 36 cryptocurrencies available for trading!
- Support for margin and derivative trading (rare for decentralized protocols)
CoinLedger rating: 9.0/10
Why didn’t dYdX get a higher rating?: If you’re lending on dYdX, it’s important to remember that interest rates can be highly volatile. Also, remember that margin trading is risky and is for experienced traders only!
IDEX
Best hybrid exchange
IDEX is an exchange built on Ethereum. IDEX notably provides a hybrid approach between centralized and decentralized exchanges. The platform offers unique features for traders — including the ability to execute multiple transactions simultaneously with low fees!
What’s great about IDEX:
- Low fees (up to 0.25%)
- Buy cryptocurrency with fiat currency through Wyre
- Open multiple trades at a time!
- Customer support through live chat!
CoinLedger rating: 8.9/10
Why didn’t IDEX get a higher rating?: At this time, IDEX supports Ethereum and EVC-compatible assets only. If you’re interested in the ethos of decentralization, IDEX may not be a good choice due to its hybrid approach.
Balancer
Best exchange/portfolio manager
Balancer is unique among decentralized exchanges because it functions as both an exchange and an automatic portfolio management tool. Balancer liquidity pools support 8 crypto-assets — which means that when you contribute liquidity, you get exposure to all of the assets in the pool.
What’s great about Balancer:
- Balancer’s liquidity pools are a unique way to get exposure to multiple crypto assets at a time!
- Anyone can create a Balancer liquidity pool and manage the ratio between assets.
- While Balancer has faced security challenges in the past, the protocol has since been audited for security by ConsenSys Diligence and other third-parties!
CoinLedger rating: 8.5/10
Why didn’t Balancer get a higher rating?: Because Balancer pools are customizable they can have high fees — fees can range from 0.0001% to 10%. In addition, Balancer has faced security issues in the past — including a hack in 2020.
Defillama
Best aggregator of aggregators
Defillama is a DeFi analytics tool that has recently released a DEX aggregator. The tool aggregates from ‘aggregator’ exchanges like 1inch — giving users the best deals available!
What’s great about Defillama:
- Defillama does not charge additional fees — the platform makes money from referring users to other aggregators!
- As an aggregator of aggregators, Defillama supports a wide range of chains and networks!
- Defillama comes with privacy features — including the ability to hide your IP address!
CoinLedger rating: 8.7/10
Why didn’t Defillama get a higher rating?: Defillama has a very limited user interface with no price charts. Some users also complain that Defillama simply adds extra steps when aggregators like 1inch typically already have the best prices available.
Osmosis
Best cross-chain exchange
Osmosis is a cross-chain exchange built on the Cosmos blockchain. Osmosis supports trades between blockchains like Bitcoin, Ethereum, Solana, and Avalanche!
What’s great about Osmosis:
- Cross-blockchain trading supported!
- Low fees (0.30% on all trades)
- Osmosis has been audited by firms like SlowMist.
- Users have praised Osmosis for its smooth user interface!
CoinLedger rating: 8.8/10
Why didn’t Osmosis get a higher rating?: Compared to some of the other exchanges on this list, Osmosis is a relatively new platform.
StackSwap
Best Bitcoin decentralized exchange
StackSwap is a decentralized exchange built on the Stacks ecosystem — a Layer 2 solution for Bitcoin. StackSwap allows users to trade BTC for other cryptocurrencies and get started with Stacks — which enables DeFi built on Bitcoin.
What’s great about StackSwap:
- Support for BTC and access to the Stacks ecosystem
- Low fees (0.30% on all trades)
- StackSwap uses AI models to continuously improve the platform’s performance.
CoinLedger rating: 7.9/10
Why didn’t StackSwap get a higher rating?: In terms of Total Value Locked, StackSwap is significantly smaller than most of the exchanges on this list. While the Stacks ecosystem has existed for multiple years, it hasn’t picked up traction amongst DeFi users.
What is a decentralized exchange?
A decentralized exchange allows users to buy, sell, and trade cryptocurrencies without a centralized intermediary to provide liquidity and verify transactions. Instead, other users provide liquidity and transactions are verified through the blockchain.
This arrangement allows crypto users to make transactions without the need for financial middlemen like centralized exchanges or banks.
Is Coinbase a decentralized exchange?
Coinbase is not a decentralized exchange. Coinbase is centralized — which means that the platform acts as the middleman for buyers and sellers and has the power to censor transactions.
Decentralized exchanges typically allow users to trade peer-to-peer through anonymous wallets like MetaMask.
Centralized vs. decentralized exchanges
Centralized exchanges like Coinbase are typically considered better for new investors who may not understand the complexities of decentralized finance. Unlike decentralized exchanges like Uniswap, centralized exchanges typically have easy UI, support chat functionality, and can be linked to your bank account.
The advantages of decentralized exchanges
There are many reasons why investors may choose to use a decentralized exchange.
No custody
Centralized exchanges take custody of your cryptocurrency. This can lead to situations like the FTX collapse, where millions of investors lost access to their crypto. On the other hand, decentralized exchanges allow users to trade while custodying their crypto in their own wallets.
Larger selection of cryptocurrencies
Centralized exchanges often take time to approve new cryptocurrencies for trading. As a result, decentralized exchanges often have a larger selection of coins to buy, sell, and trade.
Censorship resistant
Because decentralized exchanges are controlled by centralized liquidity providers, there is no middleman that can censor and restrict transactions.
What important factors should I consider when choosing a cryptocurrency exchange?
There are several factors you should consider when choosing a decentralized exchange.
Liquidity
Liquidity is a measure of how quickly your crypto-assets can be swapped for other crypto-assets. If your exchange has low liquidity, you may have trouble buying and selling different cryptocurrencies.
Reputation
To protect your crypto holdings, it’s important to choose a decentralized exchange with a reputation for trustworthiness and security.
User interface
A good user interface allows you to make more efficient trading decisions. Because what constitutes a good user interface is somewhat subjective, you should try out multiple exchanges to see which works best for you.
How do I get started with a decentralized wallet?
To get started with a decentralized exchange, you can follow this three-step process.
- Get started with a wallet: Find a wallet that allows you to interact with decentralized protocols like Uniswap. MetaMask and Coinbase Wallet are two popular wallets that come with easy-to-use Google Chrome extensions.
- Fund your browser wallet: You’ll need cryptocurrency to get started making transactions on a decentralized exchange. To get started, you should buy cryptocurrency on a centralized exchange and transfer it to your wallet.
- Connect your wallet to a decentralized exchange: Once you’ve funded your wallet, you can start making trades and providing liquidity to your decentralized exchange of choice.
Are decentralized exchanges legal in the US?
Decentralized exchanges like Uniswap are legal in the United States.
Do decentralized exchanges report to the IRS?
Starting in the 2025 tax year, decentralized exchanges like Uniswap may be required to issue Form 1099-DA to customers and the IRS. Due to regulations written into law with the Build Back Better Act, decentralized exchanges that fail to comply with these policies may not be allowed to operate in the United States.
It’s possible that decentralized exchanges will need to introduce KYC policies to comply with reporting requirements.
Do I need to pay tax on decentralized exchange transactions?
Though transactions on decentralized exchanges are pseudo-anonymous, you should report your cryptocurrency taxes.
Remember, transactions on blockchains like Bitcoin and Ethereum are publicly visible. In past years, the IRS has worked with contractors like Chainalysis to analyze blockchain transactions and crack down on crypto tax fraud.
If you’re looking for an easy way to simplify the tax reporting process, CoinLedger can help. The platform integrates with blockchains like Ethereum, Binance Smart Chain, and Solana. Just enter your wallet address and let the platform pull your transactions automatically!
Get started with a free account today.
