Decentralized exchanges started to gain popularity in 2017 and 2018 because they provide distinct advantages over centralized exchanges. Most notably, decentralized exchanges are considered much safer than their centralized counterparts as funds are always kept by the user and are not held on a centralized exchange server.
In this guide, you will learn what a decentralized exchange (DEX) is and you will discover the best decentralized exchanges on three of the popular blockchain networks; Ethereum, EOS, and Tron.
What Is a Decentralized Exchange (DEX)?
A decentralized exchange, commonly referred to as a DEX, is a digital asset exchange that operates without a centralized authority. On a DEX, users trade directly with one another on a peer-to-peer basis on the blockchain.
Generally, decentralized exchanges leverage smart contracts to enable peer-to-peer trading directly on the blockchain so that users can hold their own funds as opposed to having to deposit them on an exchange account. Additionally, trading on decentralized exchanges can be conducted with complete privacy as there are usually no signup or KYC requirements. Finally, trading on a DEX usually incurs lower trading fees than on their centralized counterparts as blockchain transaction fees are usually the only costs incurred.
The main drawback of decentralized exchanges is that they require a certain degree of technical know-how and an understanding of how smart contracts work. Hence, they are not ideal for new digital asset investors.
Best Decentralized Exchanges
We have compiled a list of the most popular decentralized exchanges on Ethereum, EOS, and Tron that you can use to trade digital tokens in 2019.
| Name | Description | Blockchain | Launch Year | Token Balance | Users (24hrs) | Volume (7-day) in USD | Transactions (7-day) | Score |
|---|---|---|---|---|---|---|---|---|
| Newdex | Launched in 2018, Newdex claims to be the first decentralized exchanges on the EOS blockchain. Newdex enables secure, real-time, peer-to-peer trading of EOS tokens directly on the EOS blockchain. This DEX has emerged as the most popular decentralized exchange for EOS users through the combination of a user-friendly UI and a long list of tradable tokens. | EOS | 2018 | 99,800 | 1,200 | 12,100,000 | 257,500 | 4.5 |
| IDEX | Launched in 2018, IDEX is widely considered as the leading decentralized exchange on the Ethereum blockchain. This popular DEX enables users to trade hundreds of ERC20 tokens against ETH on a peer-to-peer basis directly on the Ethereum blockchain. The exchange is more user-friendly than many of its peers in the DEX market and has managed to attract a large number of investors, especially those who trade ICO tokens. | Ethereum | 2018 | 51,100 | 913 | 4,200,000 | 66,500 | 4.0 |
| WhaleEx | Launched in 2018, WhaleEx claims to be the largest decentralized exchange in the world. This EOS-based decentralized exchange platform enables uses to trade a wide variety of EOS tokens on a peer-to-peer basis. WhaleEx provides secure multi-signature-powered asset custody, zero-fee trading, and instant withdrawals. | EOS | 2018 | 480,800 | 471 | 12,400,000 | 391,900 | 4.0 |
| TronTrade | Launched in 2018, TronTrade enables Tron users to trade a wide range of TRC10 and TRC20 tokens on a peer-to-peer basis directly on the Tron blockchain. Additionally, the platform has 24/7 customer support and a strong focus on community building. | Tron | 2018 | 14,700,000 | 1,800 | 820,100 | 108,400 | 4.0 |
| DEXEOS | Launched in 2018, DEXEOS (like its counterpart Newdex) claims to be the world's first decentralized exchange on EOS. This DEX aims to offer an easy-to-use peer-to-peer trading platform for EOS users. | EOS | 2018 | 2,900 | 468 | 5,900,000 | 265,600 | 3.5 |
| TRXMarket | Launched in 2018, TRXMarket claims to be the first decentralized exchange on the Tron blockchain. TRXMarket enables Tron users to trade a variety of Tron-based tokens with safety, transparency, and convenience. | Tron | 2018 | 2,300,000 | 1,600 | 240,500 | 83,600 | 3.5 |
| ETHFinex Trustless | Launced in 2018, ETHFinex Trustless is a hybrid exchange that combines centralized, on-chain orderbooks with decentralized non-custodial fund ownership. No sign-ups are required and investors trade directly with one another over the Ethereum blockchain. | Ethereum | 2018 | 17,400 | 28 | 1,600,000 | 473 | 3.0 |
| Fork Delta | Launched in 2018, ForkDelta - as the name suggests - is a fork of the once popular Ethereum-based DEX, EtherDelta. ForkDelta enables Ethereum users to buy and sell any type of ERC20 token against ETH on a peer-to-peer basis on the Ethereum blockchain. | Ethereum | 2018 | 24,600 | 527 | 554,000 | 13,100 | 3.0 |
| Kyber | Launched in 2018, Kyber enables the exchange and conversion of a wide variety of digital assets on the Ethereum blockchain. | Ethereum | 2018 | 510 | 246 | 1,200,000 | 3,400 | 2.5 |
| LocalEthereum | Launched in 2017, LocalEthereum is a decentralized, smart contract-powered peer-to-peer trading platform that enables investors to buy and sell ETH using a number of different payment methods via an escrow smart contract. Similar to LocalBitcoins, it enables Ethereum users to trade in and out of ETH against fiat currency. | Ethereum | 2017 | 157 | 169 | 426,000 | 3,400 | 2.5 |
| TRON JOYSO | TRON JOYSO is a hybrid decentralized exchange that has gained popularity among Tron users since its launch in 2018. TRON JOYSO offers a range of popular Tron-based tokens and stands out with a user-friendly interface and an easy-to-use trading platform. | Tron | 2018 | 5,005,000 | 2 | 35,600 | 2,000 | 2.0 |
Related Articles:
- Best Bitcoin Trading Platforms
- Best Bitcoin and Cryptocurrency Exchanges for 2019
- FAQs about Bitcoin and Cryptocurrency Exchanges
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