To register with a centralized exchange could as well be a rite of passage, and it’s a tedious part that every crypto user, enthusiast and noob alike, knows well.
On the other hand, decentralized exchanges, or simply DEXes, are an exciting innovation. Being completely free of ownership and running on “smart contracts”, DEXes ensure higher transparency, better privacy, and an even higher level of security since there are no "honey pots" for hackers to target, as in the case of a centralized exchange.
Moreover, DEXes are, by default, inclusive. Therefore, anyone can exchange tokens quickly and cheaply, at any time without necessarily registering or giving away personal information.
With more tokens being released by the day, and centralized exchanges unable to cope with the number of coins to list, traders can now comfortably exchange any token they like on decentralized exchanges. Could this suit you? We’ve put together a handy little list of the top 5 DEX platforms, just in case.
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Top 5 Platforms for Exchanging Tokens
UniSwap is launched from Ethereum and is the largest globally. Ethereum is the first smart contracting platform supporting thousands of tokens. Uniswap was created by Hayden Adams and launched in late 2018. The platform uses on smart contracts to enable users to trade tokens without using intermediaries. Tokens are swapped from what's known as liquidity pools. Anyone can add tokens to supported pools and receive liquidity provider (LP) tokens. Therefore, when a user swaps one token for another, Uniswap rewards LP holders with a share of trading fees. There is no need to register to trade tokens on Uniswap. Instead, through a wallet like MetaMask, users can trade between themselves cheaply and at any time. Uniswap uses the UNI token for governance.
PancakeSwap is the largest decentralized exchange on the Binance Smart Chain (BSC). BSC is Ethereum's competitor with competitively lower fees. The swapping platform relies on smart contracts to enable BSC users to swap the network tokens without a third party. Because BSC is compatible with Ethereum, traders can connect to PancakeSwap using the MetaMask wallet. Besides an easy-to-use interface, PancakeSwap offers more goodies like lottery systems, staking, and farming. In early January 2022, over 2.8 million traders were using PancakeSwap, locking over $12 billion of tokens in the process. Central to PancakeSwap is CAKE, the exchange's governance token. One thing to note about PancakeSwap is that its developers are anonymous. However, the exchange's code has been audited by the blockchain security firm, CertiK, and given a clean bill of health.
AstroSwap is a decentralized exchange on the Velas blockchain supported by BlueZilla—a world-renowned project incubator. The exchange, which has just launched, promises high performance, unrivaled low costs, and ease of use. AstroSwap is solving existing problems facing decentralized exchanges. ASTRO sits at the core of the economy, driving the entire ecosystem.
By launching on the Velas blockchain, users can easily swap tokens at near-zero costs, paying trading fees using Velas (VLX) and Cardano (ADA), and being refunded transaction fees in VLX for making swaps. Since Velas is also compatible with other blockchains like Cardano, AstroSwap users can benefit from the cheap and lightspeed transactions that Velas offers while simultaneously taking advantage of the ease of access since AstroSwap would be accessible via MetaMask.
AstroSwap will later deploy on Cardano through the Swapz bridge, therefore, operating as Cardano’s layer-2 with EVM compatibility. The bridge also makes AstroSwap multi-coin and more blockchain agnostic--a reason why the DeFi portal will also launch on Solana.
Cardano was built from the ground up by one of Ethereum's co-founders, Charles Hoskinson, and AstroSwap plans to deploy on Cardano in the future. Furthermore, AstroSwap supports ultra-high yields and will allocate 45 percent of all ASTRO to their staking reserves.
AstroSwap just launched today and additionally, they plan to introduce a system to reward traders with more coins, called yield farming, and release an automated vault for locking digital assets for more rewards, making AstroSwap an interesting candidate for our top 5 list.
SushiSwap is one of the top decentralized exchanges launched in more than one blockchain besides Ethereum. The anonymous founder behind SushiSwap used Uniswap's code to create the platform explaining why some features are nearly identical. The exchange supports MetaMask and uses SUSHI for governance while also integrating smart contracts so that users can exchange tokens without an intermediary. SushiSwap's traders can add assets to a given pool and receive LP tokens. LP tokens can then be added to what's known as farms for even more rewards.
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WagyuSwap is another DEX which has launched on the Velas blockchain. The modern blockchain is known for its high transaction processing speeds of 75k resulting in near-zero on-chain fees. From WagyuSwap, users can exchange tokens with each other without intermediaries, and traders can stake tokens for high yields. At the same time, the DEX operates a lottery system. The DEX's developers maintain that the exchange is the fastest in the world because of its deployment from the Velas blockchain. They also cite their first-mover advantage as the first DEX on the growing Velas blockchain and their incubation by BlueZilla as distinguishing factors.
The list is not exhaustive, and these top DEXes should get you started trading your tokens without borders or limits! Before opting to connect your wallet and swap tokens, make sure you have brushed up on best operating practices to avoid loss of assets.
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