As the crypto market evolves, investors have sought more ways to make money from the industry. One of the top go-to sectors is the decentralized finance (DeFi) sector. Before delving into the rabbit hole of this wide sector, we need to understand decentralized exchanges (DEXs), which can rightly be called the front-door access to most DeFi products. If you are reading this post, then you must be in search of the best decentralized crypto exchanges to use in 2025.
This article discusses the best decentralized crypto exchanges with established market presence. So, take a head-first dive into the in-depth of the DEX market.
Table of Contents
What is the difference between DEXs and CEXs?
Before discussing the details of decentralized exchanges, it is vital to understand their difference from centralized exchanges (CEXs). Both types of exchanges vary in terms of security, liquidity, usability, privacy, cost, and more. Here is a breakdown of the key differences between the two types of exchanges:
- Asset Control: CEXs operate on a custodial model, holding user assets within their platforms. Conversely, DEXs enable users to have direct control over their assets and private keys through crypto wallets. While the latter fosters greater autonomy, it presents heightened responsibility. Individual errors, such as losing private keys, can lead to the irreversible loss of funds.
- Liquidity: CEXs typically boast higher liquidity and trading volumes due to the aggregation of orders, facilitating rapid trade execution at relatively stable prices. However, DEXs often experience lower liquidity, which can lead to slippage and slower transactions, particularly for less established tokens.
- Usability and Accessibility: In terms of usability and accessibility, CEXs typically offer more user-friendly interfaces, comprehensive customer support, and a range of trading tools. DEXs, as they evolve, can become more complex, requiring a deeper understanding of wallet management and gas fees. However, DEXs offer enhanced accessibility by eliminating the need for personal information during the account creation process.
- KYC and Privacy: CEXs adhere to stringent regulatory compliance requirements, which necessitate Know Your Customer (KYC) procedures. This enhances security but reduces user privacy. It also downsizes the exchange’s accessibility as individuals in restricted countries cannot access their services.
DEXs prioritize anonymity, allowing trading without revealing identities. While appealing to privacy advocates, this can also create vulnerabilities, increasing the potential for fraud and making it harder to recover funds.
- Trading fees: Cost structures also vary. CEXs typically charge trading fees based on trade volume, often offering discounts to high-volume traders or those using native tokens. DEXs generally forgo platform fees but require users to pay gas fees for blockchain transactions, which can fluctuate and become expensive during periods of network congestion.
- Trading Method: CEX, operating under the purview of a central authority, typically employs an order book matching system. An order book is, in essence, an electronic ledger that compiles all outstanding buy (bid) and sell (ask) orders for a specific asset. DEX, conversely, prioritizes autonomy and eliminates the need for a central intermediary. This objective is achieved through two primary mechanisms — Automated Market Makers (AMMs) and peer-to-peer (P2P) swaps.
- Supported Assets: CEX primarily lists established and well-audited cryptocurrencies, ensuring a higher level of security and regulatory compliance. Hence, they have a smaller basket of supported crypto assets compared to DEXs. Decentralized cryptocurrency exchanges support a broader range of tokens, including newly launched ones. This permissionless environment allows for a broader listing policy. New projects and less established tokens, which may not meet the stringent requirements of CEXs, often list on DEXs initially.
Nonetheless, choosing between CEXs and DEXs depends mainly on individual priorities and experience. Newcomers to cryptocurrency may find CEXs more approachable due to their user-friendly interfaces, educational resources, and customer support. DEXs are well-suited for users who prioritize privacy, self-custody, and trading less common tokens not listed on CEXs. They offer a path to managing assets without reliance on central authorities.
Top 7 Decentralized Crypto Exchanges Reviewed
While DeFi can be lucrative for users, many still need to know the right tools to use in accessing these services. Here are the seven best decentralized cryptocurrency exchanges you can use in 2025:
- Uniswap
- PancakeSwap
- SushiSwap
- Orca
- IDEX
- Curve Finance
- Raydium
Uniswap
Uniswap is a well-known decentralized exchange in the crypto world. It is famous for its significant impact on decentralized finance (DeFi). Started in 2018, Uniswap changed how people trade by allowing them to easily swap ERC-20 tokens directly from their crypto wallets, without needing a middleman.
It runs on the Ethereum blockchain and uses a system called an automated market maker (AMM). This lets people trade with a pool of tokens instead of using a traditional order book. The DeFi protocol is also accessible on blockchains such as Arbitrum, Avalanche, Base, BNB Chain, and its flagship network, Unichain. In the hierarchy of DEXs with the highest total value locked (TVL), Uniswap holds the leading position with around $4 billion at the time of writing.
Uniswap’s AMM system relies on people adding tokens to liquidity pools. A liquidity provider deposits equal amounts of two different tokens into a pool. When they do, they earn fees from the trades that happen using their tokens. The platform is easy to use and open to everyone, making it a favorite for both new and experienced traders.
Additionally, Uniswap has helped create new ideas in the larger DeFi world, with many other projects copying its basic design. Even though it may have high fees when the network is busy, Uniswap remains a top exchange. It is known for its strong security, consistent reliability, and wide variety of tokens available.
Pros of Uniswap
- Decentralized and trustless
- Opportunities in earnings
- No intermediaries
Cons of Uniswap
- High gas fees
Trading Fee: Uniswap charges a 0.3% trading fee for swaps, which is distributed to liquidity providers based on their contributions to the liquidity pool.
Payment Options: Credit and debit cards (Visa, Mastercard, Maestro), Apple Pay, Google Pay, and PayPal.
Number of cryptocurrencies: 1,303 cryptocurrencies.
PancakeSwap
Like Uniswap, PancakeSwap utilizes an automated trading system. Built natively on the BNB Chain, this system allows users to trade BEP-20 tokens directly from their wallets, eliminating the need for standard exchanges. To grow its on-chain presence, the DeFi protocol has integrated with more blockchains, including Ethereum, Linea, Arbitrum, Base, and opBNB.
PancakeSwap is known for being easy to use and offering a range of features, including earning rewards, staking, and lotteries. Users can add funds to pools and earn CAKE, the platform’s token. These CAKE tokens can be staked to earn more tokens or used to vote on changes. The platform also attracts users with token-burning events and significant rewards for those who deposit funds, making it a popular choice for traders.
PancakeSwap has also introduced new ideas, such as Initial Farm Offerings (IFOs) and an NFT marketplace. These additions create a more complete system for DeFi users.
Pros of PancakeSwap
- Low trading fees
- High yields
- NFT trading
- Liquidity rewards
- Tokens variety
Cons of PancakeSwap
- Lack of a native wallet
- Complicated stakings
- Complex for beginners
Trading Fees: PancakeSwap charges a 0.25% trading fee on its liquidity pool.
Payment Options: Direct crypto purchase and third-party solutions like iDeal, SEPA, PayID, and more.
Number of cryptocurrencies: 2,186 cryptocurrencies.
SushiSwap
SushiSwap is a decentralized exchange that has gained recognition in the cryptocurrency world for its innovative features and emphasis on community input. It is built on Ethereum and lets people trade tokens directly from their wallets.
What makes SushiSwap different is how it rewards those who help the platform, especially those who provide liquidity, with its SUSHI token. These liquidity providers earn a portion of the trading fees. Staking SUSHI tokens also offers more rewards, creating an active community.
Besides token swaps, SushiSwap offers a range of DeFi services, including yield farming, staking, and lending. The platform is easy to use for new and experienced traders.
SushiSwap has also expanded to other blockchains, including BNB Chain, Polygon, and Avalanche, offering users more choices and access to a broader range of assets.
Pros of SushiSwap
- SUSHI governance token
- Staking and farming
- Cross-chain swaps
- Earnings opportunities
Cons of SushiSwap
- Lags behind many of its competitors.
- Complicated rewards and interest-earning structures.
- Limited to Ethereum-based tokens.
Trading Fees: SushiSwap charges a flat 0.3% fee on trades
Payment Options: SushiSwap doesn’t offer payment options directly. Instead, you acquire cryptocurrencies to use on SushiSwap through other platforms.
Number of cryptocurrencies: 286 cryptocurrencies.
Orca
Orca is a simple DEX exchange platform on the Solana network. It lets people trade digital money without a central company controlling it. This means faster trades and lower costs compared to regular exchanges. Orca focuses on being easy to use, so both new and experienced traders can easily buy and sell.
Exchanges like Orca use special computer programs to let people trade directly with each other. This makes trading safer and more private. Users always control their money and don't need to give it to a third party, unlike with regular exchanges.
Orca is known for its easy-to-understand design and tools, like Whirlpool, a Solana-based contract.
Pros of Orca
- Fast and cheap swap transactions
- Concentrated liquidity pools
- User-friendly UI
- Environmental and educational initiatives
Cons of Orca
- Sole dependence on Solana.
Trading Fees: Orca trading fees are split, with 87% going to the liquidity provider (maker), 12% to the DAO treasury, and 1% to the Climate Fund. Fees can be calculated for both maker and taker orders.
Payment options include crypto exchanges like Coinbase, bank transfers, and debit cards.
Number of cryptocurrencies: 440 cryptocurrencies.
IDEX
IDEX is a hybrid crypto exchange. It combines the best parts of regular DEX and CEX exchanges, making it easy to use. It started in 2018 and was one of the first to feel like a real-time, regular exchange, with fast trades and a simple design.
IDEX works with many tokens based on Ethereum and has added support for other blockchains like BNB Chain and Polkadot. This gives users more options for trading. The platform allows users to control their tokens and private keys.
Furthermore, IDEX offers helpful trading tools, such as limit and stop-loss orders, making it useful for a wide range of traders. By combining speed, security, and numerous features, IDEX is an excellent choice for traders who want to explore decentralized finance instead of using traditional exchanges.
Pros of IDEX
- Secure and non-custodial
- High-performance trading engine
- Staking rewards opportunities
Cons of IDEX
- No Bitcoin trading
- No mobile app
Trading Fees: Takers pay 0.2%, while makers pay 0.1%. However, when taking a limit order liquidity, the taker fee is 0.125%. Taking out pool liquidity incurs a 0.10% fee.
Payment Options: Staked IDEX tokens, payment cards certified by Visa and Mastercard.
Number of cryptocurrencies: Over 350 cryptocurrencies.
Curve Finance
Curve Finance is a decentralized digital currency trading platform that operates without a central authority. It is built on the Ethereum network and focuses on trading stablecoins. Unlike other similar exchanges, Curve is designed for people who want to trade stablecoins or assets linked to a specific value. This focus makes it great for trading coins like USDT, USDC, and DAI, with lower fees and more stable prices.
Curve Finance uses a special system called an automated market maker (AMM). This system has a unique formula to minimize losses and price changes when trading assets of similar value. This makes Curve attractive to people who provide assets to the platform, as they can earn regular returns with less risk. The platform’s token, CRV, plays a key role in decision-making processes as holders partake in governance procedures.
Pros of Curve Finance
- Low slippage
- Liquidity flexibility
- Strong DeFi integrations
- Community governance (DAO)
Cons of Curve Finance
- High gas fee
- Impermanent loss
- Interface complexity
Trading Fees: Curve Finance trading fees are typically 4 basis points (0.04%) of the trade amount.
Payment Options: Users link their debit or credit cards to a single Curve card and app.
Number of Supported Crypto: 98 cryptocurrencies.
Raydium
Raydium is one of the most widely used automated market makers within the Solana ecosystem. The DEX allows digital assets to be traded freely, using pools of money within a liquidity pool. These pools are funded by people who put in their assets, creating trading pairs for transactions.
Raydium combines the flexibility of market maker trading with Serum’s order book system, resulting in a platform with more liquidity, faster trades, and lower costs. This setup helps traders and liquidity providers. Traders get easy and quick asset swaps, while those who offer cash are rewarded with RAY, Raydium’s token. Users can lock their RAY tokens on the platform, earning more rewards and strengthening Raydium’s role in Solana’s financial system, which promotes efficient and cheap trading.
Pros of Raydium
- High Liquidity
- No KYC Requirement
- Optimal Price Execution
- Active Community Support
Cons of Raydium
- Limited to the Solana blockchain
Trading Fees: Raydium charges a 0.25% fee, with 0.22% going to liquidity providers (LPs) and 0.03% funding a staking pool for each trade.
Payment Options include credit or debit cards, bank transfers, and mobile payment methods like Google Pay and Apple Pay.
Number of Supported Crypto: 3,224 cryptocurrencies.
5 things to consider when choosing the best decentralized crypto exchange
Security and Control on DEXs
When choosing a decentralized cryptocurrency exchange (DEX), security is the most crucial factor. DEXs are arguably better than centralized exchanges because users control their keys and assets. This lowers the risk of hacks, but it also means users are responsible for their security. Sadly, anyone who fails prey to malicious actors can lose their assets.
Liquidity and Slippage
Another vital thing to consider is the liquidity of the trading pairs you want to use. Tokens that are not worth much or have minimal engagement may not have much liquidity. This can cause slippage, where you don’t get the price you expected, or your order doesn’t go through. Check the liquidity of the trading pairs you want to use.
Fees and Network Costs
DEXs usually have lower trading fees than centralized exchanges. However, there are also gas fees that blockchain networks like Ethereum charge to facilitate transactions. These fees can change a lot, especially when the network is busy.
User Interface and Experience
When picking a crypto exchange, the look and feel are key, especially if you’re new to it. An easy-to-use design makes handling your crypto easier. The design should be simple for new users but also detailed enough for experienced traders. This allows everyone to use the platform easily, whether they are new to crypto or have been trading for some time.
Geographical Availability
As regulatory guidelines vary from country to country, DeFi accessibility in these countries is not always guaranteed. Some allow partial or full access to these products. Hence, it is vital to always know the guardrails governing how DeFi and decentralized exchanges are used in the country where you reside.
Frequently Asked Questions (FAQs)
Are DEXs safe to use for trading?
Yes, DEXs offer a unique approach to trading by eliminating the need for a central authority and enabling users to control their funds.
Which DEX leads the market in trading volume?
According to on-chain data from DefiLlama, Uniswap tops the chart with a traded volume of nearly $5.12 million.
Which decentralized crypto exchange offers the lowest fees?
Several Decentralized Exchanges (DEXs) offer low fees, with some even aiming for gas-free transactions. You can choose between Uniswap, PancakeSwap, and Raydium.
Why would I use a DEX instead of a regular exchange?
DEX might be preferred over a traditional centralized exchange (CEX) for increased privacy, control over your funds, and potentially lower fees.
Conclusion
Decentralized exchanges (DEXs) have become important in the cryptocurrency market due to the growth of DeFi and the need for innovative trading methods. DEXs give users more control over their funds and better privacy. This article highlighted seven DEXs that you should explore this year. It also emphasized various factors that are worth knowing when choosing from this basket of assets.
