These exchanges support peer-to-peer or P2P trading by leveraging the power of automated smart contracts rather than the conventional trading method.
Here are the top 3 decentralized exchanges to look out for in 2022:
PancakeSwap
PancakeSwap is another decentralized exchange that deserves cryptocurrency lovers’ attention in 2022. Established in 2020 on the Binance Smart Chain, PancakeSwap is one of the exchanges that are dedicated to non-fungible collectibles. This feature comes in handy for NFT lovers who want a reliable platform where they can satisfy their passion for NFTs and invest in the future.
Although it started as a copied version of Uniswap, it has gradually carved a niche for itself as a reliable exchange with more impressive features such as a great suit of produces that include farming, staking, and games in addition to NFTs.
It offers lower transaction costs and high operational speed to give users a great trading platform. Its active community of users has boosted its contract interactions and daily transactions since its establishment.
Security is another feature that boosts this exchange’s ratings among cryptocurrency enthusiasts. It is safe to use and has never recorded any hacking experience. However, it is not immune to impermanent loss in farms and is vulnerable to scams that may result from users not doing due diligence before transacting with other users on the platform.
On PancakeSwap, users are offered a wide range of wallets that include:
Ravendex
Ravendex is the first non-custodial decentralized exchange built on the Cardano Blockchain. The unique decentralized exchange allows super-fast liquidity and assets transfer between ADA and native Cardano tokens.
Ravendex ranks among the first projects on the Cardano Ecosystem with the innovative idea of crypto asset borrowing and lending through the Alonzo Hard Fork update that allows smart contracts to use a predefined set of rules to deposit assets on a crypto exchange and collect interests in due time.
As a cross-chain exchange, Ravendex serves as a decentralized automated market maker protocol where users can trade and swap trade native Cardano tokens with trust. It is also a native assets lending and borrowing protocol that simplifies asset lending on the Cardano network through its pooled lending and borrowing mechanism, giving users access to pool assets they can use for other De-Fi applications.
The first non-custodial DEX on the Cardano Ecosystem is powered by its $RAVE token that has a total supply of one billion.
Uniswap
Uniswap is a leading decentralized cryptocurrency trading protocol that allows users to swap, earn, and build on its platform.
The platform’s primary goal is to make joining the decentralized Finance movement a lot easier by lowering the entry barrier to financial markets. It also intends to open its door wide for whoever plans to create their liquidity pools as evidenced by the over 6,000 liquidity pools and 400 active trading pairs on the exchange.
The platform’s users can trade a wide range of Ethereum-compatible or ERC-20 assets. They won’t struggle with trading these assets because Uniswap offers a user-friendly and easy-to-use interface where connecting with a crypto wallet, depositing crypto in a liquidity pool and swapping one digital asset for another is hassle-free.
As a decentralized exchange, Uniswap operates liquidity pools where users can stake cryptocurrencies and become liquidity providers. On each trade, the exchange charges a fee it distributes among its liquidity providers.
Every cryptocurrency investor or trader should look out for these three tier-one exchanges this year and beyond for a better crypto investing and trading experience.
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Source: Cryptocurrency - investing.com
