Trading cryptocurrencies can currently pose challenges for users. Centralized exchanges (Centralized Exchange, CEX) such as Binance and Coinbase are fighting with the regulatory authorities in the USA and have to face a wide range of allegations. For users looking for alternatives to trading cryptocurrencies, decentralized exchanges (DEX) could be worth a look.
What is a DEX?
A decentralized exchange, or DEX, is a platform that allows users to trade directly with each other without the need for an intermediary. Decentralized exchanges are not regulated, which can have advantages but also disadvantages. There are no official controls, but there are also no safeguards for users.
A DEX allows users to maintain full control over their funds. With a DEX you always move in the cryptoverse. This also means that you cannot buy cryptocurrencies with your bank account, at least stablecoins are required.
Trade cryptocurrencies on decentralized exchanges
To trade crypto on a decentralized exchange (DEX), you definitely need a wallet. Hardware wallets are recommended for the secure option, but if things have to be done quickly, hot wallets will also do the trick. Just take a look at our wallet comparison and find the best wallet for your needs.
You then have to connect your wallet to the DEX of your choice. If you are looking for the best DEX, just take a look at our broker and exchange comparison and select “DEX” in the filter.
Make a trade
Once the wallet has been connected to a DEX, you should land in the dashboard. To initiate a cryptocurrency trade, you simply need to select the desired trading pair and enter the amount you would like to trade. Of course, you should make sure that there are enough cryptocurrencies in your wallet. If you don’t have one yet, you may have to use a centralized exchange first – there is almost no way around it for your first crypto purchase.
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