Cryptocurrencies are often incredibly volatile and can see massive price swings in a short time. This makes them ripe for bear traps. A bear trap is a situation where traders wrongly think a coin is about to reverse a downtrend. These events often result in significant losses. This guide will discuss crypto bear traps, how to identify them, and the risks involved in these situations. Introducing Crypto Bear Traps A bear trap happens when a trader buys assets, expecting the…
Market experts believe that the survival and growth of crypto largely depend on decentralization. The good news is that decentralized exchanges or DEXs have become highly popular, and the crypto market sees this as an opportunity to save the essence of traditional blockchain.
Each decentralized exchange platform has the potential to revive and thrive crypto market. Moreover, each new DEX platform comes with its own set of features. There are several methods to use DEXs and make money.
Decentralized exchange platforms make more sense because there is no central governed authority. In 2022, DEXs are the forefront in the crypto space and even competing with major CEX platforms. Unlike the previous bull run, the crypto trading environment changes and evolves.
Now, let’s take a look at the best-decentralized exchange platforms for crypto trading in 2022:
When it comes to the DEX market, Uniswap has had the perfect record. Of course, the DeFi king has been through endless obstacles. But Uniswap’s ample liquidity and simplicity always make up for it. As a decentralized exchange platform, Uniswap operates through its dedicated model.
The ownership on the platform is regulated through a governance model that allows users to showcase voting rights within their native Uniswap governance. The trading technicalities of Uniswap are also not as complicated as other DEXs. Uniswap charges the trading of 0.3% on each token swap. Depending on the contribution, yield farmers ultimately get a part of the fees.
On Uniswap, liquidity pools have a 1:1 token ratio that all users must comply with. As of now, Uniswap hosts more than $3.72 billion in terms of collateralized assets. Since the rollout of Uniswap in 2018, it has been a transformative and era-defining decentralized exchange platform.
Remember that Uniswap allows users to swap ERC-20 tokens through the Ethereum blockchain and without any order book. Fundamentally, Uniswap revolves around clever contract use and will enable users to exchange or trade crypto without third-party intermediaries. The ultimate objective of Uniswap is to allow its users to handle exchange governance on their own.
If you want to try something new and different, switching to a PancakeSwap would be wise. As a decentralized exchange platform, Pancake Swap works around Binance Smart Chain. On the surface, it is a Uniswap clone, but it has an excellent reputation for dApps.
The fact of the matter is that Pancake Swap took its time to kick off in the evolving DeFi market. After the Ethereum fees controversy, the project rose to new heights in 2021. As of 2022, Pancake Swap is the third-best decentralized exchange platform in trading volume.
What’s interesting is that anonymous developers operate PancakeSwap. However, users get the complete freedom to control any project within decentralized rules like voting through CAKE token governance. Pancake charges a fee of 0.2% on its token swaps. Liquidity providers get 0.17%, while the treasury burns 0.03%. Furthermore, yield farmers get LP tokens and fees in the form of rewards.
Pancake Swap has become ideal for swapping BEP-20 tokens through Binance Smart Chain. Technically, PancakeSwap utilizes AMM (automated market maker) model allowing users to trade tokens against a specific liquidity pool.
Typically, these pools contain funds from various users. Mostly, users deposit these funds into an independent pool and get LP tokens as rewards. Users can utilize these tokens to get part of the original trading fees.
If you’re not on board with Uniswap or PancakeSwap, then 1inch offers a more simplified and collective trading experience. Unlike traditional DEXs, the hallmark aspect of the 1inch Network is that it operates as a DEX aggregator.
Although the DEX project is not as popular as Uniswap or Pancake Swap, it continues to gain momentum in the DEX space. Another highlight of 1Inch Exchange is that it collects liquidity from many independent liquidity pools and trading platforms.
The focus of 1inch Netowork is to get the best possible rate and offer efficient trading to its users. It is the main reason 1Inch uses capital from most DeFi markets. This approach allows 1inch Network to lower its fee, making it possible for traders to spend less on the gas fees.
In recent developments, 1inch has had integration with Nexus Mutual. It means now users can get insurance coverage for their DeFi-based activities. Not to mention, users get dedicated access to the governance model and can take advantage of attractive yield farming tactics.
DiversiFi has impressive features and offers a flawless user experience at a low cost like the best-decentralised exchange platforms. DiversiFi, previously Ethfinex Trustless, is an Ethereum-based decentralized exchange.
As of now, the DiversiFi exchange supports spot trading for 13 trading and eight coins. The decentralized exchange handles over $1 million trading volume each day. The most recent updates have paved the way for a new iteration of DiversiFi.
Newly launched DiversiFi has had a significant market attraction and comes with various integration and scalable technology. For example, the layer-2 technology allows DiversiFi to process up to 9,000 transactions each second. And the best part is that it does not compromise on its competitive fees, liquidity, security, and privacy.
The trading fees on DiversiFi are 0.2% which is perfect for supporting a batch of individual transactions. Furthermore, this approach allows DiversiFi to lower the blockchain fees on each trade. The trading fees of DiversiFi has the same competitive standards as some of the best-centralized exchanges.
As a uniform non-custodial solution, DiversiFi deserves more spotlight and is bound to garner more attraction in the DeFi landscape. From new upgrades to features, DiversiFi continues to evolve and prioritizes to secure users’ funds.
Kyber Swap project works as a liquidity protocol and collects funds from various reserves that secures and powers token exchange on all decentralized applications. Technically, Kyber Swap combines intelligent contract protocols to perform token swaps.
Kyber offers instant token swap services like Changelly and Shapeshift, unlike other decentralised exchange platforms. Remember that reserve refers to an individual who offers liquidity. At the moment, Kyber Swap does not work as a permissionless system.
Instead, you need to get approval through the Kyber team to become a reserve. Also, “how” accounts establish the prices and then manage the inventory does not depend on the protocol. Kyber offers a unique and dedicated DEX protocol than other decentralized exchanges.
In a short time, decentralized exchange platforms have had a meaningful impact on the crypto space. In retrospect, DEX platforms like UniSwap and Pancake Swap have become the most famous platforms that combine various blockchain protocols.
After all, DEXs delegate ownership rights back to the community. The trading process on decentralized exchanges runs entirely through intelligent contracts.
Another hallmark aspect of DEXs is that they are non-custodial, fostering a safe and secure space for crypto investors. Decentral exchange platforms deserve to be in the spotlight despite constant hurdles and absurd limitations. In retrospect, it would be fair to state that decentralized exchanges are perfect.