CoinCarp Blog

  If you've been trading cryptocurrency, you've most likely done it on centralized exchanges like   Binance   or   Huobi . However, things have progressed significantly in recent years, and   decentralized exchanges   are gradually eroding the utility and usability of centralized platforms, which are still the most popular means for bitcoin users to trade. DEXs, or decentralised exchanges, allow consumers to purchase and sell cryptocurrencies without the involvement of brokers. Users connect their cryptocurrency wallet to a DEX, choose their preferred crypto trading pair, enter the amount, and click the swap button. Let's talk about the top five decentralized exchanges in this edition. Uniswap On Ethereum,  Uniswap  is a decentralized system for automated liquidity provision. Uniswap, one of the first  automated market makers , allows users to act as liquidity providers by donating assets to decentralized liquidity pools. Liquidity providers ...

  Decentralized exchanges (DEX) are a type of cryptocurrency marketplace that connect crypto sellers and buyers directly, allows for peer-to-peer(P2P) cryptocurrency transactions online and without the need for an intermediary agency. It means you can exchange assets on DEX without having to trust your funds with another entity. These kinds of exchanges have become quite popular in recent years since they align with the fundamental philosophy of blockchain technology-- Decentralization. How Does a Decentralized Exchange (DEX) Work? To realize the decentralization, third-party (e.g. banks, stockbrokers, online payment gateways, government institutions, etc.) which take custody of user funds and oversees the security and transfer of assets are replaced by a blockchain or distributed ledger. Smart contracts were used by DEXs to execute market transactions by allocating transactions' operations to autonomous code, although there are multiple variations of order fulfillment with differi...