One of most revolutionary developments in blockchain technology the decentralized exchange DEX concept. DEX a platform for buying/selling cryptocurrency, which allows its users to simplify monetary exchanges without the need for any assets that should get to exchange itself, which reduces, risks associated with human factor - theft, hacking, errors. In general, all those problems that a person can solve in this system.

Also, thanks its internal design, DEX are better equipped prevent problems such price manipulation, uncontrolled growth in trading volume, etc.

There are two main types of DEX. The first one compares the orders of different buyers and sellers, and the whole process done on a blockchain. This type of DEX includes Dexeos and Newdex, working on the EOS platform.

The second type DEX uses pools financing, rather than order books, their operations reflect transactions made by man and machine. Uniswap regarded flagship kind decentralized exchange, since launch helped stimulate emergence market whole.

DEX is picking up speed

To assess the aspect popularity decentralized exchanges, it is worth noting that, according to Dune Analytics, in 2019, the total volume of DEX trade was 2.4 billion dollars. As a result, some the world's leading cryptographic exchanges, such as Binance and OKEx, have also launched their own decentralized analogues.

DEX volumes soared in August platforms show more than $ 11.6 billion monthly trade volumes. Moreover, above figures show strong 152% growth compared previous month - in July, total trade volume was $4.4 billion.

In this regard, it is worth noting that Uniswap alone reported 283% increase volume in August, reaching total $6.7 billion and breaking previous record set in July, less than 14 days. Moreover, thanks to above mentioned surge, on August 30 trading volume Uniswap exceeded trading volume of Coinbase Pro.

Uniswap

Uniswap is a decentralized protocol developed on the basis of the Ethereum blockchain . It provides automatic liquidity and is currently the largest decentralized exchange by trading volume.

To start with, users need to install the Metamask extension, since all money transactions will made through a decentralized wallet. After that, users need to click "Launch App", after which they will go to the page "Exchange / Invest".

Then users need to connect their Metamask wallets to Uniswap, and then perform the desired transactions. The whole process optimized, and output tokens go program wallet, funds never pass through the exchange.

Although the exchange is quite easy to use, for novice users can be a bit difficult to navigate the platform. Also, the common user interface Uniswap and common design leaves room for improvement. But, most of problems associated with exchanging are minor and should not cause any serious inconvenience to users.

According to data available on Internet, registered transactions Uniswap over past seven days amounted to 5.2 billion dollars. Also, during this period, it found that huge 72 percent all DEX-based trading activity occurred. At the time of publication, Uniswap has over 91,000 active traders.

DEX by trading volume

Curve

A relative newcomer to DeFi space, Curve an exchange liquidity pool built on Ethereum Blockchain and designed for fast and smooth trading of stable coins. The platform has made name for itself over the past few months, partly due to rapid growth of control token Compound (COMP).

To start using the platform, users must connect their wallets (Metamask, Ledger, Trezor, Dapper, etc.) to application and simplify token exchange using the "From" and "Where" tabs on home screen. But, Curve has an archaic interface, most likely reminiscent of the early 90's website. As result, users may have to familiarize themselves with platform first before they can start exchanging their tokens.

Balancer

The Balancer protocol designed to help users exchange their ERC-20 tokens without trust in all their own platform's liquidity pools. As for performance, Balancer is also designed to work to Curve. But, its common user interface is more complex and pleasing. First, users must connect their hardware or software wallets to application and then Balancer uses Smart Order Routing Protocol to route user transactions into pools that provide the best possible speed.

From layman's point of view, Balancer's own money pools can seen as self-balancing index funds that encourage users to increase platform liquidity rather than charge them.

0x

Like many other DEXs on this list, 0x an open protocol that designed to ease peer-to-peer exchange of low-friction digital assets in decentralized manner at Ethereum blockchain. What sets 0x apart from rest that it allows users to save on peripheral gas costs (while reducing network load) by using an offline order relay system. 0x also requires that users connect their wallets to application and then perform the desired token exchange.

At same time, 0x provides real-time customer support in case users are experiencing any operational difficulties. All users need send message to the support team through "Request" tab located at bottom right of screen. This is a rare opportunity for this kind of application.

Kyber 

Kyber Network has existed since DeFi and can seen as simple tool that allows users to simplify instant token exchange without need for any intermediaries. The platform allows vendors to receive different types of cryptographic software, being compatible with huge number of smart contracts, even if the system based on Ethereum.

The platform does not must any trust as it does not must any money transactions through its own interface. Instead, users can connect their wallets to the application and exchange tokens decentralized. Also to various DApps, vendors and wallets, Kyber protocol is also designed for easy integration with other DeFi exchanges such as Uniswap, allowing them to share their liquidity pools.