Decentralized exchanges (DEXs) are a vital component of the decentralized finance (DeFi) ecosystem. This post will explain decentralized exchanges, how they function, and the five top perpetual futures DEXs and coins.

What Are DEXs And How Do They Work? 

A decentralized exchange (DEX) is a platform where users can trade cryptocurrencies directly without needing an intermediary. At this point, this is no different from any other peer-to-peer exchange. The main distinction is that DEXs run on multiple blockchain ecosystems and provide the same services as centralized exchanges, except that you have ownership of your own private keys and complete custody of your cash. Your funds must be stored in a centralized exchange wallet to trade on a centralized exchange. With a DEX, you can control your money and sell directly from your wallet. DEXs replace the intermediaries typically found on centralized platforms with smart contracts that self-execute under particular conditions and allow money exchange.

DEXs do not require KYC and often have lower costs because there is no central authority.

The Growth Of DEXs

DEXs, which were long considered a niche notion, have seen increased popularity with the emergence of DeFi and crypto. According to the Block’s 2021 Digital Asset Outlook Report, decentralized exchanges (DEXs) have undergone exponential growth in 2021, with trade volumes topping $1 trillion since the beginning of the quarter. The $1 trillion in trading volume reported is an 858% increase over the trading volume in 2020.

5 top perpetual futures DEXs Tokens  

DEX tokens may be used for various purposes on their native system, including staking for rewards, voting, and more. If you’re considering adding DEX tokens to your portfolio, we’ve compiled a list of the best 5 DEX tokens accessible on Binance. Remember that the five top perpetual futures DEXs and coins were not chosen in any particular order.

Uniswap and its UNI Token

Uniswap is a DEX automated liquidity mechanism built on Ethereum. Users do not require an order book or a centralized party to make transactions. Uniswap is also open-source, meaning anybody with access to the source code may create their own decentralized exchange. Furthermore, users can create and list any ERC-20 token on Uniswap for free as long as they can provide tokens to the liquidity pool.

The protocol’s native token, UNI, primarily governs the Uniswap ecosystem.

CAKE Token on PancakeSwap

PancakeSwap is a DEX built on the BNB Smart Chain. Cake allows users to trade BEP-20 tokens without entrusting their cash to a third party. Users may earn incentives by staking tokens in liquidity pools. PancakeSwap, like Uniswap and many other DEXs, is driven by an automated market maker (AMM) mechanism, with transactions supported by user-backed liquidity pools.

The governance token CAKE powers the PancakeSwap ecosystem. CAKE holders may vote on the ecosystem’s direction, purchase lottery tickets in the PancakeSwap lottery, utilize it in yield farms to make more CAKE, stake it in liquidity pools to gain additional tokens, and so much more!

Stellar and its XLM Token

Stellar is a decentralized, open-source payment technology that enables the movement and storage of any money at a minimal cost. Users may handle buy/sell orders and convert cryptocurrencies to fiat or vice versa using the DEX’s built-in order book. Stellar’s native cryptocurrency, XLM, is an intermediate currency in transactions.

Loopring and its LRC Token

Loopring is a layer-2 protocol that gives developers the tools they need to create decentralized exchanges on Ethereum. Its purpose is to make Ethereum trading assets and transactions inexpensive and quick without losing security. Loopring enables decentralized exchanges by batch-processing thousands of trade and transfer requests off-chain using Zero-knowledge Proofs, lowering gas consumption and transaction costs considerably.

LRC is Loop ring’s Ethereum-based cryptocurrency token that runs the Loopring Exchange. Because it is built on top of the Ethereum mainchain, it allows you to trade Ethereum tokens cheaper than other DApps native to the Ethereum ecosystem.

How To Buy DEX Tokens on Binance In 2 Steps

Are you considering adding DEX tokens to your crypto portfolio? Binance, home to over 275+ cryptocurrencies and the world’s largest exchange by trading volume and user base, allows you to get started in minutes.

Step 1: Make a fiat deposit on Binance using an e-wallet or a bank transfer. Examine the fiat channels for your favorite currencies. For additional details, see our article on How to Deposit USD Using SWIFT.

Optional: Convert your fiat currency to BUSD or USDT to trade a more comprehensive range of tokens.

Step 2: Purchase the DEX crypto tokens of your choice using a spot wallet or a credit/debit card.

Conclusion

Decentralized exchanges are critical to the establishment and expansion of the DeFi space. We will continue to see DEXs developing and growing across the market as more DEXs adapt and enhance their products, such as trading and user experience.

That being said, each top perpetual futures DEXs has its own operating procedures, which you should be aware of before investing in any DEX currency. Always remember to DYOR!