If you have been active in the crypto and blockchain world for some time now, you have likely heard about a decentralized exchange (or, DEX for short). It is quite central to the idea of cryptocurrency and has made it much easier, faster, and safer to use, trade, deal and invest in the wide variety of cryptocurrencies out there. 

In this article, we have tried to cover in-depth the subject of decentralized exchanges and the various benefits it promises traders, users, and investors like you. We have also explored some of the best-decentralized exchanges in the year 2022 and some of the upcoming ones that you should look out for in the times to come. 

If you want to learn more about a DEX, this is the only guide you will ever need. 

Decentralized exchanges and why Toon Finance is #1

Before we try to define what, a DEX is, it would be great if we take a step back and actually understand why cryptocurrencies came to be in the first place. The fundamental motivation behind the birth (and, subsequent rise) of cryptocurrencies is the desire, by a group of people, to initiate financial transactions that need not be officiated by banks, the government, or any other kind of formal authority. 

Cryptocurrencies came into being to create a currency that would be able to execute, somewhat unregulated, financial transactions with ease and without the interference of any authority, like the government and financial institutions. 

A decentralized exchange helps further this cause. 

In a nutshell, a DEX, or decentralized exchange, is a peer-to-peer (or, P2P) marketplace where crypto traders can transact directly without having to go through an intermediary. It helps people trade and deals in cryptos in a much safer environment. 

A decentralized exchange trades only in cryptos. So, you cannot purchase cryptocurrency with a fiat currency or exchange your crypto tokens for fiat currency. For example, you cannot exchange dollars for bitcoin or vice versa on a decentralized exchange. 

There are also various other things that you can do on a decentralized exchange. However, before we look into that, let us see the major difference between a centralized exchange (CEX) and a decentralized exchange (DEX). 

Centralized Exchange vs Decentralized Exchange 

There are quite a few differences between a centralized and decentralized exchange, like – 

These are just some of how a centralized exchange differs from a decentralized exchange. The biggest drawback of a centralized exchange is the fact that all transactions take place in a somewhat regulated environment and people need to deal through an intermediary. However, in a decentralized exchange, there is no need for an intermediary, and two crypto traders can deal directly with each other.

Naturally, it is much cheaper as well to deal through a decentralized exchange as compared to a centralized exchange since there are no additional fees to be incurred for the intermediary participants in the trade. 

Benefits of a Decentralized Exchange for You 

A decentralized exchange helps you trade in a much safer and easier manner. It also has a host of other benefits such as – 

• Safe Trading Environment – Since there is no intermediary involved, crypto traders can deal in a safe and sound environment. It is quick and simple as well. 
• No Third-Party Involvement – There is no exchange authority or third party involved. You do not need to transfer the assets to a third party before executing the trade. It makes the process far simpler and hassle-free. 
• No KYC, Personal Info Required – You do not need to go through an elaborate KYC process to make an account on a DEX. There is no need to share your personal information or seek any kind of permission to join a DEX platform. 
• Reduced Risk of Theft/Fraud – Since you do not need to deal with an agent or transfer the assets/money to a third party every time you trade, the risk of theft, fraud, and even a hacking incident is greatly reduced. 
• All Tokens Can be Traded – You can trade all tokens in a decentralized exchange. You can trade any kind of crypto pair. In a centralized exchange, on the other hand, a few crypto tokens can only be traded. 

These are just some of the benefits of a decentralized exchange that you can avail yourself of when you trade through a DEX. Users, traders, fans, and enthusiasts of cryptos are embracing the idea with much gusto and joining some of the big decentralized exchange platforms out there. 

Best Decentralized Exchanges (DEX) of 2022 

The DEX ecosystem has been growing at a rapid pace in the past few years. Many new decentralized exchanges have come up as well in the past year or so. We have listed some of the decentralized exchanges that performed exceptionally well in the year 2022. 

Toon Finance – More than just a DEX 

Toon Finance is more than just a DEX. It is a crypto token and has a wide variety of things in the pipeline including a cross-chain bridge, NFTs, metaverse, and more. 

The cross-chain bridge will enable communication and interoperability between two separate blockchain networks. In other words, it allows for the exchange of value or data between the two connected blockchains. The Space Bridge (being created by Toon Finance) will allow its users to connect different apps, protocols, and assets with ease. So, you could transact on the app using both BTC and ETH by connecting them through the space bridge. 

For gamers, the metaverse being created holds immense value. Toon Finance is also introducing multiple series of NFTs that can be used in this metaverse as well or one can collect them for investment. These NFTs will be functional gameplay items that will be essential for players participating in the Space Grounds game that is being developed by Toon Finance. 

The Toon Finance Coin is also making ripples in the crypto industry. Their ICO opened on 10th October 2022 and within a week, they sold out over 3 million dollars worth of cute-little Toonie coins. It is shaping up to be quite a successful ICO as people (both, traders, and enthusiasts) are flocking up to buy more TFT Coins. 

We are quite excited about Toon Finance coins, DEX, and the other things in store.

1Inch 

1Inch has certainly emerged as the best DEX platform in recent times. It is less of an exchange and more of an aggregator. It aggregates information such as token values from a wide variety of DEXs and helps its users get the cheapest pricing. In a nutshell, it locates the most optimal exchange route among the various DEXs out there for a trade to be executed. It eliminates the need for a middleman and allows users to transact amongst themselves. It has over 1.5 million users and over USD 130 million in transactions executed. 

With 1Inch, you do not need to pay any fees to withdraw or transfer your crypto tokens. You can also get the best price in the industry for every trade you execute. 

PancakeSwap 

PancakeSwap has been around for some time now. It launched in September 2022 and was the first of its kind DEX to be built on the Binance Smart Chain. It uses entirely algorithm-run liquidity pools. Another interesting thing that you can do with PancakeSwap is that you get early access to upcoming businesses and can invest in them much before the general public.

SushiSwap 

SushiSwap is another interesting DEX on our list. It has been developed on the Ethereum blockchain and has evolved from UniSwap, another popular Ethereum-based decentralized exchange. The most exciting thing about SushiSwap is the fact that much of the costs are returned to the users and liquidity providers are also compensated for their efforts. 

Anyone can trade on the platform and increase liquidity for the pools. The fees are also quite less compared to the other centralized exchanges out there. SushiSwap is also known for its governance model which allows people to vote on any new protocols and/or updates. 

UniSwap 

UniSwap is a simple, straightforward decentralized exchange that is quite popular among users. It is known for its ability to simply go on the platform and trade. You do not need to create an account for the same. Through the various liquidity pools that the exchange has, you can also earn a decent income on your crypto investments. 

Since it is an Ethereum-based DEX, it has some unique ETH features like the ability to swap any two Ethereum assets quickly without any hassle. You can swap the assets without having to perform any identity checks or without having to create an account. 

Toonie Takeover

The decentralized exchange market is growing by leaps and bounds. Many new platforms are coming up every other day. Each is trying to offer something different than the rest. Overall, they are also actively shaping the crypto industry as we speak. 

One of the DEXs in the making, that has all our attention, is the Toon Finance DEX. It has found wide support from crypto traders, fans, and enthusiasts from all over the world. The media cannot stop raving about it either. 

The Toon Finance Coin is creating a one of its kind robust, decentralized exchange that will seamlessly allow people to buy, sell and trade the coin in a safe, decentralized environment without any hassle. 

While the Toon Finance Coin is listed on major platforms like Crypto.com and CoinMarketCap.com, you will also be able to buy it directly from the DEX. Various other interesting features make it an exciting platform to look forward to. 

Toon Finance Protocol | Telegram | CoinMarketCap | Toon Finance Coin Presale

Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.