Best Decentralized Exchanges in 2025

Zac McClure
ByZac McClure, MBAReviewed byArthur Teller, CPAUpdated on February 3, 2025 · minute read
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  • Even when you use a decentralized exchange, you must still report your trades for tax purposes. New rules might require these platforms to send tax forms, so choose one that fits your trading style and keep careful records.

  • Decentralized exchanges let you trade directly with other users without needing a middleman, which gives you more control and privacy. Top options to consider include Uniswap, dYdX, and PancakeSwap, depending on the features you want.

Our picks: Best decentralized crypto exchanges

Decentralized exchanges (DEXs) enable peer-to-peer cryptocurrency trading without intermediaries. Platforms like OKX, Nomiswap, and Uniswap lead the market with their innovative features, low fees, and ease of use.

Our curated list of top DEXs helps you navigate the ecosystem confidently. Always do your own thorough research and understand the risks before engaging in decentralized finance (DeFi).

Calculate your crypto gains with our free crypto profit calculator.

Decentralized exchanges comparison

ExchangeBest ForKey FeatureSupported Blockchains
dYdXDerivativesUp to 20x leverageMultiple
HaloPortfolio managementAdvanced portfolio tracking tools7 blockchain networks
iTokenCrypto diversity1M+ supported tokensEthereum, BNB, Solana
KineLeverageUp to 200x leverageMultiple
NomiswapLow fees0.1% trading feesBNB Chain
OKXOverall DeFi tradingAggregator protocol15 blockchain networks
PancakeSwapBSC tokensEarly access to new BSC projectsBinance Smart Chain
SushiSwapYield farmingCompetitive liquidity poolsEthereum, BNB Chain
UniswapBeginnersERC-20 token focusEthereum, Polygon, others

Best decentralized crypto exchanges

dYdX

Best DeFi exchange for derivatives

dYdX specializes in perpetual contracts and offers up to 20x leverage, catering to advanced traders focused on derivatives.

-  Pros & Cons

Pros

  • High leverage up to 20x

  • Exceptional liquidity for derivatives trading

  • Advanced tools for professional traders

Cons

  • Not beginner-friendly

  • Mobile app is only available on iOS

-  Why our experts picked it

dYdX excels in supporting professional traders with high-risk strategies, making it a standout choice for derivatives.

Halo

Best DeFi wallet for portfolio management

KuCoin’s Halo wallet supports seven blockchain networks, combining portfolio tracking and decentralized trading features.

-  Pros & Cons

Pros

  • Supports cross-chain token swaps across seven blockchains

  • User-friendly interface with advanced tracking tools

  • Enables staking for yield generation

Cons

  • No crypto savings account support

  • Fee transparency could be improved

-  Why our experts picked it

Halo integrates portfolio tracking with DeFi tools, making it ideal for traders seeking to manage assets efficiently.

iToken

DeFi wallet with a wide range of crypto

Huobi’s iToken app supports over one million assets across Ethereum, BNB Chain, Solana, and more.

-  Pros & Cons

Pros

  • Broad compatibility across multiple blockchain networks

  • Decentralized app environment with private key control

  • Round-the-clock customer support

Cons

  • Lack of educational resources

  • Complex fee structure

-  Why our experts picked it

iToken offers unmatched crypto diversity, appealing to users managing assets across various blockchains.

Kine

Best DeFi exchange for leverage

Kine supports up to 200x leverage for major tokens, catering to traders seeking significant exposure.

-  Pros & Cons

Pros

  • Extremely high leverage for large-cap tokens

  • Competitive commission fees

  • Cross-chain functionality

Cons

  • Not suitable for beginners

  • Requires KYC for fiat deposits

-  Why our experts picked it

Kine’s unparalleled leverage capabilities make it a top choice for seasoned traders looking to maximize exposure.

Nomiswap

Best DeFi exchange for low fees

Nomiswap combines low trading fees (0.1%) with a hybrid CeDeFi model, offering cashback and referral rewards.

-  Pros & Cons

Pros

  • Minimal fees with potential for 0% through rewards

  • Strong referral program and APYs for staking

  • CeDeFi ecosystem bridges centralized and decentralized finance

Cons

  • Limited to BNB Chain tokens, with expansion plans pending

-  Why our experts picked it

Nomiswap combines low trading fees (0.1%) with a hybrid CeDeFi model, offering cashback and referral rewards.

OKX

Best DeFi exchange for crypto overall

OKX aggregates prices from over 200 DEXs and supports 15 blockchains for seamless cross-chain trading.

-  Pros & Cons

Pros

  • Access to optimal prices via aggregator protocol

  • Wide variety of DeFi services, including staking and yield farming

  • Extensive blockchain support

Cons

  • Fees disclosed only at the point of transaction

-  Why our experts picked it

OKX's innovative aggregator protocol, comprehensive support for blockchain networks, and vast array of DeFi offerings combine to make it our foremost choice for decentralized trading in 2023.

PancakeSwap

Best DeFi exchange for BSC

PancakeSwap is the go-to platform for Binance Smart Chain (BSC) tokens, offering early access to new projects.

-  Pros & Cons

Pros

  • No account creation needed—connect your wallet and trade

  • Yield farming and staking tools available

  • Strong liquidity for BSC projects

Cons

  • Limited to Binance Smart Chain

  • No support for crypto savings accounts

-  Why our experts picked it

PancakeSwap’s user-friendly approach and focus on BSC tokens attract both traders and yield farmers.

SushiSwap

Best DeFi exchange for yield farming

SushiSwap supports token swaps across multiple chains and offers lucrative yield farming opportunities.

-  Pros & Cons

Pros

  • Transparent fee structure

  • Extensive liquidity pools with competitive yields

  • Multi-chain support, including Ethereum and BNB Chain

Cons

  • Token swaps incur a 0.3% fee, higher than some competitors

  • Smaller token selection compared to others

-  Why our experts picked it

SushiSwap balances ease of use with powerful yield farming tools for DeFi enthusiasts.

Uniswap

Best DeFi exchange for beginners

Uniswap’s intuitive interface and high liquidity make it ideal for beginners exploring ERC-20 token trading.

-  Pros & Cons

Pros

  • Supports multiple blockchains, including Ethereum and Polygon

  • No KYC required

  • Large user base ensures robust liquidity

Cons

  • Trading fees can be higher compared to competitors

-  Why our experts picked it

Uniswap’s accessibility and community support make it a strong entry point for new DeFi users.

What is the safest decentralized exchange?

The safest decentralized exchanges prioritize robust security measures like smart contract audits, minimal user data requirements, and strong liquidity. Uniswap and Curve are widely regarded as secure due to their established reputations and consistent updates.

It’s wise to confirm whether a platform has undergone recent audits and be cautious of newly launched exchanges with limited community feedback. Secure your trades further by using a reputable, non-custodial wallet.

What is a decentralized exchange?

A decentralized exchange (DEX) allows users to trade cryptocurrencies directly without relying on a central authority. Transactions are facilitated by smart contracts on blockchain networks, ensuring security and transparency.

Unlike centralized exchanges, DEXs do not require users to deposit funds or create accounts, giving traders full control of their assets. Popular examples include Uniswap, PancakeSwap, and SushiSwap.

Learn more about Uniswap taxes.

How do decentralized exchanges work?

Decentralized exchanges use blockchain technology and smart contracts to facilitate peer-to-peer trading without intermediaries. Users connect their crypto wallets to the platform and directly exchange tokens based on automated market maker (AMM) protocols or order books.

Smart contracts ensure the integrity of transactions by executing trades only when predefined conditions are met. This eliminates the need for a central authority, reducing counterparty risk while enhancing user privacy and control.

What important factors should I consider when choosing a decentralized exchange?

When selecting a decentralized exchange, consider these factors:

  • Security: Look for platforms with robust smart contracts and a history of secure transactions.

  • Fees: Compare transaction and gas fees across exchanges to find cost-effective options.

  • Supported blockchains: Ensure the DEX supports the networks and tokens you plan to trade.

  • Liquidity: Higher liquidity ensures faster and smoother trades with minimal price slippage.

  • Ease of use: Beginners may prefer user-friendly platforms with clear interfaces.

Learn more in our DeFi tax guide.

Centralized vs. decentralized exchanges

Knowing the differences between centralized and decentralized exchanges is useful for all crypto traders. Here’s a breakdown:

Centralized exchanges (CEXs)

Centralized exchanges (such as Binance and Coinbase) work as intermediaries between buyers and sellers. These platforms manage user funds in custodial wallets and facilitate transactions using their infrastructure.

Key features of CEXs

  • User-friendly interfaces: Ideal for beginners with easy navigation and support.

  • High liquidity: Ensures smooth trading and minimal slippage.

  • Advanced tools: Offers features like margin trading, staking, and fiat on-ramps.

  • Trade-off: Users must trust the platform to safeguard their funds and comply with regulations.

Decentralized exchanges (DEXs)

Decentralized exchanges work without intermediaries, allowing users to trade crypto directly through smart contracts. Platforms like Uniswap and PancakeSwap empower traders to fully control their funds and private keys.

Key features of DEXs

  • Self-custody: Users retain control over their funds, eliminating counterparty risk.

  • Privacy: No need for KYC, preserving anonymity.

  • Wide token variety: Includes niche or new tokens unavailable on CEXs.

  • Trade-off: Higher gas fees and less user-friendly for beginners.

Benefits of decentralized exchanges

Decentralized exchanges offer several unique advantages for cryptocurrency traders:

  • Self-custody of assets: Users retain complete control of their funds, reducing reliance on third-party platforms.

  • Enhanced privacy: No personal information or KYC verification is required to trade on DEXs.

  • Global accessibility: DEXs operate globally and without regional restrictions, enabling broader participation.

  • Wide token availability: Access tokens not listed on centralized exchanges, including new and niche projects.

  • Immutable transactions: Smart contracts ensure transparent and tamper-proof trading operations.

  • Resistance to censorship: DEXs operate on decentralized infrastructure, making them less prone to government censorship or control.

These benefits make decentralized exchanges appealing to those seeking control, privacy, and access to unique crypto assets.

Looking to calculate your crypto taxes? Try our free crypto tax calculator.

How to get started with a decentralized cryptocurrency exchange (DEX)

To start using a DEX, follow these simple steps:

  1. Choose a wallet: Install a wallet like MetaMask or Trust Wallet.

  2. Fund your wallet: Transfer cryptocurrency to your wallet for trading and gas fees.

  3. Connect to a DEX: Use your wallet to connect to platforms like Uniswap or PancakeSwap.

  4. Start trading: Choose a trading pair and execute transactions directly.

Best decentralized exchange FAQs

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Zac McClure
Zac McClureCo-Founder & CEO at TokenTax
Zac co-founded TokenTax after his career in international finance and accounting at JPMorgan, Imprint Capital and Bain. He has worked in more than half-dozen countries and received his MBA from the UPenn Wharton School.
Arthur Teller
Reviewed byArthur TellerCOO (Former) at TokenTax
Arthur came to TokenTax after 12 years at KPMG. A specialist in partnership taxation and enterprise tax software, he is a licensed CPA in both California and Illinois and a member of the AICPA.

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