Best Decentralised Crypto Exchanges for Australia 2023
Cryptocurrency exchanges can be categorized in many ways and by many parameters, however, the main two prominent divisions come down to whether the platforms are centralized or decentralized.
Tip: Check out our comparison of the top Australian crypto exchanges if you’re looking for a local trading platform.
While centralized cryptocurrency exchanges (CEXs) pretty much follow the same guidelines and have the same structures throughout, decentralized cryptocurrency exchanges (DEXs) are vastly different from each other. So much so that sometimes the only thing that connects them is the fact that they are decentralized.
But what does this mean? Isn’t cryptocurrency decentralized by nature?
Let’s take a closer look and draw some lines in the sand.
Best Decentralised Crypto Exchanges for 2023
1. Changelly Exchange
Changelly is one of the most popular and sought-after decentralized crypto platforms on the market. The trading platform offers its clients lightning-fast crypto swaps and a vast selection of supported digital assets. Few could have guessed MinerGate’s 2013 start-up project would become a trailblazer in the DEX world. The platform’s exchange is always evolving and employing the latest technological advances to its programming.
Changelly has positioned itself perfectly on the crypto market by offering both CEX and DEX features to its users. Most DEXs do not have support for traditional fiat currency deposits, however, at Changelly, traders are able to purchase any of the platform’s supported 170 crypto assets with fiat. The most frequently used payment methods on the platform are instant swap providers Simplex and MoonPay. However, this feature comes at the inconvenience of a standard KYC and AML test.
That being said, the trading platform does not sell any custodial services to its clientele. Changelly’s alluring API makes it possible for users to integrate some of the best hardware wallets around. Names such as Ledger, Jazz, Exodus, TREZOR, and Edge are just part of the fold.
The trading platform’s exchange employs a P2P model that provides the best possible spreads by cross-referencing the offers from some of the most popular crypto exchanges on the market.
2. IDEX Exchange
IDEX is certainly one of the, if not the, most forward-thinking crypto exchanges on our list. The trading platform has managed to combine elements from both CEXs and DEXs and put together a unique offering that delivers on a lot of fronts.
The weak points of traditional DEXs have been addressed and tailored to suit a broad range of traders. For instance, the fact that DEXs provide users with full control over every aspect of their trading experience leaves little room for beginner traders to come in and excel in what the platform has to offer. IDEX has addressed this by paying particular attention to their API – they have managed to come up with a user-friendly interface while retaining the speed on transactions, processing, and order type.
The trading platform is completely anonymous, as users have full control and responsibility over their private keys. Traders that are more tech-savvy or have been in the crypto industry for a long time are able to make the most out of programming smart contracts, as well as reaping the benefits of becoming a liquidity provider.
IDEX’s hybrid approach is evident from the very first step, as users have to deploy assets in order to get started. The main difference here is that the funds and digital assets that are deposited by new traders aren’t centralized. This means that the funds themselves aren’t in the custody of a single entity or party, instead, they are locked and distributed automatically by smart contracts – a serious upgrade from the vulnerable CEX approach.
IDEX relies on its blockchain technology for updates, revamps, and the transfer of data points. Where some traders might come to a roadblock is the fact that IDEX is completely Ethereum-based and only supports digital assets and tokens that run on the Ethereum blockchain.
The trading platform has introduced a couple of promising new protocols such as Polkadot and the Binance Smart Chain. IDEX provides a native token that makes it possible for stakers and holders to get a whopping 50% worth of discounts on the already low trading fees. The trading platform’s standard trading fees incur 0.1% for makers and 0.2% for takers.
3. Uniswap Exchange
Uniswap embodies the saying “living on the edge” as no other trading platform at the moment because it’s exceedingly hard to tell where its centralized solutions end and where its decentralized offering takes over. The trading platform does employ and make use of fully decentralized protocols that run on the Ethereum blockchain, however, much of its functions will appear familiar to CEX users. A DEX in CEX clothing? Let’s take a closer look.
Uniswap was launched in 2018 by one Hayden Adams, who at the time presented the crypto world with the most ambitious DeFi Ethereum project yet.
The trading platform made it possible for users to earn crypto in their sleep. Users on Uniswap are able to swap ERC20 tokens by employing automated liquidity protocols, which upgrades the trading process from order books and coin matches to fully decentralized and automated market makers.
Uniswap is an open-source exchange by nature. It relies on already formed token liquidity pools for the best spreads and market offers. This is fully automated and comes with no extra trading fees for the users. Traders are able to swap tokens across any and all available pools via the MetaMask and MyEtherWallet crypto wallets.
Even though the trading platform’s interface is as beginner-friendly as can be for a DEX, novice users will still need to learn the ropes of P2P trading and token swaps. Once they understand how to program what they want from the cryptocurrency exchange, they can sit back and watch the automated smart contracts and the factory liquidity contracts do their bidding.
4. 0x Protocol Exchange
0x is another crypto exchange that runs on the Ethereum blockchain and employs open-source protocols when it comes to peer-to-peer token swaps. The platform was launched in 2016 with Will Warren and Amir Bandeali at the helm.
0x’s calling card is the tokenization of digital as well as analogue goods. The trading platform offers its clientele tokenized swaps that include real estate, artifacts, as well as gold.
0x relies on its smart contracts to scour the Ethereum BSC and Polygon blockchains. Once the order parameters are set in place and the smart contracts are set in motion, the trading platform’s protocols connect with a multitude of Ethereum-based dApps and create a decentralized exchange network. This way, traders are able to make the most of swaps and trades, be it with the crypto exchange’s native token offering or any other ERS-20 tokens.
0x has taken the order book game to the next level by making use of a relayer model. What this means is that the trading platform employs a relayer system that acts as a host for order books and amalgamates data across multiple order book offerings before presenting traders with the best match for their preferences. Users are able to switch between and do their business through multiple hosts, such as ERC, DDEX, as well as dEX Paradex.
5. Bisq Exchange
Bisq is one of the most established and well-known crypto exchange platforms on our list. It was founded back in 2014 by Manfred Karrer.
Bisq takes somewhat of a unique approach to crypto trading because it doesn’t have a trading web platform where users can go in order to trade digital goods. Instead, the platform is completely app-based and requires its clientele to download the Bisq app. Not to worry, the app is available across all major operating systems including Windows, Fedora, Mac, Linux, and Ubuntu.
Even though most of the upcoming DEXs have relied on Ethereum-based DeFi applications and have been pushing for an ERS-20-token-driven crypto economy, Bisq incorporates and runs on trustless protocols that offer their users the ability to do business by employing other popular and sought-after cryptos such as Bitcoin (BTC), Bitcoin Cash (BCH), Ripple (XRP), and Litecoin (LTC).
Traders that download the Bisq app will be able to purchase and/or sell Bitcoin by making fiat as well as crypto deposits. The trading fee infrastructure at Bisq is very complex, as the trading platform makes use of advanced algorithms in order to distinguish the takers from the makers.
However, this does not affect the speed of the fee processing, or so Bisq claims. Once users enter the app, they need to settle for a deposit currency and see what Bisq has on the menu for them. It’s really that simple. The trading platform employs escrow protection on trades and transactions.
6. 1inch Exchange
1inch is a fairly recent DEX. The exchange was established in 2019 by Anton Bukov and Sergej Kunzas as part of the ETHNewYork hackathon. 1inch provides its clientele with a vast array of liquidity pools on the Ethereum network, as well as support for Polygon, 1inch’s native protocol, Uniswap, Balancer, 0x, and Binance Chain liquidity pools.
By establishing partnerships with crypto giants such as Binance Labs and Pantera Capital, 1inch has managed to rise in the ranks for a relatively short period of time and reach an unprecedented $250 million in daily trade volumes.
1inch employs an algorithm that cross-references all of the available offerings across a multitude of different decentralized crypto exchanges and provides its users with the best possible price on any given asset. This way traders are always getting a list of the most adequate matches at the most affordable prices and lowest slippage rates.
7. ShapeShift Exchange
ShapeShift is a Swiss decentralized cryptocurrency exchange platform that was launched back in 2014 by founder Erik Voorhees. The crypto exchange, much like other DEXs, is non-custodial by nature and is available from all corners of the globe. The trading platform quickly caught the attention of many because it does not employ any commissions on traders. So, why isn’t everyone using it?
As great as the ‘zero commissions on trades’ line sounds, users still have to sign up to the platform and verify their user account in order to be eligible for the free trade feature. Yes, this does mean that users will have to provide the trading platform with personal data.
Upon successful verification, the exchange rewards new users by adding 10 FOX tokens to their balance. Traders are still able to take advantage of the platform’s offering without verifying their accounts if they choose to do so. The trading platform’s regular fees start at 0.5%, which isn’t at the low end of the fee spectrum.
ShapeShift provides support for more than 50 digital currencies that cover everything from the most sought-after cryptocurrencies to some lesser-known utility tokens. The trading platform accepts deposits only in crypto. Traders that wish to deposit fiat currencies will have to go through a third-party exchange in order to do so.
Shapeshift does have a partnership with Simplex, through which traders are able to purchase Bitcoin by employing USD or EUR at favorable rates.
8. SushiSwap Exchange
SushiSwap is a decentralized crypto trading platform that runs on a DeFi protocol network. The trading platform employs automated market liquidity with an estimated billion dollars in trading volumes.
SushiSwap began its crypto journey as a fork stem for the Uniswap open-source network. The crypto exchange is one of the new players on the block – it was launched in 2020 by one Chef Nomi and its associates. Even though the trading exchange has seen its fair share of controversy in a relatively short time, it’s something that comes with the territory of being the most sought-after decentralized crypto trading platform on the market.
SushiSwap employs the very same AMM protocol scheme as Uniswap, however, it expands on the instant token swap offering with yields earnings that can be accessed through the Onsen Programme, the Stake xSUSHI feature that’s available as part of the SushiBar offering, as well as advanced leverage trades that are made possible by Kashi. Users are able to Interact directly with dApps and program them to their liking by making use of the BentoBox feature.
The crypto platform cruelty houses over 150,000 users and it looks like that number will be facing nowhere but upwards in the foreseeable future.
9. Kyber Network Exchange
The Kyber Network was launched as an ICO project offering back in 2017. The platform employs AMM protocols and provides users with a completely decentralized and reasonably priced token offering. The exchange runs on the Ethereum blockchain network and has its own native token offering in the Kyber Network Crystal (KNC).
Kyber Network does instant token swaps in the blink of an eye by employing trustless protocols, however, that’s not the main reason why it stands out from the crowd. Traders at the Kyber Network are able to make the most of the trading platforms’ advanced feature offerings and dabble across numerous ecosystems. The API of the exchange is particularly user-friendly when it comes to decentralized crypto exchanges. Traders are able to swap the platform’s native token KNC through any crypto wallet that supports the digital asset and match it against the currency that they wish to acquire. It’s that simple. The heavy lifting is done by the trading platform’s smart contracts that immediately convert the chosen pairing at the best available price.
10. Bancor Network Exchange
Last but certainly not least on our list is the Bancor Network (BNT). The platform runs on the Ethereum blockchain network and provides users with the option to swap assets at the drop of a dime. Bancor was founded back in 2017 with Galia Benartzi, Eyal Hertzog, and Guy Benartzi at the helm.
The platform makes use of a cross-chain swap protocol, which means that users do not have to seek out and navigate through a long line of possible suitors in order to find their best match. Instead, the trading platform bypasses all order books and open orders and drives its pricing model based on the best crypto market prices at the existing liquidity.
In other words, traders are getting the best de facto price, without having to seek it out. The exchange supports ERC-20 and BNT (Bancor Network Token) swaps. The tokens are stored and delivered by smart contracts.
The only downside to Bancor and most decentralized crypto trading platforms is that there is no support for fiat purchases. So, users that want to get in the game by taking the fiat route have to employ a third party in order to make this possible.
Decentralized Exchanges vs Centralized Exchanges
Centralized crypto exchanges run on decentralized blockchains. This means that the transaction itself and the asset exchange are not confirmed or executed by a governing body, however, the grounds on which the trade is executed are property of a central figure that owns the entity that facilitates the trade and makes it possible.
So, in a way, centralized crypto exchanges have a lot in common with traditional banks. In order for a trader to engage in a trade at a centralized crypto trading platform, they have to register for an account, provide information about themselves, and go through a verification process that cross-references their personal data. When all is said and done the centralized crypto exchange knows exactly who its clientele is, where they have been, and what their preferences are.
CEXs are most suitable for beginner crypto traders that don’t know the rules or the lay of the land and need a chaperone to guide them through. Centralized crypto exchanges provide users with services and features that make their crypto ventures more convenient and organized. Every one of these services is billed in the form of fees, which CEXs certainly have a lot of.
Decentralized exchanges, on the other hand, are the complete opposite of centralized crypto exchanges. Instead of holding traders’ hands and walking them through every process step by step, they run peer-to-peer protocols that allow the users to connect among themselves and deal on a one-on-one basis.
When setting up a trade at DEXs, the traders are the ones that have to put everything together on their own. They negotiate the terms, contracts, and payment methods by themselves and have full control over all parameters and settings.
The fact that decentralized crypto exchanges are non-custodial by nature means that the funds that are coming in and going out of the platform don’t actually come in contact with the platform itself.
In recent times, more and more traders have been migrating from centralized to decentralized crypto exchanges. But the control over the transaction process is not the main reason for the shift. After all, decentralized crypto exchanges do require a lot more work in order to get things done.
So why exactly are users flocking over to DEXs? What can decentralized crypto exchanges offer over CEXs?
Why Use Decentralized Cryptocurrency Exchanges?
Even with the latest developments, CEXs still have a firm grip on the crypto industry because they are getting more time in the spotlight. However, DEXs have more than a fair share of advantages over centralized crypto trading platforms.
One of the main reasons that traders are switching to DEXs is security. Centralized crypto exchanges are custodial, which means that the exchanges themselves are the keepers of the digital assets, private crypto wallet keys, and sensitive data. All of these are stored on the trading platform’s servers and as such are vulnerable to attacks and theft.
If a hacker manages to breach the walls and penetrate the security infrastructures of a centralized crypto exchange, they might gain full access to everything that a CEXs has stored. Even though almost all centralized exchanges employ cold storage on most user funds, the actual coins are just part of the problem. Sensitive personal information is far more dangerous if it falls in the wrong hands. It can lead to everything from unsolicited data sales to full-out identity theft.
At decentralized exchanges, traders remain fully anonymous at all times and have full control over their data and finances. So, even if someone were to break into a decentralized crypto trading platform, chances are that they won’t find anything of value there. Not a single thing.
How Do They Work?
By employing peer-to-peer trading protocols, IDEX makes it possible for users to stay away from hidden fees and unjust claims in regards to liquidity pools and spreads. At CEXs, traders have no way of knowing what the liquidity pools really look like, all they have to go on is what the platform has on display for them. On the other hand, the liquidity pools and providers at decentralized crypto exchanges are fully transparent.
Another main cardinal point that favours the DEX structure are the trading fees. Decentralized crypto exchanges employ minimal fees, usually in the form of transaction and gas fees, while centralized crypto exchanges have fees for every step of the way. Users that decide to do their business through centralized crypto exchanges are usually faced with a fair share of trading fees, deposit fees, withdrawal fees, as well as percentages on spreads.
Centralized crypto exchange platforms have to be in compliance with the laws of territories that they cover in order to offer and sell their services because different countries, states, and territories have and treat cryptocurrencies as different assets and entities. CEXs have the tedious job of legislating their services separately on every front. Sometimes, they fail to meet the required criteria, and sometimes, the territories that they want to cover have cryptocurrency banned entirely. DEXs, on the other hand, have none of these problems and restrictions since they are non-custodial.
Frequently Asked Questions
An Atomic Swap is a facet that is governed by smart contracts. In essence, Atomic Swap technology makes instant swaps secure for both concerning parties. Crypto trading platforms that support Atomic swap technology can afford to bypass finance mediators such as escrow. Atomic swaps code and decode transactions at such great speeds that they are virtually impossible to intercept.
Even though DEXs are en vogue at the moment, and are seen as the next big thing within the crypto industry, they aren’t very suitable for beginner traders. This is the main reason why centralized crypto exchanges still have and probably will have their place on the crypto market. It all comes down to the skill level, experience, and expertise of the trader.
If users feel confident that they are able to do their business on their own, then by all means, yes, DEXs are safe and convenient spaces to trade cryptocurrency, that offer ETH tokens, altcoins, staking, and swapping digital currency at the best price at low fees. They offer a vast array of payment methods and much better rates than traditional bitcoin exchanges.
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This page was last updated on August 23, 2022