What should you look for in a DEX?

[sunsilk]

Volume/liquidity, mostly that's what I am looking for and next is if they're known and what kind of reputation they've got.

Honestly, before I was too optimistic with DEXes not until I started to see the lack of security of many of them and they've always been targeted by hackers and only a few of them manages to respond from those attacks until many of them closed.

And that optimism that I've got for DEX have already lost when most people are going and adding volume not on them but for the centralized exchanges.

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[libert19]

I'm not techy, I usually only look for reputation, if it's been a while since it's been in market, it should be trustable.

[Davidvictorson]

I want to look into dexes and I was wondering what is it that you would personally look for in a dex to see if it is good?

 

I have never had any issues with the DEX. Not once have I been worried about hacks, transaction fees, or government regulation while using DEX. As a beginner, you should pay attention to analyzing the reputation of the decentralized exchange, as well as the number of buyers and sellers on the platform because it is crucial to its liquidity. This other point may not sound too important, but an intuitive interface of a DEX will make your life easier as you will not be worked up due to navigation on the platform.

[Woodie]

I think with increased crypto activity in today's digital age one component that is a good indicator of deciding on whether to use a service or not, is finding reviews of what others say about the service..of course this isn't foolproof as review's can easily be bought but if not too much work you could as the community here to find its legitimacy.

Secondly lookout for activity and liquidity  ,if from a quick look things look slow moving and orderbook seems dead just don't bother using such an exchange ,save your time and money and take your business elsewhere .

Lastly I look for competitive pricing to what a CEX has and what market prices are being anticipated then you know which DEX to use.

[YUriy1991]

I want to look into dexes and I was wondering what is it that you would personally look for in a dex to see if it is good?

 

Simple but meaningful question.. ,  Important Evaluating a decentralized exchange (DEX), Well, there are several factors to consider to determine if it is a good choice for example Security and this should be your priority for any DEX. Look for platforms that use strong security measures such as smart contract audits, bug bounty programs, and strong encryption protocols and low trade taker fees including gas fees on the underlying blockchain network and others in addition to other staples like Liquidity factor , User Interface (UI) and User Experience (UX) and the range of assets available for trading on DEX.

If there are pluses there must be minuses as well. For example for now there are still Regulatory Concerns where DEXs are operating in a relatively unregulated environment, which may raise concerns about the potential risks of the solution yes Users can choose a centralized exchange which complies with regulatory standards and offers added protection the last is Slower Transaction Speed. My reason is that DEXs rely on the blockchain network for transaction processing, which can sometimes result in slower transaction speeds and higher network fees during periods of peak activity and This can be a disadvantage for traders who need instant execution or want to take advantage of short-term market movements.

[kamvreto]

I think with increased crypto activity in today's digital age one component that is a good indicator of deciding on whether to use a service or not, is finding reviews of what others say about the service..of course this isn't foolproof as review's can easily be bought but if not too much work you could as the community here to find its legitimacy.

Secondly lookout for activity and liquidity  ,if from a quick look things look slow moving and orderbook seems dead just don't bother using such an exchange ,save your time and money and take your business elsewhere .

Lastly I look for competitive pricing to what a CEX has and what market prices are being anticipated then you know which DEX to use.

This is one that I often do when I want to trade on a new DEX or CEX platform. It's always about available Liquidation, if Liquidation is low enough and the orderbook looks slow or even not moving, then few will be interested in the DEX. The orders that appear are also filled with Bots and that's to keep up with selling and buying activity, but still it's just a biot and it doesn't look like real users are doing it. Dex recommendations are also reviewed by several senior users and even have good ratings as Dex that can be used safely.

[Jon_Hodl]

Another thing is how true are their claims... For instance, a lot of these so called "DEXes" aren't actually decentralized as they implement KYC, block countries, rely on centralized servers, etc. Right now, only BISQ is actually decentralized.

What are your thoughts on RoboSats? They seem pretty decentralized with a good maker bond system in place. I like that it runs directly in Tor but anyone can run their own instance on Umbrel and/or Citadel to become a part of the infrastructure.

[rby]

What I look at in DEX is something that isn't easy to detect and moat times I end up speculating about it since I do not always get my results accurate.

I look at the level of Decentralization
While many of the DEX will claim they are decentralized, but their level of decentralization is very low. How they handle and store data is very important to me. Many of the DEX actually send data to centralized server. Some run on plugins that we cannot for.
Apart from the above, reputation is important also to me.

[suzanne5223]

What you should look for in DEX before using it is the DEX transparency in operations, supported cryptocurrency, liquidity, security, decentralization level, volume, and a friendly and easy-to-navigate user interface.
Nevertheless, If you're looking for privacy and no-KYC exchange for Bitcoin trading or Monero I will advise you to check Crypton Exchange.

[dansus021]

Simple version

• just go to coingecko or coinmarketcap and see what is the number one dex on the list and just use it https://coinmarketcap.com/rankings/exchanges/dex/ https://coinmarketcap.com/rankings/exchanges/dex/
  
• choose the best chain I usually choose ETH BNB Chain and Polygon because there is dozen project on those chain
• Liquidity

Tho some of chain don't have enough liquidity you can use Dex aggregator like 1nch or Dodoex

[KingsDen]

What you should look for in DEX before using it is the DEX transparency in operations, supported cryptocurrency, liquidity, security, decentralization level, volume, and a friendly and easy-to-navigate user interface.
Nevertheless, If you're looking for privacy and no-KYC exchange for Bitcoin trading or Monero I will advise you to check Crypton Exchange.

Transparency in operation is something that is supposed to be eminent in every decentralized exchange. The word decentralization means that there is no central authority controlling the operation of the exchange. This means the running of the exchange depends on the activity and the contribution of the exchange users and developers who developed interest in such decentralized exchange.

Now if the exchange is decentralized and open-source, it means that it automatically has a very high transparency of operation. No hidden agenda.
But any decentralized exchange in which you do not know how they operate, simply tells that they are not totally decentralized and should be avoided.

[honglu69]

I want to look into dexes and I was wondering what is it that you would personally look for in a dex to see if it is good?

Remember this... most exchanges that have DEX label are not really decentralized, and most of them are based on centralized shitcoin blockchains.

We don't have many real DEX options but Bisq exchange should be mentioned first, you need to download open source software and run it in your computer.
BlockDX is also decentrlaized but last time I checked it didn't have much trading volume, and I don't think it gain any popularity so far.
Few other P2P alternatives can work as alternative if you are using mobile devices, like Peach Bitcoin, RoboSats or AtomicDEX wallet.

I have used all three: Bisq,  BlockDX,  AtomicDEX.

Liquidity, user friendliness and easy to use is important.   trading fees are important too. 

Out of three, currently only working one is AtomicDEX.  AtomicDEX for small DEX traders are fine, the fees are small,  spread is wider than CEX, but definately a niche and very good to use to own your own private keys for most of UTXO coins and also BNB and ETH cross chain trading.

Bisq never worked for me, the deal breaker was high fees and poor liquidity even on DOGE/BTC pair.  Bisq seems to be huge on Monero pair so that it is mainly a private coin dex there.

BlockDX has been dissappointing so far.  It appeared to be great with bitcoin coin clone technology core  plus masternode POS design.  Somehow the light wallet Xlite was never materialized after many years.  BlockDX would be great competitor to AtomicDEX if it delivered what it promised years ago.  For me BlockDX high level DEX design seems to be very decentralized if their service nodes count goes up to big number.