DEX aggregator Odos vs UniSwap: how to choose one?
UniSwap is undoubtedly the market leader. Having the longest history and a huge client base this DEX conquered the hearts of crypto enthusiasts who adhere to the principles of DeFi. However, unlike in 2018, today the range of DEXs is only growing. Therefore, the way you choose a decentralized platform is changing. Now we have no less useful websites like DEX aggregator Odos, DYDX, 1inch, etc. So how to act these days?
Varieties of DEX
Basically, decentralized cryptocurrency exchanges are classified according to two criteria:
- Location of transactions – the exchange can be made directly on the main blockchain, or on a third-party one, with the subsequent transfer of the results to the main one. The second method is often chosen in order to speed up and facilitate the process if the underlying chain is heavily loaded.
- How to execute transactions – some sites support an order book system similar to that used on CEX. But recently, exchanges with AMM (automatic market maker) are gaining more popularity. The DEX aggregator Odos is a good example. Their essence lies in the creation of liquidity pools by users, within which an instant exchange is then carried out based on the rate determined by supply and demand.
Consider decentralized cryptocurrency exchanges, which are currently the most in-demand, based on attendance and trading volumes.
Other differences
The way to get started with a decentralized cryptocurrency exchange also depends on its type.
Some, like Binance Dex, require the creation of a separate cryptocurrency wallet. You will need to set a password and save the keys and the seed phrase, which will later be needed to access the funds.
At the same time, the DEX aggregator Odos works in conjunction with web3 wallets (for example, Metamask or Trust Wallet) or Ledger, and Trezor hardware wallets. In this case, you must click the Connect Wallet button, and then enter the password from your wallet in order to use the funds in working with the protocol. With each transaction, the wallet will ask for the user’s permission.
In both cases, the user is not required to provide any data – no phone, no email, not to mention the name or address. Trading is completely anonymous.
Picking criteria
The choice of the best-decentralized cryptocurrency exchange should be made according to your needs. The main factors include:
- availability of the necessary trading pairs;
- support for the required blockchain;
- liquidity – the higher it is, the easier and faster the trade will be;
- safety – of course, in the case of decentralized exchanges, the user keeps their funds on their own and does not provide confidential information to anyone. However, vulnerabilities and protocols can lead to losses. Make sure the protocol has been audited by independent companies;
- commissions – with active trading, fees can take a significant part of the profits;
- simplicity and convenience of the interface.
Ultimately, you are responsible for your funds. The high volatility of assets creates certain risks, and choosing a suitable platform is only one of the steps that can help you make profitable financial transactions.
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