Investors who want to buy cryptocurrencies have 2 options for purchase. The first option is the more widely used one, namely buying cryptocurrencies through centralized exchanges where the purchase itself is easier but controlled. The second option is decentralized cryptocurrency buying, which although more difficult and involves more steps, is not controlled by anyone, which is the most important thing for some investors and in this post we will introduce 3 decentralized platforms through which you can buy cryptocurrencies in a decentralized way.

3 decentralized plaftorms for buying cryptocurrencies.

Why is there a growing demand for decentralized cryptocurrency exchanges?

The key problem with centralized exchanges is that they are controlled by a central authority - a company that controls your funds and data just like a traditional bank. In addition, centralized exchanges use the order book model you would see on traditional exchanges, with a list of orders to buy and sell. The exchange acts as a custodian, holding assets as a market maker and finding those willing to sell assets to buyers. Asset custody, asset list, liquidity, headquarters, board of directors, and centralized trade execution are all features of a centralized exchange.

Fortunately, it can all be decentralized, and that is what decentralized exchanges have set out to achieve: a complete peer-to-peer trading platform driven by software and users. On decentralized exchanges, you just plug in your wallet, such as MetaMask, and you can trade directly from it. This makes trading private and fast, and you don't have to go through the lengthy process of setting up a bank account and trading account, which invades your privacy with intrusive and insecure Know-Your-Customer (KYC) surveys, such as your identity verification, home address, income, and much more that some investors simply don't want to share, and understandably so.

1. UniSwap

When it first came out in 2018, it was considered something of a revolution in the DeFi world. The fact that you could exchange Ethereum-based ERC20 tokens on the Ethereum blockchain without an order book was a big milestone. Uniswap leveraged smart contracts that allow users to trade with each other without intermediaries, making it decentralized and peer-to-peer.

Uniswap used innovative liquidity pools to generate the assets needed to execute swaps. For example, users like you can trade in pairs, such as ETH/DAI coins, in order to add to the pool. In return, users get a small percentage when assets from that pool are used. The price is determined by how many assets are left in the liquidity pool.

The Uniswap interface is one of the best things about the platform. You can quickly link Uniswap to your MetaMask wallet and start exchanging tokens. It's simple, efficient and, perhaps more importantly for certain cryptocurrency enthusiasts, decentralized. After all this time, Uniswap is still on the cutting edge of decentralized finance.

Uniswap's main goal is to have users like you take care of the administration of the exchange. This means that users will help the future of the exchange by voting. Uniswap has also launched a V3 model that improves Uniswap's capital efficiency, execution and infrastructure. The Uniswap protocol is constantly evolving, so while other protocols with similar interfaces have been a challenge for Uniswap, the Uniswap team has managed to keep their platform attractive to users at all times.

https://www.youtube.com/watch?v=PS1h8Mftk58&ab_channel=EveryBitHelps

2. SushiSwap

Some of the names in the crypt may seem funny to you, like this one. Sushiswap has a lot in common with Uniswap as it is a fork of it. Sushiswap then siphoned off a lot of capital from Uniswap as they offered huge rewards and incentives for switching. Despite all this, SushiSwap is still one of the best decentralized exchanges. The distribution of rewards or interest that stakeholders show when contributing to the liquidity pool is adjusted so that those with smaller stakes are well rewarded, not just those with extremely large stakes. There are also fun sushi-themed rewards.

The swap interface looks much more modern than the Uniswap interface and is just as easy to trade on. Just like the Uniswap V2 copy, all the different options can be found at the top, from funds to returns to analysis. If you ignore controversy and are interested in staking rewards, then SushiSwap is a great decentralized exchange to use.

https://www.youtube.com/watch?v=olOy4Kjrdis&ab_channel=EveryBitHelps

3. PancakeSwap

PancakeSwap is the last on this list and also carries a fun or culinary name, but that's just how these names seem to catch on. The design is all built around a fun theme, which is pleasing at least to me. Personally, I use PancakeSwap the most.

PancakeSwap is an automated market maker - a decentralized funding application that allows users to exchange tokens, provide liquidity through farming, and earn in return. It was launched in September 2020 and is a decentralized exchange for exchanging BEP20 tokens on the Binance Smart Chain. PancakeSwap uses an automated market maker model in which users trade against a pool of liquidity. These pools are populated by users who deposit their funds into the pool and in return receive tokens from the liquidity provider.

https://www.youtube.com/watch?v=iG0O6GLxwrk&ab_channel=MoneyZG

Basically, these decentralized exchanges are not that specially different and it is up to you which one you choose. The important thing is to have an active Metamask, as you can't do without it or its alternatives. It's true that this way of buying is more difficult and also more expensive, but as long as you don't want some controlling body over you it's definitely a good way to go and worth it.