How to Buy DEX Tokens
You’re probably here because you heard that decentralized exchanges (DEXs) issue their own tokens, which usually offer governance, rewards, and other benefits related to the platform.
And if you’ve been thinking about adding DEX tokens to your portfolio, well, you’re in the right place. We’ll give you step-by-step instructions for buying them through Velto, a Web3 crypto wallet app.
Why Investors Buy DEX Tokens
DEX tokens are tied directly to the success of decentralized trading platforms. Investors are drawn to them for three big reasons:
- Governance Power
Most DEX tokens act as governance tokens. Holding them may mean you get a vote in how the platform evolves, including changes to fee structures, token listings, or future upgrades. It’s comparable to being both a customer and a shareholder at the same time.
- Staking Rewards and Yield
Many DEXs allow token holders to stake their DEX tokens or provide liquidity in pools. In return, you can earn rewards, trading fee shares, or yield farming incentives. For long-term holders, this turns tokens into passive income tools.
- Exposure to DeFi Growth
As decentralized finance expands, demand for trading venues (and their tokens) grows with it. Buying DEX tokens is a way to gain exposure to the broader adoption of DeFi, without betting on just one blockchain or project.
Popular DEX Tokens in the Market
Before diving into the “how,” let’s look at the most well-known DEX tokens to date:
- Uniswap (UNI)
They call it the OG of DEX tokens. UNI is tied to the Uniswap protocol on Ethereum, one of the largest decentralized exchanges in the world. UNI holders vote on protocol upgrades and treasury usage.
- SushiSwap (SUSHI)
Launched as a fork of Uniswap, SushiSwap adds yield farming and community-driven development. The SUSHI token powers governance and staking.
- PancakeSwap (CAKE)
CAKE is the go-to DEX on Binance Smart Chain. It is famous for its low-fee environment and high-yield farming opportunities.
- Raydium (RAY)
RAY is a Solana-based DEX token that benefits from Solana’s lightning-fast network. RAY also integrates liquidity from Serum’s order book.
- dYdX (DYDX)
A DEX focused on derivatives and margin trading, DYDX gives token holders governance power and staking rewards.
How to Buy DEX Tokens: Step-by-Step Guide
Buying DEX tokens doesn’t have to be complicated. Here’s a simplified guide to help you do it hassle-free with Velto:
- Download Velto from the App Store or Google Play Store. Create your Velto wallet (if you haven’t already).
- Deposit your base token into your wallet.. Usually, it’s Solana (SOL) or USD Coin (USDC).
- Go to ‘Swap.’
- Select your base token (e.g., SOL) and the DEX token you’d like to buy.
- Tap ‘Provider’ to select the DEX aggregator.
- Enter the amount you’d like to buy.
- Tap ‘Swap’ to confirm the transaction.
Using Centralized Exchanges to Buy DEX Tokens
If you’re just starting out and want an easier fiat-to-crypto path, centralized exchanges (CEXs) sometimes also list major DEX tokens like UNI, SUSHI, and CAKE. The pros are simple UI, direct fiat purchases, and liquidity, while the cons are not being able to control your keys (unless you withdraw), and not every CEX lists all DEX tokens.
Many beginners start here, then transfer their tokens to a Web3 wallet like Velto for full custody.
Wallets Needed to Store DEX Tokens Safely
Buying DEX tokens is just step one; keeping them safe is where the real game begins. The wallet you choose determines whether your tokens stay protected or end up at risk. And for everyday transactions and smooth token swaps, a Web3 wallet like Velto is one of your best bets. It’s non-custodial, which means you hold the keys, not some centralized platform. Plus, it has strong security features like biometrics.
However, if you’re holding DEX tokens long-term, especially in large amounts, a hardware wallet offers maximum protection. By storing your private keys offline, hardware wallets can keep your assets safe from hackers and phishing attempts, even if your computer gets compromised.
Risks of Buying DEX Tokens
Yes, DEX tokens can be rewarding, but they’re not a guaranteed path to riches. Like the rest of DeFi, they come with unique risks you need to factor in before buying.
- Volatility
DEX tokens often move faster and harder than bigger cryptos like Bitcoin or Ethereum. They can skyrocket during hype cycles but crash just as dramatically when sentiment shifts. If you’re not ready for wild price swings, you might find yourself panic-selling at the worst possible time.
- Rug Pull Risk
While major platforms like Uniswap or PancakeSwap are relatively safe, smaller or newer DEX projects can collapse—sometimes due to poor design, sometimes due to outright fraud. Always dig into the project’s team, audits, and community before investing.
- Regulatory Uncertainty
Governments worldwide are still figuring out how to treat DeFi tokens, and sudden policy changes could restrict usage or liquidity. And don’t forget smart contract risk: even the most hyped DEX can be vulnerable to bugs or exploits.
The Bottom Line
DEX tokens are more than just another crypto trend. They’re the fuel that powers decentralized exchanges and the larger DeFi ecosystem. Buying them gives you not only financial upside but also a voice in the future of decentralized finance. However, as they always say, you should never invest more than you can afford to lose. Stick to projects with proven track records, transparent teams, and active communities. In DeFi, due diligence is your strongest defense.
Disclaimer: Velto is offered on an “as-is” and “as-available” basis for self-custody of virtual assets. It does not provide legal, tax, accounting, or investment advice, nor does it execute or custody transactions on your behalf.
Virtual-asset transactions are irreversible and highly volatile. Loss of your private keys or signing malicious transactions can result in permanent loss of assets. You bear sole responsibility for: (i) safeguarding keys and verifying transaction details, and (ii) assessing and complying with all applicable legal, tax, and regulatory obligations. Consult qualified independent advisers before acting on any information or prompts generated by this software.
Velto and its affiliates disclaim all liability for any direct, indirect, or consequential losses arising from your use of, or reliance on, the software or its content. By downloading or using the wallet, you acknowledge and accept these terms.
FAQs
What are DEX tokens and why should I buy them?
DEX tokens are cryptocurrencies tied to decentralized exchanges. They give holders governance rights, staking rewards, and exposure to DeFi growth.
Do I need a Web3 wallet to buy DEX tokens?
Yes, if you’re buying on a DEX. A wallet like Velto lets you swap and store tokens securely.
Is it cheaper to buy DEX tokens on a centralized or decentralized exchange?
It depends. CEXs may offer lower trading fees, but DEXs often give better access to smaller tokens.
What are the risks of holding DEX tokens?
Some risks include price volatility, rug pulls, smart contract exploits, and regulatory changes.
Can I stake DEX tokens for rewards?
Yes. Many DEX tokens (UNI, SUSHI, CAKE) can be staked for rewards or used in liquidity pools.
Are DEX tokens a good long-term investment?
They can be, but only if the underlying DEX continues to grow and attract users. Always research before investing.
How do I store DEX tokens securely after buying them?
Store them in a non-custodial wallet like Velto, or use a hardware wallet for maximum security.
Published on
September 10, 2025