The 3 best DEXs for decentralized trading!

DEXs (decentralized platforms) will certainly experience their glory days soon. THE centralized crypto exchange platforms are in fact losing confidence… The history of exchanges has been shaken by various financial scandals. Recently, it was the dramatic fall of the FTX platform that pulverized the market.

The rather unpredictable event was described as " black swan " as the effects are devastating on the entire crypto market.

There are then more and more traders who wish to practice their activity on decentralized trading platforms.

Here is a list of decentralized crypto trading platforms that you can use right now:

What are DEXs: decentralized trading platforms?

There is a distinction to be made between decentralized exchange platforms that we call DEXs and decentralized trading platforms. The big difference is that DEXs are primarily simple decentralized exchange platforms. For example, you will be able to exchange USDT for ETH on Uniswap. You do not have specific trading tools and you cannot place complex orders with take profits and stop losses for example.

However, today there are real decentralized trading platformss which are the (almost) equivalents of classic trading platforms, except that there, you understood, it is decentralized. Thus, these are smart contracts which will automate the terms of the contracts.

There are also decentralized trading platforms on which you can trade on margin with leverage (be careful, this requires trading knowledge!) and trade derivative crypto-assets.

1/ DYDX: The most used platform

Dydx is certainly the most used and best-known decentralized trading platform, as CoinmarketCap tells us. Indeed, when writing this article, the total value locked (TVL) of DYDX is worth $384 million.

DYX works on the Ethereum network, and you will then need to install Metamask for the most comfortable use. Moreover, the protocol has integrated a StarkEx layer 2 solution by Starkwire in order to reduce network costs in particular.

The native token of the platform is DYDX. It is then an ERC-20 type token which allows you to pay transaction fees and also participate in the governance of the protocol. Likewise, the token entitles you to reductions on transaction fees when you use the platform.

It is also possible to do staking in parallel with trading. Maximum leverage is 25x on assets.

Trading on DYDX

GMX: The decentralized trading platform for perpetual futures!

For those who prefer to trade with greater leverage, GMX is a good alternative. It is the " Decentralized Perpetual Exchange » par excellence at the moment. You should know that a perpetual contract is a type of futures contract that does not have an expiration date. Thus, you can maintain a position for as long as you want.

The platform uses the Arbitrum layer 2 solution, which significantly reduces transaction fees. Recently, the platform also allows trading on the Avalanche network. This brings unparalleled speed to operations. GMX is a decentralized trading platform that allows you to trade multiple crypto assets with leverage up to x30.

The native token is GMX which is also a governance token of the protocol. GMX token holders can then receive 30% of the fees generated by the protocol. Thus, in proportion to what you own, you will receive regular income from the platform. There is also the GLP token (on Avalanche)

Likewise, swap fees are low due to Arbitrum. The pools are numerous and made up of several assets. Liquidity providers can then receive commissions on transactions executed on the pools.

How to earn income with GMX?

We can also generate additional income with the two tokens of the platform:

—> GMX is the governance token and utility token of the platform. We receive 30% of the platform's fees. You can stake at 18% APR on Arbitrum or Avalanche.

—> GLP is the liquidity providers token. We receive 70% of the fees generated on the pools. The APR rate is around 28% on Arbitrum and Avalanche.

3/ hegic : An on-chain options trading DEX

Hegic is an options trading protocol built on the Ethereum blockchain and with layer 2 Arbitrum.. Yes again! In fact, this is because the largest trading volume takes place on the Ethereum blockchain.

The platform token is an ERC-20 utility token called HEGIC. Like other tokens, it is used for transaction fees. Likewise, it is also in this form that part of the profits are paid each quarter to the holders of the token. The latter can also participate in the governance of the project and benefit from certain reductions.

This remains a very promising DEX in our opinion but which requires a certain knowledge of trading, that is undeniable.

Discover Hegic

To go further, you can consult the article to know the difference between CEX and DEX and know how protect your cryptocurrencies the best.

Note: No financial advice is given in this or any other article on zonebitcoin. This is information of which you are the sole judge and master. Be responsible with your investments and only invest as much as you are willing to lose.

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