Despite the major setback, Chainlink (LINK) bounced back powerfully with the launch of its Cross-Chain Interoperability Protocol (CCIP) in June - a clear statement that the project is here to stay and build.
If you're looking to trade Chainlink (LINK) on GMX exchange but don't know how to get started, this guide will walk you through the process step-by-step.
Where to Trade Chainlink?
You can trade Chainlink (LINK) on centralized exchanges like Binance, Coinbase, or Kraken. Don't forget to top up your wallet before trading.
With the flourishing growth of the DeFi ecosystem, trading cryptocurrency is now not limited only to centralized exchanges (CEXs). Investors can now experience crypto trading on decentralized exchanges, such as GMX, dYdX, or Velo Exchange.
The Benefits of Trading Chainlink on GMX DEX
While decentralized finance (DeFi) has achieved steady growth over the past few years, there are still gaps between the ecosystem and the broader mainstream. Many potential users are unfamiliar with DeFi concepts, especially those associated with decentralized exchanges. Plus, the potentials involved often go unnoticed.
It's no exaggeration to say that GMX is now the top decentralized exchange (DEX) in crypto trading. Here are the benefits of trading Chainlink on the GMX exchange:
- Low fees: GMX has low trading fees. The spot trading fee is 0.1%, and the perpetual trading fee is 0.05%. Traders who engage in high-frequency or large-trading volume.
- Minimal price impact: GMX claims to have minimal price impact upon opening and closing trades. So, your trades will have a smaller effect on the price of Chainlink. This is particularly beneficial for traders with large trades.
- Global access: GMX is accessible to anyone with an internet connection. This global access is particularly beneficial for users in regions with limited access to traditional financial services.
Currently, GMX supports the following trading pairs: LINK/WLINK, LINK/USDC, LINK/BTC, LINK/LINK, LINK/UNI, LINK/USDT, LINK/FRAX, LINK/DAI, LINK/AVAX.
Additionally, you will need to have a MetaMask browser installed with ETH (on Arbitrum) and AVAX (on Avalanche).
How to Trade Chainlink on GMX Decentralized Exchange: A Step-by-step Guide
Below is a step-by-step guide to trading Chainlink on GMX Arbitrum DEX.
Step 1: Connect and Configure your Wallet
- First, you need to add Arbitrum Network to MetaMask. You can add the network (Arbitrum One) manually. Typically, when you click 'Connect Wallet,' GMX automatically connects and adds Arbitrum One.
Step 2: Buy Ethereum / Add Ethereum to Your Account
Option 1: Add Ethereum Using Hop Bridge (Directly on MetaMask)
- Since Arbitrum uses ETH as gas fee, you will need to top up your account with ETH (and later you can swap ETH to LINK and start trading).
- As seen in the notice above, you must use a bridge to send ETH from your current wallet (in this guide, Chainlink mainnet) to Arbitrum One.
- Open your wallet, choose 'Bridge.'
- After that, you will be transferred to the following page. Fill in the amount you want to send and choose the networks. The minimum of each transfer is $10.
- Note: Because you send ETH from the Ethereum Network to the Arbitrum network, MetaMask will ask you to switch (again) from Arbitrum (step 1) to Ethereum in order to facilitate the token transfer.
- Double-check all the information and press 'Confirm.' Now, you wait for it to complete. The process typically takes up to 5 minutes.
Option 2: Buy ETH Directly or Transfer ETH from Other Networks
- You can buy ETH directly using the below options or transfer ETH from Binance or Synapse. Remember to be cautious when interacting with the options you're unfamiliar with (DYOR).
Step 3: Trade Chainlink on GMX
- Navigate https://gmx.io/#/ and choose 'Launch App.' You will be directed to https://app.gmx.io/#/trade.
- Click on 'Connect Wallet' and pick 'MetaMask.'
You can start trading LINK with your ETH balance on Arbitrum.
Option 1: Swap Trading
- Choose 'Swap' if you want to perform Swap trades.
- Choose the trading pair.
- Enter the amount, double-check, and click on 'Swap.'
Option 2: Leverage Trading
- Swap ETH to a stablecoin to engage in leverage trading.
- With the USDC (or any stablecoin) you have, you can choose 'Long' or 'Short' to perform perpetual trades.
- Choose Chainlink.
- Move the Leverage Slider based on your preference.
- Enter the amount, double-check, and click on
Note: Keep in mind that your liquidation price is lower than your stop loss.
Tips for Trading Chainlink on GMX
- Do your research: Before you start trading, you must research and understand the risks involved. This includes understanding the different trading strategies, types of orders, and the fees associated with trading on GMX DEX.
- Don't invest more than you can afford to lose. Cryptocurrency is a volatile asset, so it is important to only invest money that you can afford to lose.
- Use stop-loss: Stop-loss orders are a way to automatically close your trade if the asset's price moves against you by a certain amount. This can help you to limit your losses if the market moves against you unexpectedly.
- Use leverage responsibly: Leverage can significantly amplify your profits (or losses). It is important to use leverage responsibly and only trade with an amount of leverage that you are comfortable with.
- Don't trade emotionally: Trading emotionally is one of the most common trading mistakes. Staying calm and making rational decisions when trading is essential. Don't let your emotions get the best of you, especially when losing money.
- Be patient: Trading is a long-term game. Don't expect to 'get rich quick.' Be patient and focus on making consistent profits over time.