Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => DeFi tokens => Topic started by: MetaAttorney on June 08, 2024, 12:29:17 PM
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It is really amazing how the CryptoSpace is evolving, both centralised and decentralized exchanges strive to complement the other by providing almost similar services to traders all in one suite.
In a similar vein with CEXs, DEXs now provide some form of margin trading with leverage to cater to traders. Being a derivatives enthusiast, I'm striving to get a few recommendations about platforms tailored along this line.
I'll appreciate if y'all drop a few in the comments.
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For me, I recommend CEX trading . The first time I tired leverage margin on Dex. I was charged more than 100 usd fee for opening position for more than a week. That's huge. But with CEX, I've never face such huge charges.
Although DeFi and DEX trading has thier own advantages because you own your funds even if the exchange or DEX app stop working, you can get out your fund just by interacting with the smart contract.
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It is really amazing how the CryptoSpace is evolving, both centralised and decentralized exchanges strive to complement the other by providing almost similar services to traders all in one suite.
In a similar vein with CEXs, DEXs now provide some form of margin trading with leverage to cater to traders. Being a derivatives enthusiast, I'm striving to get a few recommendations about platforms tailored along this line.
I'll appreciate if y'all drop a few in the comments.
Since you are into derivatives, you could just keep tabs with coinmarketcap and maybe coingecko to find out about this since they give frequent updates about Cex and Dex and the coins traded there both touching their volumes. I have recently read about Aark to be distinguishing itself as the sole platform offering high leverage derivative trading, a good thing, but you need to beware of the risk as well, and maybe because they have their tokens created, they decided to go that rout, and Bitget recently listed them, so you can just DYOR not to get burnt.
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Is it just an app? I tried visiting its cryptospace website and its down. It haven't been a sucess because it isn't popular yet. It will be cool if it'd be vouched by famous personality in crypto but as of now it will be difficult to see new exchange to rank up.
We don't see this kind of dex offering futures market in the past. But it would be great to see the success of this dex.
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DEXs came to solve the problem of the difficulty of listing on CEXs and some problems of availability of liquidity and decentralization, but due to the high fees and gas costs and the difficulty of providing the liquidity needed to execute orders, implementing solutions such as margin trading with financial leverage will be difficult on any truly decentralized platform.
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I had pretty bad experience for leverage trading on dexes; I longed ethereum (when it was around $1200) on pika protocol, they had protocol upgrade and forced users to migrate positions, I was planning to hold my position for long term but I was forced to close.
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It is really amazing how the CryptoSpace is evolving, both centralised and decentralized exchanges strive to complement the other by providing almost similar services to traders all in one suite.
In a similar vein with CEXs, DEXs now provide some form of margin trading with leverage to cater to traders. Being a derivatives enthusiast, I'm striving to get a few recommendations about platforms tailored along this line.
I'll appreciate if y'all drop a few in the comments.
Actually the crypto space is growing very fast and exchanges are really introducing great features on their platform to boost earnings. However, the CEX exchanges is quite noticeable in bringing superb features like Margin/leverage Trading, futures etc, on the Dex exchanges, Margin or Leverage Trading is uncommon, or not popular to traders on Dex.
The Cex exchanged provide crypto loan collateralized with individual coins/tokens, I am yet to see this features on some of this Dex platform.
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Leverage and margin trading has become increasingly popular on decentralized exchanges (DEXs), allowing traders to grow their positions without the need for a centralized exchange.
Leveraged and margin trading on DEX brings flexibility, transparency and greater accessibility to the DeFi space. Platforms such as dYdX, GMX, and Mango Markets have developed advanced offerings to compete with traditional centralized exchanges, although risks such as dilution and vulnerability of smart contracts should be carefully considered. For experienced traders, these DXes offer a decentralized way to capitalize on market movements while navigating the unique risks of DeFi.
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DEXs came to solve the problem of the difficulty of listing on CEXs and some problems of availability of liquidity and decentralization, but due to the high fees and gas costs and the difficulty of providing the liquidity needed to execute orders, implementing solutions such as margin trading with financial leverage will be difficult on any truly decentralized platform.
I have not tried margin trading (leverage) on any Dex platforms but I think Dex exchanges are positioned to solve decentralization issue. Others issue like liquidity availability, listing difficulties is up for the projects to provide as the Dex exchange are just decentralized.
Listing on Dex is quite cheaper compared to CEX exchanges but Dex exchanges are always lacking in liquidity, and many of the projectd pay more attention to CEX exchanges liquidity provisions.
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I have not tried margin trading (leverage) on any Dex platforms but I think Dex exchanges are positioned to solve decentralization issue. Others issue like liquidity availability, listing difficulties is up for the projects to provide as the Dex exchange are just decentralized.
most Dex exchanges are either centralized bridges or exchange between blockchains and tokens within the blockchain but there are no real decentralized platforms between Bitcoin and Ethereum for example.