GMX is one of the largest exchanges for decentralized perpetual futures contracts. Some of the reasons GMX is so popular are the low fees, easy usability, and confidence in the design.
When using GMX, you may have noticed that there is a menu called “Referrals”. Clicking there brings up the message “Get fee discounts and earn rebates through the GMX referral program” and a box with two options: “Traders” and “Affiliates“.
If you want to use a referral code, you should click on the “Traders” option and, after connecting your wallet, enter the GMX referral code cutfees. This code will grant you a maximum discount of up to 10% on all GMX trade fees, as stated in the official program.
Advantage of using GMX referral code “cutfees”
You can enter any referral code from any user at GMX, but not all codes will provide the maximum 10% discount. The standard discount offered by GMX is 5% for regular users, and only affiliates who have more than 15 active referrals per week guarantee that their referral code will offer 10% discount.
Since many users have already used the cutfees code, this increases your benefit, so it is an advantage for you to also use this code, and you can get 10% off instead of just 5% if you were to use another referral code at GMX.
How long is the cutfees code valid?
This code does not expire, you can use it at any time. For those who are looking for a GMX referral code in 2024, use the code cutfees today and take advantage of the maximum discount on fees offered by the exchange.
How to create an account at GMX
Creating an account at GMX is as quick and easy as a single click. All you need is a wallet in your browser, which can be MetaMask, Coinbase Wallet or WalletConnect.
On the app home page, click on “Connect Wallet” in the upper right corner, choose your preferred wallet and you’re done! Your account is automatically created.
Now, to start using GMX, simply transfer your funds to the address of the wallet you used to register. If you already have funds in this wallet, you are ready to start trading.
You can use the tokens Ethereum (ETH), Bitcoin (WBTC), Chainlink (LINK), Uniswap (UNI), USD Coin (USDC), Tether (USDT), DAI (DAI), and FRAX (FRAX) to trade future contracts on GMX.
Which cryptocurrencies and pairs can be traded on GMX?
Currently, it is possible to trade on GMX in the pairs: ETH/USD, BTC/USD, LINK/USD and UNI/USD.
The USD reference is created through the stablecoins USDC and Tether.
What are the GMX and GLP tokens?
The GMX token is the governance token of the exchange, representing voting power on the project. The GLP token represents a basket of assets. When you buy GLP, you are actually buying a little bit of each token that GMX makes available for trade, because it is this basket of tokens that will be used as an offset position in futures contracts. It is precisely the GLP token that guarantees the exchange’s liquidity.
To encourage its use, GLP token holders receive 70% of the platform’s trading fees, discounting affiliates rebates.
GMX token holders who block their token are also eligible to receive 30% of the fees.
GMX Advantages
Because GMX is decentralized, you will never be censored or prevented from making a trade. Unfortunately it is common for centralized exchanges to prevent users from withdrawing funds without performing numerous identity validation and documentation processes, but this is not the case with GMX. Exit is as easy and fast as entry.
Being one of the largest DEXes in the crypto market, GMX is very liquid, allowing you to trade even large volumes without problems and without manipulating the market.
In addition to these advantages, it is important to note that GMX has an excellent user interface, has one of the lowest fees on the market and makes it possible to use the Arbitrum (Ethereum) and Avalanche networks, ensuring speed and agility onchain.
Disadvantages of GMX
Being a decentralized exchange means there is no central office where you can call and solve your problems if any. Similarly, if you are eventually hacked, GMX offers no guarantee of redress or insurance against fraud.
It is important that only experienced and responsible users use the platform to avoid problems.
Extra care with GMX
Being a decentralized exchange, GMX relies heavily on the quality of the code written on the Ethereum and Avalanche networks. Any security hole or flaw in the architecture can result in exploitation by hackers, something relatively common in many DEXes, especially new exchanges.
There is no 100% safe DEX, so always be aware and use with caution, avoiding compromising a very relevant amount of your capital.
Using the GMX platform for cryptocurrency trading and derivatives involves several risks:
Smart Contract Risk: As a decentralized finance (DeFi) platform, GMX relies on smart contracts for its operations. These contracts, while audited, are subject to potential vulnerabilities or bugs that could be exploited, leading to loss of funds. This risk is inherent in most DeFi platforms and requires users to trust the security of the code.
Liquidity Risk: GMX’s liquidity is crucial for its functioning, especially for its perpetual contracts and swaps. However, in volatile market conditions or during significant market events, liquidity can quickly dry up, leading to slippage or even the inability to execute trades at desired prices. This can result in substantial financial losses, especially for leveraged positions.
Market Risk: Similar to other trading platforms, GMX users are exposed to the volatility of cryptocurrency markets. This can lead to large fluctuations in asset prices, impacting the value of positions held on the platform. For users engaged in leveraged trading, this risk is magnified, as small price movements can lead to significant losses or gains.
Regulatory Risk: The regulatory environment for DeFi and cryptocurrencies is uncertain and evolving. Changes in regulations can impact the operation of DeFi platforms like GMX, potentially affecting users’ ability to access or use the platform and their funds.
Counterparty Risk in Decentralized Trading: While GMX mitigates traditional counterparty risks by being decentralized, it introduces new forms of risk. For instance, if the liquidity providers withdraw their support or if there’s a misalignment in the incentives within the protocol, it could affect the platform’s stability and users’ assets.
Users of GMX should be aware of these risks and consider them when making investment decisions. As with any investment, it is advisable to only invest what one can afford to lose and to conduct thorough research before engaging in trading activities on the platform.
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