Uniswap versus GMX token? Two DEX contenders, but which one is better?
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Uniswap and GMX are DEX cryptocurrencies
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DEX tokens were boosted by the FTX collapse
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UNI could be preferable in the long term
Decentralised exchanges, or simply DEX, were the talk of the town after the collapse of FTX. As investors’ concerns grew, centralised exchanges such as Binance saw increased fund outflows, benefiting DEX platforms. Uniswap and GMX were among those to benefit from the investor exodus, boosting the native tokens. But which of the two tokens should you scoop?
Uniswap
Uniswap is the largest DEX and is based on the Ethereum network. The blockchain is fully decentralised, implying that no single entity owns or operates it. Being decentralised also means that users have control over their funds. This is opposed to centralised exchanges where users have to share their private keys. Uniswap uses an automated liquidity protocol trading model.
The Uniswap platform is also open source – developers can copy the code to build their own decentralised exchanges. Users can also list tokens on Uniswap for free. The platform is compatible with the ERC20 tokens.
The price of the Uniswap token is $5.31, compared to an all-time high of $45. Any dip buyer investor would find it attractive. However, UNI is largely bearish despite the recent recoveries.
Where to buy UNI
Binance
Binance is one of the largest cryptocurrency exchanges in the world. It is better suited to more experienced investors and it offers a large number of cryptocurrencies to choose from, at over 600.
Binance is also known for having low trading fees and a multiple of trading options that its users can benefit from, such as; peer-to-peer trading, margin trading and spot trading.
eToro
eToro is a global social investment brokerage company which offers over 75 cryptocurrencies to invest in.
It offers crypto trading commission-free and users on the platform have the option to manually invest or socially invest.
eToro even has a unique CopyTrader system which allows users to automatically copy the trades of popular investors.
GMX
GMX is another DEX token that has been popular recently after getting listed on Binance. The platform has also been attracting investors exiting from centralised exchanges. So what is GMX?
GMX is a decentralised exchange that supports spot swaps and perpetual futures. The platform first launched via the Arbitrum One network when it went live in September 2021. Users enjoy up to 50 times leverage on the exchange. Unlike the centralised exchanges, users keep custody of their assets through a crypto wallet.
The DEX is known for zero-price impact trades and low swap charges. Analysts have lauded the platform for giving investors unmatched trading fees of up to 30%.
GMX trades at $46 in a market correction after tapping $60 in a bullish market. The latest high was near GMX’s ATH of $66.
Where to buy GMX
Final verdict
Uniswap is a more established network. UNI suits investors looking for a token of a platform that has outlived several crypto seasons. Dip buyers may also consider UNI a more suitable token as the price is deeply low. On the other hand, GMX ranks ahead in investor earnings through trading fees. The token could be a better option for short-term investors but not dip buyers.
