1.What is OKX Trade?
2.What is a DEX?
- Ease of use. No email registration or KYC verification is required. Users only need to connect to a wallet to access a DEX.
- Complete control over assets. In CEXs, users have to deposit crypto on the platform before trading, thus giving away control over their assets. By contrast, DEXs don't offer asset custody services and therefore can't have control over or access to users' funds.
- Diversification. Various tokens that are not listed on CEXs are available on DEXs.
- Limited speed. In CEXs, transaction data is off-chain, so a transaction can be instantly completed if there is a matching order. DEXs, however, are fully backed by blockchain, which means that every order or state change will be recorded as a transaction on the chain. Therefore, transactions on DEXs are not as fast and efficient as on CEXs.
- Gas fees. Unlike on CEXs, users need to pay gas fees on DEXs.
An Automated Market Maker (AMM) is a decentralized exchange protocol that relies on algorithmic trading to provide liquidity to specific markets. Liquidity Providers (LP) provide liquidity to the trading market; the price function is used to set the price for each trade, while traders interact directly with smart contracts to complete crypto transactions.
How does an Automated Market Maker (AMM) work?
DEXs replace order books, order matching systems, and institutional market makers with protocols called AMM and smart contracts to create liquidity pools and define the price of assets according to mathematical equations.
What are liquidity pools?
4.What is a DEX Aggregator?
As a trading aggregation protocol based on blockchain, DEX aggregators source liquidity from different DEXs, automatically find the best trading route, and split trading amounts across multiple routes in a single transaction, thus offering users better token swap rates than they could get on any single DEX.
DEX aggregators connect to most major DEXs, such as Uniswap, Kyber, Curve, and 0x. For example, when a user trades ETH for DAI, a DEX aggregator compares the rates available across all decentralized exchanges, applies the smart order routing algorithms to find the best rate and splits orders across multiple DEXs.
- Kyber (22%)
- Sushiswap (18%)
- 0x (10%)
Smart order routing algorithms scan for all possible execution opportunities. For example, if you want to trade sUSD for ETH, a direct sUSD -> ETH swap might not be the best option. In this case, it requires an sUSD -> USDT/DAI swap and then a USDT/DAI -> ETH swap to get the best rates. DEX aggregators will calculate all the possibilities and complete the swaps in one step for users.
A step-by-step guide to purchasing and selling crypto on OKX,
Step 1: Log in to your OKX account
Before you can start buying or selling cryptocurrency on OKX, you must first log in to your OKX account. If you do not yet have an account, click Sign up and complete the registration process.
Step 2: Select Buy/Sell
Once you have logged in to your OKX account, click Buy Crypto in the upper left-hand corner of the screen to get started.
Step 3: Select your purchasing method
The next step is to choose how you would like to buy or sell . There are two primary options on OKX: Express and P2P trade.
Finally, simply confirm your transaction details.