GMX — both the trading platform and the cryptocurrency have gained a lot of attention on Crypto Twitter due to it being a trading platform that actually shares 100% of its revenue with the community (GMX holders and liquidity providers).
Should I buy GMX? 🤑
GMX has gained a lot of usage and attention on various cryptocurrency communities like Twitter because unlike other DEX tokens like Uniswap, GMX pays 30% of the overall DEX revenue to GMX token holders, while the remaining 70% is paid to liquidity providers(GLP holders).
Along with that, GMX’s tokenomic model seems to be far better than the tokenomic models of other DEXs, as GMX doesn’t just unnecessarily print and distribute a lot of GMX tokens to stakers. Instead, GMX token emissions are set very low compared to the likes of dYdX and Uniswap, and GMX emissions are vested for a year.
If you want to learn more about GMX, head over to their docs.
NOTE: Not financial advice. Do your own research!
Where to buy the GMX token 🧐
You can buy GMX on Bybit(a centralized exchange like Binance or Coinbase), or you can go with the permissionless-but-slightly-complicated method by briding your funds onto the Arbitrum network.
If you prefer the easy way, head over to Bybit here; and buy GMX just like how you buy any coin token on your favorite exchange. But if you want to buy GMX using a DEX, continue reading. 👇
Adding the Arbitrum Network on MetaMask 🦊
- Head over to Chainlist.org
- Look up “Arbitrum One” on the search bar
- Click on the Connect Wallet button, then click on the Add to MetaMask button
You now have the Arbitrum Network on MetaMask. You can switch networks on MetaMask using the dropdown button at the top of the plugin popup.
Adding the GMX token to MetaMask
- Open this Arbiscan link to the GMX token
- On the right side of Profile Summary, click on the 3 dots, then click on Add Token to Web3 Wallet
- A MetaMask popup should appear. Click on Add Token
We now have added the GMX token to MetaMask.
Bridging ETH to Arbitrum 🛣️
Of course, to buy GMX on Arbitrum, we’re going to have to move our ETH to Arbitrum first. There are 2 options for this.
1. Using a bridging platform
Platforms such as Hop Protocol can be used to bring your ETH to Arbitrum, without the need of using a centralized exchange like Binance.
Take note though, that this can be complicated to some extent depending on how experienced you are with using smart contract platforms.
Consensys has a good guide on how to use the Hop Protocol here.
2. Using a centralized exchange
The far easier solution. You simply deposit your ETH to crypto exchanges like Binance that support withdrawals to Arbitrum. Then, you withdraw the ETH (like how you withdraw most cryptocurrencies), with the only difference of choosing the Arbitrum option rather than the Ethereum chain.
Buying the GMX tokens 🫐
Now that you have your ETH transferred to the Arbitrum network using one of the two options mentioned, we can now finally buy GMX tokens!
- Head over to Uniswap
- On the Network drop-down option at the top (with Ethereum as default), click on the Arbitrum option
- On the Select a token drop-down, click on GMX (the one with the logo)
- Enter the amount of ETH you wish to convert or the amount of GMX that you want to buy
- Allow Uniswap to use your ETH by clicking on the blue “Allow the Uniswap protocol..” button, and accept the transaction using your MetaMask wallet. Wait for the transaction to confirm.
- Finally, swap the tokens
Once the transaction confirms (it should be confirmed in no time), you now have GMX tokens! You can now either hold the GMX tokens or stake them on GMX for some juicy yield!
Staking the GMX tokens 🤑
- Head over to GMX.io
- On the top bar, click on Earn
- Under the GMX section, click on Stake, then enter the amount you’re planning on staking
You now have staked your GMX tokens. Enjoy the yield!
Final Thoughts 🗒
Staking is great and all that, but always make sure your funds are secure. To achieve this, we always recommend using a nice hardware wallet like a Ledger.
Also, to learn more about GMX, head over to their docs.
