GMX decentralized futures trading How to trade with leverage on GMX (Class 18)

Summary

This tutorial explores decentralized trading options for those restricted from margin trading in cryptocurrency futures markets. It guides viewers through setting up MetaMask, transferring funds between layers, and leveraging GMX for trading. The video also demonstrates how to swap currencies, set leverage, and execute trades, highlighting the platform's accessibility for US users. Additionally, it introduces a tool for copying successful traders' strategies and emphasizes the importance of choosing the right trading pair for beginners and experienced traders.

Takeaways

• 🌐 Countries are increasingly restricting access to margin trading for cryptocurrencies in the futures market.
• 📚 The script is part of a step-by-step guide, specifically class 18, focusing on trading derivatives on a decentralized platform.
• 🔑 To get started with decentralized trading, one needs to have a compatible wallet like MetaMask and sufficient funds.
• 💡 The tutorial demonstrates moving funds between different layers (Layer 1 to Layer 2) and scaling solutions.
• 🤑 The presenter shows the process of withdrawing funds from a broker to a MetaMask wallet and choosing a network for the transaction.
• 🔄 The script covers bridging funds from one layer to another, specifically from Optimism to Arbitrum.
• 📈 The GMX platform is used as an example for trading on a decentralized protocol, but alternatives like dydx and perpetual are mentioned.
• 💰 The presenter explains how to swap currencies on GMX, similar to a spot market, and then proceed to leverage trading.
• 📊 The script highlights the ability to analyze and copy successful traders' strategies on the platform, which can be educational for new traders.
• 🚀 The tool mentioned allows tracking of top traders' performance and copying their trades, which can be a powerful feature for learning and potential profit.
• ✅ The video concludes with a mention of an upcoming class on choosing trading pairs and a discount code for trading fees.

Q & A

What is the main topic of the video script?

The main topic of the video script is about trading cryptocurrencies on the futures market using decentralized trading protocols, specifically focusing on how to navigate restrictions on margin trading in certain countries.

Which decentralized trading protocols are mentioned in the script?

The decentralized trading protocols mentioned in the script are GMX, dydx, and perpetual.

What is the role of MetaMask in the trading process described?

MetaMask is used as a wallet to store and manage funds for trading. It is also used to interact with decentralized trading platforms.

What is Layer 1 and Layer 2 in the context of the script?

In the context of the script, Layer 1 refers to the Ethereum blockchain, while Layer 2 refers to scaling solutions built on top of Ethereum to enable faster and cheaper transactions, such as Optimism and Arbitrum.

How does the script describe the process of moving funds between different layers?

The script describes the process of withdrawing funds from a broker to a MetaMask wallet and then bridging those funds from one layer to another, specifically from Optimism to Arbitrum.

What is the purpose of using a network like Arbitrum or Optimism in the script?

The purpose of using networks like Arbitrum or Optimism is to take advantage of their scaling solutions to perform faster and cheaper transactions compared to the main Ethereum network.

What is the significance of the 'swap currencies' feature in the GMX platform?

The 'swap currencies' feature in the GMX platform allows users to exchange one cryptocurrency for another, similar to a spot market, before engaging in leverage trading.

What is leverage trading and how is it demonstrated in the script?

Leverage trading is a method of trading where a small amount of capital is used to control a larger amount of investment,放大 the potential gains (and losses). In the script, it is demonstrated by the user selecting a 4x leverage to trade USDT for Ethereum.

How does the script address the issue of trading restrictions in certain countries?

The script addresses the issue by suggesting the use of decentralized trading protocols, which can bypass certain country-specific restrictions on margin trading.

What is the purpose of the tool mentioned at the end of the script?

The tool mentioned at the end of the script allows users to view and potentially copy the trades of successful traders on the GMX platform, providing a way for less experienced traders to learn from the strategies of more successful ones.

What is the importance of the GitHub repository mentioned in the script?

The GitHub repository mentioned in the script contains the source code of the trading platform, which could potentially be used by developers to create tools or notifications based on the trading activity of successful traders.

What is the next step suggested for viewers interested in trading futures markets?

The next step suggested for viewers interested in trading futures markets is to attend the upcoming class that will go in-depth on understanding how to pick a trading pair and which trading pairs to use as a beginner or a pro trader.