Few tips on how to safely trade GamerCoin on decentralized exchanges
GamerCoin is already listed at some best-centralized exchanges in the world like KuCoin or Bithumb. Yet for those who seek a truly decentralized experience, DEXes (decentralized exchanges) are a way to go. Some of our community members even added GHX/ETH liquidity on Uniswap. From the DEX department, you can already use 1inch too!
While we fully understand and support DEX trading as it’s the next step into decentralization in the cryptocurrency space, we must be aware of the certain risks involved. Let’s get started!
Wallets and DEXes
To start trading on decentralized exchanges, you need a wallet such as MetaMask, MyEtherWallet or other integrated ETH wallet. This way you will be able to interact with Uniswap smart contracts and swap coins on this decentralized exchange. Here you can find a detailed tutorial on how to create and use MetaMask.
Decentralized exchanges are in other worlds decentralized protocols for automated liquidity provision and as such, they do not have customer service — they “automatically” swap coins. Before interacting with Uniswap or other DEX, it is important to know what you are doing, although the interface is in most cases much simpler than on CEXes
Valid GHX contract address is a key
First, we have to remember that when it comes to Ethereum tokens, everyone can create one and name it as he or she wishes. The same goes for adding liquidity on decentralized exchanges such as Uniswap. This freedom is allowing the cryptocurrency space to thrive and develop much faster, but at the same time opens the possibility of fraudulent activities.
An example of a scam in this area can be a creation of a token called GamerCoin and adding it to Uniswap to imitate the actual GamerCoin created by GamerHash. Unfortunately, by buying this fake coin, we can end up losing all the invested money.
Fortunately, this costly mistake can be easily avoided! Whenever using Uniswap we have to check the GHX contract address that is available on the https://gamerhash.io/en website, CoinMarketCap or CoinGecko.
Always look for liquidity!
Liquidity, so in other words, the possibility to easily exchange a certain asset into another at a certain price on DEXes is as important (or even more) as on the traditional centralized counterparts. When the liquidity is not big enough, we might get REKT when trying to make bigger swaps. Therefore, when it comes to trading $GHX right now (until the GHX/ETH pool gets bigger) we would suggest not make bigger swaps than 1 ETH at once. Otherwise, you might receive fewer coins in return than you expected.
Different pricing in different places
Due to many factors such as high ETH fees (lower profitability of arbitrage -earning on the asset price difference on platforms) or so-called “kimchi premium”, the price on different exchanges and especially on DEXes can be different. When trading on Uniswap or 1inch it is worth checking if the GHX price is similar to the one on for example Bithumb. Sometimes you might get a better deal when trading there, sometimes on Uniswap or 1inch. A great place to check all the prices in one place is CoinMarketCap — on websites you can check all the markets at once! While you are at it, you can add $GHX to your watch list to spread awareness about GamerCoin ;)
