Bitvavo makes GMX as easy as possible. Here are answers to common questions to help you make your first steps in the world of digital assets.
GMX (GMX) is a decentralized exchange protocol that is currently deployed on Arbitrum and Avalanche.
The decentralized exchange ecosystem relies on two tokens: GLP and GMX. GLP is used to provide liquidity, meaning it ensures there are enough funds available for trading activities. The price of GLP represents the combined value of all the assets available for trading on the exchange, including leveraged positions and swaps. Essentially, GLP acts as an indicator of the exchange's asset value. On the other hand, GMX serves as a utility and governance token, providing additional functionalities and decision-making power.
Users can contribute liquidity to the exchange by creating new GLP tokens, and in return, they receive 70% of all the fees generated on the corresponding blockchain. Unlike some other liquidity pools, GLP doesn't suffer from impermanent loss, a situation where the value of the provided assets decreases over time. Additionally, the GLP pool acts as a counterparty for traders. This means that when GLP token holders supply liquidity for leveraged trading, they make a profit when traders experience losses, and vice versa.
Bitvavo makes it as easy as possible to buy digital assets and cryptocurrencies.
1. Sign Up
Create a free account with which you can buy, sell, send, receive and store GMX. Access your Bitvavo account from every location, on mobile and desktop.
2. Transfer Funds
Verify your account and transfer Euros to your Bitvavo wallet using one of the 8 supported payment methods.
3. Buy and Trade
Buy or sell over 150 digital assets and pay a maximum trading fee of 0.25%. Store your assets in your Bitvavo wallet or send them to your external wallet.
Storing GMX and other digital assets requires a wallet, but don’t worry: Bitvavo’s hosted wallet allows you to store GMX without any technical knowledge. Here is a brief overview of the existing wallet options to store your GMX:
Hosted wallets are wallets where the private keys to your GMX are managed by a third party such as Bitvavo. Access to your account is protected by a password and other advanced security features. Once you are logged in, you can easily and conveniently manage your GMX online. Bitvavo offers standard hosted wallets for all digital assets that are offered on the platform.
A software wallet is a program installed on your computer or other device in order to use and manage your GMX. Using a software wallet gives you full control over your private keys, so you are not dependent on third parties. The risk is that you alone are in charge of the security of your GMX, and if malicious parties have access to your device, your private keys (and therefore your GMX) can be stolen.
A hardware wallet is a physical device on which you can store your GMX offline. It is one of the safest ways to store your GMX, because the private keys are stored on a separate and offline device. Access to this device is often protected by a password. In many ways, a hardware wallet can be compared to a safe in which your GMX is stored.
You can use Bitvavo's hosted wallet to easily store, send and receive GMX. Once you have purchased GMX on Bitvavo, you can choose to send your GMX from your Bitvavo wallet to your own software or hardware wallet.