Learn to Use Decentralized Exchanges (DEX)
- Why DEXs?: Decentralized exchanges like Uniswap, SushiSwap, and PancakeSwap allow users to trade directly from their wallets without relying on a central authority. They are part of the growing DeFi ecosystem and provide more control over funds.
- Liquidity Pools: In DEXs, you can provide liquidity by depositing your cryptocurrency into a liquidity pool. In return, you earn transaction fees as a reward. However, be mindful of impermanent loss, which occurs when the prices of your deposited assets change relative to one another.
- Governance Tokens: Many DEXs issue their own governance tokens, such as UNI (for Uniswap) or CAKE (for PancakeSwap). These tokens allow holders to vote on the future development of the platform. Additionally, holding governance tokens may offer other perks like reduced fees or additional rewards.
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