Step-by-Step Tutorial: Trading Ethereum on GMX Decentralized Exchange

Introduction

GMX is a decentralized exchange protocol that operates on both Arbitrum and Avalanche networks. It is popular for many investors due to its 50x leverage and the fact that it does not require a registration process or an account to use, only a wallet. The instructions below will allow you to set up a wallet and interact with short and long buys of Ethereum using the GMX platform.

Prerequisites

Before proceeding with the setup and usage of GMX, ensure the following prerequisites are met:

• MetaMask wallet installed with ETH.

If MetaMask is not installed, download it as a browser extension from https://metamask.io/.

Wallet Setup and Configuration

Add Arbitrum Network to MetaMask Wallet

1. Visit https://chainlist.org/ and click “Connect Wallet.”
2. Follow the on-screen instructions within MetaMask to connect your wallet.
3. Scroll or use the search bar to find “Arbitrum One” and click “Connect Wallet.”
4. Follow the directions within MetaMask to complete the network connection.

Bridging ETH to Arbitrum

1. Ensure that your MetaMask wallet contains ETH and is connected to the Arbitrum One network.
2. Visit https://bridge.arbitrum.io/ and click “Connect Wallet” in the upper right-hand corner.
3. If your MetaMask account is still set to Ethereum, it will prompt you to switch to Arbitrum. Follow the on-screen instructions in MetaMask to allow Arbitrum to bridge.
4. Once your wallet is connected, update the bridge settings from “From: Mainnet” to “To: Arbitrum One.”
5. Select the amount of ETH you want to bridge and click “Move Funds.”
6. Sign the transaction and wait for its completion.

Connecting to GMX

1. Navigate to https://gmx.io/#/ and click “Launch App.” The app should open to https://app.gmx.io/#/trade.
2. Click on “Connect Wallet” and choose “MetaMask.”
3. Follow the on-screen instructions to connect your MetaMask wallet to GMX.
4. Click the “Trade” button to proceed.

Trading on GMX

Once connected to GMX, you can perform various trading operations, including “Long,” “Short,” and “Swap” trades.

Swapping ETH for USDC

1. On the GMX app page (https://app.gmx.io/#/trade), click on the “Trade” button.
2. Choose the “Swap” option.
3. Trade the “ETH” in your wallet for “USDC.”

Long and Short Trades

To perform “Long” or “Short” trades using your USDC, follow these steps:

1. On the GMX app page (https://app.gmx.io/#/trade), click on the “Trade” button.
2. Select either “Long” or “Short” depending on your trading preference.
3. Move slider to your desired leverage.
4. Click “Trade”.
5. Follow the on-screen instructions to complete the trade.

Congratulations! You have successfully set up your wallet, bridged ETH to Arbitrum, connected to GMX, and performed trades on the platform. For further assistance or detailed information, refer to the GMX documentation.