On-chain trading refers to the process of directly buying, selling, or exchanging digital assets (such as cryptocurrencies or NFTs) on the blockchain. This process is conducted through smart contracts and does not require traditional centralized exchanges (like Binance or Coinbase).
Key Features of On-Chain Trading:
1. Decentralized: Trades are executed through decentralized exchanges (DEXs) like Uniswap, Sushiswap, or Curve.
2. Transparent: All transactions are publicly recorded on the blockchain, which anyone can view and verify.
3. Personal Custody: You manage your assets through your own wallet (like MetaMask or Ledger); there is no need to give funds to a third party.
4. Smart Contracts: Trades are automatically executed through smart contracts, enforcing rules without human intervention.
5. Without Permission: Any person who has a supportive wallet and assets can trade without identity verification (KYC).
Examples:
Converting ETH to USDC on Uniswap
Using decentralized perpetual protocols like dYdX or GMX
Participating in a token launch through a DEX
Do you want a comparison between on-chain and centralized trading?
Description of the ways to participate