Gate.ioBlogWhat_s The Best DeFi Liquidity Mining Product Offered By A CEX
What_s The Best DeFi Liquidity Mining Product Offered By A CEX
31 August 09:53
Defi liquidity mining has taken the industry by storm. People are looking for ways to make passive income as they hold their favorite crypto coins or tokens. But the biggest challenge they face is picking between the best platforms. This article will dive deep into liquidity mining in CEX (Centralized Exchange) and the best platform to use. Why does liquidity mining be CEX?
Unlike decentralized exchanges, a CEX comes with a friendly interface. Most people are not tech-savvy and do not understand the blockchain. Centralized exchanges make everything easy for beginners. They can sign up, deposit fiat currency, and exchange it for Crypto within a few clicks. Besides, they can easily start liquidity mining with a tap of a button.
A CEX is the best for liquidity mining because it provides market-making services. This means that it facilitates users to exchange assets by buying and selling liquidity. In DEX, users can experience a lack of liquidity.
Users can move their transactions faster within centralized exchanges because funds don't need to go through the blockchain.
Cheap trading fees
When your funds stay within the CEX, you incur little fees compared to Defi platforms.
A CEX protects your assets. If you lose your password, then you can recover it to enjoy your assets. Centralized exchanges included an added layer of security such as 2FA that allows users to secure their assets.
CEX vs DEX: What Are Differences?
CEX is an acronym for Centralized Exchange, while DEX stands for decentralized exchange. As the names suggest, the main difference is where the private keys are stored. A centralized exchange stores the private keys for its users. Conversely, In a decentralized exchange, users store their private keys.
Governments require centralized exchanges to process KYC to discourage money laundering. This means you have to prove your identity by uploading the required documents. Contrary, a DEX platform does not require KYC.
Centralized exchanges have their infrastructure built to help users buy, sell and hold their assets with ease.
Centralized exchanges contain more features for trading. This provides users with many channels for making income. Conversely, Decentralized exchanges rely on the blockchain mostly; hence they contain limited features.
How to choose the best Defi Liquidity Mining Products in CEX
Speed is the number one factor when it comes to Crypto. Users like to invest and make money within a short span of time. A good Defi liquidity product will release profits fast.
Never have to worry about liquidity when it comes to CEX liquidity mining. The exchanges provide liquidity to both buyers and sellers as you earn passive income from the transaction fees.
It would help if you compared the liquidity mining functions. Each CEX has different tools for liquidity mining. Besides, they also have different varieties of liquidity mining products.
Liquidity Mining on Gate.io
Are you looking for the best exchange that supports Defi liquidity mining? Then you are at the right place. Gate.io is a centralized exchange that offers a variety of Defi Mining products. This platform is easy to use, secure and provides the best returns. In addition, it comes with a friendly user interface for a smooth liquidity mining experience.
How to start liquidity mining on Gate.io
1. Create an account by visiting https://www.gate.io/signup 2. Deposit your crypto assets or buy Crypto using fiat currency 3. Click on the finance button in the top navigation menu 4. Select your preferred liquidity mining product from the popup window
Defi Liquidity mining is trending. It can be done in both a CEX and a DEX. They all have their advantages, but a CEX is undeniably the best. Centralized exchanges have more liquidity mining products, features, and tools for a smooth experience. Gate.io is one of the most popular platforms that offer the best liquidity mining products.