💲How Trading Works

In crypto, trading simply means exchanging one cryptocurrency for another. You can do this on either a Centralized Exchange (CEX) or a Decentralized Exchange (DEX). While the end result—owning a different token—is the same, the process varies between these two types of platforms.

Trading on a CEX

On a CEX, trading is managed by the exchange itself, and you rely on the platform’s tools to facilitate trades.

• Order Book System: CEXs use an order book—a system that lists all buy and sell offers at different prices. When you place an order, the platform matches it with the best available offer on the other side (buy or sell) in real time.

• Market Orders and Limit Orders:

  • Market Order: Buy or sell immediately at the current best price. CEXs ensure fast execution of market orders.

  • Limit Order: Set a specific price for your trade. The order will only execute if the market reaches that price, giving you more control over the trade.

• Custodial Trading: On CEXs, your funds are held in the exchange’s wallet, so you don’t directly control your crypto during the trade. Once you complete a trade, you can withdraw the crypto to your personal wallet if desired.

This centralized structure makes trading on CEXs fast, with features like advanced charting, order types, and often a more beginner-friendly interface.

Trading on a DEX

On a DEX, trading happens directly on the blockchain through smart contracts, without any intermediaries.

• Automated Market Maker (AMM): Most DEXs (like Uniswap and Raydium) use an AMM system instead of an order book. AMMs rely on liquidity pools—pools of tokens provided by users—to facilitate trades. Prices are determined by an algorithm based on the ratio of tokens in the pool.

• Swaps Instead of Orders: When trading on a DEX, you’re usually performing a swap rather than placing a traditional order. For instance, if you want to exchange ETH for USDC, the DEX smart contract swaps your tokens directly using the liquidity pool.

• Non-Custodial Trading: On DEXs, you trade directly from your own wallet. There’s no need to deposit funds into the exchange, so you maintain control of your crypto throughout the trade.

This decentralized structure offers more privacy and control, but it may come with variable fees and slower transaction speeds depending on the network traffic.

Key Differences in Trading on CEXs vs. DEXs

In short, trading on a CEX tends to be quicker and more centralized, while trading on a DEX gives you more control, privacy, and access to a wider range of tokens.

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Why Trade with Bitfoot?

Bitfoot is a trading bot that interacts with DEXs and provides a suite of tools and features designed to maximize profits and reduce risks, giving you a massive advantage over someone trading manually.

Speed and Automation

• Bitfoot’s advanced trading algorithms allow you to automate trades with precision, saving you time and reducing manual effort.

Profit Maximization

• Bitfoot’s unique features, like its Pump.fun integration and auto-sell options, are designed to help users capture profits efficiently—even in volatile markets.

Risk Management

• With options like auto-sell and rugpull protection, Bitfoot protects users from common risks associated with decentralized trading.

Revenue Sharing and Rewards

• Unlike most CEXs and DEXs, Bitfoot shares a portion of its success with the community through referral rewards, raffles, and revenue-sharing.

With Bitfoot, you gain advanced trading capabilities and enhanced security while enjoying the flexibility of DEX trading—all tailored to help you make the most of your crypto experience.