What is Raydium Exchange? Learn how to use Raydium decentralized exchange
The extraordinary and rapid growth of the decentralized economy (DIFA) in the last two years has caused so much noise that even governments are looking for a way to coexist or deal with this sector. One of the main pillars of a decentralized economy is the decentralized exchange (DEX), which is, in fact, the center of financial services and activities. In the meantime, Raydium Exchange is one of the top exchanges in this field, which we will introduce and review in full in this article. Stay with us.
What is a Decentralized Exchange (DEX)?
Decentralized exchanges, also known as DEX, are peer-to-peer markets that allow crypto traders to trade with each other without any boundaries. Just like the main idea behind creating a blockchain, DEXs are completely decentralized and perform various financial transactions without the need for banks, intermediaries, or third-party agents. One of the main differences between these exchanges and the centralized version or CEX is that the normal centralized exchange allows you to buy digital currency with Fiat currency. Still, in DEX, it is only possible to exchange two digital currency tokens.
Another important difference between these two types of blockchain service providers is that transactions are recorded in the internal database of CEXs. Still, transactions in DEXs can be checked and recorded in the blockchain. 
What is Raydium Exchange?
Raydium is an automated market (AMM) based in Solana Blockchain. The AMM platform allows users to trade with each other, swap their tokens, provide cash, and be rewarded. The platform uses Serum for its token swap system. Like any other protocol in the Solana blockchain, the Raydium exchange benefits greatly from the speed and efficiency of this blockchain.
The Raydium digital token, RAY, was first launched on February 2, 2021. The maximum number of RAY tokens in the network is 555 million units, of which project developers have taken 20% this amount. Fortunately, the developers of this system can not sell their tokens because these tokens have been locked for three years. 
It is important to note that, like most platform tokens, RAID digital currency allows its holders to vote on system bids. The voting power of each holder depends on the amount of RAY tokens available to it. In addition, this token gives 0.03% of the transaction fee to its holder. Since Raydium Exchange is an AMM, so it has two separate parts. In the first part, users access the Serum order database. In the second part, however, the Raydium exchange algorithm relies on the Continuous Activity Automated Market Maker (CFAMM) system. 
Raydium Exchange Features
Although the Raydium exchange has just started, it has attracted many users in a short period. This high growth rate is due to the features that this platform offers. These features include the following:
Swap
This is the main feature of any decentralized exchange where the user swaps two tokens with each other. Because this platform operates in the Solana blockchain, its performance speed is very high and its fees low.
Collaboration with Serum
Raydium Exchange provides users with access to the Serum Liquidity Pool. Its AMM protocol is fully compatible with the Serum order database.
Fast and cheap
Raydium Exchange is one of the first DEX projects in the Solana blockchain platform, which has benefited greatly from the very high speed and very low transaction of this blockchain network. So the speed and fee of this network are not comparable to Defi projects based on Ethereum!
Working with Raydium Exchange
Access to the Raydium Decentralized Trading Platform is provided through the address raydium.io. First of all, it should be noted that to work with this platform, you must use IP change software; Because, unfortunately, Radium does not serve the Iranians either. This exchange has two main capabilities: the possibility of peer-to-peer swap and trade, which we will explain in the following how to work with both.
Swap token
After opening the main page (with IP change software), you will see the platform’s main page. To get started with this exchange, you need to click the “Launch App” button at the top right of the page. 
The token swap process at Raydium Exchange is quite similar to other DEXs, but it is much faster and cheaper than competitors. When you reach the application’s main page, click on “Swap” among the tabs at the top of the page. 
Now click on the “Connect” button at the top right of the screen to connect your wallet to the platform. Also, from the screen that appears, you need to select your wallet, the plugin installed in your Google Chrome, and let the wallet connect to the Radium exchange for a few moments. 
To complete the transaction, you must select the token you want to swap in the top box and enter your desired amount in the box opposite. Then select the destination token at the bottom and wait for the amount of the destination token to be displayed according to the price of both tokens.
After completing the origin and destination tokens and the number of origin tokens to allocate to this transaction, you must click the “Swap” button and then select the “Sign” option in the box that appears.
After a few seconds, you will see a notification informing you that the transaction has been completed at the bottom left of the screen. 
important points:
- By clicking on the gear icon on the right and top of the swap box, you can change the amount of slippage according to your needs. The default rate for this section is 2%, but you can increase it. If you want to make sure the transaction is complete.
- The information displayed on the page must be read carefully. So, This information includes the price of the source and destination tokens. The number of tokens received after completing the swap process.
- Changing the mode to buy and sell can be done by clicking on the small button. Between the two boxes of origin and destination tokens.
Trade
To enter this section, in the tabs at the top of the page, you must go to the “Trading” section. You will need to reconnect your wallet to the Raydium platform, similar to the process above. You can now complete the transaction. We will explain each part of the image below. 
- In this section, you must select the currency pair you want. These currency pairs include SOL / USDT, RAY / USDT, SRM / USDT and..
- Choose one of the trading forms according to your chosen currency pair.
- A limit order allows users to set the desired price for their purchase or sale.
- A market order allows users to buy and sell quickly and at market price.
- Select the transaction price according to the type of Limit or Market order.
- Enter the desired amount to buy in this section.
- The total amount of money you pay is the Limit or Market price multiplied by the amount entered.
Now click on the Sell or Buy button. In this section, the Raydium exchange will be connected to your wallet. You must issue this permission from the wallet.
Concluding remarks
Raydium Exchange is based on the Solana blockchain network, and its infrastructure is connected to Solana and Serum Exchange. It can work well with blockchain decentralized applications (DApp). It is also important to note that the Raydiate project is a reward scheme in the blockchain. The Raydiate project is a program in which Raydium users can be rewarded by participating in social media polls and challenges to help increase acceptance of the platform.
Raydium Exchange is one of the most promising projects to take over the market share that currently belongs to similarly large platforms such as Uniswap or Sushiswap. Its presence in the powerful Solana blockchain, Ethereum’s most serious competitor. So the reasonable price of Radium digital currency has also made it very suitable for medium and long-term investment.
