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Many would argue that compound exercises such as squats are more beneficial but deadlifting is one of the best compound exercises you can do to increase strength and muscle mass. It works virtually every muscle, with emphasis on the quadriceps, hamstrings, gluteus maximus and most muscles of the back and also the forearms.
As well as increasing muscle and strength another great reason for deadlifting is the release of testosterone and growth hormone, as studies have shown that compound lifts like the deadlift use the most muscle groups hence they release the most of test and GH.