The developments in technology and business have led to various avenues to generate income. The trading of currencies and electronic money using blockchain technology is one of the markets that emerged owing to these tumultuous changes and developments happening on a global scale. Let us take a look at what is all about this popular DEX in this dYdX exchange review.
With the growth in digitalization and mobilization of financial and investment markets, the gap between conventional trading markets and highly sophisticated, modernized financial markets has finally come to a close with the two being merged into a global online platform performing the functions of a regular financial and money market.
This has also led to the development and growth of cryptocurrencies like Bitcoin and Litecoin which is the equivalent of digital, electronic currency. dYdX has gone a step further by launching a decentralized platform for the exchange for cryptocurrency derivatives, margins, and many more. dYdX is consistent and constantly working tirelessly towards a complete digitalization of the money markets and the financial ecosystem.
The latest development of the dYdX Exchange review is the release of the trading platform for the dYdX perpetual Market in BTC and eth made available to the public from 2020.
What is the dYdX exchange?
The dYdX Exchange stands out from the rest with its bright spark idea to introduce the trading of cryptocurrency derivatives. But, that is not all the dYdX exchange has been doing.
The dYdX exchange has been introduced to the world and continues to introduce a decentralized exchange platform for margin trading, derivatives, spot trading, and the usual lending and borrowing facilities. dYdX has also launched a trading platform for the dYdX perpetual Market in BTC and eth in the year 2020.
It strives to incorporate all the features and benefits gained by the conventional financial eco-system for trading and investment albeit using digitalization and technology which allows for a global reach.
With the dYdX exchange system, you will now be able to trade, lend and borrow any supported asset which is powered by Smart Contracts based on the Ethereum Blockchain which ensures greater trust, confidence, and security of the trading of such cryptocurrencies, margins, and derivatives.
Who is the founder of dYdX?
The dYdX Exchange review platform was launched in 2017 by Antonio Juliano who joined hands with a group of eight experts based in Silicon Valley.
Antonio Juliano had worked as a software engineer at Uber and Coinbase where he gained immense knowledge about how the techniques of digitalization and trading can be combined as one which is exactly what he did when he launched the dYdX Exchange review.
dYdX has a prominent and successful team of advisors from well-renowned companies like Google, Coinbase and Airbnb backed by a committed and expert management team which is one of the dYdX core competencies.
Who are the dYdX Exchange Investors?
The dYdX Exchange review introduced by Antonino Juliano is backed by a strong team of Popular and successful Individual and Institutional Investors.
The Investors of dYdX are Andreessen Horowitz, Polychain Capital, Bain Capital, Craft Ventures, Kindred Ventures, and other top venture capital firms based in Silicon Valley.
With an impressive set of investors, dYdX has reached the peak of success within a very quick timeline.
Is dYdX safe?
dYdX is a completely safe and secure digital trading platform that has been trusted by individuals and companies across the globe.
It allows you to trade with no counterparty risk since you will be in charge of your funds at all times. There is no middleman or third-party involvement.
The dYdX Exchange review prioritizes the security of its users above all which is why it is powered by Ethereum Smart Contracts that have been formulated and certified as the best of its kind.
And what’s more, all margin trading gives you higher leverage of up to 4 times and allows you to secure your position with any accepted collateral that enables greater trust and surety.
All in all, dYdX is the safest place out there as far as digital trading and money markets are concerned.
dYdX lending rates
The dYdX lending rates can be viewed by navigating to the balances tab on the dYdX portal. You can easily view the latest rates which will be automatically updated in this section solely dependent upon the market mechanism.
Currently, dYdX offers these lending rates for the following tokens
- ETH-0.01%
- DAI-11.04%
- USDC-47.07%
dYdX fees for trading
dYdX offers both maker and taker orders with a different fee structure for each of them.
The fee structure will differ depending on if it is a trading pair or perpetual market and the minimum order sizes.
To get a better understanding of the fee structure of the dYdX perpetual market refers to the table given below.
How do I use dYdX?
The dYdX broadly offers lending and borrowing facilities to its users as well as the less common margin and derivatives trading. To get started with dYdX you need to set up a digital wallet and follow an easy process to either lend or borrow cryptocurrencies. Let me tell you how to use the dYdX Exchange review to grow your incomes either through interest on deposits or lending facilities.
Follow the simple and easy steps below to create your dYdX Interest account in no time.
- Step 1- Set up your Ethereum wallets such as Metamask or Coinbase. If you have an existing wallet you can use it as well.
- Step 2-Select the “Start Lending” option available on the DYdX website https://dydx.exchange/
- Step 3- Link your Ethereum wallet to this
- Step 4-Select “deposit” and the relevant currency
- Step 5-Select the relevant wallet and enter the amount
- Step 6-Finally select the “deposit” option
Now that you are aware of how to set up an Interest account on the dYdX Exchange review, let us explore how to set up a loan or borrowing account. Follow the procedure below to set up your very own dYdX loan account.
- Step 1- Set up your Ethereum wallets such as Metamask or Coinbase. If you have an existing wallet you can use it as well.
- Step 2-Select the “Start Borrowing” option available on the DYdX website
- Step 3- Link your Ethereum wallet to this
- Step 4-Select “borrow” at the navigation bar on top and pick the relevant currency
- Step 5-Select the relevant wallet and enter the amount
- Step 6-Finally select the “borrow” option
dYdX as an exchange platform allows borrowers and lenders to connect on a global level and aids transactions that occur in real-time which can be executed simply without much paperwork or regulation. This becomes a unique selling point of dYdX because while all other companies rushed to develop cryptocurrencies, dYdX tried to decentralize the trade and perpetual markets in BTC and eth.
The dYdX platform also aids research and comparisons in rates and other aspects along with a detailed outline of its features and blog articles that will make you an expert in the market and trading platform for cryptocurrencies in no time.
Margin Trading with leverage on dYdX exchange
dYdX currently offers three trading pairs consisting of ETH-DAI, ETH-USDC, and USDC-DAI for margin trading. If you would like to margin trade other assets, you can borrow from dYdX and trade them on another platform.
With the dYdX platform, margin trading is quite a simple and convenient task that makes life easier for you with its option of auto calculating the values for Leverage, PNL, and liquidation price.
It is also quite capable of supporting multiple independent positions simultaneously and at specific leverage. You also have the option to adjust position size and leverages to avoid liquidity issues.
To open your position, you are required to have enough funds in your main account to cover the margin deposit. The Leverage controls will decide how much of your position is borrowed. The higher the leverage, the smaller will be your margin deposit.
dYdX Exchange review offers a leverage of up to 5X for margin trading and all your assets can be backed by collaterals which offer greater security and safety.
Isolated Margin Trading
In general terms, an isolated margin is where a margin assigned to a position is restricted to a certain amount. If the margin falls short of the Margin maintenance level, the position will be liquidated.
dYdX provides a fully-fledged comprehensive global platform for isolated margin trading. Similar to the usual margin trading schemes you have the liberty of deciding on the amount and leveraging it.
Leverage determines how much of margin deposit is required and in the event of liquidation, losses are capped by the size of the isolated position. Isolated margins are considered to be a safer and simpler way for margin trading especially for amateurs who are not well seasoned in this area.
Cross Margin trading
Cross Margin is the opposite of Isolated margins where rather than a specific and narrowly defined asset is set up for margin trading, here you can make use of all the assets in your dYdX balance account as collateral.
Depending on the fluctuations in your dYdX account balance, you can adopt unique standpoints to further leverage your interest in a particular trade or transaction.
And what’s more, Cross margin would allow you to transform theETH deposited in the dYdX smart contracts into DAI to earn a higher interest rate on your lending. This would be a plus point for you.
Spot Trading on dYdX Exchange
Trading on the dYdX Exchange allows for greater avenues for managing your portfolio of funds. The dYdX Exchange offers spot, margin, and perpetual trading. dYdX offers a diverse range of three main spot markets consisting of the ETH-DAI, ETH-USDC, and DAI-USDC.
Once you are within the Spot section of the dYdX online trading platform, you can trade freely using the market, limit and stop orders as per your wishes and stand a chance to become a pro at this by boosting your earnings almost instantly.
Perpetual features trading on the dYdX exchange
dYdX also offers a perpetual trading market consisting of BTC-USD, ETH-USD, and LINK-USD. It allows up to a leverage of 10 times on synthetic assets without an expiry date.
You can simply access this option of perpetual trading via the Perpetuals tab on the dYdX Exchange portal.
How to trade BTC perpetual features on dYdX?
The dYdX platform recently launched the perpetual trading of a non-Ethereum based asset which is BTC and it was met with a favorable response from the masses.Even with trading BTC perpetual features of dYdX the security and transparency of the deal is a topmost priority as smart contracts will continue to be used.
BTC being the most widely traded crypto asset allows the users of dYdX greater chances of reaching new markets and horizons they never dreamed of. The trading volume of crypto perpetual is double the volume of the spot market and continues to grow rapidly. Perpetuals give users an easy and capital-efficient way to get leveraged long or short exposure. With the dYdX platform enabling the trading of BTC perpetual futures you can now get the best out of this new arrangement.
The dYdX platform now shows another tab available for perpetual future trading with BTC. By logging onto this portal, you can start your trading.
How to Trade ETH Perpetual Futures On dYdX?
dYdX launched the ETH perpetual futures in 2020 which was a massive success as ETH remains to be the underpinning of the Defi ecosystem which allows you to gain increased leverage and trade using the most liquid order books on DeFi.
You can access the ETH Perpetual futures trading platform and if you need help use their ETH Perpetual help center guide
dYdX Lending guide
The dYdX platform along with its customer support team offers a well comprehensive guide for lending which can be accessed via their site and help center using this link
dYdX Borrowing Guide
The dYdX platform along with its customer support team offers a well comprehensive guide for lending which can be accessed via their site and help center using this link
Potential dYdX Exchange Airdrop – Early DeFi Users Reap Rewards
dYdX Exchange airdrop has been rumoring around for ages with people eagerly awaiting to reap the benefits. Similar companies like dYdX such as Fur combo and Uniswap have performed similar airdrops which have been met with a lot of good comments, publicity, and client coverage of these exchanges.
Will dYdX follow a similar strategy to keep its audience eager and on their toes whilst improving its public image and global coverage in one go? We hope yes and hope it happens soon! Grab your wallets and do some test trading to obtain more airdrop. But, beware Ethereum network gas is too high at the moment. So, make sure to do minimum transactions and wait for the airdrop to happen.
dYdX FAQs
What are the currencies that can be used on dYdX?
At the moment, dYdX allows for only trading in DAI, USDC, and Ethereum (ETH).
Is dYdX safe to use?
Yes, of course. Have the key to your digital wallet safe and you will be guaranteed safety and security always.
When was the dYdX launched?
It was launched in 2017.
What is dYdX Exchange in short?
It is a decentralized exchange, borrowing, and lending platform based on Ethereum.
Is dYdX scam or legit?
dYdX is not a scam! It is one of the internationally acclaimed companies with top-shot investors and an amazing profile and track record for being the best in the Industry. Client safety and confidentiality are also a key priority and no instances of any hacking or safety issues have been notified as of now.
Is dYdX better than Compound Finance?
Compound finance has been a traditionally well accepted and widely used means of trading in financial markets. Compound finance offers rates 1.6X times higher than the dYdX rates but in the future, dYdX rates look lucrative and have higher growth potential. Chances are high that if you invest now, you can reap great benefits in the future.
How to Earn Through Yield Farming on the dYdX Perpetuals?
Native tokens of Ethereum were used in the early period to hold and convert these tokens to liquid assets later on via trading on the dYdX platform. This allows the people to yield higher returns from reinvesting any income earned in new tokens.
This method of reinvesting has boosted the growth of the Ethereum token globally and it continues to be on the rise with more people opting in for this option every day.
Takeaway-dYdX Exchange reviews
- The key takeaway points on the dYdX exchange review are that this decentralized platform for spot, margin, and futures trading is the way forward with the rise in popularity of token and cryptocurrency trading.
- It is also the most secure and safe option out there with smart contracts and collagenization.
- If you haven’t tried your luck on the dYdX platform yet, hurry now and reap the benefits it has to offer you.
