dYdX operates with the security and transparency of a DEX but the speed and ease of centralized exchange.
In any market, the use of financial products such as derivatives allows you to achieve superior risk management and open potentially lucrative avenues of speculation previously unavailable. The benefits are no different in crypto, and the possibilities are blinding. dYdX takes the heavy lifting out of a regulated central clearing house to give traders global and equal access while maintaining full control of their funds.
The platform offers users the ability to trade perpetual contracts. This strategy is ideal for individuals as well as large investment firms, as derivatives such as perpetual contract accounts allow them to access a high potential return on investment (ROI) during market movements without directly hold cryptocurrency.
With low account requirements, committed anonymity, and a Layer 2 protocol through StarkWare, the creators of dYdX remain true to the idea of DeFi. Anyone can open a dYdX account for as little as $ 1, and the protocol is accessible worldwide.
Perpetual contracts: Perpetual contracts are synthetic trading markets that use stable coins as collateral to provide exposure to liquid assets. Going long or short and using leverage on futures allows users to participate in market movements, limit risk, and make a profit by trading perpetuals. A futures contract is a derivative financial contract, which means that its value is derived from the performance of the underlying asset. Perpetuals are currently not available to individuals or businesses who reside, or are located, incorporated, or have a registered agent in the United States or a Restricted Jurisdiction.
dYdX, as DEX, means no parent is holding your hand as you walk across the street of crypto derivatives. But you’re a big one, and with the info you can find on the dYdX site, you don’t need mom to look at you anymore. The dYdX website has all the information you need, including actionable tutorials. The Help Center and FAQ page contain answers to frequently asked questions such as registration, fees, and cash. dYdX offers responsive email support. The secure live chat works well. DYdX’s strong and participatory social media presence in all the places you and your fellow traders rely on, including Twitter inc. (NYSE: TWTR), LinkedIn, YouTube, Reddit, Github, and Discord warrant a 5-star customer service rating.
The Layer 2 benefit that StarkWare brings in terms of speed, scalability, security and privacy also means savings for merchants. Fees are volume-based in a maker-taker fee model.
- Manufacturer orders are orders that don’t fill up immediately and don’t stay in the order book – these orders add depth and liquidity.
- Order taker cross existing Maker orders, removing liquidity.
- Perpetual fees also use the maker and taker model, but are based on the user’s trading volume in the previous 30 days. dYdX does not charge any gas fees for perpetual trading. Fees for other trading actions vary from 0% (maker) to 0.10% (taker) depending on the volume.
The introduction of the dYdX token also added a trading fee discount aspect to perpetual trade, with users being eligible for a 3% to 50% discount depending on the current dYdX balance. In general, however, only the payment of network fees should be considered lower than the global industry average when it comes to fee levels for crypto withdrawals. dYdX gets a 5 star rating for customer pricing.
Users have access to many benefits associated with using dYdX, and it gets a 5 star rating for these reasons.
- Fast and anonymous registration: Account opened in less than 5 minutes.
- Education: Access tutorials to learn the system and improve trading.
- Low costs and no gas costs: Once you deposit on Layer 2, you no longer pay a miner fee for each transaction.
- Fast Transactions: Transactions are executed instantly and confirmed on the blockchain within hours.
- Quick withdrawals: Unlike other platforms, you don’t wait to withdraw your Layer 2 funds.
- Use on mobile browser: The app, website, and desktop experience deliver similar high-quality experiences. Each trading platform has a trading view where you can see the current crypto price charts and place orders.
- Secured by StarkWare Layer 2 protocol: A Layer 2 solution provides increased security and privacy through zero knowledge accumulation.
- Cross margin: Users can access leverage on multiple positions in multiple markets from a single account.
Every aspect of the dYdX experience exceeds expectations. Setting up an account involves just a few steps of maintaining privacy:
- Get an Ethereum wallet like Metamask or Coinbase Wallet.
- Go to the dYdX website.
- Connect your Ethereum wallet.
- Click on Deposit.
- Select the appropriate currency.
- Select the relevant portfolio.
- Enter the amount.
- Click on Deposit.
Its accessible mobile web application and informative site give it a 5-star rating. The added benefit of the anonymity of transactions on the platform further improves your trading.
dYdX Exchange vs Competitors
dYdX offers an integrated competitive platform. A unique feature is the user’s ability to enroll without handing over assets to a centralized authority as required on traditional centralized exchanges. Users can transact with zero or low gas costs, cheaper trading fees, and smaller minimum orders with dYdX’s Layer-2 internal scaling solution. This significant advance in DEX perpetual trading will likely help dYdX in its quest to become the premier decentralized trading protocol in the field.
With the name of the company as a nod to the mathematical magic of differential equations, how can dYdX not become the cornerstone of your crypto derivatives trading experience? Its advanced Layer 2 protocol means the exchange delivers on its promise of fast, anonymous, gas-free Layer 2 perpetuals.
DYdX exchange tutorial
Frequently Asked Questions
Is the dYdX exchange legitimate?
The dYdX exchange is fully legitimate, with the backing of some of Silicon Valley’s most prominent investors. This DEX, with customer funds locked in smart contracts, is safe to use.
Does dYdX require KYC?
No KYC is required for a dYdX account, and no centralized staff supervise your funds on DEXs like dYdX.
Benzinga has developed a specific methodology for classifying cryptocurrency exchanges and tools. We prioritized platforms based on offers, prices and promotions, customer service, mobile app, user experience and benefits, and security. To see a full breakdown of our methodology, please visit our Cryptocurrency Methodology page.