What is dYdX (DYDX)?
dYdX is a decentralized cryptocurrency exchange platform based on the Ethereum blockchain. In addition to regular trading, DYDX supports perpetual swaps, permits lend, borrow and trade margin with more than 1:25 leverage.
The platform is non-supervisory, which means that all actions are carried out without intermediaries and the user does not need to entrust anyone with the storage of their funds.
The dYdX exchange also has the token DYDX with the same name. It is primarily intended to implement decentralized platform control. For the first time, the launch of its own token dYdX platform was announced on August 3, 2021. And on August 8, DYDX started trading on all major centralized and decentralized exchanges, including MEXC Global, OKEx, Gate.io, Poloniex, Huobi, Uniswap, Sushiswap. Immediately after that, the token rate increased by 1100% and reached $ 30.
On September 9, the token was added to the listing of the most popular crypto-exchange Binance.
Where do dYdX come from
In the classical view of decentralized platforms, exchanges did not have the ability to provide tools such as margin trading, or trading crypto and derivatives options. dYdX was the first decentralized marketplace to provide such services.
So, to ensure margin trading on the DEX platform, a collateral from the user is used. In fact, by making a minimum deposit at dYdX, you are discovering cryptocurrency lending that will allow you to trade on margin.
The exchange was created in 2017 by Antonio Giuliano, who previously worked at Coinbase and Uber. In 2019, the platform opened an option of margin trading with a maximum leverage of 5x. The trading pairs available for this type of transaction were limited to the DAI, Tether and Ethereum cryptocurrencies.
All borrowers are in one integral credit pool, which is separate for each cryptocurrency. Borrowing within the platform is ensured by pre-written smart contracts, which keep the provision of credit funds uninterrupted.
The dYdX is constantly expanding, adding new services (such as stop loss management) and new trading pairs.
How dYdX works
To start trading on dYdX, you need to use an Ethereum wallet and a share in ETH to pay commission fees.
The dYdX protocol includes three main trading propositions:
- perpetual contracts
- margin trading
- spot trading
Each type of trading uses a separate account.
The perpetual contracts market is limited by the three major pairs BTC / USD, ETH / USD and LINK / USD currently. In the future, the creators of the platform are planning to add new tools. The maximum leverage is 1:25.
Like most other decentralized platforms , the dYdX user's are storing funds on their own wallets, and transactions performed within the platform for exchange, accrual of interest on income, etc. are controlled by smart contracts.
The dYdX decentralized trading platform allows peer-to-peer exchange transactions on any ERC-20 asset.
Also, the producers of the dYdX platform have developed their own second layer protocol for cross-margin exchanges based on the StarkEx mechanism and dYdX perpetual smart contracts in partnership with StarkWare. As a result, the platform has increased its scalability and efficiency. Trades can be made with zero gas costs, reduced trading fees and reduced minimum transaction limits.
It is the decentralized trading of perpetual contracts that forms the basis and main direction of the dYdX protocol. The minimum transaction limits are only $ 10. This is the lowest threshold of the limit among all similar projects.
dYdX provides investors with several promising DeFi strategies including:
- Short trades with which you can profit from a decline in asset prices. These transactions can be used both for hedging existing positions and for speculation.
- Fully collateralized loans with low rates. They enable token holders to receive interest payments.
What makes dYdX unique
dYdX takes a flexible approach. It helps create truly effective and engaging markets for users. Market makers can sign and submit orders outside of the platform. And the blockchain network is used exclusively for settlements.
The platform also offers users several unique products, which we have already described above. These are margin trading, the ability to carry out short deals, etc.
The unparalleled functionality attracts more and more new users. The platform was launched in 2017 and since then has proven itself only from the best side. Many institutional investors and funds provide long-term support to the platform. The company has assembled a highly experienced team of consultants, developers and blockchain architects.
Where to buy dYdX?
The DYDX tokens management allows community members to make specific decisions over the dYdX Layer 2 protocol. The authors of the project believe that decentralized control will contribute to its improvement, since in this case they will take into account the views of direct users. Holders can vote on proposals for adding new features and other important decisions. Therefore, in August 2021, the creators decided to launch their own DYDX token.
The dYdX exchanging platform has gained fame and recognition for a long time. Therefore, within 1.5 months after the appearance of the DYDX token, it was added to the list of the biggest cryptocurrency exchanges. Also, the token is traded on decentralized exchanges that support the ERC-20 standard.
How to Buy dYdX (DYDX)
The process of buying DYDX cryptocurrency is not complicated. As we already wrote above, cryptocurrency listing takes place on many centralized and decentralized exchanges. The token can also be purchased on the dYdX platform.
Binance remains the most famous platform for buying and trading cryptocurrencies.
To buy DYDX on Binance, you need to click the "Buy Now" button on the main page. After being redirected to the next page, you will be able to choose a purchase method. On Binance, you can buy cryptocurrencies using a variety of fiat currencies.
Enter the amount you want to spend. The amount of cryptocurrency to be purchased will be automatically calculated and displayed on the screen. After that, you must click the "Continue" button. Then you will be able to choose the payment method you want. To purchase with a credit / debit card, click "Visa / Mastercard" - "Continue". Further payment is made using the standard method for "Visa / Mastercard". Everything. The purchase process is now complete.
This process may differ slightly on other exchanges, but overall it remains intuitive.
How to start investing in dYdX in New Zealand?
You can Invest in dYdX in New Zealand in the same form from investing in any other country. You can invest in dYdX by purchasing it on any cryptocurrency exchange. As we wrote above, the DYDX token is very popular and is available for purchase on all top cryptocurrency exchanges.
You can also invest in dYdX by purchasing tokens in cryptocurrency wallets. Multicurrency crypto wallets give you this opportunity.
As you can see, invest in dYdX doesn't matter what country you are in. The main thing is that you have access to the Internet.
Is it safe to invest in dYdX online?
The dYdX exchange has been operating since 2017 and during this time it has established itself only on the good side. During the entire period of work, there have not yet been cases of loss of user funds due to fraudulent actions of a third party or an error in the operation of the exchange. That's why it is the safest process Invest in dYdX.
A high degree of reliability is provided by a unique algorithm that excludes access to the user's funds by a third party.
The dYdX trading process is also extremely safe. Even with margin trading, your risks are minimized as much as possible. The algorithm works well. Its reliability has been proven over time.
Smart contracts are used for the safe execution of transactions. Their algorithm is open source and regularly checked by reputable audit firms. Therefore, investing in dYdX in New Zealand you can be sure that your funds are reliably protected.
Is dYdX a good investment?
The dYdX is a very quickly evolving platform. This year, dYdX surpassed the biggest cryptocurrency exchange in America. Coinbase in terms of trading volume. The company is not going to stop there and sets itself an ambitious goal - to bypass the world's largest crypto exchange Binance in terms of trade turnover.
It is obvious that the active development of the crypto exchange and the growth of its popularity will contribute to the growth in the value of the DYDX token, which retains good prospects for further growth. Therefore invest in dYdX is a good idea. By investing in dYdX you are investing in the future. Perhaps in the coming years, the dYdX crypto exchange will become the largest in the world.
Should traders invest in dYdX?
Each trader or investor must determine the most interesting and most suitable instruments for himself. Obviously, when choosing investment instruments, the DYDX token should be among the coins that you should consider for inclusion in your investment portfolio.
The dYdX crypto exchange offers a unique product that currently has no analogues. This will create a solid foundation for the continued growth of the DYDX token.
Buy dYdX in New Zealand today you can look forward to generating good income in the future.
How to Buy dYdX Right now?
How to Buy dYdX right now? It all depends on your involvement in the cryptocurrency industry. If you are already an experienced trader or investor and you have an account on a large crypto exchange or have a multi-currency crypto wallet, buying DYDX will not cause you much difficulty.
You can Buy DYDX in a matter of minutes in your personal account of the crypto exchange. Now DYDX is listed on such large crypto exchanges as: Binance, MEXC Global, OKEx, Gate.io, Poloniex, Huobi and others.
You can also easily purchase a token in a multi currency crypto wallet. Currently, the most popular wallet on dYdX is MetaMask. The DYDX token is also supported by WalletConnect wallets, the Coinbase Wallet app, and more.
If you are a beginner trader or investor, then you better start with a Demo account. Nowadays, many cryptocurrency exchanges provide users with the opportunity to trade on a demo account. Accordingly, you can trade dYdX on a demo account.
Here is an incomplete list of cryptocurrency exchanges where you can trade on a demo account, including the DYDX token: Binance, OKEx, Сurrency.com, ByBit, etc.
If you are an experienced trader or investor, you can start trading DYDX right away from a live account. In this case, your opportunities are higher than on a demo account. You can not only carry out speculative trading with DYDX, but also make long-term investments in DYDX, exchange the token for other cryptocurrencies or fiat money.
You can buy dYdX in New Zeland on any of the listed cryptocurrency exchanges: Binance, OKEx, Сurrency.com, ByBit, etc. This is not a complete list of platforms where you can trade and invest in DYDX.