What is dYdX (DYDX)?
dYdX is an Ethereum-based trading platform aimed at experienced traders. Based on the latest open source protocol of the dYdX team, the platform allows users to lend, borrow or use margin trading of any supported asset.
Leveraged trading, options and derivatives are common tools for traders and investors. In the market of cryptocurrency, these tools were only available on centralized exchanges, for example: Kraken, Huobi, Binance and others. dYdX was the first platform to successfully implement these features based on trust and decentralization.
Where do dYdX come from?
DYdX was launched by Antonio Giuliano, a former Coinbase and Uber developer. In 2017, for the implementation of his idea, he received about $ 2 million in investments from individuals and companies. With his small team of 12 people, he was able to create a truly sought-after product.
In 2018, the exchange provided the user with the fichers to trade using borrowed funds. This attracted a significant number of new users to the exchange, who were able to maximize their profits through the use of borrowed funds.
Initially, only three pairs were offered for margin trading: BTC-USD, ETH-USD, LINK-USD. The maximum leverage was limited to 1: 5. Later, the list of tools available for margin trading was expanded, and the leverage was increased to 1:25.
Yes, some centralized cryptocurrency exchanges offer significantly higher leverage, up to 1: 100. But for a decentralized exchange, margin trading with up to 1:25 leverage was a real breakthrough and a significant step forward.
Also, do not forget that leverage does not allow you to maximize profits, but also increases the potential risk of loss). Given the high volatility of the cryptocurrency market with a 1: 100 leverage, even a slight movement in the wrong direction can lead to liquidation of a position.
Therefore, by limiting the level of leverage, dYdX primarily cares about its users.
In 2020, trading with perpetual contracts became available on the exchange. Thanks to this, the exchange was able to attract a significant number of new users. Daily trading turnover increased from $ 10 million to $ 30 million.
In 2021, the dYdX exchange launched its own token, DYDX. At the same time, the daily trading turnover of the site increased to $ 5.6 billion. According to CoinGecko, the dYdX trading volume for the first half of 2021 grew by almost 20,000% !!! For comparison, the turnover on Coinbase during the same time increased by 6%.
How does dYdX work?
The dYdX exchange offers its users a lot of functionality. Several tools are unique to the decentralized platform. This makes dYdX very popular among traders.
In particular, on dYdX the following are available:
- Loans and borrowings (not limited in terms and minimum amount).
- Margin trading.
- Portfolio management of your positions and assets.
A “global loan pool” has been created for the dYdX platform. Loans are issued by smart contracts. Thanks to this, transaction processing occurs instantly.
The interest rate always changes depending on the market demand. The more borrowers, the higher the rate, the more lenders, the lower the rate. At the same time, there is virtually no minimum or maximum level of lending on the exchange.
This algorithm of work allows all users of the platform to earn interest simply by depositing funds to the wallet. Interest is paid continuously, without a blocking period for your funds.
What makes dYdX unique?
The dYdX exchange has several unique features that were not previously available on decentralized platforms. Of course, margin trading is of the greatest interest.
dYdX offers its clients more opportunities for margin trading and they have a completely decentralized model built on top of DeFi technology. Decentralized crypto exchanges that are built on DeFi have problems with margin trading and the provision of derivatives, but dYdX is moving towards solving this problem. This is one of the first advantages of this site.
Another advantage of dYdX over the competition is the Layer 2 protocol developed in conjunction with StarkWare, which helped solve the problem of high commissions by providing traders with adequate trading conditions.
There are other important features on the platform that make the platform more attractive and interesting for users.
Where to buy dYdX?
The dynamic development of the dYdX cryptocurrency exchange provides a consistently high demand for its own token DYDX, which is listed on the largest centralized and decentralized exchanges.
But now you can buy dYdX on cryptocurrency exchanges and on the trading platforms of brokerage companies too. In this case, you will not physically own the asset, but you will be able to speculatively trade DYDX.
Many participants in the cryptocurrency market prefer short-term speculative trading, which allows them to make profits on a daily basis, rather than long-term investment in individual digital coins. In this case, working with brokerage companies is the most appropriate choice.
The trader receives:
- Convenient trading platform (s).
- The ability to replenish / withdraw funds in fiat currency.
- The ability to trade with leverage.
- The ability to trade cryptocurrencies, FOREX and CFDs on one account.
Thanks to this, the trader increases his chances of getting a positive result from trading and significantly expands his opportunities for earning.
How to Buy dYdX (DYDX)?
If you are looking to invest in DYDX for a long-term, then you need to register on a cryptocurrency exchange where the DYDX token is listed. Here you can buy DYDX. In this case, you can expect to receive income if the value of DYDX rises.
As a rule, long-term investment in cryptocurrency requires significant financial and time costs. Therefore, many market participants prefer short-term speculative cryptocurrency trading. In this case, you can trade not only on cryptocurrency exchanges, but also of brokerage companies.
Trading with brokerage companies expands your trading opportunities, since you can earn not only on the rise in the value of the cryptocurrency, but also on the fall in value. Brokerage companies also provide the opportunity for margin trading and more interesting, convenient and rich functionality trading platforms.
You can trade anytime 24/7 regardless of your location.
How to start investing in dYdX in India?
To start investing in dYdX in India is very simple. But first, you should decide who you are - a long-term investor or speculator.
If you are a long-term investor, you need to buy DYDX on one of the cryptocurrency exchanges. Transfer tokens to a cryptocurrency wallet, or store them on an exchange, and hope for a rise in the value of a digital coin in the future. In this case, you can profit by selling DYDX at a higher price.
The dYdX exchange has good prospects for further successful development. This creates a good basis for the long-term growth of DYDX's value.
If you prefer short-term trading and want to make money not only on the growth, but also on the fall in the value of the token, then you can trade not only on a cryptocurrency exchange, but also in a brokerage company. The latter offer their customers better service and good technical support. What is not less important.
Now there are many brokerage companies on the market that operate in the Indian market. You can choose the option that is the most interesting for you, but it is worth clarifying whether there is DYDX in the list of traded instruments. Many companies have a limited selection of cryptocurrencies for trading, but there are brokerage companies that offer clients a very wide selection of cryptocurrencies, including DYDX.
Is it safe to invest in dYdX online?
Risk is an integral part of investing and trading, but it doesn't stop many people from making huge amounts of money. It is important to be aware of these risks and to control them.
If you are a long-term investor, then the DYDX token should definitely be on the list of digital coins that you select for potential investments. The project is developing very quickly and has very good prospects for further growth. This will also provide an increase in the value of its own DYDX token.
Therefore, the risk of losing funds from investments in DYDX is negligible. The main thing is to choose the right moment to buy DYDX. It is best to do this after a strong downward price rollback.
Is dYdX a good investment?
There is no single answer to this question. It all depends on many factors, including the time when you decided to start investing in DYDX and the time for which you decided to invest in DYDX.
The token DYDX has grown very strongly after the first listings on large cryptocurrency exchanges. But in the 4th quarter of 2021, a correction began in the cryptocurrency market and many digital coins, including DYDX, fell significantly in price. Obviously, midterm investments in DYDX at the local peak of the coin's value are not the best investment decision.
At the same time, investing in DYDX after the completion of the market correction is a very interesting option. DYDX has good growth potential and may renew its historical maximum value in the future.
Should traders invest in dYdX?
Unlike long-term investors, private speculative traders can make money both on the decline and on the growth of the cryptocurrency market. They can trade cryptocurrency CFDs and operate on the market 24/7.
In this regard, invest in DYDX is a good choice for a trader. One has only to find a brokerage company that has CFDs on DYDX in the list of trading instruments. In this case, you can invest in dYdX in India almost instantly, since it takes only a few minutes to register an account with most companies.
DYDX is less volatile than other cryptocurrencies. Therefore, it is suitable for trading not only for experienced traders, but also for beginners.
How to Buy dYdX right now?
If you are interested in speculative cryptocurrency trading and want to buy DYDX in India, you need to find a cryptocurrency exchange or brokerage company that provides this opportunity.
In this case, the option with a brokerage company looks more attractive. You can open a trading account within 5 minutes and fund it with fiat currency. In addition, brokerage companies offer customers a better support service than crypto exchanges. You will be able to get technical support 24/7 in many languages.
Unlike cryptocurrency exchanges, almost all brokerage companies provide their traders with the possibility to open a demo account. This is not an unimportant factor, especially for a novice trader.
A demo account is an important stage in a trader's training. He helps to master the trading platform and develop a trading strategy that will allow you to make a profit in the market.
To start invest in dYdX in India, you need to open a real account on a cryptocurrency exchange or brokerage company. After that, you can invest in dYdX for the long term or buy dYdX for short-term speculation on the change in the cost of the asset.
Brokerage companies and crypto exchanges provide their services to clients around the world. Therefore, you can easily open a trading account there and buy dYdX in India.
Good profits and cusessfull trading!