What is dYdX (DYDX)?
dYdX is a decentralized cryptocurrency platform that provides margin trading in cryptocurrencies and perpetual futures trading.
The exchange is built on the Ethereum blockchain and has great functionality. On this platform, you can not only trade cryptocurrency, but also place funds on a deposit and take out a loan.
DYdX is open source to provide complete transparency, increasing customer confidence.
In 2021, the dYdX decentralized exchange released its own token - DYDX.
Where do dYdX come from?
The dYdX decentralized platform was launched in 2017. The founder and main ideological inspirer is Antonio Giuliano. Previously, he was known for his work on such famous projects as Coinbase and Uber.
Since its inception, the project has developed exponentially. In 2019, the exchange offered its clients three products at once, which became very popular among clients: trading in perpetual contracts with a leverage of 1:25, trading in derivatives contracts and margin trading with a leverage of 1:5.
Margin trading in cryptocurrency instruments was in great demand among clients and in 2020 the trading volume on the site increased 40 times, reaching $ 2.5 billion.
It is surprising that such high turnover rates were achieved despite the fact that there are only three cryptocurrencies available for margin trading on the platform: DAI, Tether and Ethereum.
In 2021, the dYdX decentralized platform continued to actively develop and by October the volume of spot trading reached $ 5.7 billion.Thus, a modest project, on which no more than 20 people worked, was able to overtake the largest American crypto exchange Coinbase in terms of turnover.
The company managed to achieve such an outstanding result thanks to two important events that happened in 2021.
First, in April of this year, dYdX introduced the StarkWare blockchain technology, which significantly accelerated transactions through Ethereum.
Secondly, dydx entered into a partnership agreement with a Swiss foundation. Thanks to this, the cryptocurrency exchange issued its own DYDX token and applied a marketing technique called "liquidity mining". In the summer of this year, the company distributed part of the tokens for free to users who performed at least one trade operation on the exchange.
The success of these operations is evidenced by the following figures - in July the volume of transactions on the exchange was about $30 million, and in August it increased to $450 million in August. In September, the volume of transactions has already exceeded the $2 billion mark.
How dYdX works and what makes dYdX unique?
The uniqueness of the dYdX platform is based on three main products that they offer to their customers:
- Placement of funds on deposit.
On the dYdX platform, all these functions are implemented on the basis of a unique algorithm that ensures maximum transparency and security of client funds.
Below we will take a closer look at each of these functions.
It is very easy and safe to get a loan at dYdX. The user simply indicates the loan amount and other parameters. After pressing just one button, the credit funds are credited to your wallet.
Many may be surprised, but in fact, within the platform, there are no restrictions on the minimum and maximum loan amount.
In fact, the maximum loan amount is limited by the amount of available funds that are available on the exchange for a certain period of time.
Moreover, the interest rates on the loan on dYdX are floating. They change depending on the level of supply and demand. If the demand for loans increases, and the supply decreases, then the interest rate on the loan increases. And vice versa. This means that under certain conditions you can take out a loan at 0% per annum or close to that. But if demand for credit is high, then interest rates can rise to ten-digit values.
The platform also does not set the loan repayment time. You define it yourself. The main thing is that you fulfill the requirements for the liquidity threshold, which should not exceed 85%. If this level is reached, your loan agreement will be canceled. The loan will be debited from your account along with interest and a 5% liquidation penalty.
On dYdX you can not only take out a loan, but also place funds on a deposit.
This money is included in the pool from which loans will be issued to other users. Obviously, in this situation, the percentage of the reward for the deposit is slightly lower than the percentage at which the loan is issued.
The deposit process is very simple. It is only necessary to replenish the wallet linked to the platform. After that, your funds will automatically accrue interest on the deposit. In this case, interest is charged instantly.
Like the rate on loans, the interest rate on the deposit is floating. It changes depending on the level of supply and demand at a particular point in time. If demand is very high, you can earn 10-figure interest. If demand is low, then the percentage will also be low.
The platform algorithm is very well thought-out and is maximally aimed at ensuring the security of the client's funds. 5% of the difference in interest rates on loans and deposits are transferred to a specially created insurance fund. These funds will be used during strong fluctuations in order to ensure the stable operation of the exchange.
As you can see, invest in dYdX the United Arab Emirates is a safe process.
At first glance, this feature is not unique as many centralized and decentralized platforms provide their clients with the ability to trade.
The main feature of dYdX is to provide its clients with three trading options at once:
- Spot trading. Three currency pairs are supported: ETH-DAI, ETH-USDC and DAI-USDC. You can use both market and limit and stop orders.
- Trading with margin collateral. There are also three tools available. Leverage up to 1: 5.
- Trade in perpetual contracts. One instrument BTC-USDC is available for trading. Leverage up to 1:25.
For each trading option, you must open a separate trading account.
Where to buy dYdX and How to Buy dYdX (DYDX)?
A strong impetus for the development of the dYdX platform was the decision to launch its own cryptocurrency - DYDX. Its launch contributed to the rapid growth in trade turnover and the popularity of the token.
In this situation, the largest cryptocurrency exchanges could not stand aside and actively included DYDX in their listing. After listing on Binance, the token has risen in price by more than 1000%, bringing huge income to its holders.
There are several options for purchasing the DYDX token:
- buy DYDX on cryptocurrency exchanges: Binance, Huobi, Poloniex and others;
- buy DYDX on dYdX;
- buy DYDX through an online trading platform.
As you can see, invest in dYdX is very simple. You can easily Buy dYdX the United Arab Emirates, or while in any other country.
How to start investing in dYdX the United Arab Emirates?
Invest in dYdX can be located anywhere. The main thing is Internet access. For example, in order to Buy dYdX the United Arab Emirates, you need to connect your Ethereum wallet to the platform and that's it. You can freely use all the functionality of the platform: trade, take out a loan, place funds on a deposit.
Is it safe to invest in dYdX online?
Investing in dYdX is as safe as possible. Since 2017, there has not been a single case on the exchange when the client's funds were at risk.
There was not a single client who lost funds as a result of an algorithm error, fraudulent actions by a third party, or for any other reason.
A high degree of protection is ensured by the fact that all the client's funds remain in his own wallet. They are under the complete control of the owner himself.
No third party has access to your funds. Only you control your funds. Safe work on dYdX is ensured through the use of smart contracts.
Their security is regularly monitored by such well-known audit companies as Zeppelin Solutions and Bramah Systems. Anyone can check their work, since smart contracts are open source.
Therefore, ivest in dYdX the United Arab Emirates is as safe as possible.
Is dYdX a good investment?
dYdX is a unique product with a wide range of sophisticated and unmatched features. Thanks to this, in the current year, the DYDX token showed an increase of more than 1000% in a short time.
The high potential and great prospects for the development of the platform ensured the rapid growth in the value of the DYDX token.
The uniqueness of the product ensures constant genuine interest from users. At the same time, the developers of the platform are not going to be satisfied with what has already been achieved, but are constantly modernizing it and adding new functionality.
Should traders invest in dYdX?
Should traders invest in dYdX? The answer to this question is very simple - yes.
The DYDX token has shown strong growth this year and retains good potential for a continuation of the bullish trend.
Moreover, the retracement stage the market is currently in provides traders with a good opportunity to buy dYdX at a better price.
Since there are currently no worthy alternatives to dYdX on the market, the DYDX token is highly likely to continue to grow in the future.
According to the creators of dYdX, they set themselves the goal of bypassing the largest cryptocurrency exchange in the world, Binance, in terms of turnover. Recall that the intraday turnover of this exchange exceeds $ 90 billion.
How to Buy dYdX right now?
You can buy DYDX right now on any popular cryptocurrency exchange. In 2021, almost all of the top 10 exchanges listed the DYDX token. If you have an account with Binance, MEXC Global or OKEx you can Buy DYDX without any problems. The token is also listed on many other exchanges.
An alternative method of investing in cryptocurrency that is especially suitable for beginners is trading through online trading brokerage platforms. The platform uses CFD trading, which allows you to speculate on the value of an asset (cryptocurrency) without actually buying it. The advantages of this type of investment include low limits and the ability to start investing with just a few dollars.
You can also buy DYDX on the dYdX platform. The developers have made the dYdX platform as user-friendly as possible. The registration process takes no more than one minute if you already have an Ethereum wallet. You just go to the platform, link your Ethereum wallet and that's it. Registration is complete. You get access to all the functionality of dYdX.
Choose a convenient method and invest in the currency of the future today!