Visit: dYdX

dYdX Exchange is a decentralized cryptocurrency exchange, built on the Ethereum network.

It is best-known for its combination of decentralization and margin trading ability, as well as its BTCUSDC perpetual contracts. These perpetual contracts, which allow leverage of up to 10x, make dYdX a decentralized competitor to the likes of BitMEX and other popular Bitcoin derivatives exchanges.

dYdX is non-custodial, which means there is no centralized third party in possession of user funds.

ETH-DAI, ETH-USDC, and BTC-USDC perpetuals. Also a DAI-USDC market.

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dYdX Exchange Review

As with all cryptocurrency exchanges, our review process examines three key factors: Ease of use, fees and exchange support.

Let’s go over these categories for dYdX Exchange.

Ease of Use

As a decentralized exchange, dYdX has its own unique pros and cons relating to ease of use.

The primary challenge in using dYdX comes from its non-custodial nature – rather than the exchange holding funds (as in centralized exchanges), the user controls their funds directly from their wallet.

This requires dYdX users to own and understand how to use a compatible, Ethereum-based wallet such as Metamask or the Coinbase Wallet.

Once a wallet is connected, trading on dYdX is a fairly standard experience. It has a friendly and familiar user interface, and doesn’t have a lengthy registration or know-your-customer (KYC) process. Simply connect your wallet and start trading!

Fees 

Trading fees on dYdX exchange are very competitive, especially on the maker side. Maker fees are 0% for all markets except the perpetual BTC-USDC contracts, which are negative – this means a trader will actually make money when their maker orders are filled!

Taker fees on perpetual BTC-USDC contracts are 0.075% for orders over 0.1BTC, whereas any order smaller than this is charged 0.50%.

Taker fees on all other markets range between 0.05% and 0.50%, depending on the trading pair and order size.

Support 

Since dYdX Exchange is a decentralized and non-custodial exchange, most aspects of the exchange are in the hands of users or smart contracts. Any issues are usually on the part of the user or the Ethereum network, rather than the exchange itself.

dYdX does, however, have a general help center and a chat box for support, which are useful in assisting with common issues.

Summary

dYdX is one of the top decentralized exchanges with margin trading.

Their BTC-USDC perpetual contracts are one of the most popular trading tools, offering up to 10x leverage.

Using dYdX can be difficult for novice users due to needing to connect a compatible Ethereum wallet, however once this is connected, it is a user-friendly experience.

About dYdX Exchange

If you want to learn a little more about dYdX Exchange, we’ve put together some of the most relevant details about the exchange below.

History

dYdX Exchange was founded in July 2017, by former Coinbase and Uber engineer Antonio Juliano.

dYdX received $2 million in seed funding led by Andreessen Horowitz and Polychain Capital, which gave the company a very strong start in the decentralized finance (DeFi) space. A further $10 million was raised in their Series A funding round, which was also led by the same two investors.

The platform began as a decentralized margin-trading and lending exchange, only launching its popular BTC-USDC perpetual product in May 2020.

Countries Supported at Binance.com

Anyone around the world can use dYdX Exchange, aside from those who are embargoed or sanctioned by the United States, or countries where it is illegal to use cryptocurrency trading platforms.

BTC-USD perpetual contracts specifically are only available to non-US users.

Accepted Payment Methods

Being a decentralized exchange, dYdX Exchange only accepts deposits in one of its supported Ethereum-based cryptocurrencies. These are Ether (ETH), USD Coin (USDC) and Dai (DAI).

To trade BTC-USDC perpetual contracts, users must deposit USDC.

Deposit and Withdrawal Fees

Transaction fees for deposits and withdrawals into the dYdX Exchange smart contract are almost entirely dependent on Ethereum network fees. Transactions will be more expensive if there is network congestion on Ethereum.

Verification Methods

Unlike centralized exchanges, dYdX does not require users to complete know your customer (KYC) verification processes.

Users do, however, need to agree to the terms of use, which outline country restrictions.

Buy/Sell Limits on dYdX Exchange

dYdX has minimum order sizes of 0.01BTC for its BTC-USDC perpetual market, and 1ETH or 200DAI for all other markets. There is no information available for maximum trade sizes, however leverage for margin trading is limited to 10x for the BTC-USDC perpetual market, and 3x for all other markets.

Security

The security risks of dYdX Exchange are narrow compared to those of centralized exchanges, since all funds are held either by the user or the exchange smart contract.

This means that the primary risk lies in the integrity of the exchange smart contracts. In the case of dYdX, these have been audited on several occasions, most recently by OpenZepplin, a leading security audit company.

Other unknown security risks may exist in decentralized systems which we are unaware of, however there have been no security breaches on dYdX to date.

Controversies

To date, there have been no controversies or hacks on dYdX exchange.