how to buy dydx

Recently, the demand for decentralized exchanges like dYdX has become more evident. This is the reason why many crypto beginners ask important questions such as “how to buy dYdX (DYDX)” and “where to buy DYDX.”

If you want to buy dYdX (DYDX) but don’t know where to start, you should read this article from start to finish. We will cover the basic steps of buying DYDX, as well as some important topics about the token.

dYdX (DYDX) Buying Guide

Step 1: Find An Exchange That Supports DYDX

To start buying DYDX, you must create an account in a compatible crypto exchange. Finding this exchange is easy because there are numerous active marketplaces that support DYDX.

Cryptocurrency platforms may be similar in purposes but different in operation. Some crypto exchanges have seamless functionality while others have premium security with reasonable transaction fees.

  • 500+ Cryptocurrencies Available for Trade
  • Fees (Maker/Taker) : 0.075%*-0.1%*
  • Sign-up bonus: 10% reduced trading fees*
  • Available in Europe, Asia, Oceania, Africa
  • 1000+ Cryptocurrencies Available for Trade
  • Fees (Maker/Taker) : 0.2%*-0.2%*
  • Sign-up bonus : Up to $500 in USDT vouchers*
  • Available in North America, South America, Europe, Asia, Oceania, Africa
  • 1000+ Cryptocurrencies Available for Trade
  • Fees (Maker/Taker) : 0.2%*-0.2%*
  • 10% reduced trading fees & up to $170 in USDT vouchers*
  • Available in North America, South America, Europe, Asia, Oceania, Africa

Registering to a crypto exchange will take only a few minutes. To start, you must enter your basic personal details like full name, email address, and password. The crypto exchange may also require you to add a home address and a phone number for verification. 

You probably need to fill up a KYC (Know Your Customer) form before proceeding with any transaction. The KYC process is a security option implemented by heavily regulated exchanges and financial websites.

Step 2: Deposit Funds to Your Exchange Account

Before buying DYDX, you must add funds to your new crypto account. Depositing funds is easy because most exchanges allow crypto-to-fiat transactions. Some of the popular examples of fiat currency are USD, CAD, AUD, and EUR. You can fund your account through debit cards, credit cards, bank transfers, and e-wallet transfers.

Crypto exchanges have different payment methods for transactions. These methods probably have higher fees than the ones you’re commonly using. So, before depositing funds to your crypto account, you should do your own research.

Step 3: How to Buy DYDX Officially?

Learning how to buy DYDX is not difficult. First, you must go to a crypto exchange’s search bar. Oftentimes, the search bar is located on top of the website page. Once you’ve located the search bar, start looking for the DYDX ticker. You can also look directly for DYDX trading pairs to save time. Afterwards, just enter the amount of the DYDX tokens that you want to buy.

You must always double-check the transaction details to avoid errors or inconsistencies. Additionally, before the transaction, crypto exchanges might refer you to their exclusive wallet software. This wallet is essential for storing your cryptocurrencies, but it is optional since you can always create an individual software wallet. If you have money to spare, you can even purchase a hardware wallet with competitive security encryption.

Everything You Have to Know About dYdX (DYDX)

The dYdX decentralized exchange is a powerful platform that can create hundreds of global asset lending pools with varying rates. This was made possible through the implementation of the ExchangeWrapper – a system that wraps smart contracts with another contract tailor-made to any trader. Anyone in the dYdX platform can use the ExchangeWrapper and participate in the thriving positioning of trades.

The main aspects that strengthened dYdX’s ecosystem are reliable governance proposals, continuous rewards, and opportunities for staking. Traders in the dYdX exchange can provide liquidity, borrow money, or simply hold DYDX tokens for steady returns.

DYDX holders also enjoy discounted trading fees within the platform. The reduced fees will eventually pile up and put any trader’s portfolio in a better position.

How Does DYDX Work?

DYDX, the governance token of the dYdX platform, grants voting rights to all users when it comes to issuing proposals. Owning DYDX is a great way to enter dynamic liquidity pools that covers a wide range of crypto assets.

The dYdX platform doesn’t have a formal order book for trades and transactions. Rather, the platform offers tons of lending pools divided according to crypto assets and powered by complicated smart contracts. The dYdX exchange also allows lenders to give out loans based on specific custom parameters. In turn, the lenders will gain rewards such as ERC-20 tokens.

What Makes dYdX (DYDX) Unique?

DYDX is unique because of the diversity of its products and features. Some of the products that traders can utilize on DYDX are perpetual contracts, margin trading pools, lending pools, and borrowing pools. DYDX holders can also earn rewards on a continuous basis, encouraging a strong trading ecosystem.

Who Are the Founders of DYDX?

The Founder of the dYdX platform is Antonio Juliano – an ex-Coinbase and ex-Uber engineer. Juliano also has a Princeton CS background to back up his skills and proficiencies. The dYdX Core Team worked with prominent companies like Google, Lyft, Facebook, Bloomberg, Amazon, and NerdWallet.

The dYdX exchange raised a total of 87 million USD on seed funding from venture companies like Polychain, Finlink Capital, and Kronos Research.

What Are the Use Cases of dYdX?

DYDX has several use cases primarily related to trading and investing. Understanding these use cases will help you determine if DYDX is aligned with your risk appetite.

Here are the use cases of DYDX:

  • Staking pools (safety and liquidity pools)
  • DYDX governance
  • Accumulation of rewards and incentives
  • Trading fee discounts

Who Builds on dYdX (DYDX)?

The dYdX exchange is meant for serious traders and investors who want to maximize crypto margins and long-term returns through liquidity pools. With the variance between Layer 2 and Layer 1 protocol options, regular traders can make serious profits under the dYdX platform.

Official website: https://dydx.community/dashboard

Essential Points of the dYdX (DYDX) Whitepaper

The dYdX Whitepaper introduced the main features and protocols of the dYdX platform. The paper also covered the technical specifications of dYdX’s liquidity pools and reward pools.

These are the strong points of the dYdX (DYDX) Whitepaper:

  • Margin trading protocol specifications
  • Options protocol specifications
  • Layer 1 and Layer 2 protocols
  • Perpetual contracts
  • DYDX use cases
  • DYDX record of proposals

The Best Cryptocurrency Wallet for DYDX

After knowing how to buy DYDX, you should think about the security of your cryptos next. Fortunately, you can always choose from dozens of available crypto wallets. You should pick a crypto wallet based on your trading habits and security preferences.

You will likely begin your crypto journey with hot storage wallets. These digital wallets are connected online, allowing easy access whenever you want. Hot storage wallets are also cheaper than cold storage wallets. However, one downside of a hot wallet is its vulnerability to online theft. You may need to use additional security measures to keep your hot storage wallet safe.

On the other hand, cold storage wallets are physical hardware wallets. Since cold wallets are tangible, their security level is better than digital wallets. You can put a physical storage wallet in a separate deposit box for premium protection.

What Factors Affect My Choice of Crypto Wallet for DYDX?

At first, you might get confused with the diverse choices of crypto wallets in the market today. Knowing the common buying factors for crypto wallets will help you make the right decision.

Check out the important factors affecting your choice of DYDX wallet:

  • Are you a regular trader? If so, then a hot storage wallet is the best choice for you. A hot wallet allows a quick and easy log-in method to your chosen platform. In less than a minute, the integrated hot wallet will let you trade DYDX right away.
  • Not all wallets support a wide range of cryptocurrencies. The best crypto wallets are those that will let you trade hundreds of cryptocurrencies without limitations.
  • When it comes to security, a physical cold storage wallet is better than a hot wallet. You can simply store your cold wallet in a private safe deposit at home or the bank. Just make sure that your private seed phrase is safe and secured.
  • Setting up a digital wallet is free. On the other hand, getting a cold storage wallet requires money because you need to buy the physical hardware.
  • Do you want to see detailed technical analytics? In that case, you can never go wrong with hot wallets. In most cases, hot wallets generate technical analytics and semi-accurate market insights to help you make a trading decision. Cold wallets also have analytics capabilities that you can tweak freely.

Ledger vs. Trezor – The Best Crypto Wallet for Traders and Investors

Now that you already know how to buy DYDX, you must protect your investment by choosing a cold storage wallet. As mentioned above, cold wallets offer better security levels than hot wallets.

When it comes to cold storage wallets, it’s best to start with Ledger or Trezor products.

Ledger is a popular cold wallet brand because of its reliable security features. The Ledger interface, for example, will only let you send cryptos if you’re connected to a personal computer or device.

If Ledger excels in security functions, Trezor wins in terms of intuitiveness and compatibility. Trezor’s interface is beginner-friendly, allowing fast and efficient trades once the device is ready. Trezor products are also compact and appealing to the eyes. 

General Market Overview for dYdX (DYDX)

Do you want to learn more about dYdX (DYDX) and other crypto coins? Check out our crypto blog and expand your knowledge about cryptocurrencies!

Additionally, here are some important topics in our blog:

  • Trading speculation about dYdX (DYDX)
  • The current market prices of cryptos
  • Detailed price charts with comprehensive histories
  • Whitepaper summaries of cryptos
  • Founder profiles and their related works
  • Up-to-date cryptocurrency news and developments

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