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How to Start Trading on dYdX Chain: A Beginners Guide

Published

2 months ago

May 10, 2024

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Trading platforms offer a variety of options for users, but few specialize in decentralized perpetual futures. dYdX stands out in this niche, providing users with an innovative platform for perpetual trading, characterized with high transaction speed, low fees and numerous possibilities for DYDX token holders. It is also perfectly suitable for newbie traders, simplifying the DeFi experience and making the transition from centralized exchanges seamless.

The recent developments in dYdX’s offerings make it an ideal choice for those looking to explore decentralized finance (DeFi) with ease. This guide is designed to help beginners navigate dYdX and its features, providing the essential steps needed to start trading.

What is dYdX?

dYdX is a decentralized perpetual exchange. Launched in 2018, it has established itself as a leader in decentralized perpetual trading through its combination of cutting-edge technology and affordability. The platform’s growth is supported by prominent venture capital firms and investors, including Andreessen Horowitz, Paradigm, and Polychain, among others.

In 2023, dYdX announced its migration from the Ethereum blockchain to the Cosmos ecosystem with the dYdX Chain. This transition marked a significant milestone for the platform, allowing for increased scalability, full decentralization, distribution of 100% of protocol fees to Stakers and higher throughput. The migration also enabled dYdX to implement a fully decentralized order book system and matching engine providing more control and precision for traders.

dYdX Chain is fully decentralized, so users can easily onboard using a variety of wallets or socials thanks to the Privy integration and aren’t required to complete Know Your Customer (KYC) checks. All you need is a funded crypto wallet or social account and you can start trading in a matter of minutes.

dYdX has established itself as a leading platform for perpetual trading of crypto assets. The platform’s average daily transaction volume consistently exceeds $1 billion, reaffirming its position as a significant player in the trading landscape. It has outpaced many decentralized trading platforms and competes with prominent centralized exchanges, demonstrating dYdX’s growing influence in the market.

How to Trade on dYdX?

Step 1: Getting Started

Before you begin trading on dYdX Chain, you need a compatible cryptocurrency wallet, e-mail or socials (X or Discord). Here’s how to set up a wallet:

Choose a Wallet: Popular options include MetaMask, Trust Wallet, and Ledger. Make sure your chosen wallet is compatible with dYdX on the dydx.trade interface. A hardware wallet like Ledger offers added security by keeping your private keys offline.
You can also set up a new wallet using Privy and log in using your existing email or social accounts. It doesn’t require memorizing a seedphrase — just choose a preferred log in method and click Authorize.

Install and Configure: Download and install the wallet app or browser extension, and set up your account by following the prompts. Make sure to securely store your recovery seed phrase. Never share this phrase with anyone, as it gives full access to your wallet.
Fund Your Wallet: Transfer some cryptocurrency, such as USDC, into your wallet. This is necessary for trading on dYdX Chain. Depending on your chosen wallet, you may need to purchase cryptocurrency from an exchange or transfer it from another wallet.

Step 2: Connect to dYdX

With your wallet ready and funded, it’s time to connect to dYdX Chain:

Visit dydx.trade — the front end user interface for dYdX Chain.
Connect Your Wallet or socials: Click the “Connect Wallet” button and select your wallet type. Follow the prompts to complete the connection. Ensure your wallet extension or app is open and ready for interaction.
Authorize: You’ll be asked to authorize transactions through your wallet interface. Make sure to review the details before confirming. This step ensures you understand and approve the connections and transactions taking place.

dYdX Chain is available for iOS: the same dYdX Chain trading experience you know and love — now directly in your pocket!

Download dYdX for iOS here.

Step 3: Explore the Platform

Once connected, you can explore dYdX Chain’s interface:

Dashboard: The dashboard provides an overview of your account, including balances, open positions, and trade history. This section also offers shortcuts to key functionalities, making it easier to manage your portfolio.

Markets: Navigate to the Markets section to view available trading pairs, recently listed markets, 24h USDC distribution, biggest movers, current prices and 24h trading volumes. You can also view price trends, helping you make informed decisions.

Order Book: dYdX Chain’s orderbook and matching engine is fully decentralized and purpose built for the optimal trading experience. It shows active buy and sell orders, giving you insights into market trends. This information can guide your trading strategy, especially when placing limit orders.

Step 4: Start Trading

Now that you’re familiar with the interface, you’re ready to place trades:

Select a Market: Choose a trading pair from the Markets section. dYdX Chain offers over 63+ pairs, allowing you to diversify your portfolio or focus on specific assets. You can switch between the selected market and all available pairs using the All Markets button in the top left menu.
Order Type: Decide on an order type, such as a market order (instant execution at current prices) or limit order (executed at a specified price). Limit orders are useful for specifying exact entry or exit points for your trades. For a detailed overview you can view this comparison table.
Enter Trade Details: Specify the amount and price for your trade. Double-check these details before finalizing to avoid mistakes.
Set The Leverage: Deciding what leverage to use is a crucial aspect of perpetual trading. Leverage refers to the funds borrowed from the platform to amplify a trade, acting as a multiplier on gains or losses. dYdX Chain offers up to 20x leverage trading. The liquidation price is calculated automatically before you enter the trade, helping effectively manage the risk.
Understand dYdX Trading Fees: Fees vary based on the type of trade and your trading volume in the last 30 days. Fee is between 0,025% and 0,05% for taker orders. Generally, the fees are lower than that on centralized exchanges. Up to 90% of your trading fees are distributed instantly back into your dYdX Chain address. Additionally there is an incentive program currently live that subject to governance will distributed 5M USD in DYDX to eligible traders.
Review and Confirm: Double-check all details before executing your trade.
Manage Your Positions: Monitor open positions from the dashboard and manage them by closing or modifying as needed. Keeping track of your positions helps you adapt to market changes and protect your investments.

Step 5: Get The Most Of dYdX Trading Rewards and Launch Incentives

Trading rewards incentivize users to trade on the protocol. dYdX rewards users for every successful trade based on the amount of fees paid. The system automatically distributes trading rewards directly to the trader’s account per block. Prior to each trade, the UI will also show the expected amount of rewards a trade of that size will receive.

The dYdX Chain also runs a Launch Incentives Program, tailored to expand and transition the current dYdX user base to the new protocol. The governance proposal set aside $20M of DYDX from dYdX Chain Community Treasury to be distributed as rewards for trading and market making activity. You can find an extensive blog post describing the program details here.

Step 6: Stay Informed

Trading on dYdX Chain requires staying updated:

Community: Join the dYdX community on social media or participate in forums to stay informed about updates and opportunities. Engaging with the community can also provide valuable insights and support.
Learning Resources: Explore educational materials provided by dYdX Academy and other DeFi resources to enhance your trading skills. Continuous learning can help you refine your strategies and navigate the platform more effectively.
Security: Always keep security in mind, enabling two-factor authentication (2FA) and avoiding sharing sensitive information. Regularly review your security settings to protect your assets.

Although perpetual trading is inherently risky and not recommended for beginners, dYdX Chain offers an excellent starting point for those interested in trading perpetual futures. The platform boasts high liquidity, support for a wide range of assets, and low fees due to its advanced technology. These features make dYdX Chain a serious competitor to prominent centralized exchanges.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

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Solana ETF Predictions High, Yet SOL Price Sees Downturn

Published

35 mins ago

July 4, 2024

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A few days ago, the buzz around a Solana (SOL) ETF application filed by VanEck caused the price to increase by 10% within a short period. Later on, investment firm 21Shares joined the race, but the token could not hold on to the initial hike.

However, some analysts stuck to their bullish predictions. But Solana’s short-term outlook may not bring out those forecasts.

Bullish Momentum Folds

At press time, SOL remains range-bound between $132 and $143. In the last 24 hours, the price has decreased by 7.46% due to widespread sell-offs in the market.

According to the daily chart, the Relative Strength Index (RSI) stands at 40.57. The RSI measures momentum using the extent of price changes and indicates whether an asset is overbought or oversold.

When the value drops below the 50.00 neutral region, momentum is bearish. A rise above the midpoint indicates bullish momentum. Therefore, SOL is in a bearish phase. If unchecked, the momentum may weaken, leading to a lower price.

Solana ETF bearish momentum — Solana Relative Strength Index. Source: Santiment

However, on June 28, crypto trading firm GSR shared its prediction for the token if the Solana ETF gets approved.

In analyzing the potential, GSR considered the bear, baseline, and bullish phases. It also added that a spot Solana ETF could record 2%, 5%, and 14% of Bitcoin inflows for each phase above.

Based on this prediction, the price of SOL may reach $1,192 in the long term. Previously, BeInCrypto reported that the development led to increased buying pressure on the spot market.

SOL Price Prediction: Token Stuck in Wait-and-See Mode

As of this writing, the Cumulative Volume Delta (CVD) shows otherwise. The CVD shows the difference between buying and selling volume in the market.

If the net difference is positive, it indicates more buying than selling. However, a net negative suggests market participants sell more than they accumulate.

According to Solana’s daily chart, the CVD is -127.945, indicating that more than 127,000 tokens have been sold compared to those that have been bought.

Solana ETF alongisde SOL selling pressure — Solana Cumulative Volume Delta. Source: TradingView

Furthermore, on the same chart, we observed that SOL formed a rounding top combined with an inverted cup and handle. This rounding top pattern appears when the price has hit a high point and is now pronounced toward the downtrend.

The inverted cup and handle signal a bearish continuation. Based on the formation of this pattern, the price of SOL may face a 4.65% decline, which would take it to $126.94.

Solana price decline — Solana Daily Analysis. Source: TradingView

However, this prediction will be invalidated if buying pressure increases or if the token gets oversold. Should this be the case, SOL may reverse and attempt to revisit $145.25.

Meanwhile, a recent paper published by Galaxy Research mentioned that the U.S. SEC may not approve the Solana ETFs.

Authored by Alex Thorn, Charles Yu, and Christine Kim, the digital assets research institution mentioned the absence of a futures Solana ETF and past labeling of the token as security as hindrances.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

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Telegram CEO’s Post Sparks Hamster Kombat Speculation

Published

2 hours ago

July 4, 2024

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A recent post from Telegram CEO Pavel Durov has sparked speculation among the crypto community regarding his interest in the tap-to-earn game Hamster Kombat.

The post has led to a wave of comments and theories about the implications of his statement, potentially signaling an unexpected collaboration between the two.

Has Hamster Kombat Become the New Telegram CEO Interest?

Recently, Durov shared a video about the messaging app’s new updates on his official Telegram channel. He highlighted a shift in how people interact with mini-apps.

“Now people can collapse apps and switch between them. In the future, this new bottom bar will also store web pages and other content for later reading. This update also introduces the ability for channel owners to publish paid photos and videos, which users can buy with Stars. Like mini app developers, channel owners can convert the Stars they collect into Toncoin, with virtually no commission from Telegram,” Durov noted via his Telegram account.

Durov’s video strikingly features the Hamster Kombat, which draws community attention. The Hamster Kombat team also commented on this post.

“Looks like Pavel Durov was busy with new updates and just started playing Hamster Kombat! Pavel, please, keep in mind that upgrading your cards and increasing profit per hour is more important than the coin balance! And welcome to the Hamster Family, [sic],” the team wrote.

Hamster Kombat allows players to manage a virtual crypto exchange by tapping on digital hamsters to earn coins. Players tap in-game “hamsters” to mine HMSTR coins.

They can also boost earnings by winning coins via the Daily Combo, subscribing to the game’s YouTube channel, or inviting friends. Special missions and daily check-ins offer extra coins, and players can upgrade their exchanges to increase their earning rate.

BeInCrypto recently reported that Hamster Kombat has surpassed 200 million users globally. The project also launched its Hamster Academy in 17 different languages. The community eagerly awaits the long-promised airdrop.

Durov also has a history of showing interest in tap-to-earn games, thus further fueling the community’s speculation. In May, he publicly expressed his support for Notcoin (NOT), the pioneer tap-to-earn game on Telegram, illustrating how Notcoin quickly transformed from an in-game currency to real money for its users.

In the same month, Durov and his team received over 1 billion NOT tokens, valued at roughly $6.8 million at the time. He pledged to keep the tokens until their value increased 100 times.

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Arbitrum (ARB) Price Falls to New All-Time Low, What’s Next?

Published

3 hours ago

July 4, 2024

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Arbitrum’s (ARB) price drop has led to ARB failing its investors by becoming the first major token during this season to chart an all-time low.

While meme coins and very small-cap tokens have witnessed ATLs before, Arbitrum’s market cap of $2.47 billion is rather surprising.

Arbitrum Investors Still Have Not Given Up

Arbitrum’s price may have formed an all-time low, but this has discouraged investors. Despite the price decline, participation on the network has been consistently high. As a result, the price DAA (Daily Active Addresses) divergence is currently flashing a buy signal.

This indicator suggests that there is minimal room left for further drawdown, making it an opportune moment for potential investors to consider entering the market. Plus, since the altcoin is at its all-time low, ARB has nowhere to go but up.

Arbitrum price DAA Divergence. Source: Santiment

Secondly, the adoption rate of Arbitrum has remained impressively high, consistently exceeding 20%. This steadiness highlights the robust demand and growing interest in the Arbitrum network.

A strong adoption rate is crucial for any blockchain project’s long-term success and sustainability. Arbitrum’s performance in this regard is a positive sign for its future prospects despite the price witnessing declines.

Arbitrum Adoption Rate. Source: Into TheBlock

Moreover, the sustained high adoption rate indicates that Arbitrum has not lost traction in the market. Regardless of the fluctuations in the broader cryptocurrency landscape, Arbitrum has managed to maintain its appeal among users. This could help the price go back up.

ARB Price Prediction: Up, up, and Away

Arbitrum’s price has formed a new all-time low over the past 24 hours, trading at $0.72. The altcoin attempted this involuntary achievement twice in June, failing both times. This time, It was not so lucky.

However, since the altcoin has already likely hit bottom, there is no way to go but up. The altcoin supported by investor accumulation could be looking at reclaiming $1 as a support floor, which would warrant considerable support from either the market or the investors.

Arbitrum Price Analysis. Source: TradingView

If neither of the two appears, there is a good chance Arbitrum’s price could consolidate between $0.73 and $0.92. Since this happened back in October 2023, it could happen again and invalidate the bullish thesis.

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