What is dYdX (DYDX)?
DyDx is a decentralized platform that is actively conquering the cryptocurrency market. The exchange supports margin, perpetual and spot trading, as well as lending and borrowing services.
DyDx operates through Ethereum smart contracts, eliminating the need for centralization and third-party involvement to keep the exchange running smoothly.
In the fall of 2021, DeFi platform DyDx surprised the cryptocurrency market when it first overtook Uniswap (the most popular DeFi exchange) in daily trading volume, and then Coinbase (the largest centralized cryptocurrency exchange).
Where do dYdX come from? A brief history
Back in 2017, DyDx is a young startup from San Francisco. Now it is one of the most demanded projects on the cryptocurrency market.
In 2017, Antonio Giuliano's DyDx project received about $2 million in investment.
In 2018, the company has already officially entered the market, we will offer users a new product. They could borrow funds on the DyDx platform to trade Ethereum. The idea came to the liking of traders who got more opportunities to maximize profits.
The company was not going to stop there and soon launched the trading of perpetual swaps, which gained popularity thanks to the Hong Kong exchange Bitmex.
In 2021, the company continued to actively develop and offered its users new and unique products for DeFi platforms. Together with the Starkware project, the DyDx platform has launched perpetual contract trading at Level 2.
How does dYdX work?
The DyDx platform offers users several unique solutions at once:
- spot and margin trading
- deposit placement of funds
All these functions are interconnected by a unique algorithm that allows users to trade cryptocurrencies with leverage up to 1:25, take loans at floating interest rates and instantly receive interest on deposit funds.
At first glance, this is nothing unique, but do not forget that now we are talking about a decentralized platform. Margin trading has long been conducted on centralized platforms. Some exchanges offer up to 1: 100 leverage.
For a decentralized platform, margin trading with up to 1:25 leverage is a unique product. This is one of the reasons why the DyDx platform is very popular among traders.
What makes dYdX unique?
The entire DyDx project is unique. They offered a completely new product that was previously unavailable on decentralized platforms.
The DyDx platform offered its users products that were previously available either on the classic financial market or on the CeFi exchanges.
All operations on the platform are carried out without the participation of a third party, which ensures maximum reliability and security. This is very much appreciated by platform users.
Where to buy dYdX?
On the rise in its popularity in August 2021, the DyDx platform announced the creation of its own governance token - DYDX. The coin was quickly listed on the most popular exchanges and skyrocketed in value.
Against the background of the growing popularity of DYDX, now you can trade the token not only on specialized cryptocurrency platforms, but in brokerage companies that are actively adding cryptocurrency to the list of traded instruments.
In this case, you will not be able to physically buy DYDX, but you will be able to trade DYDX CFDs in order to profit from short-term price fluctuations.
Therefore, now you can buy dYdX in Nigeria without any problems in any other country.
How to Buy dYdX (DYDX)
To answer the question of how to buy DYDX, you first need to understand why you need it.
If you want to invest in DYDX for the long term, then you need to open an account on a cryptocurrency exchange and Buy dYdX.
If you want to speculate on a short-term change in the value of DYDX, then you can trade the token not only on cryptocurrency exchanges, but also in brokerage companies.
In this case, you will be able to trade CFDs on DYDX and earn not only buying, but also selling the asset.
How to start investing in dYdX in Nigeria?
Invest in dYdX in Nigeria is no different from invest in another country.
If you want to invest in DYDX for the long term, you need to open an account with a brokerage company, fund it and buy DYDX. It is important to know here that the vast majority of crypto exchanges do not work with real money directly. Therefore, you will have to exchange fiat money for cryptocurrency. Only then can you buy DYDX.
It is much easier to buy DYDX from a brokerage company. You can instantly fund your trading account with real money and start trading. In this case, you will be trading a non-deliverable instrument, but you will be able to not only buy, but also sell DYDX.
This gives you an advantage as you will be able to work not only in a bull market, but also in a bear market.
Another advantage is the fact that brokerage companies are now working with clients all over the world. Therefore, you can invest in dYdX in Nigeria without any problems.
Is it safe to invest in dYdX online?
Trading with a brokerage company is currently safer than trading on a cryptocurrency exchange. Therefore, the safety of invest in dYdX directly depends on the place where you trade.
Cryptocurrency exchanges have a significant list of disadvantages that reduce the level of security:
- not all cryptocurrency exchanges are in the area of responsibility of financial regulators.
- e-wallets of exchanges can be attacked by malefactors, as a rule, leading to an irretrievable loss of funds.
- liquidity of assets is limited, especially at times of a sharp drop in the value of cryptocurrencies (you simply may not have time to close a position and get a very large loss).
- most cryptocurrency exchanges assume the input and output of cryptocurrencies only. This creates additional risks, since the client will need to carry out additional exchange operations.
- the trading interface is different for all exchanges, which requires its study and long-term habituation. Also, the functionality of platforms on many exchanges leaves much to be desired.
- there is no possibility to limit risks with a stop loss order.
Therefore, if you do not want to invest in DYDX for the long term, but prefer short-term speculative trading, then you better opt for a brokerage company. It is much safer and more convenient.
Is dYdX a good investment?
Yes, dYdX is a good investment. The dYdX platform is developing very rapidly and continues to actively gain popularity. Developers annually offer users new, more interesting and perfect products. This creates a good basis for the long-term growth of DYDX's value.
Should traders invest in dYdX?
Yes, dYdX may be of interest not only to long-term investors, but also to private traders. The token has lower volatility than other cryptocurrencies, which reduces risks.
Also, the dYdX token is now very popular, thanks to which it is available for trading on many exchanges and platforms of brokerage companies. Therefore, traders can trade dYdX on a par with Bitcoin, Ethereum and other popular cryptocurrencies.
To buy dYdX in Nigeria, you need to find a brokerage company that has included this cryptocurrency in the list of trading instruments. There are such companies.
At the same time, on one account, you can trade other cryptocurrencies and classic Forex and CFD instruments.
How to Buy dYdX right now?
The easiest way to buy DYDX right now is to open an account with a brokerage company. In this case, you can buy dYdX in Nigeria within 5 minutes.
Why? The process of registering a trading account with a brokerage company, as a rule, does not take more than 5 minutes. Secondly, you can replenish your trading account almost instantly with fiat currency. Replenishment can be carried out via bank transfer, plastic card or popular electronic payment systems.
If you still want to work with cryptocurrency exchanges, then you will need some time to open a cryptocurrency wallet, exchange fiat money for cryptocurrency on third-party resources.
A demo account is where beginners should start. And here again brokerage companies win, since many crypto-exchanges do not provide clients with the opportunity to open a demo account.
A demo account is an important stage in the formation and training of a trader, which should not be missed. Otherwise, you could lose your money.
Therefore, even if you want to trade on a cryptocurrency exchange, you should start with a demo account.
On a demo account, you will be able to master the trading platform, study the instrument (s) that you are going to trade, develop and optimize a trading strategy.
After training, mastering the trading platform and testing the trading strategy, you can proceed to trading on a real account.
For long-term investments, it is necessary to open an account only on a cryptocurrency exchange. Only here you can physically purchase dYdX and store the token on your wallet for a long time.
Just don't forget about safety. There are often cases when crypto exchanges are hacked and clients lose all their funds without waiting for the investment results.
Why can't you open an account with a brokerage company for long-term investment? At a brokerage company, you trade a CFD contract. A swap is charged for transferring a position to another day. It can be either positive or negative. If the swap is negative, then at the end of the investment time, or before that, it can significantly exceed the return on investment.
If you are planning to engage in trading, then there are already obvious advantages on the side of the brokerage company. You get round-the-clock high-quality support (the overwhelming majority of crypto exchanges cannot boast of good support), the ability to replenish / withdraw an account with fiat money directly, a convenient trading platform with very wide functionality, the ability to trade Forex instruments and CFDs on stocks and indices.
Have successful trading and good results!