Today, in the world of cryptocurrency, some tools such as derivatives and margin trading are only reserved for centralized exchanges such as Hobby, Kocoin and Binance, but DYDX digital currency and its decentralized exchange have started to offer these capabilities in a decentralized manner.
The decentralized and popular DYDX exchange is actually an exchange based on smart contracts that very easily provides the possibility of transactions without the need for an intermediary for its users. This unique exchange allows traders to borrow and lend, and supports unlimited perpetual, margin, and instant transactions. This digital currency has many unique features and specifications, so if you want to get to know it more, we suggest that you do not be indifferent to the items mentioned in the rest of the article.
The most important features of DYDX digital currency
The DVDX protocol was launched in 2017 by Coinbase engineer Antonio Giuliano, but its founder is Lucas V, a former developer and programmer at Amazon. The head of DYDX foundation and development operations is a person named David Google, who received his graduate degree from the University of Pennsylvania.
DYDX is basically an advanced platform that has many advantages. This popular platform provides its users with very comprehensive services in a safe, decentralized manner, without the control or intervention of intermediaries, and lending is very low risk.
In the DVDX platform, people can withdraw their capital at any time in order to earn profit from the capital loaned to them. Due to having collateral, the lenders can take back these loans from the borrowers without any conditions.
For this reason, DYDX is known as the best platform for derivatives and margin trading. Due to the decentralized exchange of this digital currency, traders can closely monitor their assets without having to perform authentication or registration procedures and also without involving a third party.
Of course, it goes without saying that the authentication of Binance or other exchanges is not too difficult and complicated, and if you pay attention, it can be done easily. It is better to know that the lending function of DYDX exchange is almost similar to other lending platforms that are based on Ethereum. For this reason, it also strengthens DeFi’s decentralized economy.
DYDX digital currency (DYDX) in general, by creating a governance ecosystem, allows its users to monitor and control layer 2 of the DYDX protocol without restrictions.
How DYDX currency works
Be careful, on the DVDX platform, all funds benefit from their own lending pools for communication between borrowers and lenders. These pools use smart contracts to perform transactions without the need for confirmation and transactions that are instantaneous.
In such pools, the percentage of profit is usually determined by the amount of demand and supply. In the DYDX platform, the communication between the buyer and the seller is done through the same lending pool, and users need Ethereum currency to use the DYDX exchange. It is also better to know that users in this exchange need a suitable wallet that supports different digital currencies such as USDC and ETH.
Before buying DYDX digital currency, it is better to consider its price trend and check where the currency is in order to get a good profit.
Buying DVD digital currency
DYDX digital currency (DYDX) is one of those cryptocurrencies that are listed in reliable exchanges such as Binance and are bought and traded on various trading platforms. Of course, before you make your decision to buy or sell, it is better to check the price of the desired digital currency carefully so as to reduce the possibility of loss.
Normally, the way to buy DYDX digital currency is like other cryptocurrencies and in this way you can do it very easily. Some investors use DYDX for holding, while this popular digital currency can be Trade is also.
Users who intend to buy or sell DVDX digital currency can use two methods of domestic websites and foreign exchanges and do this very quickly. In order to buy DYDX through domestic websites, it is enough to first register on the reliable sites that are special for buying and selling domestic digital currencies, and then buy DYDX using Rials.
The next method is a bit more complicated than the first method, and users must be more careful in buying and selling in order to avoid problems. To act through foreign exchanges, in the first step, you need to buy Tether or Bitcoin on domestic sites.
After that, simply do the DVD conversion in the foreign exchange of your choice. Currently, due to sanctions, professional investors in the country do not use this method for investment. If you don’t have enough expertise in this field, it is better not to take action arbitrarily so that you don’t regret your work and incur irreparable losses.
Types of orders on the DYDX platform
It is better to know that the Taker-Maker calculation model is used to calculate transaction fees in DYDX. In general, there are 2 types of orders available on the DYDX digital currency platform, which we have introduced below.
- Maker orders
These types of orders are not done very quickly and usually after some time they are placed in the Order Book, they are done in a special way. It is also worth mentioning that Maker orders generally increase the depth and liquidity of the Order Book.
- Taker orders
Note that the functionality of Taker orders is slightly different from Maker orders because in this type, orders are executed immediately and reduce the liquidity of the Order Book. These orders often have a lower fee than other orders, and a ladder model will be used to calculate the fee. In fact, if the volume of transactions has increased over the past month, users should pay a relatively lower fee.
Permanent contracts in DYDX
DYDX has been able to attract the attention of many users by supporting permanent contracts. In order to get familiar with this type of contract, it is better to introduce future contracts to you first.
In futures contracts, the two parties agree to complete the transaction on a specific date whenever the digital currency they want reaches a certain price. In this situation, if the cryptocurrency price is higher than the set price at the specified time, it is possible for the seller to suffer a loss.
Permanent contracts are almost similar to future contracts, but in these contracts, people do not set a specific date and as the name suggests, they continue permanently. In this way, you can easily finance the contract when the time of the transaction arrives and continue it without any problems. As a result, you can earn more profit in the future.
The possibility of borrowing on the DVDX platform has made most of the investors in the cryptocurrency market switch to this cryptocurrency and multiply their capital very quickly.
How to get a loan in DYDX
Note that in DYDX, each digital asset has a global pool. Basically, these pools are created with the function of borrowing, borrowing and lending, and each trader provides the liquidity pool by depositing his assets.
With liquidity provided, borrowers can borrow against the assets in the pool. Supply and demand are also variable for each asset in the pool, and this has an impact on the interest rate. DYDX In processes related to lending, there are two supply and borrowing rates, where the borrowing rate is often expected to be higher than the lending or supply rate.
To get a loan in DVDX, you have to invest more than the amount you want to borrow as collateral. Do not forget that this rule exists in most decentralized DEX exchanges and cannot be ignored.
In the decentralized exchange of DVDX, you only need to deposit 125% of the loan amount before applying. Of course, this is possible only in special circumstances and other DEXs require collateral up to 150% of the loan amount.
DYDX liquidity provision methods
Now that you are well acquainted with DYDX digital currency, it is better to stay with us in this part of the article so that we can introduce you to its liquidity provision methods.
In this method, general users must deposit their digital currencies to margin or spot accounts in order to secure the liquidity of the DVDX platform. In the method of providing liquidity through Lending, you can easily earn a lot of profit by lending your funds to other people.
Another method of providing liquidity in DYDX is the Trading method, in which the liquidity of different markets will be provided for users by means of orders and transactions carried out in exchanges.
Staking on DYDX
Staking in DVDX has many advantages and users can usually deposit their currencies in 2 types of liquidity pool and safety pool. The safety pool is actually created with the aim of securing the traders’ deposits and people are more sure of receiving their rewards with its help.
Liquidity pools have also been created with the aim of encouraging large investors to enter this platform. With this, all the people who have staked their tokens in the liquidity pools will get a reward for themselves.
Types of pools for depositing on the DYDX platform
Normally, there are two types of pools for depositing on the DYDX platform, each of which has specific features. Therefore, if you want to get more information about this pool, we recommend that you do not be indifferent to the things mentioned below.
- Safety Pool
Users who invest in the safety pool and keep their tokens there, can receive a reward according to the amount of deposit they have made to benefit from the Safety Pool tour. Note that in this type of pool, investors must wait for 2 weeks to withdraw their tokens and register this request before the end of the period (epoch).
- Liquidity Pool
Liquidity pool to provide the benefits of liquidity networks, liquidity encourages professional users to invest in the DYDX platform. Investors can receive DYDX digital currency (DYDX) in proportion to the size of their investment and withdraw it after 2 weeks. It goes without saying that users can operate without restrictions on the Layer 2 protocol of the DVDX platform.
The most suitable wallets for DVDX currency
In this part of the article, we are going to introduce suitable wallets for DYDX digital currency (DYDX) so that it is not difficult for you to choose a suitable digital wallet and you can choose the best wallet for you from among the many options.
- MetaMask wallet
The MetaMask software wallet is based on cryptocurrency and allows its users to easily communicate with the blockchain ecosystem. This popular wallet initially only had a desktop version, but its mobile version was also available to users from 2019.
Using the Metamask wallet, you can access your wallet through a mobile application or browser and use it to interact with decentralized applications. In this type of digital wallet, account passwords and private keys are stored in users’ mobile phones, and they can also be connected to multiple wallets.
The digital wallet you use to store DYDX must have acceptable security. Otherwise, you may lose all your assets very quickly.
- Coinbase wallet
Another DYDX digital currency wallet is the Coinbase wallet. This wonderful wallet is considered an ideal option for storing and maintaining digital currencies, and users can easily install it for themselves in IOS and Android versions.
Coinbase wallet is known as a safe wallet in the world and people who use it can prevent their account from being hacked in the best possible way. So, if you are also looking for a safe digital wallet to put your assets in, we recommend using the Coinbase wallet.
- Im Token wallet
Im Token digital wallet was launched in 2016, where you can store your assets safely and exchange them freely whenever you want. Im Token wallet is the largest and most popular. Ethereum digital currency wallet is known in the world and about 10% of Ethereum transactions are done by users of this wallet.
In fact, the simple user interface, high security, convenient use, support for various digital currencies and full services of Aim Token wallet have made many people go to it and keep their assets in a safe environment.
- Ledge wallet
Ledger digital wallet is a popular hardware wallet that allows users to store their currencies safely. In addition, people who use the Ledge wallet can easily send and receive different cryptocurrencies.
It is better to know that currently more than 1500 different types of cryptocurrencies are supported by this wallet and this number is increasing day by day. The security of the ledger wallet is very high and investors who use it do not need to constantly worry about being hacked by hackers and profiteers.
- Trezor wallet
Trezor is known as the first bitcoin hardware wallet and allows users to receive or send a large number of digital currencies with complete security. Trezor wallet has unique features and never connects to the internet. For this reason, it is impossible for hackers to hack it. You can get this wonderful wallet in web, desktop and mobile versions and benefit from its many benefits.
DYDX digital currency price
Currently, DYDX digital currency has a high value in the cryptocurrency market, but it is better to know that the highest price it has had so far was on September 30, 2021, which is equivalent to $27.75.
Be careful, due to the constant change in the price of digital currencies, it is not possible to consider a fixed amount for DVDX currency. So, if you want to know its exact price, it’s better to check it in real time at reputable exchanges or join a reputable digital currency signal channel to get the latest news about DYDX currency and other popular cryptocurrencies in the world. get
This trading platform based on Ethereum, although it is known as a popular loan borrowing project, but you should not take advantage of it regardless of its position. So before investing, be sure to check the price of DVD and then buy at the best time.
Predicting the future of DVDX digital currency
Normally, many factors can affect the future of DYDX digital currency and people who intend to invest in this cryptocurrency should consider these things well so that they do not suffer losses later and capital Don’t lose your originality.
For example, it is better to know that the development of the provider’s platform has a great impact on its future because it will cause more people to switch to DVDX digital currency. This token currently has a favorable price growth. For this reason, it is expected that its price will increase in the future and it will gain a higher value.
Of course, don’t forget that the digital currency market, like other financial markets, is unstable and you should not buy DYDX and invest in it without knowledge. Monitor the market indicators as much as possible in such a situation and ask for advice from experts
DYDX digital currency (DYDX) has attracted the attention of many analysts due to its value and special capabilities. In this way, if you, as an investor, intend to buy or sell this unique currency, we suggest that you do not ignore the important points mentioned in this article under any circumstances and do the necessary investigations well before any action. .