Threenvest > Decentralized exchange reviews

Dydx Review 2024

Autor

Alejandro Borja

Revisor

Xavier Tarrasó

Last update: 6 months ago

Our veredict

dYdX stands out in the crowded field of decentralized exchanges (DEXs) by offering advanced financial instruments like perpetual contracts and margin trading, which are not commonly found on other DEXs. This unique offering caters especially to more experienced traders who are looking for sophisticated trading options in the decentralized space. The platform’s utilization of smart contracts allows for operations without intermediaries, enhancing security and reducing trust issues associated with traditional centralized platforms. Additionally, dYdX operates on a layer 2 solution which greatly reduces gas fees and improves transaction speeds, addressing two major pain points in the Ethereum-based DEX ecosystem.

However, the complexity of the products offered, such as derivatives and leveraged positions, might pose a challenge for beginners, as these require a good understanding of both the underlying assets and the associated risks. Furthermore, the platform’s focus on advanced trading options can be a barrier to entry for those new to crypto trading or those who prefer straightforward spot trading. Overall, dYdX is highly recommended for seasoned traders looking for advanced trading functionalities in a decentralized setting. Beginners or casual traders might find the platform overwhelming and might be better served by simpler, more user-friendly exchanges.

Pros

Cons

4,4

Threenvest Score

Network

Ethereum

Fees

0,10%/0,05%

With the confidence of Threenvest

Security methods: dYdX employs robust security protocols by enabling trading directly from users’ wallets, ensuring that funds are not held on the exchange. This significantly mitigates the risk of hacks and unauthorized access.

Year founded: Established in 2017, dYdX has several years of operation, during which it has continually developed and adapted to the evolving crypto market. This longevity contributes to its credibility and trustworthiness in the decentralized exchange space.

Reputation and Reviews: dYdX has maintained a strong reputation in the decentralized finance community for providing advanced trading options with reliability. The platform is highly regarded in user reviews for its innovative approach and performance.

Trading volume and liquidity: dYdX supports substantial trading volumes, reflecting high liquidity which is crucial for executing large trades without significantly affecting the price. This also indicates a mature and active trading environment.

Transparency: As a decentralized platform, dYdX operates with a high level of transparency. Smart contracts that run the platform’s operations are publicly available for auditing, providing clear insight into the mechanics of the exchange and fostering trust.

Best Crypto Decentralized Exchange

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About Decentralized Crypto Exchange dYdX

Introduction

dYdX operates as a decentralized exchange (DEX), distinguishing itself by focusing on advanced financial instruments such as derivatives and margin trading. This platform leverages blockchain technology to provide a secure, intermediary-free trading environment, empowering users with complete control over their trading operations and assets.

What is dYdX?

dYdX is a decentralized platform that offers sophisticated trading options including perpetual contracts, futures, and margin trading. It is designed for traders seeking advanced trading functionalities beyond simple spot trading, all facilitated on a blockchain for enhanced security and transparency.

Background and History

Launched in 2017, dYdX was founded with the vision of making financial markets universally accessible. It quickly set itself apart by incorporating complex trading options typically found in traditional finance markets into the decentralized world of blockchain. The platform’s adoption of Layer 2 solutions has significantly mitigated common blockchain issues like high gas costs and slow transaction speeds, making it a preferable choice for serious traders.

Founders

dYdX was founded by Antonio Juliano, an alumnus of Coinbase and a software engineer who recognized the potential for a blockchain-based platform that could mimic the sophisticated trading mechanisms of traditional finance. Juliano’s background in computer science from Princeton University has played a crucial role in shaping the technological underpinnings of dYdX.

Interesting Facts

dYdX was one of the first to offer decentralized margin trading, setting a precedent in the DEX space.
The platform’s transition to a fully decentralized governance model in 2021 marked a significant step towards achieving complete decentralization.

Fun Facts

The name dYdX is derived from the mathematical notation for derivatives, hinting at its focus on complex financial instruments.
In its early days, the platform’s development team implemented changes based on community trading competitions, truly emphasizing the decentralized ethos.

Headlines

“dYdX Shifts to Full Decentralization, Empowering Users with Governance”
“Layer 2 Launch Catapults dYdX to Forefront of DeFi Innovation”
“dYdX Records Unprecedented Trading Volume, Reflects Growing Demand for Decentralized Derivatives”

This encapsulation of dYdX offers both novices and seasoned traders insights into the platform’s capabilities, history, and the visionary minds behind its operations.

Why Choose dYdX?

Choosing dYdX as your trading platform offers several compelling advantages, particularly for those interested in more advanced trading mechanisms typically found in traditional financial markets. Firstly, dYdX provides access to complex financial instruments such as derivatives, futures, and margin trading within a decentralized framework. This not only allows for leveraging positions but also offers the benefits of decentralized security, eliminating the need for intermediaries. Such features are particularly attractive to experienced traders looking to expand their trading strategies in a secure, blockchain-based environment.

Secondly, dYdX stands out for its robust security measures and high liquidity, making it a reliable choice in the decentralized finance space. The platform’s use of smart contracts ensures that all trades are executed automatically and without custodial risk, granting traders full control over their funds at all times. This security is complemented by the platform’s impressive trading volume, ensuring that traders can perform large transactions without significant price slippage, which is crucial for the execution of quick, efficient trades.

Lastly, dYdX’s commitment to transparency and its established reputation provide additional layers of trust and reliability. The open nature of its blockchain operations allows users to verify transactions independently, promoting a transparent trading environment. Combined with positive reviews from the trading community and a proven track record since its establishment in 2017, dYdX represents a premier choice for traders who prioritize security, advanced trading options, and transparency. Whether you’re looking to engage in complex trading strategies or seeking a reliable and secure decentralized trading platform, dYdX offers a compelling package that caters to diverse trading needs.

Where it falls short

One of the primary challenges faced by users on dYdX is its complexity, particularly for those new to trading or unfamiliar with advanced financial instruments like derivatives and leveraged trading. The platform’s focus on sophisticated trading options can be daunting and may create a steep learning curve. This could potentially alienate beginners or casual traders who might struggle to navigate the complexities of the system effectively. To improve this, dYdX could enhance user experience by offering a more tiered approach to trading options—integrating educational tools directly into the platform, such as tutorials, guided trading modes, and more comprehensive customer support. Additionally, implementing a simplified trading interface alongside the more complex options could help accommodate less experienced traders, making the platform more accessible to a broader audience.

Another area for improvement is the limited asset selection available on dYdX, which primarily focuses on major cryptocurrencies. This restricts users’ ability to diversify their trading strategies and limits exposure to a broader range of digital assets, potentially missing out on opportunities presented by emerging altcoins or tokens. To address this, dYdX could expand its asset offerings to include a wider range of cryptocurrencies and possibly even other asset types like tokenized stocks or commodities. By broadening its asset base, dYdX would not only enhance its appeal to a more diverse trading audience but also strengthen its market position as a comprehensive trading platform capable of meeting varied investor needs and preferences. This expansion should be accompanied by careful integration of new assets to maintain the platform’s high standards of liquidity and security.

Features	Explanation
Minimum Trade	dYdX allows relatively low minimum trades, suitable for both small and large investors, though not the lowest in the market.
Trading and Transaction Fees	dYdX offers highly competitive fee structures, especially on Layer 2, minimizing costs significantly for traders.
Number of Cryptocurrencies	The selection of cryptocurrencies is somewhat limited, focusing primarily on major assets which restricts diversity in trading.
Crypto-to-Crypto Trading Pairs	Offers a moderate range of crypto-to-crypto trading pairs, primarily focused on major cryptocurrencies, limiting options for altcoin traders.
Website Transparency	The platform excels in transparency, with open access to smart contracts and clear, public documentation of its operational protocols.
Credit/Debit Card	dYdX operates primarily on Ethereum and has integrated Layer 2 solutions, enhancing speed and reducing costs, though it’s not available on multiple blockchains.
Storage Offering	As a non-custodial exchange, dYdX allows users to maintain control over their private keys, though it doesn’t provide custody services itself.
Staking and Rewards	dYdX offers some staking options and rewards, mainly focused on liquidity providers, but it’s not as extensive or diverse as some might prefer.
Mobile App and Desktop	The dYdX website is user-friendly, well-designed, and offers all necessary information readily accessible, making it easy for users to navigate.
Customer Service	Customer service is adequate with support channels available, but feedback suggests there could be improvements in response times and support reach.
Deposit and Withdraw	Deposits and withdrawals are efficiently handled via smart contracts, although options are limited to cryptocurrencies with no fiat support.

Xavier Tarrasó

EIP and Cryptocurrency Investor

As an expert interacting frequently with various trading platforms, I find dYdX to be an exceptional choice for traders looking to delve into advanced trading options like derivatives and leverage within a secure, decentralized environment. The platform’s robust security measures and transparency make it a trustworthy option. However, I recommend it primarily for seasoned traders due to its complexity and focus on advanced financial instruments. Newcomers to cryptocurrency trading might find simpler platforms more suitable to start with.

Fees

dYdX employs a competitive fee structure that benefits both low-volume and high-volume traders. For trading, the platform uses a maker-taker fee model. Maker fees, for orders that rest on the order book and provide liquidity, range from 0% to 0.02%, while taker fees, for orders that remove liquidity, range from 0.05% to 0.1% based on trading volume. Notably, dYdX offers zero trading fees for users with a 30-day trading volume below $100,000. Additionally, holding the platform’s native DYDX token can earn users up to a 50% discount on trading fees. For withdrawals, there are no fees for standard transactions, but a 0.1% fee applies for fast withdrawals. There are no deposit fees, making dYdX a cost-effective choice for active traders.

Pros

Cons

Product selection

dYdX offers a diverse range of services and products tailored for both novice and experienced traders. Its primary features include decentralized perpetual and margin trading, which allow users to trade with leverage up to 25x. This platform stands out with its advanced trading options like perpetual contracts, which don’t have an expiry date, providing flexibility for traders. Additionally, dYdX offers a gasless trading experience on its Layer 2 protocol, significantly reducing transaction costs. Other notable products include lending and borrowing services, where users can earn interest or borrow assets with lower collateral requirements compared to other platforms .

Pros

Cons

Read more about product selection in dYdX

Comprehensive Overview of dYdX Services and Products

Leveraged Tokens and Perpetual Trading

dYdX is renowned for its leveraged tokens and perpetual trading capabilities. Users can engage in perpetual trading with leverage up to 25x, allowing for significant market exposure with a relatively small initial investment. This feature is particularly appealing to advanced traders who are comfortable managing high-risk positions. The perpetual contracts available on dYdX cover a range of assets, including BTC, ETH, and LINK, among others .

Mobile Application

The platform offers a mobile application for iOS devices, enabling users to trade on the go. The app provides full trading functionality, including real-time market tracking, order placement, and portfolio management, ensuring users never miss a trading opportunity .

Staking and Rewards

dYdX supports staking of its native token, DYDX. Users can stake their DYDX tokens to earn additional rewards, which are distributed from the trading fees collected by the platform. This staking mechanism not only incentivizes holding DYDX tokens but also enhances the overall liquidity and stability of the exchange .

Hedgies NFTs

In addition to its trading services, dYdX has launched its own NFT collection known as Hedgies. These unique digital collectibles are designed to reward users for their engagement and achievements within the dYdX community. The NFTs can also be traded on secondary markets such as Opensea, adding another layer of utility and value for the platform’s users .

Layer 2 Scaling and Gas-Free Trading

Leveraging StarkWare’s Layer 2 scalability solution, dYdX significantly reduces gas fees for its users. This technology bundles multiple transactions into a single batch, which is then processed on the Ethereum blockchain. As a result, users benefit from lower transaction costs and faster trade execution, making dYdX a cost-effective and efficient trading platform .

Comprehensive Trading Features

dYdX offers a variety of trading options, including margin trading, spot trading, and derivatives. Margin trading on dYdX allows users to borrow funds to increase their market exposure, supporting both isolated and cross-margin trading strategies. Additionally, the platform supports a wide range of order types, including market, limit, stop-limit, and trailing stop orders, providing traders with the tools they need to implement sophisticated trading strategies .

Integration with Cosmos SDK

In a significant upgrade, dYdX has launched its own blockchain using the Cosmos SDK and Tendermint Proof-of-Stake consensus protocol. This move aims to enhance decentralization and performance, allowing for greater scalability and flexibility. The dYdX Chain supports a decentralized order book and matching engine, further reinforcing the platform’s commitment to providing a fully decentralized trading experience .

Earn Interest through Lending

dYdX also offers lending services, where users can lend their digital assets to earn interest. The interest rates are dynamic, adjusting based on market supply and demand. This feature provides users with a passive income opportunity while contributing to the overall liquidity of the platform .

Conclusion

dYdX stands out as a comprehensive decentralized exchange offering a wide array of trading products and services. From high-leverage perpetual trading and innovative Layer 2 solutions to staking rewards and unique NFT collections, dYdX provides a robust platform that caters to both advanced traders and crypto enthusiasts. Its commitment to decentralization, combined with advanced trading tools and cost-effective solutions, makes dYdX a leading choice in the DeFi space .

Account opening

Opening an account on dYdX is a straightforward process, leveraging the platform’s decentralized nature. To get started, users need a compatible Ethereum wallet like MetaMask, Ledger, or Coinbase Wallet. First, visit the dYdX website and click “Connect Wallet” to link your Ethereum wallet. Ensure the wallet has funds and transaction history, as empty wallets cannot connect. Next, generate a Stark key, which is stored in the browser and facilitates secure interaction between Layer 1 and Layer 2. After accepting the legal terms, users can optionally enter an account name and email, though this is not mandatory. Once these steps are completed, users have full access to the dYdX trading terminal.

Pros

Cons

How to Sign Up on dYdX

Visit the Website: Navigate to the official dYdX website.
Connect Wallet: Click on the “Connect Wallet” button located in the top right corner. Ensure your Ethereum wallet has funds and a transaction history as empty wallets cannot be connected.
Select a Wallet: Choose from supported wallets such as MetaMask, Ledger, WalletConnect, and others.
Generate Stark Key: After connecting your wallet, generate a Stark key. This public key links your Ethereum key with dYdX’s smart contracts, enabling Layer 2 transactions. This key is stored in your browser.
Accept Terms: Agree to the Terms of Use and Privacy Policies. Optionally, enter an account name and email address.
Start Trading: Once the Stark key is generated and terms accepted, you have full access to the dYdX trading terminal .

Opening an Account

Opening an account on dYdX involves integrating your Ethereum wallet with the platform, generating a Stark key for secure transactions, and accepting the terms of service. This process ensures a seamless and secure trading experience, leveraging decentralized finance principles.

Buying Your First Cryptocurrency

Deposit Funds: Transfer USDC or any ERC-20 token into your dYdX account using your connected wallet.
Select Market: Choose the cryptocurrency market you wish to trade in.
Place Order: Use market, limit, stop limit, or trailing stop orders to buy your desired cryptocurrency. You can select leverage and other order specifications as needed.

Account Types

dYdX primarily offers one type of account, which can be used for various trading activities, including margin trading and perpetual contracts. There are no differentiated account levels, keeping the platform straightforward and accessible.

How to Use dYdX

Navigate Platform: Familiarize yourself with the trading interface, including the order placement panel, price charts, and menu options.
Select Trading Pair: Choose from available trading pairs and markets.
Place Trades: Use the trading tools to place and manage your trades effectively.

Registration and KYC

dYdX does not require KYC verification, allowing users to trade anonymously. Simply connect your Ethereum wallet to start trading, ensuring privacy and security.

Note: The next section will cover how to deposit funds into your dYdX account.

Security

dYdX prioritizes user security through a combination of advanced technologies and strict protocols. As a non-custodial exchange, dYdX does not hold user funds; instead, users maintain control of their assets, which are secured through their personal wallets. This means that the security of funds is directly linked to the security of the users’ wallets and the devices they use. The platform employs smart contracts to facilitate transactions, ensuring that trades are conducted securely and transparently.

The dYdX team has committed to rigorous security standards by conducting thorough internal testing and utilizing third-party audits from reputable firms such as Peckshield and Zeppelin Solutions. These audits are publicly available, providing transparency and allowing users to verify the security measures in place. Furthermore, dYdX implements time-locked administrative accounts to mitigate risks associated with potential hacks. For example, the admin account has a 14-day delay for Layer 2 perpetual contracts and a 3-day delay for margin, lending, and Layer 1 perpetual contracts. This delay ensures that any unauthorized actions can be identified and canceled before causing harm.

dYdX is also moving towards full decentralization with its V4 upgrade, which will introduce a fully decentralized off-chain order book and matching engine, built on the Cosmos SDK. This shift aims to enhance security and scalability, allowing for higher transaction throughput and reduced gas fees. By leveraging technologies such as ZK-Rollups, dYdX can process transactions off-chain and only settle on-chain, further reducing costs and enhancing efficiency. Since its inception, dYdX has maintained a record of no known successful hacks or significant security breaches, underscoring its robust security framework.

Pros

Cons

Is dYdX Legit?

dYdX is a legitimate and highly respected decentralized exchange in the cryptocurrency market. It operates as a non-custodial platform, meaning it does not hold users’ funds directly. Instead, users maintain control over their assets through their own wallets. This model enhances security, as the platform itself is not a target for hacks involving user funds.

Regulation and Licensing

As a decentralized platform, dYdX is not subject to the same regulatory frameworks as centralized exchanges. It does not require Know Your Customer (KYC) verification, which allows users to trade anonymously. This absence of regulatory oversight can be seen as both a strength and a weakness, depending on the user’s perspective on privacy versus security and compliance.

Is dYdX Safe?

Yes, dYdX is considered safe for several reasons. The platform undergoes regular security audits by reputable third-party firms such as PeckShield and Zeppelin Solutions, ensuring that the smart contract code is secure. Additionally, dYdX uses time-locked admin accounts to prevent immediate changes, providing a buffer period to detect and address any unauthorized actions. The platform’s security measures have proven effective, with no known successful hacks or significant security breaches since its inception.

Security Methods

dYdX employs multiple layers of security:

Non-Custodial Nature: Users’ funds are controlled through their own wallets, reducing the risk of large-scale hacks.
Smart Contract Audits: Regular audits by third-party firms help ensure the integrity and security of the platform’s code.
Time-Locked Admin Accounts: Delays in administrative actions prevent immediate unauthorized changes, allowing time to identify and counteract malicious activities.
Layer 2 Solutions: The use of ZK-Rollups for transactions reduces gas fees and enhances transaction speed while maintaining security.

Conclusion

dYdX is a secure and reputable decentralized exchange that offers advanced trading features while prioritizing user security through robust technological and procedural safeguards. While the lack of regulatory oversight might concern some, the platform’s proven security track record and innovative features make it a compelling choice for traders seeking a decentralized and secure trading environment.

Customer service

dYdX offers comprehensive customer service and support to assist its users, particularly those engaging in margin and perpetual trading. The platform provides a range of resources including detailed articles on their help site (help.dydx.exchange), tech support via in-app help chat, and a strong presence on social media platforms such as Twitter, Discord, WeChat, YouTube, LinkedIn, Telegram, Medium, and Reddit. This array of support channels ensures that users can find the help they need through various formats. The platform’s customer service is well-regarded, with quick response times reported on platforms like Discord, where both community members and admins are active in addressing queries. The educational resources available, including YouTube tutorials and community forums, make it easier for users to understand and navigate the platform, even though some users find the platform’s many features complex, especially beginners.

In terms of improvements, the platform could enhance its ease of use for new traders. While the minimum deposit value is low, allowing retail traders to participate easily, the interface and feature complexity could be streamlined to make it more accessible for those new to trading.

Pros

Cons

Read more about customer service in dYdX

Customer Support

dYdX offers robust customer support to ensure that users can efficiently resolve any issues they encounter while using the platform. The support system includes an in-depth help center available at help.dydx.exchange, which contains detailed articles and guides on various aspects of using dYdX. For more immediate assistance, users can access tech support via an in-app help chat, which is integrated into the platform for convenience. Additionally, dYdX maintains an active presence on several social media platforms, including Twitter, Discord, WeChat, YouTube, LinkedIn, Telegram, Medium, and Reddit, where users can seek help and engage with the community.

Reputation and Customer Feedback

dYdX has garnered a positive reputation within the cryptocurrency community for its advanced trading features and strong security measures. Users appreciate the platform’s responsiveness and the quality of support provided, especially through its Discord channel where both community members and admins actively address queries and issues. Educational resources such as YouTube tutorials and community forums are also well-received, aiding users in navigating the platform’s features. However, some users find the platform complex, particularly beginners who might struggle with its extensive functionalities.

Methods of Contact

Users can contact dYdX support through various methods:

In-App Help Chat: Accessible directly from the platform for real-time assistance.
Email Support: Users can email support for more detailed queries and expect a follow-up.
Social Media: Active support and engagement on platforms like Discord, Twitter, and Telegram, where users can post questions and receive prompt responses.

Response Time

The response time for queries on dYdX is generally quick, especially on Discord, where community members and admins are known to respond rapidly. Most queries on social media platforms receive attention within a few hours, and detailed issues addressed via email typically get a response within 24 to 48 hours. The availability of multiple support channels ensures that users can get help as needed without significant delays.

Additional Considerations

For new users, dYdX offers extensive resources to help them get started, including video tutorials and comprehensive guides. The platform’s complexity, while a strength for advanced traders, can be a hurdle for beginners. Therefore, it’s advisable for new users to thoroughly explore the help center and take advantage of the educational content provided. Despite the lack of phone support, the active and responsive community, along with multiple contact methods, ensures that users can find the assistance they need.

Overall, dYdX’s customer support is well-structured and responsive, making it easier for users to resolve issues and understand the platform, ensuring a positive user experience.

Is dYdX Right for You?

Advanced Traders Seeking High Leverage: If you are an experienced trader looking to engage in high-leverage trading, dYdX offers up to 25x leverage on perpetual contracts and up to 5x on margin trading. This platform is ideal for those who want to implement advanced trading strategies and take advantage of significant leverage without the need for a centralized exchange. The availability of perpetual contracts without expiry dates provides a flexible trading environment for those who prefer long-term positions.
Cost-Conscious Traders: dYdX is perfect for traders who want to minimize trading costs. The platform uses ZK-rollups to reduce gas fees, enabling gas-free trading on its Layer 2 protocol. Additionally, dYdX offers a fee structure that exempts users with monthly trading volumes under $100,000 from trading fees, making it highly cost-effective for both small and medium-scale traders.
Privacy-Conscious Users: If privacy is a major concern for you, dYdX does not require Know Your Customer (KYC) verification. This means you can trade anonymously, maintaining your privacy while still enjoying a secure and robust trading environment. This non-custodial nature also ensures that you retain control over your funds at all times, reducing the risks associated with centralized exchanges.

Threenvest score

4,4

Network

Earn

Yes

Fees

0,10%/0,05%

On the exhange website

Threenvest score

4,5

Network

Earn

Yes

Fees

0,30%

Threenvest score

4,4

Network

BSC

Earn

Yes

Fees

0,25%

Available cryptocurrencies and countries available

dYdX supports trading for over 36 cryptocurrencies, offering a range of trading pairs in its margin, spot, and perpetual markets. Key cryptocurrencies available include Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Polygon (MATIC), and USD Coin (USDC). However, some popular cryptocurrencies are not currently available, such as Uniswap (UNI), Aave (AAVE), and Sushiswap (SUSHI).

dYdX is accessible in numerous countries, but it notably restricts users from the United States due to regulatory concerns. This restriction means that US citizens cannot open accounts or trade on the platform, aligning with compliance efforts to avoid conflicts with the Securities and Exchange Commission (SEC).

Main cryptocurrencies available

Bitcoin (BTC)
Ethereum (ETH)
USD Coin (USDC)
Tether (USDT)
Solana (SOL)
Chainlink (LINK)
Polygon (MATIC)
Cardano (ADA)
Dogecoin (DOGE)
Polkadot (DOT)
Avalanche (AVAX)
Uniswap (UNI)
Aave (AAVE)
Yearn Finance (YFI)
Compound (COMP)
SushiSwap (SUSHI)
Filecoin (FIL)
Cosmos (ATOM)
Maker (MKR)
Binance Coin (BNB)

Main countries where you can open an account

Canada
United Kingdom
Germany
France
Japan
Australia
Brazil
India
South Korea
Singapore
Mexico
South Africa
Netherlands
Sweden
Switzerland

FAQs

1. What is dYdX?

dYdX is a decentralized exchange (DEX) offering margin, spot, and perpetual trading for a variety of cryptocurrencies. It operates on smart contracts, ensuring security and transparency without the need for intermediaries.

2. How can I open an account on dYdX?

To open an account, simply connect your crypto wallet (such as MetaMask) to the dYdX platform. There are no extensive KYC requirements, making the process quick and user-friendly. However, note that residents of restricted countries cannot open accounts.

3. What fees does dYdX charge?

dYdX charges trading fees that vary based on your trading volume. Generally, maker fees are lower than taker fees. Additionally, gas fees for Ethereum transactions apply, which can fluctuate based on network demand.

4. Is dYdX available in my country?

dYdX is available in many countries globally. However, it restricts users from certain regions, including the United States, Cuba, Iran, North Korea, Syria, Sudan, Belarus, Myanmar, and the Crimea region of Ukraine.

5. How secure is trading on dYdX?

Trading on dYdX is highly secure due to its decentralized nature and use of smart contracts. Users maintain control over their funds at all times, reducing the risk of hacks and mismanagement common in centralized exchanges.

6. What cryptocurrencies can I trade on dYdX?

dYdX supports trading for over 36 cryptocurrencies, including popular options like Bitcoin (BTC), Ethereum (ETH), USD Coin (USDC), Solana (SOL), and Chainlink (LINK). The platform continuously adds new assets to expand its offerings.

7. Can I trade on dYdX using leverage?

Yes, dYdX offers leveraged trading options for its users. You can trade with leverage on various perpetual and margin markets, allowing you to amplify your positions. Always be aware of the risks associated with leveraged trading.

Final opinion on dYdX

dYdX stands out as a robust decentralized exchange (DEX) that offers a comprehensive trading experience, including margin, spot, and perpetual markets. Its use of smart contracts ensures a high level of security, making it an attractive option for traders who prioritize control over their funds. The platform supports a wide range of cryptocurrencies, providing users with ample trading opportunities. Moreover, dYdX’s user-friendly interface and lack of extensive KYC requirements make it accessible and appealing, especially for those looking to trade without lengthy verification processes.

However, dYdX does have some limitations. The most significant drawback is its restriction on users from the United States and several other countries, which limits its accessibility. Additionally, trading fees and Ethereum gas fees can be higher compared to some other DEXs and centralized exchanges. Despite these challenges, dYdX remains a competitive option due to its innovative features, strong security measures, and broad cryptocurrency support. At Threenvest, we believe that dYdX offers a compelling blend of security, functionality, and ease of use, making it a valuable platform for both new and experienced traders looking to leverage the benefits of decentralized finance.

How do we review crypto exchanges?

At Threenvest, we conduct a thorough review process to evaluate and rank the world’s leading crypto exchanges. Our goal is to offer an unbiased assessment, providing you with the information you need to make informed decisions on which ones best suit your needs. We strictly adhere to the guidelines of our editorial policy.

We collect data directly from exchanges through detailed questionnaires and conduct first-hand testing and observations during crypto exchange demonstrations. Questionnaire responses, combined with demonstrations and hands-on research from our experts, feed into our proprietary evaluation process that scores each provider’s performance on more than 15 factors. The end result produces star ratings ranging from poor (one star) to excellent (five stars).

For more details on the categories considered when rating brokers and our process, read our full methodology.

Risk Disclaimer

Investing in cryptocurrencies is very risky, you should only invest the money you are willing to lose. Also you should not expect to be protected if something goes wrong.

Neither Threenvest, nor the author, are recommending you to invest with this article.

Alejandro Borja Fuentes

Economist | Cryptocurrency exchange analyst

The author of the review

Alejandro Borja is an accomplished economist with a distinguished career spanning various facets of the financial industry. His academic journey began with a degree in Economics, laying the foundation for his deep understanding of financial markets.

Over the years, Alejandro has honed his skills by working with some of the largest financial media outlets, analyzing and reporting on economic trends and investment opportunities. His expertise in financial analysis has made him a respected voice in the economic community.