Decentralized cryptocurrency exchanges are constantly gaining popularity. Taking into account many events in recent years, this fact is not surprising at all. One of the most dynamically operating exchanges in this sector is dYdX, which can easily be called an on-chain trading trendsetter. What makes the dYdX decentralized exchange stand out, what does its interface look like and why is it worth starting trading on it?
What is the difference between a centralized and decentralized cryptocurrency exchange?
Simply put, the main difference between a centralized exchange (CEX) and its decentralized counterpart (DEX) is that in DEXs there is no need to transfer your assets to a third party. This is extremely important, especially in the light of recent events, such as the collapse of the FTX exchange.
Decentralized exchanges are based on blockchain technology. This makes all transactions publicly visible, preventing market manipulation. Such transparency is also a strong foundation for trade security. It is worth noting that in the case of decentralized cryptocurrency exchanges, the user connects to the exchange with his own wallet. In the event of bankruptcy or an exchange exploit, your funds are still at your disposal. This is the quintessence of the Web3 idea and confirmation of the popular saying “Not Your keys, not Your coins”.
Among the advantages of decentralized cryptocurrency exchanges, it is also worth mentioning the ability of users to influence the shape of the exchange. The community is often involved in decisions regarding such exchanges and projects.
How does on-chain trading work?
The foundation of decentralized cryptocurrency exchanges is on-chain trading based on smart contracts (smart contracts). Thanks to them, it is possible to trade between users via a decentralized exchange, i.e. DEX.
The process begins by creating a trade order specifying the characteristics of the desired trade. It's about the type of asset and its price. The next step is to save the order in the public order book on blockchain. Such an order can also be directly assigned to a specific offer.
The grand finale of this process is finding the right offer. Then, like skilled traders, smart contracts complete the transaction by exchanging assets between the wallets of two parties. Such a transaction is confirmed on a new block on the blockchain. Importantly, such a record cannot be deleted or edited in any way. Full transparency.
What makes the dYdX exchange stand out?
Although there are more and more DEXs on the market today, dYdX definitely stands out from the competition. This decentralized cryptocurrency exchange was founded in 2017. Seven years on the market have allowed the exchange to gain experience, thanks to which it now has an impressive range of products in its portfolio. It is worth noting that the exchange uses its own blockchain based on Cosmos. The open-source platform ensures transparency and security, which is why the dYdX exchange is becoming more and more popular among the cryptocurrency community.
The numbers are impressive, as since its launch, the dYdX exchange has achieved a trading volume of over USD 1 trillion, becoming a leader in the decentralized cryptocurrency exchange sector. In addition to the most popular cryptocurrency trading, this exchange also offers derivatives trading, as well as advanced trading options and tools (such as margin trading or stop-less orders) and the function of staking its own $DYDX token. Thanks to this, the dYdX exchange is addressed to both beginners and advanced users.
dYdX decentralized exchange interface – how to start?
Starting your adventure with the dYdX exchange is child's play and only requires connecting your cryptocurrency wallet. You skip the entire process of tedious and time-consuming account creation – you just connect your wallet and start trading.
Trade
Trade is the first tab that welcomes every new user. It allows you to immediately start trading a given cryptocurrency. Cryptocurrencies such as the standard BTC, ETH, or SOL are available on dYdX, but there is also no shortage of digital assets such as DOGE, XRP, or even the recently gaining popularity WLD. All digital assets are traded in USD trading pairs. Importantly, the dYdX interface has been designed in such a way that the user has maximum control over the most important charts. Four subtabs, that is Price, Depth, Funding and Details they provide constantly up-to-date information, which is a paramount value in the case of cryptocurrency trading.
Portfolio
In this tab, the user can view all of his digital assets that he currently has in his portfolio. You can also find sub-tabs there such as: Positions, Orders, Feesand History. Thanks to this, all the most important information is in one place. The bookmark is particularly useful Fees and Historyallowing the user maximum control over their actions.
Markets
In this tab we sail out into the real cryptocurrency sea. Tab Markets shows all assets available on the dYdX exchange. Particularly useful in this case is the search engine and tags that allow the user to select specific assets in terms of belonging to Layer 1, Layer 2, the Defi, Gaming or AI sector. At the time of writing this article, the trading volume from the last 24 hours is $966,810,547. Impressive, quoting a classic!
DYDX
The last tab concerns the most pleasant things, i.e. prizes. The dYdX exchange offers its users both Trading Rewards and Staking Rewards. There is also a sub tab in this tab Governance. Any user who has the appropriate amount of $DYDX tokens can participate in decisions regarding the dYdX exchange.
dYdX – discover the benefits of a decentralized cryptocurrency exchange
To sum up, the dYdX decentralized exchange is an excellent alternative to traditional, centralized exchanges. Accessibility, simple and intuitive interface, wide asset market and advanced trading tools make it an excellent platform for both beginner users and advanced traders.
Finally, an interesting fact – the enigmatic name of the stock exchange refers to mathematics and comes from Leibniz's Notation.
