In the cryptocurrency era, decentralized exchange platforms (DEXs) are the cherry on top of the cake. The decentralized platform serves as the backbone of cryptocurrency exchange. People prefer decentralized exchange platforms because of the advanced security protections and multiple features they are integrated with. On the dYdX cryptocurrency exchange, you can trade without borders and gain trust without intermediaries. Several cryptocurrency exchange platforms support DEX, one of them is dYdX.
Want to know what it is and how to get started with a decentralized exchange like dYdX? In that case, please read the information below…
What is dYdX Exchange and how does it work?
dYdX exchange is a leading DEX exchange platform. Demand for dYdX, which currently supports margin trading, is increasing. It runs on Ethereum blockchain technology through a smart contract called StarkEx.
dYdX was founded by Antonio Juliano in 2017. In 2019, our own Order Book system was integrated and in 2020, perpetual contracts were activated. Additionally, the dYdX cryptocurrency has gone through three versions, the last one released in 2021, built on a StarkWare-based layer 2 solution to reduce gas costs for traders. By the end of 2023, the development team announced that the platform will launch V4, a dedicated standalone chain in the Cosmos ecosystem.
dYdX also allows people to do margin trading of perpetual contracts. Margin trading is also called leveraged trading. This allows you to buy and sell using funds that can increase your current account balance.
for example – dYdX trading requires a 5% requirement for Bitcoin perpetual contracts. This means that traders must deposit 5% of the total capital they wish to have in the contract before starting margin trading.
Cryptocurrency margin trading involves different sets of leverage expressed in ways like 5X, 10X, 15X, etc. for example – If a trader has 15x leverage, the trader will have exposure equal to 15x the margin amount in the trader’s account.
What would your reaction be if someone told you that a deal had no expiration date or closing date?!! Perpetual contracts play an important role in dYdX trading. Let’s look at that in the future…
What are dYdX perpetual contracts and order types?
Perpetual contracts allow users and investors to place buy/sell orders at a fixed price without an expiration date. This means you can buy or sell cryptocurrencies at your convenient time in the future. At dYdX, perpetual contracts are offered on the StarkEx Layer 2 solution with up to 25x leverage. The platform has four order types that make trading easier.
- market order
- limit order
- stop tracking order
- Take Profit Limit Order
- Stop limit order.
Market Order – Market orders allow you to buy or sell a specific asset, which will then be posted to the order book. Orders are executed at the current market price the moment the order is processed by the system.
limit order – Limit orders allow traders to buy or sell by setting an order range price. Buy orders will only be placed if the price is below the limit range you set, while sell orders will only be placed if the price is above the limit range.
Stop Tracking Order – With a trailing stop order, you lock in your profit and only move when the price moves in your favor.
Take Profit Limit Order – In a take profit limit order, the limit order is executed whenever the take profit price is achieved.
Stop limit order – Limit orders ensure that trades only take place when the price set by the investor is achieved.
As a result of our discussions, dYdX cryptocurrency exchange continues to improve. This is a feature that creates a full-fledged platform. Let’s take a look at the salient features ahead.
Key features of the decentralized exchange dYdX Exchange:
Non-custodial wallet – A wallet integrated with the user’s account. While making a dXdY transaction, your digital assets remain in your wallet. Non-custodial wallets offer high security.
Smart contract integration – A decentralized platform incorporating smart contracts, called perpetual contracts, means high security and privacy by processing transactions directly between traders.
Multilingual Features – It offers multiple language options to help users better understand their transactions.
User-friendly features – The features you integrate should give users confidence while navigating throughout the platform.
Order Book and TradingView – Integrates Trading View features and strategies with online tools. TradingView is a strategy planning and execution tool. It was simpler and more effective for users of the dYdX crypto exchange platform.
Flash Loan – A financial tool called Flash Loan tool has been integrated to enable users to obtain a certain amount of digital assets without proof of collateral.
This is the amazing feature of dYdX DEX. Let’s learn about the importance of creating a decentralized platform like dYdX. Scroll down.
Benefits of creating a decentralized exchange like dYdX:
Creating a decentralized exchange like dYdX can provide tremendous benefits. Let’s take a closer look.
Benefits from creating a DEX platform: You can start your digital journey by creating a decentralized exchange platform and providing the best trading services to your users. DEX platforms offer incredible returns with varying fees.
Transparency and Security: Decentralized exchange platforms are known for their guaranteed security objectives and openness. This highly encrypted environment will attract most users to trade cryptocurrencies on your platform. Transactions and funds are securely encrypted on the blockchain through smart contracts.
Unique user experience: The dYdX exchange platform is built with unique typography and vibrant colors. This will ensure your brand stays in the crowd.
Hands-on experience: Most people tend to choose a mobile app over a website, and it’s better to have both. By providing users with a real-life experience, you can attract a larger audience.
We discussed it. You may need help deciding where to develop a platform that offers these many benefits. Let’s take a closer look below.
How to start a decentralized exchange like dYdX?
The ultimate goal of creating a decentralized exchange like dYdX is to monetize and generate huge profits. So, if you want to start a cryptocurrency exchange platform, you need to choose a trouble-free method. If you choose the easy way, you will have enough business strategies and ideas that you can implement to market your products.
The traditional way to start a business is to develop an entire platform from scratch. If you decide to develop from scratch, you will need to develop all elements and features from the ground up. However, developing a platform from scratch can take months.
White label services involve purchasing off-the-shelf products from a supplier to suit a specific use case. Just rebrand it with your brand name. You can also customize the software as per your convenience. You can also purchase a cloning script. A clone script is just a pre-built software that will help you clone any popular cryptocurrency exchange platform you want to launch. For beginners or startups with minimal budget, a clone script is the best option. The average cost to purchase a replication script for your business is $12000 to $20000..
Why choose CoinClone?
If you want to get started with a potential decentralized exchange like dYdX, you can trust it blindly. CoinClone, best Defi development company. Why did you choose us? We don’t just compete, we lead! We are here to create the perfect DEX platform. So why are you waiting? Experience the future of finance through DEX, where all transactions are independent. For more information, please contact us by phone. Take a free demo session to further your understanding.