DyDx review and opinion legit or scam?

The world of Decentralized Finance trading continues to grow little by little and one of the most well-known companies in the sector, the dYdX Exchange, is establishing itself as a leader in this market.

I'm going to explain what this DeFi trading platform is all about, a concept that puts what a broker is against the ropes, although deep down there's never a cease to be middlemen.

What is dYdX?

dYdX is a decentralized exchange of cryptocurrencies and cryptoassets, that is, it does not depend on dealers, but operations are carried out directly between users.

The technology on which it is based is the Ethereum blockchain, the most important protocol for these decentralized application developments.

As I said, it is a product that is growing in popularity and now has over 15 traders with over $000 million in open interest.

It is true that we are still dealing with a small exchange compared to the big names in the market, but it seems that the flow of traders is gradually moving towards this type of operator.

We'll have to watch how it develops going forward since we're in the early days of DeFi, and like other similar early days, these are usually times of high business volatility. For the moment dYdX is well positioned.

Among the companies and names that support this project we have the co-founder of Coinbase Brian armstrong or the legend of the startup Naval Ravikant.

What regulations do you have? It's certain?

Being a state-of-the-art decentralized project, it has no regulations at the moment. This is something common to the whole sector DeFi, which still lags behind that of cryptocurrencies.

However, this does not mean that the company is operating illegally. The platform adheres to the specific policies of the most important regions, such as the United States, where it is specified that it does not offer perpetual contracts to citizens of this country.

It is also a good idea to check with your country's regulations whether you can operate with these products or not. There may be local restrictions.

is dYdX a scam?

At the moment, it does not appear that this DeFi company is a scam.

This seems much less the case when you see the names that support the company and collaborate in its development, such as the CEO of AngelList, Naval.

It would seem very odd if the case ultimately turned out to be a scam, although we can never completely rule anything out.

It's best to let a few years pass and see how the service evolves.

Where is the business?

As seen in Crunchbase, it's in San Francisco.

How to register?

Opening an account on this type of platform is not like the typical broker with which we are used to giving our documents, proof of address, etc.

The thing to keep in mind here is that it is not a broker per se, but a company that is more of a facilitator of connections between traders with a P2P model in which what is needed is connect your private wallet.

Therefore, opening an account with dYdX is equivalent to simply connecting your wallet to the exchange, without further complications.

What wallets are available for this?

• Dappradar
• imToken
• Coinbase Wallet
• register
• Wallet Connect
• Other

As we can see, it has some of the strongest names in the crypto market, such as Ledger.

Once we have connected the wallet to the exchange, we will be able to send money to it, for which we will have to verify the transaction with the technical details that the wallet will show us.

The transaction is facilitated by Ether, which requires the verification of miners, who will be responsible for certifying the operation and including it in the blockchain.

What is the minimum deposit?

From what they say on the web, the minimum deposit is $10.

Margin Trading

On this platform, you can trade with margin or leverage both up and down.

The leverage available for trading is 5:1, compared to 4:1 previously.

The trader can use full leverage i.e. 2, 3, 4 or 5.

These funds used for leverage are obtained on the same platform with the lending service, as it is other users who provide the capital so that traders can assume this risk.

Additionally, dYdX integrates with other exchanges so as to access better market conditions.

The instruments that support this type of trading are Ethereum and Dai.

dYdX Perpetual Futures Contracts

This is another more advanced leveraged trading product that allows you to use up to 20x leverage.

As I mentioned before, this service is not available for US merchants.

In the platform menu we have to go to “Perpetuals”. There it will take us to the Exchange platform where we can see how we can trade Bitcoin, Ether and Chainlink. However, there are plans to include many more pairs throughout 2021 and beyond, so we will soon see a whole platform full of varied crypto trading.

The first thing to keep in mind is that the balance to use these perpetuals is different from that of the margin account. In the same way as the previous one, you can also choose the appropriate leverage for each.

This trade is divided into two types, Layer 1 and Layer 2.

Layer 2 is the most modern version and the one that carries the weight of trading in this type of perpetual operation. This version is faster, has better execution and better conditions in general.

Commissions

This DeFi crypto house does not charge commissions on maker-type trades.

The cost of the "taker" operation is 0,3 or 0,2%, although depending on the gas consumed by each operation, something more could be paid.

There are no commissions for deposits or withdrawals, but keep in mind that when using your wallet with other sites you may be charged a fee.

Now for perpetuals:

Minimum amount to operate:

• 1 ETH
• 200 LONG
• 0,01 BTC

This minimum amount will vary over time.

loans

There is also the possibility of not trading and simply participating in the loan market of this platform, with which you can generate passive income.

The borrower will be able to send these funds to their Ethereum wallet, which they can then use in different businesses, even in other foreign exchanges. For this, a guarantee ratio of 1,15 must be maintained.

In the “Markets” tab of the menu we can see a table in which we have the interest rates for loans.

How is the customer service?

It is provided by email and chat.

Apart from that, we have the possibility to investigate their numerous social networks, among which are:

• Twitter
• Discord
• Telegram
• LinkedIn
• Youtube

Opinions

As we have seen, it is a new player in the forex market that claims to be a DeFi operator, and it certainly is, at least from the point of view of not having to carry out processes of opening of draconian account.

However, from the point of view of commissions, we see that it is still like a broker. That is, it charges commissions.

If it was really 100% decentralized it wouldn't have to be, but it's something that happens a lot in the industry because in the end you pay a commission for trades if you're a sell trader in classic detail.

Apart from that, I can say that it is a site with remarkable features and that it enjoys a good reputation, especially after its alliance with Coinbase or Naval, among others. This is why many traders have a good opinion of it.

There are also those who say that it is not the best exchange to carry out loan operations, since it is better to go to a specialist.

Pros and cons

In layer 2 there is no additional gas payment

Good commissions for makers, with negative interest

One of the most liquid DeFi trading sites

It has a lot of institutional support from the sector

As it is a p2p platform, you are in control of your wallet at all times. No exchange risk counterparty

Opening an account does not require complications and bureaucratic procedures

Platform that offers a good trading experience

Offers fairly high interest rates for passive income

Lack of variety in pairs (for now)

For the inexperienced, this may be difficult at first glance

The site is not available in French