dydX Review – How Does This Exchange Measure Up?

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By Austin DeNoce

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Dydx Review

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dydX Review

  • Derivatives Trading
  • NFTs
  • Fees
  • Customer Support
4.7

Summary

If you’re in the market for a new crypto exchange, you may have come across dydX. This open platform is powered by the Ethereum blockchain and is focused on derivatives trading through perpetual futures contracts. Built for advanced crypto-financial products, dydX includes support for 28 assets, TradingView charts, rewards, NFTs called Hedgies, and more. Learn more about this exchange before making your final decision by reading our full dydX review.

Pros

  • Great trading interface
  • Low fees
  • No KYC or AML
  • NFTs

Cons

  • No spot trading
  • No crypto services
  • Not available in the US

About dydX

dydX is an open platform powered by the Ethereum blockchain built for advanced crypto-financial products with a focus on derivatives trading through perpetual futures contracts. As with any DeFi platform, gas fees are always a concern, but dydX has incorporated layer two solutions to reduce their gas fees for all their derivatives trading. In addition to perpetuals, dydX supports there own unique NFTs. However, a couple disclaimers to keep in mind about their platform are, one, they recently removed their spot trading and lending pools, making perpetuals the primary product, and two, their derivatives trading is restricted in certain territories, including the United States. But given dydX is technically decentralized, those who can trade the perpetuals can do so without any KYC or AML verification.

dydX Derivatives Trading

dydX supports derivatives trading for 28 different assets with anything from 0-20x leverage. The interface is very trader friendly with charts powered by TradingView, market, limit, trailing stop, stop limit, and take profit limit orders. As expected, they also have order books to track flows and order panels to keep track of any positions and pending orders. While you can’t customize the interface to your liking, it’s still an excellent setup for traders that will allow most, if not all, of the capabilities you would need. Certainly the highlight of their platform.

Dydx Derivatives Trading

dydX Trading Leagues

Trading Leagues is a first-of-its-kind product on dydX that enhances the trading experience with rewards with weekly prizes for traders. While many traders are familiar with one-off trading competitions run on exchanges across the industry, Trading Leagues is a new type of competition structure that rewards elevated performance on a consistent basis. Traders compete with each other on a weekly basis, where each week is a new “season,” with the opportunity to be promoted or demoted each season depending on performance. In addition to bragging rights, each league will have specific rewards with cash prizes that scale as you level up. Once all leagues are launched, total cash prizes will be $350,000 each week.

Dydx Trading Leagues

Hedgies

Hedgies are NFTs that you can mint on the dydX platform. They are small, spiny mammals similar to hedgehogs. They have a collection of 4,200 unique Hedgies avatars that can be distributed to community members, awarded to top traders, and eventually sold to the general public if there are any remaining.

Dydx Hedgies

dydX Fees

For at least three months starting in January of 2022, dydX has reduced their trading fees by up to 66%. Tier one is for those with a 30-day trading volume under $1M with maker and taker fees of 0.020% and 0.050%, respectively. Each tier further reduces both maker and taker fees by 0.005% until reaching VIP tier of 0.00% maker and 0.020% taker fees.

Dydx Fees

A very unique aspect to dydX’s fee structure is you can receive various discounts depending on how many of their NFTs you hold. The discounts can range between 3%-50% for holding 1-10+ of their Hedgies NFTs. 

Blog

To read the latest news from the dydX team, you can head to their blog to find all the content related to updates, special offers, and all the other news relevant to their platform. The blog is very aesthetic and put together with plenty of graphics and pictures to digestibly explain all the information. 

Dydx Blog

dydX Customer Support

If you need assistance using the dydX platform, you can check out their help center. I wouldn’t say it’s the best out there, but it has a ton of neatly organized information on what they offer and how to use it. It could use more categories on the homepage to help guide people, and more of the articles could include pictures and charts, but it’s still quite helpful and a user-friendly way to learn.

Dydx Customer Support (Help Center)

dydX also has a discord you can join to better engage with the community and ask questions. The discord seems a bit underdeveloped, but it’s worth checking out if you’re struggling to find answers or their other help resources aren’t fully satisfying you.

Dydx Customer Support (Discord)

Another very useful resource dydX offers to support users is their tutorials on YouTube. You can access them from the bottom of the homepage under ‘Tutorials’ or just search for their channel on YouTube itself, but they have a number of videos to help walk you through a wide range of topics.

Dydx Customer Support (Youtube Tutorials)

Conclusion: dydX Review 

dydX is an excellent platform if you’re interested in perpetuals, especially if you’re trying to avoid KYC/AML verification, but it obviously won’t be suitable for those wanting to trade spot or engage in other crypto services. They do have NFTs you can mint and earn, which is pretty cool, but they are limited at the moment to just the Hedgies. That might be enough for certain NFT enthusiasts, but it seems like a hard sell if you aren’t also interested in trading perpetuals. It’s possible they will add more (or re-add) to the platform as they continue to develop, but I wouldn’t hold your breath or join in anticipation of that. That said, I still think dydX is an amazing exchange that will serve traders very well with their robust and well-designed interface. It would be nice to see some more assets listed, but 28 will probably be more than enough for the bulk of traders out there, so it’s hardly a deal-breaker. All in all, I would strongly recommend dydX if trading perpetuals is your thing, but outside of that and their Hedgies NFTs, there isn’t too much to draw you in. dydX is great at what it does, but it doesn’t do too many things.

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Austin DeNoce

Austin DeNoce is a writer, personal investor, and entrepreneur who is focused on trading and investing education for macro, crypto, equities, derivatives, and foreign exchange traders. He graduated from the University of California, Santa Barbara with a bachelor’s in philosophy and carries a deep passion for a first-principles approach to investing and education therein. Austin specializes in topics related to cryptocurrencies and blockchain technology.

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