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HomedYdXHow To Buy dYdX Online in 2022

How To Buy dYdX Online in 2022

Last updated 23rd May 2022
Disclosure

DYDX is a decentralized trading platform with smart contract functionality using the Ethereum blockchain. The exchange supports spot trading, perpetual trading, and margin trading.

The dydx token, the governance token of the platform, has recently come into focus due to the token’s airdrop in September 2021. Additionally, investors using the staking feature also claim to be making thousands of dollars on the platform.

We’ll let you know the best platforms to buy dydx, possible trading strategies, tips to consider before investing in dydx, and much more.

Best Brokers To Buy dydx in 2022

Many platforms offer dydx trading pairs. Finding the right platform for your needs critical analysis. We’ve come up with a list of the best providers for you. See below.

1
eToro
Minimum Deposit
$200
Exclusive Promotion
User Score
10
More than 3,000 assets, including currencies, stocks, cryptocurrencies, ETFs, indices and commodities
Buy crypto, or trade cryptocurrencies via CFDs
This ad promotes virtual cryptocurrency investing within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in most EU countries, no EU protections & not supervised by the EU regulatory framework. Investments are subject to market risk, including the loss of principal.

Key Takeaways

  • The dydx platform is decentralized and non-custodial with smart contract functionality that offers multiple crypto trading options. The native coin is also called dydx

  • We recommend using eToro to buy dydx tokens.

  • Apart from crypto brokers, you can also buy dydx using exchanges.

  • Use hot or cold wallets to store your dydx tokens. Metamask and Trezor wallets are some of the wallets you can use.

  • Have an investment plan in place before buying the dydx tokens. Consider factors like volatility, taxes, and fees before purchase.

What Is the Difference Between Owning dydx VS a Derivative Product?

Owning represents buying a dydx tokens using fiat currency or exchanging them for another crypto. Brokers and fiat to crypto exchanges facilitate the purchase of dydx for currencies like the USD, EUR, and GBP. In contrast, crypto to crypto exchanges allows you to exchange cryptocurrencies like USDT for dydx.

Popular trading pairs include dydx/USDT, dydx/USD, and dydx/ETH.

Derivative trading involves establishing a contract between the buyer and seller. You’ll not have to own the underlying asset with this form of trading. Examples of derivative products include futures trading and Contract for Differences(CFDs).

Derivatives help you leverage the amount you have while speculating on the underlying asset's price movement. Currently, no platforms are offering derivative products for dydx tokens.

Different Ways To Buy dydx

There are a variety of ways to purchase dydx.

Brokers:

  • These platforms enable you to purchase dydx using fiat currencies. They are renowned for being beginner-friendly, e.g., eToro.

Centralized Exchanges:

  • Custodial platforms where you can buy and sell dydx, e.g., Binance.

Decentralized Exchanges:

  • Non-custodial platforms with no central authority where you can buy and sell dydx, e.g., Uniswap(v3) and SushiSwap.

Peer-to-peer Marketplaces(P2P):

  • These are non-custodial platforms that match buyers and sellers. Currently, there are no P2P marketplaces that offer dydx.

Where To Buy dydx

We’ve picked two of the top platforms offering dydx at the moment. We’ll also highlight their pros and cons.

eToro

eToro is a reputable crypto broker with a global presence. It is renowned for its social trading feature.

Pros

Low account minimums
Reputable
A variety of funding options
Simple to use
Copy-trading feature
Easy account opening

Cons

No CFDs for dydx

Binance

Binance is the biggest crypto exchange in the world. There are many dydx trading pairs available.

Pros

Reputable
multiple payment options
multiple cryptos available
A variety of trading pairs for dydx
Trust wallet available

Cons

Account verification can take longer

How To Buy dydx Online?

Depending on the platform, buying dydx tokens can be a breeze. To make the first purchase a worthwhile experience, we recommend using eToro. Here are the guidelines you’ll need to use.

Step 1: Go to the official website
Step 2: Sign up for an account and verify it
Step 3: Fund your account
Step 4: Execute the purchase process

How To Trade dydx?

Trading can be done on both brokers and exchanges. Trading on brokers is beginner-friendly.

Currently, apart from spot trading, being an altcoin, there are no platforms that offer trading options for dydx. Options such as CFDs and futures are widely available for mainstream cryptos like Bitcoin and Ethereum.

Crypto Investment Strategy

There are two primary categories of crypto investment strategies.

Long:

  • This strategy demands that you invest in dydx for the long haul. Long-term investors typically HODL(Hold on), expecting prices to continue to rise.

Short:

  • This strategy involves taking advantage of price fluctuations in the short term.

How To Store dydx?

After purchase, you’ll need to store your dydx tokens securely. For this, you’ll require a crypto wallet. There are two broad categories of such wallets, including hot and cold wallets.

Hot Wallets

These wallets need to be online for successful operation. Web wallet, mobile, and desktop wallet are the three types of hot wallets.

Pros

Available for PC, mobile, and the web
Free or cheap
Easy to download

Cons

Less secure
Some are custodial

Exchange wallets are offered to you by exchanges like Coinbase to store your coins. Desktop and mobile wallets are mostly non-custodial, meaning you’ll have control over your private keys. Examples include Metamask and MyEtherWallet.

Cold Wallets

These types of wallets operate offline. They are the most secure option. They are preferred by investors who store substantial amounts or long-term investments.

Unlike hot wallets, you’ll need to buy cold wallets. Good examples include Ledger and Trezor wallets.

Pros

More secure
Non-custodial
Works offline

Cons

Expensive
Some are complicated to use

What Are the Different Ways To Pay for dydx?

Exchange and brokers integrate different payment methods to facilitate easy account top-up. Providers may also integrate specific funding options in some jurisdictions. For instance, some platforms have SEPA payments to allow bank payments from Europe.

Here are the most common types of payment methods.

Paypal

You’ll need to link your broker account to your Paypal for you to transfer funds. eToro and Binance provide the option to fund your account using Paypal.

Pros

Secure
Easy to open an account and use
Beginner-friendly option

Cons

Higher fees
Limited adoption

Neteller

It is similar to Paypal and will require a connection to your exchange account. eToro provides its clients with the option to pay with Neteller.

Pros

Secure
Simple to use
Easy to open an account
Beginner-friendly

Cons

Relatively higher fees
Limited adoption

Bank Transfers

The most common payment method. Depending on your jurisdiction, you may use SEPA, ACH, or Rapid transfer. Binance and eToro also provide the option to purchase dydx tokens with bank transfers.

Pros

Wide adoption
Low fees
Easy to link
High transaction limits

Cons

Slower in some instances

Credit Cards

Cardholders can easily link their account to the exchange. Transactions are known to be instantaneous. Binance and eToro provide credit card options.

Pros

Secure with secure3D cards
Easy to use
Instant deposits

Cons

Higher fees
Interest rates
Limits on purchase

Debit Cards

Unlike credit cards, debit cardholders need to have money in their accounts. They also facilitate fast transactions. Visa and Mastercard cards are readily acceptable on a platform like eToro.

Pros

Secure with secure3D cards
Easy to use
Instant deposits

Cons

Higher fees
Limits on purchase

What To Consider When Buying dydx?

When buying dydx, there are some considerations to make. Below are examples:

Volatility:

  • Cryptocurrencies are synonymous with price fluctuations. dydx is no different, and you’ll be putting your capital at risk. As a dydx investor, you’ll have to study the market fundamentals to ensure you make the correct decisions. For instance, in the last three months, beginning late November, the price of the dydx token has seen an $11 price decrease. Use such information to make better investment choices.

Different Fees:

  • Spreads, deposit and withdrawal fees are typical fees you'd expect. When funding your account, different funding methods are liable to charges. Bank transfers typically have the least fees compared to credit cards. The fees will also largely depend on the platform and the fees structure. For instance, eToro charges a 5% spread for trading dydx.

Regulations and Taxes:

  • Different jurisdictions have different laws regarding crypto purchases and accompanying taxes. For instance, the US considers crypto an asset in the class of property and is liable to capital gains tax. Countries like China have banned exchanges, and therefore it becomes tough to trade cryptos.

Investment Strategy:

  • Have an investment plan before purchasing your dydx tokens. Decide whether the project is viable for the long term. You can decide to undertake short-term trading depending on prevailing market conditions.

Security of your tokens:

  • Before purchasing the dydx tokens, decide how you’ll store your tokens. We looked at hot and cold wallets earlier. We always advise against leaving your crypto on exchanges if your investment strategy is long-term. Transfer them to an external wallet.

Crypto platform of choice:

  • Select a reputable broker that is beginner-friendly, has reasonable fees and has responsive customer support. Examples of such providers include eToro, Binance, and Kraken.

Competition:

  • New and existing crypto projects offering similar services may bring about competition resulting in price drops.

  • Competition may turn out to be either good or bad. For instance, it may spur the growth of these projects together as a specific niche. Top dxdy competition includes AAVE and Maker.

Is It Safe To Buy dydx Online?

It is generally safe to buy dxdy online. However, as with any online purchase, minimal risks persist.

There are ways to make the purchase and subsequent trading endeavors safe.

Two-factor authentication (2FA):

  • Ensure to activate 2FA on your crypto and wallet accounts. Apart from logging in, some platforms enforce 2FA on withdrawals.

Storage:

  • After purchase, you’ll need to store your dxdy tokens securely. You can use a crypto wallet.

Using reputable providers:

  • Sign up to reputable platforms only. This ensures that your funds, personal data, and tokens are safe.

Using a secure connection:

  • We strongly advise against using free wifi to access your wallet or broker account.

Passing only mandatory KYC:

  • Fill in only the required details. Don’t overexpose yourself by providing even optional information.

How To Sell dydx?

There are different methods of selling dydx tokens. Some platforms will allow you to swap for a stablecoin like Tether before selling. Other providers will allow you to sell directly on the market.

Here are the steps to sell your dxdy on eToro:

Step 1: Log in to your account
Step 2: Select dxdy
Step 3: Execute the trade

Is It Worth Buying dydx Right Now?

The price of the dydx token has tumbled since its all-time high of $27 in September 2021. In 4 months, the token has decreased in value by about 450%.

Additionally, taking the high over the last two months, the price has decreased by at least $1.5. Considering that we are currently in a bear market, there is the possibility that the prices may still experience a decline.

However, there is an expectation that the prices will remain relatively stable in the short term outside any external forces. Expect minimal price shifts if you buy the coin now. Please note that crypto investment carries risks and may lead to capital loss.

Final Thoughts

Using a broker is the best way to purchase dydx tokens. Platforms like eToro are beginner-friendly and provide an array of payment options.

It's critical that you find a suitable way to store your coins securely. Consider the factors we’ve listed before investing in dydx.

FAQs

Can I buy dydx in the US?
Do I have to be 18 to buy cryptocurrency?
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Stephen Ngari

Stephen Ngari

Stephen is a seasoned crypto and fintech specialist with industry experience. Having worked in tech, helping people send money globally and rollout solutions, he understands the impact that tech like blockchain brings to real world issues. He is passionate about crypto, writing and basketball.