BTC-USD perpetual swap contracts are one of the most popular cryptocurrency derivatives contracts, averaging several billion dollars of value across major trading platforms each month.
In this article, we’ll walk users through a step-by-step guide on placing their first orders using dYdX perpetual swap contracts.
Trading BTC-USDC Swaps on dYdX: A Step-by-Step Guide
To get started, visit https://trade.dydx.exchange/perpetual/BTC-USDC/.
Click the blue “Connect Wallet” button on the left-hand side of the screen, to see the compatible wallet options.
Select your wallet of choice from the options available, to connect to the exchange.
Once a user’s wallet is connected, they will need to deposit USDC into the exchange contract to trade with.
Users must agree to the exchange’s Terms of Service before they proceed – US citizens and residents are not permitted to trade on the platform.
To enable the smart contract to interact with their USDC balance, users will need to click the button saying “Enable USDC”.
Users are now free to deposit a USDC balance to the exchange to trade with. They will enter their chosen quantity, and click the “Deposit” button. They will then confirm the transaction.
Once the deposit is processed on the Ethereum blockchain, users will now be ready to trade! Trading balances can be viewed in the top-left panel.
To place a simple market order, users will enter the amount that they wish to trade (denominated in BTC), and then click “Place Market Order”. Market orders execute immediately against the liquidity available in the order book at the time.
Limit orders can also be made by clicking “limit” near the top of the order box, before making a trade. Limit orders will only execute when (or if) the order price is reached.
As always, users will need to sign the transaction via their wallet to confirm an order. The cool thing about dYdX is that unlike other DEXs where you’d need to pay a gas fee for the transaction to go through, this exchange uses meta transactions – meaning users simply sign that they acknowledge the transactions, but do not pay any gas to place the order.
Once a trade has been executed, a user can monitor their position in the panel below the chart. This outlines important information such as the liquidation price, funding rate and more.
To close a position, users can simply click the “Close Position” button in the bottom right corner.
To confirm the closing of the position, click “Close position” in the pop-up window.
The dYdX BTC-USDC perpetual swap is still a new product, likely with plenty of updates and news to come.
Long-form updates on news and releases can be found on their official blog.