In particular, BTC-USD perpetual swap contracts are one of the most popular cryptocurrency derivatives, averaging several billion dollars of value across major trading platforms every month.
What’s unique about dYdX perpetual swaps is that they presented one of the first major DeFi alternatives to platforms such as BitMEX, Binance and Deribit for Bitcoin swaps. Now with Layer 2 scaling, they may finally compete on user experience too.
In this article, we’ll walk users through a step-by-step guide on placing their first orders using Layer-2 dYdX perpetual swap contracts.
Trading BTC-USDC Swaps on dYdX: A Step-by-Step Guide
To get started, visit https://trade.dydx.exchange/
Click the blue “Connect Wallet” button to see the compatible wallet options. For this example, we’re going to be using Metamask.
Upon connecting your wallet, you’ll be asked to generate a Stark key. This is simply a way to connect your wallet address to the Layer 2 platform.
Click “Generate Stark Key” and click the “Sign” button in the Metamask pop-up window.
Next, you will be asked to agree to dYdX’s terms and conditions before creating an account. To complete the process, click the blue “Create Account” button and sign the transaction via the Metamask pop-up.
You may also enter a username and email address to attach to your account if you’d like to receive updates from the platform, however this is optional.
Next, you will be asked to register the account on-chain. This step includes some gas costs in Ether, so double-check that you are willing to pay. Click “Register”, and confirm the transaction in Metamask.
Now, it’s time to enable USDC on dYdX, so that the contract can interact with the USDC tokens in your wallet. Click on “Deposit”, then “Enable USDC”. Once again, this will cost some gas fees in Ether.
Finally, you can deposit USDC tokens to get started with trading! Enter the amount of tokens you wish to deposit into the contract, then click “Confirm Deposit”. This is the final onboarding step that will require a gas fee.
Once your deposit clears, navigate to the “Trade” tab. Here, you will see the trading interface, including a chart, order book and balances.
Select the market that you wish to trade by clicking the ticker or “All markets” near the top-left corner.
To place an order, select your order type and enter the amount you wish to buy or sell. Ensure that you have selected the right tab (buy or sell) before placing your order. To confirm the order, click the “Place order” button at the bottom.
Once you have entered a position, you may view it in the large panel on the right of the screen. This will show your position, unrealized profit or loss, and a “close” position button.
You can also view all of your open positions simultaneously by navigating to the “Portfolio” tab and clicking “Positions” on the left-hand side.
The dYdX BTC-USDC perpetual swap is still a new product, likely with plenty of updates and news to come.
Stay tuned for the latest updates, including new exchange features and trading pairs by following dYdX Exchange on Twitter or Telegram.
Long-form updates on news and releases can be found on their official blog.