dYdX has evolved into one of the most advanced decentralized exchanges (DEXs) for perpetual futures trading. In 2025, it operates on its own Layer 1 blockchain built with the Cosmos SDK, offering full decentralization, validator-based consensus, and high-speed execution. Whether you're a beginner or a seasoned trader, this guide walks you through how dYdX works — from wallet connection to trade settlement.
dYdX is a decentralized exchange focused on perpetual contracts. It allows users to trade crypto assets with leverage, using a fully non-custodial and decentralized infrastructure. The move to its own Layer 1 chain in late 2023 marked a major shift, giving users more control, faster performance, and on-chain governance.
Unlike centralized exchanges, dYdX doesn’t require email sign-up or KYC. To begin:
Visit the official dYdX Exchange
Click “Connect Wallet” in the top-right corner
Choose a supported wallet (e.g., MetaMask, Keplr, Leap, WalletConnect)
Approve the connection and switch to the dYdX Chain network
Your wallet acts as your identity and trading account.
To start trading, you’ll need to deposit assets into your dYdX account:
Use the Bridge feature to transfer USDC from Ethereum or other chains to the dYdX Chain
Confirm the transaction via your wallet
Deposits are settled on-chain and typically complete within minutes
You can also deposit DYDX tokens for governance participation or staking.
dYdX offers a professional-grade interface with:
Real-time charts powered by TradingView
Order book and depth data
Trade panel for placing market, limit, and stop orders
Positions tab to monitor open trades, margin usage, and PnL
The dashboard is designed for speed, clarity, and precision.
To open a position:
Select a trading pair (e.g., BTC-USDC, ETH-USDC)
Choose your order type: Market, Limit, or Stop
Set your leverage (up to 20x on select assets)
Enter your position size and direction (Long or Short)
Click “Open Position” and confirm via your wallet
Your trade is executed instantly and recorded on the dYdX Chain.
Once your position is live:
Monitor your unrealized PnL, liquidation price, and funding rate
Add or remove margin as needed
Close your position manually or set take-profit/stop-loss orders
All settlements are handled on-chain, ensuring transparency and security.
dYdX offers competitive fees:
Maker Fee: ~0.01% (for adding liquidity)
Taker Fee: ~0.05% (for removing liquidity)
Funding Rate: Dynamic, paid between long and short positions
No gas fees for trading: Thanks to the custom Layer 1 chain
Non-custodial: You control your funds at all times
Validator-based consensus: Ensures decentralization
DYDX token: Used for voting on protocol upgrades and fee structures
dYdX’s governance model empowers users to shape the future of the exchange.
In 2025, dYdX offers a seamless, decentralized trading experience from sign-up to settlement. With its sovereign blockchain, advanced trading tools, and deep liquidity, it remains a top choice for traders seeking speed, control, and transparency.
Whether you're placing your first trade or managing complex strategies, dYdX gives you the infrastructure to trade confidently in the evolving world of DeFi.