dYdX on Arbitrum: How To Start Trading in Under 5 Minutes

Summary

This video provides a step-by-step guide to getting started with decentralized perpetual trading on DYDX, a platform launched in 2017. It walks users through the process of depositing USDC via MetaMask on the Arbitrum network, highlighting key steps like wallet setup, funding with both USDC and ETH, and connecting to DYDX. The video also explains the differences between instant and standard deposit types, and how to begin trading on over 200 markets once the deposit is complete. A detailed walkthrough ensures users can onboard smoothly and start trading efficiently on DYDX.

Takeaways

• 😀 DYDX is a leading decentralized perpetual trading platform launched in 2017.
• 😀 To start trading on DYDX, traders need to deposit margin onto DYDX's blockchain, even when using self-custody.
• 😀 DYDX allows deposits from Ethereum, Base, Optimism, Arbitrum, Avalanche, and Polygon networks.
• 😀 For this example, the process of depositing USDC on Arbitrum using MetaMask is demonstrated.
• 😀 DYDX supports various wallets, including MetaMask, Coinbase Wallet, and Binance Wallet.
• 😀 Having both USDC and ETH on the Arbitrum network is necessary for trading on DYDX, as ETH is required for transaction fees.
• 😀 USDC and ETH can be purchased within MetaMask using its buy feature, supporting various payment options with different fees and processing times.
• 😀 After funding the MetaMask wallet, the next step is to connect it to DYDX via the 'Connect Wallet' button on dydx.trade.
• 😀 Connecting the wallet to DYDX requires two quick signature requests: one for ownership verification and another to enable trading. These are free and do not require transaction fees.
• 😀 Once connected, traders can select the deposit button on DYDX, choose the coin (USDC) and network (Arbitrum), and decide between instant or standard deposit types.
• 😀 Instant deposits are faster but incur higher fees, while standard deposits take about 20 minutes but have lower fees. After selecting the deposit amount and speed, users can sign the transaction and wait for confirmation.
• 😀 Once funds are deposited, traders can start trading immediately across 200+ markets on DYDX.

Q & A

What is DYDX and when was it founded?

DYDX is a decentralized perpetual trading platform founded in 2017.

How does trading on DYDX differ from other platforms?

DYDX runs on its own blockchain, and even with self-custody, traders must deposit margin onto the blockchain to start trading.

Which networks can users deposit from on DYDX?

Users can deposit from Ethereum, Base, Optimism, Arbitrum, Avalanche, and Polygon.

What wallet options does DYDX support?

DYDX supports several wallets, including MetaMask, Coinbase Wallet, Binance Wallet, and more.

Why is using a compatible wallet important when onboarding to DYDX?

Using a compatible wallet is essential for successful onboarding, as it ensures proper connection to the DYDX platform for trading.

What tokens are required in MetaMask for depositing on DYDX?

For depositing on DYDX, both USDC and ETH are needed on the Arbitrum network, with ETH required to cover transaction fees.

Can users buy USDC and ETH directly in MetaMask?

Yes, users can purchase USDC and ETH directly within the MetaMask wallet using its buy feature.

What is the difference between instant and standard deposits on DYDX?

Instant deposits are faster (around 60 seconds) but come with higher fees, while standard deposits take about 20 minutes and have lower fees.

What steps are involved in connecting a wallet to DYDX?

To connect a wallet to DYDX, users must visit dydx.trade, select 'connect wallet,' and complete two signature requests to verify ownership and enable trading.

How can users begin trading once their deposit has been made?

Once the deposit has arrived on DYDX, users can start trading immediately across 200+ markets.