How To Buy dYdX (DYDX) Coin In The UK

A Beginner’s Guide to Buying and Trading dYdX Cryptocurrency in the UK

Last Updated March 5th 2022

10 Min Read

dYdX is a fairly new project in the DeFi industry but has managed to gain significant popularity due to its unique features and solutions. It offers a decentralized exchange that is available for margin trading in such cryptocurrencies, as BTC, ETH, SOL, DOT, etc. The project also issued the DYDX cryptocurrency which is a governance token and can be used within the network to swap cryptocurrencies and mine rewards for providing liquidity.

But what makes dYdX an exceptional project and should you invest in the DYDX coin right now? In this guide, we will cover all the information you need to know about this cryptocurrency and explain how to buy a DYDX coin in the UK.

How To Buy In dYdX In The UK – Quick Guide

To help you buy dYdX coins as quickly as possible, we broke the process down into a few easy steps:

Step 1: Open an account with eToro – Head to eToro’s website and click join now to open a new account.
Step 2: Verification – By uploading essential documents that show proof of identity and home address, you will get your account verified in a short time.
Step 3: Deposit – Fund your new eToro account with a minimum of $10.
Step 4: Search for dYdX on eToro – Search for DYDX or dYdX in the eToro crypto market.
Step 5: Buy DYDX – Enter the amount of the worth of dYdX you want to purchase in United States Dollars (USD), then click Open Trade.

That’s it! By following these easy steps, you can invest in dYdX in the UK in less than 5 minutes.

Crypto asset investing is highly volatile and unregulated in some EU countries and the UK. No consumer protection. Tax on profits may apply.

Where To Buy dYdX (DYDX) In The UK

Have you considered buying DYDX in the UK? Well, there are so many crypto exchanges in the UK. This can make it hard to know which platform is right for you.

Below you will find 4 of the best brokers that allow you to buy DYDX in the UK.

eToro - Best broker to buy dYdX (DYDX) in the UK
Binance - Best exchange to buy DYDX UK for asset diversity
Coinbase - Best exchange to buy dYdX (DYDX) for beginners
OKEx - Best broker to buy DYDX UK for low-cost

What Is A DYDX Coin?

DYDX coin was created to serve the dYdX project which was founded in 2017 by a former Coinbase and Uber engineer Antonio Juliano. It’s a decentralized exchange (DEX) designed for margin trading and allows high leverages, meaning you can get high loans to trade Bitcoin, Ethereum, Cardano, Dogecoin, and other popular cryptocurrencies. Though the dYdX project is not the first decentralized exchange, it’s the first one to offer advanced trading tools and features.

At the time of writing, DYDX is currently ranked #144 by its market cap.

So, what is the goal of the project? The problem is that traditional trading platforms have several limitations for cryptocurrency trading. So, dYdX aims to bring these traditional trading tools into the decentralized world and open new opportunities for traders. By far, the project attracted several investors, including such popular ones as Coinbase, Starkware, Andreessen Horowitz, etc.

Firstly, dYdX used the Ethereum blockchain to build its Layer 1 platform. Additionally, it cooperated with Starkware Industries to use its technology and develop a Layer 2 Network. Actually, Layer 2 is more advanced and there are some significant differences between these two, including margin leverages, fees, cross margin availability, etc.

Should You Buy A DYDX Coin?

At first sight, dYdX may seem just another Defi project, as it’s not the only DEX network. However, if you explore deeper you will notice that it is actually a sophisticated network that aims to bring new developments into the decentralized community. It makes the DYDX coin an exceptional investment, as when more people start talking about the project, it will attract more investments. Plus, the fact that you can easily mine rewards staking this coin, will increase the demand for DYDX cryptocurrency.

Though it is traded only for a short period, the cryptocurrency has a promising price history. Being issued through the airdrop, DYDX increased to $10 when it was first listed on an exchange. Shortly after its launch, the cryptocurrency hit its all-time high reaching $27.78. But the prices dropped significantly after that, and it’s now traded at $5 which is several times higher than its initial price.

DYDX price chart

DYDX price history Source: coinmarketcap.com

In a word, DYDX is a trustworthy asset, as it is backed by a professional team of developers. At the same time, you’ll never know what would happen with cryptocurrencies after a short time, as they stand out with high volatility. While DYDX is worth investing in, you need to be very careful with your money, as trading cryptocurrencies involves high risks because of high fluctuations.

How To Buy DYDX Coin Online In The UK - A Step by Step Guide

Now, when you understand the complete picture about investing in the DYDX coin, you may be interested in buying this asset. Below, we have included a step-by-step guide that will help you to smoothly go through the whole process.

1. Register for an Online Account & Deposit Funds

Having chosen a cryptocurrency exchange, your first step is to create an online account. This is the technical part and is basically similar to all the crypto brokers. You need to provide the basic personal info and use your phone number and email to verify your account. The whole verification process follows then, which is about proving your identity and address. When you complete it, next you must charge your account with funds to start trading.

2. Buy DYDX Coin

With a funded and verified account, you can eventually start purchasing the token. But before opening a position think of the way you are going to trade and adopt a trading strategy to minimize the risks of losing your capital. You can apply either a long-term or a short-term strategy that would best suit this cryptocurrency. When you are ready, you can click on the “Trade” button and fill in the amount you want to invest in the dYdX project.

3. Transfer Your Funds to a Cold Storage Wallet

When you make a buy order and purchase DYDX coins, they are initially stored on your exchange account which is centralized. Reputable crypto brokers adopt robust security features to protect your funds, but in case you want to add an extra layer of security, you can use a decentralized wallet.

Decentralized wallets are of two kinds - hot storage and cold storage. Which of them can suit you best actually depends on your budget and trading plans. Hot wallets are well-suited for active trading. They are free to download and provide an in-built exchange where you can swap between different crypto assets or trade them. They also have price charts where you can track crypto prices without leaving the app.

Cold storage wallets are mainly designed for passive traders and for keeping a huge amount of funds. You need to buy a hardware wallet from a store and keep your coins offline, which makes them extra secure.

Check Out: The 5 Best Ways To Buy DYDX

Crypto asset investing is highly volatile and unregulated in some EU countries and the UK. No consumer protection. Tax on profits may apply.

How To Trade DYDX Coin Online In The UK - A Step by Step Guide

To bring your trades to maximal efficiency, you need to follow some crucial steps, the first one of which is selecting the right trading platform. If you plan to practice a short-term trading strategy, you will apparently open and quick positions frequently. Consequently, you need a broker that will execute your trades in a short time, so that you can benefit from the market volatility.

Plus, it should offer competitive trading fees, such as commissions or spreads. Being a relatively new coin, some platforms do not yet support DYDX. But if the cryptocurrency becomes even more popular, it may change in the near future. For now, you can use eToro, Binance, KuCoin, Gate.io, or Huobi.

Having chosen the brokerage platform, you need to open an account and deposit funds on it as you cannot trade with an empty account. Consider that you must also verify your account with an ID to use the platform to its full potential. Brokerage platforms offer multiple methods to deposit money into your account, including bank cards, bank transfers, and even e-wallets. Still, you need to check the deposit fees and minimum deposits the platforms may require.

And finally, before you start trading DYDX coin, you had better determine how you will trade. This process involves doing careful market and fundamental analysis about the DYDX cryptocurrency to better understand its price movements. This is the research phase, where you can use several sources, including educational platforms, learning courses, and follow the latest news about the market and cryptocurrencies.

DYDX Coin Pros And Cons

So, what are the best reasons to buy the DYDX cryptocurrency, and what are the risks of investing in it? This section of the guide is dedicated to the pros and cons of DYDX that will help you better understand whether it’s a good investment for you or not.

Pros:

It’s backed by a team of experts, and its founder is a former Coinbase engineer.
dYdX brings decentralized trading to a new level with its margin trading platform and exceptional Defi trading experience.
It collaborates with Starkware to build a renowned Layer 2 network.
Got a $1 million investment from Coinbase and several other investments.
The exchange platform supports almost 30 cryptocurrencies, and it seems this number will grow in the near future.
Trading on the platform, you will earn dYdX coins.
The protocol enables you to stake your dYdX coins and earn rewards.

Cons:

Still in competition with the traditional trading platforms that offer simple interfaces and less risky investments.
A highly volatile crypto asset involving risks of losing money.

Is DYDX Coin A Good Long-term Investment?

DYDX is developed by a team of experts who have incredible plans to develop DeFi trading. dYdX project faces a lot of competition in the industry. Still, the platform offers a bunch of distinctive tools and features, including decentralized margin trading with high leverage, which distinguishes it from other traditional and decentralized trading platforms.

Besides, if you invest in DYDX for the long-term, instead of keeping your assets idle, you can stake in the DYDX liquidity and gain rewards. It’s another good reason to invest in DYDX for the long term. Anyway, you need to carry out your own research about this project to make sure the project can further develop and attract mass attention.

What will be DYDX Coin Worth in 2025?

There are contradictory predictions about the DYDX future prices. For example, the Wallet Investor algorithm predicts that DYDX will be in the bear market and its prices can even drop to $0.265 in one year. So, the platform considers DYDX an unprofitable investment that will continue decreasing in the upcoming years.

In contrast, the Crypto Price Prediction data indicate the reverse: according to it, DYDX can increase up to $12 in 2023. It will keep growing during the following years and be traded with an average price of $23 in 2025. In the long-term DYDX is expected to hit $100 by 2030.

Year	Minimum Price	Average Price	Maximum Price
2023	$10.72	$11.10	$12.80
2024	$15.89	$16.44	$18.73
2025	$22.84	$23.66	$27.54
2026	$32.21	$33.39	$39.42
2030	$91.56	$102.40	$105.68

The Digital Coin Price algorithm is not as optimistic as the Price Predictions; still, it indicates that DYDX can experience incredible growth. It foresees that DYDX can increase to $10 by 2025. According to the algorithm, DYDX will continue increasing steadily after 2027 and hit $25 by 2031.

Read Also: DYDX (dYdX) Price Prediction

What’s The Purpose Of The DYDX Coin?

First, we need to differentiate between the DYDX cryptocurrency and the dYdX project. The latter is a DEX founded to bring solutions for decentralized trading, while DYDX is its native token which serves particular purposes. It’s a governance token that is used to become a liquidity provider and generate rewards. Other use cases include trading, swapping cryptocurrencies on the dYdX platform, and staking. Plus, you will also get discounts when trading on the dYdX platform if you hold DYDX.

Is DYDX Coin Mining Profitable?

Mining DYDX is actually quite a straightforward process, as the project tries to attract several liquidity providers who will add funds to its decentralized liquidity. The operations of the exchange are based on its liquidity and the shortage of it can’t satisfy the demand of the users. Hence, its mining process is rather attractive.

As it’s based on the Ethereum protocol it uses the Proof of Stake mechanism, so DYDX holders can stake their DYDX tokens in the pools and generate rewards. The other way to generate DYDX rewards is to trade on the platform.

Buying Or Trading DYDX Coin - Things To Take Into Consideration

The bottom line, DYDX seems to be quite an attractive asset that can help you generate good earnings both in the short term and long term. Plus, it has several other use cases that you can benefit from if you trade on the dYdX exchange. Hence, even if its value decreases and you don’t get the results that you expect, you can still use it on the platform.

In any case, DYDX is a volatile cryptocurrency and requires detailed monitoring before you invest in it in significant amounts. You won’t lose too much if you invest reasonably and buy DYDX in small amounts. If you are ready to buy DYDX in the UK, visit one of the exchanges in our recommendation list and create an account to start purchasing.