home” Exchange » Best Decentralized Exchanges for Leveraged Trading
introduction
Perpetual contracts, which are enhanced versions of standard futures with some modifications, are now offered offered to crypto traders. These new contracts were initially accessible on the Ethereum blockchain. The main objective of these contracts is to hedge the investor’s value of the US dollar against a fixed rate of return.
This form of contract was anticipated by many in the Bitcoin world as it offers price stability in an otherwise unpredictable market.
Constant exchange, launched by Bitmex in 2016, are a price speculation tool that has become one of the most popular derivatives in the cryptocurrency market. Decentralized Exchange (DEX) and Centralized Exchange (excl) there are two ways to trade these new DeFi derivatives (DEX).
In this article, we will go through some of the best decentralized exchanges with perpetual leverage. We’ll mention what the maximum leverage is, what coins are available, what the fees are, etc. So without further ado, let’s get into the details.
The Best DEXs to Trade with Leverage (we cover what the maximum leverage is, what coins are available, what the fees are, etc.)
dYdX
The first exchange on our list of the best perpetual DEXs is dYdX. This exchange uses smart contracts to provide perpetual trading, margin trading, spot trading, lending and borrowing. The company was founded by its CEO – Antonio Juliano.
When it comes to maximum leverage, dYdX offers up to 20x for Bitcoin and Ethereum, while for all other markets the maximum leverage is 10x. At the time of writing, dYdX supports more than 30 major cryptocurrencies for perpetual contracts, including Bitcoin, Ethereum, Litecoin, Cardano, Bitcoin Cash, Dogecoin and Polkadot, Solana, Monero, EOS, Cosmos, Ethereum Classic, ZCash, Internet Computer, and many other.
Trading fees from dYdX are definitely lower than the market average – they can range from 0% to 0.05% (maker and taker fees) depending on trade volume. In addition, you can get discounts on trading fees if you are the owner of dYdX (DYDX) native coin.
Finally, you can read our full review of dYdX here.
Visit dYdX now
Leverj.io
However, Leverj.jo is less well known exciting decentralized cryptocurrency exchange which supports open-ended contracts. It was founded at the end of 2018. Leverj is a platform for trading decentralized derivatives. It was designed and engineered by some of the brightest minds on Wall Street and Silicon Valley.
This decentralized exchange offers a maximum leverage of 50x, which is among the largest on the market. Even more interesting about Leverj, however, is the fee structure. First of all, the exchange does not charge gas fees while you can trade freely on the Ethereum network – something you rarely find on crypto trading platforms.
In addition, Leverj accuses low trading fees. In fact, there are no fees for spot trading. Trading fees for futures are 0.02% (maker) and 0.04% (taker).
At the time of writing, this decentralized exchange supports a wide range of trading pairs including BTC/USD (DAI), BTC/USD (USDT), DEFI/USD (USDT), ETH/USD (DAI), ETH/USD (USDT ) and LINK/USD (USDT).
mango markets
Mango Markets is the next exchange worth noting on our top perpetual leverage decentralized exchanges. The platform is Operating on the Solana blockchain, and it’s powered by Solana and Serum. Mango Markets was founded by two crypto investors, Daffy Durairaj and Maximilian Schneider.
In addition to perpetual leverage trading, Mango offers spot market, derivatives investing, and landing and borrowing with the aim of creating an all-in-one trading platform. The exchange offers spot margin with up to 5x leverage and perpetual futures with up to 20x leverage.
When it comes to fees, Mango charges a perpetual trading fee of 5 bps for the taker, while “makers” pay no trading fees. You can get a discount on this trading fee if you make permanent trades of at least 10,000 MNGO (MNGO is Mango’s native token). In general, Mango charges low fees because it operates on the Solana network. For example, if you want to have a Mango account, you have to pay a small fee of 0.035 SOL. However, only a small number of trading pairs are supported, which is always a problem on Solana-based platforms.
Edge DDEX
The first thing you will notice about the DDEX exchange is its beginner-friendly interface and a very nice design. DDEX is a decentralized exchange that uses a hybrid paradigm with off-chain matching and on-chain settlement. Order creation and cancellation does not require gas, but all token transactions are still processed on-chain. This is a more market maker friendly structure designed to encourage high liquidity.
DDEX supports spot trading, margin trading, lending and borrowing. When it comes to margin and leverage trading, the platform supports up to 5x margin. When it comes to fees, DDEX has an interesting solution – it charges a flat fee of 0.10% on all trades, both takers and makers. This is a so-called “flat-fee model”” and the fee is competitive as it’s effectively below the industry average of 0.25% per trade.
Another benefit of DDEX is that you can trade major coins like Bitcoin and Ethereum.
Perpetual Protocol
The Perpetual Protocol is another decentralized exchange that (as the name suggests) offers trading with perpetual leverage. The platform’s native token is PERP and is used to “power” exchanges for perpetual contracts. Perpetual contracts allow traders to open leveraged short and long positions on a wide range of crypto assets. PERP holders can use the token to get a discount on trading fees, which is a fairly common practice.
The Perpetual Protocol trading fees are the same as the ones we mentioned on the Margin DDEX exchange – 0.10% for each trade regardless of whether you are a maker or a taker, hence this exchange also uses the “flat- fairy model”. The exchange has quickly become one of the leading perpetual leverage exchanges in the crypto industry, with up to 10x maximum leverage across 15 markets that also include major cryptocurrencies.
In addition, the protocol supports a wide range of major crypto assets such as Bitcoin, Ethereum, AAVE, and Polkadot.
pivot point
Another interesting DEX that we will explain in this article is Fulcrum. Before we get into the main features, please note that you do not require any verification to leverage the exchange, which every crypto trader and investor loves to see. Also, all funds are controlled by non-custodial solutions.
In addition to spot and leveraged trading, Fulcrum also supports landing and borrowing services. When it comes to trading fees, Fulcrum uses the same methodology as DDEX and Perpetual Protocol or what they call a “Flat Fee Model”. However, this exchange charges higher trading fees (0.15%) compared to DDEX and Protocol (0.10%). However, it’s worth noting that the fee is still below the industry average. The maximum leverage is up to 5x.
Fulcrum operates on three networks – Ethereum, Binance Smart Chain and Polygon.
future swap
And last but not least, futures swap is an exchange on our list of the best decentralized exchanges with perpetual leverage. This is another exchange that offers a beginner-friendly interface and I found it extremely easy to use. In addition, futures swap offers a maximum leverage of up to 30x!
Ultimately, this exchange is just like DDEX, Perpetual Protocol, and Fulcrum and charges a flat trading fee. However, Futureswap only offers the lowest flat trading fee of all exchanges mentioned 0.05%. Futures swap deserves our attention as it offers the highest maximum leverage and the lowest trading fee, although it is probably the least known exchange of all that will be explained in this article.
According to Futureswap’s website, the main services of the platform (besides up to 30x leverage) are low-risk liquidity pools, cheap transactions, the most liquid AMMs, permission-free trading and full compatibility. Futureswap supports cryptocurrencies like Bitcoin, Ethereum and Uniswap.
frequently asked Questions
What are Perpetual Swaps❓
A perpetual futures contract, also known in finance as a perpetual swap, is an agreement to buy or sell an asset at an indefinite future date. Perpetual swaps allow traders to acquire large holdings of cryptocurrencies while only depositing a small amount of money.
This opportunity to grow big with small movements attracts many individuals to take it, but with such large rewards comes enormous risk.
What is a decentralized perpetual exchange❓
A decentralized perpetual exchange is an exchange that supports leveraged perpetual contracts; dYdX, Leverj.io, Mango Markets, DDEX, Perpetual Protocol, Fulcrum and Futureswap are some of them.
What is the safest decentralized crypto exchange❓
Coinbase and Coinbase Pro are probably the safest and most secure decentralized crypto exchanges as Coinbase is one of the largest and most trusted crypto platforms in the industry.
How long can I keep a permanent contract❓
You can hold a permanent contract indefinitely. Perpetual contracts, unlike futures contracts, do not have settlement options. The main benefit of perpetual contracts is that you can keep them indefinitely. Perpetual traders do not have to keep track of different delivery months. For example, a trader can keep a short position open indefinitely unless liquidated. We however Do not recommend this type of trading to inexperienced traders.
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CaptainAltcoin’s authors and guest contributors may or may not have a vested interest in any of the projects and companies mentioned. None of the content on CaptainAltcoin is investment advice or a substitute for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of CaptainAltcoin.com
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