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dYdX Academy

Explore crypto topics ranging from basic to advanced

AllFeaturedCrypto EconomicsCrypto Next LevelTradingCrypto 101Glossary →

Hedging in Crypto: How Crypto Traders Protect Their Portfolios
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Sometimes, traders “hedge their bets” to manage the crypto market’s volatility. But what is hedging in crypto, and how can you add it to a trading strategy?

What is Metamask?

Millions of crypto traders rely on MetaMask to interact with Web3 and blockchain tech. Find out what MetaMask is and how to set up an account.

What is Crypto Mining?

Crypto mining is essential for Bitcoin’s success. Find out what crypto mining is, how it makes sending BTC a reality, and if it’s profitable.

What is Tokenomics in Crypto?

Crypto traders swear by tokenomics when deciding which digital assets to buy. But what is tokenomics, and why is it such a big deal in crypto trading?

How to Pay With Cryptocurrency: A Beginner's Guide

More companies are easing into the idea of receiving crypto payments. Learn how to pay with cryptocurrency to take part in the digital economy.

How to Make a Cryptocurrency: A Guide for Creating Crypto Assets

Creating virtual currencies is becoming easier due to advancements in the crypto ecosystem. Learn how to make a cryptocurrency and how to get started.

Crypto Scams 101: How to Identify Fake Cryptocurrency

Counterfeit cryptocurrencies cost traders millions in losses each year. Avoid falling for a token trap by learning how to identify fake cryptocurrency.

How to Trade Cryptocurrency: A Beginner-Friendly Guide

The crypto world is potentially profitable, but traders should take proper precautions. Learn how to trade cryptocurrency and develop an actionable strategy.

What are Hardware Wallets?

Many crypto traders swear by the security of hardware wallets, but what are hardware wallets, and how do people use them for crypto storage?

The dYdX Crypto Glossary - Crypto Terms & Definitions

The dYdX Crypto Glossary is a complete guide through the ever-evolving landscape of cryptocurrency.

What Does FUD Mean?

Hearing about FUD freaks many crypto traders out, but is it worth the stress? Learn about FUD’s meaning in crypto and how it affects trading psychology.

What is Cryptojacking?

Whether you own or don’t own crypto––everyone's at risk of cryptojacking attacks. Learn what they are and how to spot and prevent them.

What Are Crypto ETFs, and How Do They Work?

Crypto ETFs simplify digital asset trading, but are they the right option? Learn their pros and cons and how they differ from buying virtual coins.

What are Layer 1 Blockchains?

Layer 1 blockchains are at the core of many cryptocurrency protocols. Learn what layer 1 means in crypto and how it powers the digital assets economy.

What are Automated Market Makers?

The algorithms behind automated market makers play a significant role in the infrastructure behind DeFi. But what are they, and how do they impact decentralized crypto trading?

Soulbound Tokens

Soulbound tokens (SBTs) bring personal IDs into Web3. Discover the latest details on SBTs and how they influence development in the crypto industry.

How Do Cryptographic Hash Functions Work?

Cryptographic hash functions are vital for online security as well as crypto transactions. Learn more about what hash functions are and how they relate to digital assets.

What is Arbitrage Trading?

Proponents of arbitrage argue it’s a safe way to trade cryptocurrencies, but is that accurate? Learn more about what arbitrage trading is and its risks before trying it.

What is the Bitcoin Lightning Network?

The Lightning Network aims to make instant Bitcoin payments a reality. Learn more about the Bitcoin Lightning Network and how it supercharges BTC’s adoption.

Token Versus Cryptocurrency: Are They the Same?

Learn more about how coins, tokens, and cryptocurrencies differ to understand how digital assets function. Plus, discover the most common crypto tokens.

What is Polkadot?

Since 2020, Polkadot has become a hot topic in cryptocurrency circles. But what is Polkadot, and how is it different from other cryptocurrency projects?

Understanding Trading Psychology and its Application in Cryptocurrency

Mastering trading psychology helps crypto traders make clear-headed decisions. Learn the strategies traders use to navigate the volatile crypto market.

What is wETH and How Does it Differ From Ethereum?

Wrapped Ethereum trades for the same price as Ethereum, but how do traders choose between the two? Learn what wETH is and how it compares to ETH.

What is Polygon?

Polygon went from a start-up software company to established crypto mainstay in just a few years. But what is Polygon in crypto, and why has it become so influential?

APR Versus APY

Crypto traders looking for passive income strategies find interest rates in APR or APY. But what do these terms mean, and how do people choose between the two?

What are Crypto Liquidity Pools?

Liquidity pools allow crypto traders to swap digital assets on DeFi exchanges. But what are they, and how do they influence the crypto economy?

What are Bitcoin Futures?

Bitcoin futures are now mainstream products in the global financial services community. Learn what they are, the different types, and how traders use them.

How Does a Sell Stop Market Order Work?

Crypto traders use a variety of sell orders to close their positions. Find out why some traders prefer placing sell stop market orders to exit the market.

Forward Versus Futures Contracts

Learn the primary differences between forward versus futures contracts and how traders choose contracts in the derivatives market.

What are Decentralized Exchanges?

Crypto traders are increasingly leveraging DEXs to swap their favorite digital currencies. Find out what a DEX is and how it works in the overall crypto ecosystem.

What are Centralized Exchanges?

Centralized crypto exchanges offer many convenient features but aren't risk-free. Learn the pros and cons of buying crypto on these trading platforms.

What is Fiat Currency?

One way to understand crypto is to compare it with a more familiar currency form: fiat. Learn what fiat currency is and how it differs from crypto.

What are ZK Rollups?

ZK rollups can supercharge Ethereum's speed and scalability. Learn what they are and why they significantly impact the Ethereum blockchain.

What are Bitcoin ATMs?

Bitcoin ATMs promise a fast and convenient way to convert cash to crypto, but are they safe? Learn what a Bitcoin ATM is and what you can consider to trust one or not.

Understanding the Importance of KYC for Crypto Exchanges

KYC (know-your-customer) has become a crucial aspect of contemporary crypto compliance. Learn what KYC in crypto is and why crypto firms use it.

What is a DAO?

DAOs want to bring decentralization to online decision-making. Find out what a DAO is in crypto and how it’s changing people's perception of governance.

What is Cryptography?

As sharing info over the internet becomes the norm, more people are concerned about online privacy. Learn what cryptography is and how it can help to protect digital data.

Is Bitcoin Bad for the Environment? Exploring Eco-Friendly Cryptocurrency

Crypto’s effect on the climate is a complex and controversial topic. Learn about Bitcoin’s environmental impact and eco-friendly cryptocurrency solutions.

What is the "Sushi" Cryptocurrency?

Sushi has been a popular protocol for crypto traders since its launch in 2020. Learn how Sushi became a major name in the DeFi ecosystem.

What is a Private Key?

Private keys grant traders complete control over their cryptocurrencies. Discover what a private key is and why it's crucial for asset recovery.

What Are Web2 and Web3? Understanding the Web's History

Cryptocurrency is part of a shift in software design called "Web3," leading to questions like what are Web2 and Web3, and how will the latter change the online user experience?

What is Proof-of-Work?

Proof-of-work is how decentralized currencies like Bitcoin "work." Learn about Bitcoin's consensus algorithm and how it kickstarted the crypto revolution.

What is Litecoin?

Cryptocurrency traders call Litecoin “digital silver,” but what does that mean? Learn what Litecoin is and its role in cryptocurrency’s history.

What is Market Cap?

Market cap helps crypto traders analyze the size and growth of different digital assets. Find out what market cap is and how to calculate it for cryptocurrencies.

What is a Crypto Faucet?

Crypto faucets claim to offer "free Bitcoin," but is there a catch? Find out what a crypto faucet is and whether it's a legitimate way to earn digital assets.

What is a Seed Phrase?

Without a seed phrase, traders wouldn't have a backup for their cryptocurrency wallets. Learn what a seed phrase is and how it protects digital asset holders.

What are Smart Contracts?

Smart contracts unlock limitless possibilities for cryptocurrency and blockchain. But what are smart contracts, and how do they expand crypto's use cases?

What is Proof-of-Stake?

Proof-of-stake claims to be the greenest way to confirm crypto transactions, but is it safe? Learn what proof-of-stake is and if it’s better than other alternatives.

What is Cold Storage in Crypto?

Crypto traders often claim cold storage is the safest way to store digital assets, but is it? Learn what crypto cold storage is and why it's a "hot" option.

What are the Different Types of Blockchain?

Blockchain technology is shaking up the global economy. Discover why blockchain tech is so significant and the different types of blockchains now available.

What is Cardano?

Cardano wants to bring scientific precision into the cryptocurrency sector. But what is Cardano, and how does it aim to increase global crypto adoption?

What is a Crypto Whale?

Whales are the largest creatures on Earth and across the crypto economy. Learn what crypto whales are, why they matter, and how to track their activity.

What Does "Burning Crypto" Mean?

Burning digital assets is an important part of the crypto ecosystem but can be risky for traders who don't know what they're doing. Find out what burning crypto means and how people use it in Web3.

What Is High-Frequency Trading?

Explore high-frequency trading (HFT) in cryptocurrency. Learn how it works, common strategies, and the pros and cons of this fast-paced trading approach.

What is a Bear Market in Crypto?

Some cryptocurrency traders avoid bear markets. Learn what a bear market is and how to trade during one (if you choose).

What is a Bull Market in Crypto?

Long-term cryptocurrency investors hope for parabolic bull runs. Learn what a bull market is and why traders wait for this opportunity.

Altcoins 101: What Are They and How Do They Work?

Bitcoin may have launched the crypto industry, but it’s far from the only digital coin. Learn what altcoins are and how they differ from BTC.

What is Cosmos?

Cosmos wants to bring the crypto community together with its innovative blockchain infrastructure. Find out what Cosmos is and why it’s growing in Web3.

What is a Stablecoin?

Stablecoins bring some sense of greater predictability to the volatile cryptocurrency industry, relative to other crypto assets. Learn what stablecoins are and why they’re significant for traders.

The History of Cryptocurrency

Cryptocurrencies are at the cutting edge of technology but have a past stretching back decades. Learn the history of cryptocurrency to understand digital assets.

What is the Wage-Price Spiral?

The wage-price spiral theory cites that rising labor costs lead to high inflation. Learn how the wage-price spiral works and whether crypto can prevent it.

How Does Crypto Margin Trading Work?

Explore the high risks, benefits, and strategies to navigate crypto's margin trading.

Layer 2s: Cryptocurrency Scaling Solutions

Layer 2s are fast protocols taking the cryptocurrency industry by storm. Discover how these work and why they’re important for blockchain scalability.

Stop-Limit Versus Stop-Loss

Cryptocurrency traders may use stop-limit or stop-loss orders to manage risk. Learn the difference between a stop-limit versus stop-loss.

How to Read Crypto Charts

Master how to read the crypto market charts and use them for trading. Discover essential tools, strategies, and insights to make informed decisions.

How Does Cryptocurrency Gain Value?

Find out earn how demand, trust, network activity, and more impact cryptocurrency value in the market.

Pump and Dump Schemes

Cryptocurrency scams cost traders millions of dollars every year. Learn more about what crypto pump-and-dump schemes are to protect yourself against fraud and avoid costly mistakes.

What Is Double Spending in Crypto?

Double spending threatens any digital currency. Learn how cryptocurrencies use blockchain technology to prevent it, real-world examples and security measures.

What is Leverage Trading?

Although leverage is common on many crypto exchanges, it can be a risky practice. Learn more about what leverage trading is before deciding if it’s right for you.

What is Crypto Staking?

Staking services promise to reward traders with a consistent flow of cryptocurrency. But what is crypto staking, and are there risks?

What is Peer-to-Peer?

Peer-to-peer isn’t unique to cryptocurrencies but is one of blockchain’s foundational aspects. Discover what peer-to-peer is and how it makes cryptocurrency possible.

What is Solana?

Solana burst on the cryptocurrency scene in 2020, becoming an influential digital currency. Find out what Solana is and why it's making waves in Web3.

What is a Wallet Address?

To send and receive cryptocurrencies, you need a crypto wallet address. So, what are wallet addresses, and why are they crucial for crypto transfers?

Who Owns the Most Bitcoin?

Discover the top Bitcoin holders, including Satoshi Nakamoto, individuals, companies, and countries. Explore the distribution of BTC ownership in the crypto world.

What Does “Minting” an NFT Mean?

Are you considering breaking into NFTs and creating your own collection of virtual collectibles? Discover what minting an NFT means and how the process works.

Fungible Vs. Non Fungible Tokens

Explore the world of fungible and non-fungible assets in the cryptocurrency industry. Learn their differences, use cases, and more in this comprehensive guide.

How to Send Crypto

Learning how to send crypto is the first step into the digital economy. Master the basics of sending cryptocurrency to take full advantage of Web3.

What Are Remittances?

Remittance services have become a necessary part of the global economy. Learn what remittances are and how crypto might influence their future.

What is a Decentralized Wallet?

Decentralized wallets do far more than store and send cryptocurrencies. Learn how downloading a decentralized crypto wallet opens new doors into Web3.

Custodial Versus Non-Custodial Wallets

Not all cryptocurrency wallets offer the same control over assets. Learn the differences between custodial and non-custodial wallets.

What Are Crypto Gas Fees?

Before traders spend or send cryptocurrency, they must set aside coins for gas fees. Find out what crypto gas fees are and how to find the cheapest rates.

What are Blockchain Nodes?

Discover the role of blockchain nodes in cryptocurrency. Learn about node types, how they work, and their importance in decentralized networks.

What is Market Price?

Ever wonder why each cryptocurrency trades for a different amount? Learn more about what market price is and how people calculate it to understand crypto trading.

What is Buying Power?

Traders often confuse “buying power” with “purchasing power” or “total cash.” Learn more about what buying power is and how it affects crypto traders.

What is Crypto Lending?

Just because banks don't handle cryptocurrencies doesn't mean there aren't ways to take out crypto loans. Learn what crypto lending is and how to use it safely.

Bitcoin Dominance

Learn what the Bitcoin dominance score is, how to calculate it, influencing factors, and its reliability as an indicator.

Bitcoin Versus Ethereum

Explore the differences between Bitcoin and Ethereum, their purposes, consensus mechanisms, environmental impact, coin issuance, and similarities.

Developing a Daily Trading Strategy for Crypto

Day traders aim to profit from short-term price movements in digital assets. Crypto day trading requires a solid strategy for portfolio management.

How to Buy Land in the Metaverse

The Metaverse is increasing in popularity with investors who are pouring billions into virtual land tokens. Find out its process, risks, and potential rewards

How to Cash Out Bitcoin

Explore strategies for cashing out Bitcoin securely for fiat currency, factors affecting costs, and potential downsides to consider.

What is Decentralized Finance?

Decentralized finance aims to "democratize" the crypto economy. Learn about its advantages, disadvantages, and how to get started with DeFi today.

What is USDC?

Discover USDC, a stablecoin tied to the U.S. Dollar. Learn how it works, its uses, benefits, drawbacks, and the difference from other stablecoins like USDT. Explore USDC on dYdX.

A Guide to Blockchain and Web3

Blockchain and Web3 are often used to describe the transformative technologies used in crypto and the future of the internet. While related, they are not the same, and a clear understanding of their differences is crucial to grasp their capabilities fully.

Market Makers vs Market Takers

This article will introduce the mechanics of market making and market taking and how these actions shape an exchange.

Cold Wallet vs. Hot Wallet: What’s the Better Choice for Crypto Storage?

All crypto wallets fall into two categories: cold wallets or hot wallets. Learn what distinguishes them to choose the option that best suits your needs.

A Glossary of Crypto Terms to Get you Started

New to crypto? Learn essential cryptocurrency terms, from altcoin to blockchain, and understand crypto slang used in the digital asset market. Start your journey now!

How to Set Up a Crypto Wallet

Learning how to set up a crypto wallet is crucial for anyone interested in digital assets. Investors need a wallet to store and transfer funds.

What are Perpetual Contracts?

Perpetual contracts let traders speculate on crypto prices without holding tokens. Discover how crypto perpetuals work and why they’re attractive.

What Are Crypto Tokens?

People use the terms "coins" and "tokens" interchangeably, but they’re different. Learn what crypto tokens are and how they're used in the digital economy.

What Does HODL Mean in Crypto

Discover the meaning of HODL in crypto, its origin, benefits, and drawbacks. Learn how to HODL, whether to use cold wallets, stake, or practice dollar-cost averaging.

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