How to use derivatives in DeFi

Trade derivatives such as perpetual futures by depositing collateral in DeFi protocols. By trading derivatives, you can express your belief that the available cryptocurrencies and digital assets will go up or down. Derivatives allow you to do so with leverage. Trading derivatives on decentralized protocols protects you from the opaque, risky, and in some cases outright fraudulent behavior that some centralized exchanges have taken.

This article covers trading perpetual futures in DeFi with examples and links to step-by-step instructions for dYdX, a leading DeFi derivatives decentralized application (DApp), using the Bitcoin.com Wallet app.

Use the multichain Bitcoin.com Wallet app to safely and easily trade derivatives in DeFi. Through the Bitcoin.com Wallet app, you can also buy, sell, trade, earn, use, and learn about crypto. Connect to thousands of decentralized applications (dApps) through WalletConnect, such as leading derivatives trading platform dYdX. Start trading derivatives with Bitcoin.com’s dYdX affiliate link to receive a 5% fee discount.

Buy as little as $30 worth to get started

Related guides

Start from here →

What are crypto derivatives?

Derivatives like perpetual futures and options are widely used in crypto. Learn all about them.

Read this article →

What are crypto derivatives?

Derivatives like perpetual futures and options are widely used in crypto. Learn all about them.

What is DeFi?

Learn what makes decentralized finance (DeFi) apps work and how they compare to traditional financial products.

Read this article →

What is DeFi?

Learn what makes decentralized finance (DeFi) apps work and how they compare to traditional financial products.

DeFi use cases

Decentralized Finance (DeFi) is bringing access to financial products to everyone. In this article we examine some prominent use cases.

Read this article →

DeFi use cases

Decentralized Finance (DeFi) is bringing access to financial products to everyone. In this article we examine some prominent use cases.

DEX lingo

From AMM to yield farming, learn the key vocabulary you’ll encounter when trading on a DEX.

Read this article →

DEX lingo

From AMM to yield farming, learn the key vocabulary you’ll encounter when trading on a DEX.

What are prediction markets?

Find out about prediction markets, including how they work and what they are used for.

Read this article →

What are prediction markets?

Find out about prediction markets, including how they work and what they are used for.

Dollar-cost averaging

Learn how to protect yourself from big losses with this simple but powerful investment strategy.

Read this article →

Dollar-cost averaging

Learn how to protect yourself from big losses with this simple but powerful investment strategy.

What is APY?

APY stands for annual percentage yield. It is a way to calculate interest earned on an investment that includes the effects of compound interest.

Read this article →

What is APY?

APY stands for annual percentage yield. It is a way to calculate interest earned on an investment that includes the effects of compound interest.

What is liquidity?

Liquidity has several slightly different but interrelated meanings. For the purposes of crypto, liquidity most often refers to financial liquidity and market liquidity.

Read this article →

What is liquidity?

Liquidity has several slightly different but interrelated meanings. For the purposes of crypto, liquidity most often refers to financial liquidity and market liquidity.