Hyperliquid has been making headlines in the crypto space since the past few days. It has become talk of the town after whale traders started trading perpetuals on the platform for BTC, ETH and other leading crypto assets.
One of the notable events, which made Hyperliquid famous, was a recent BTC short trade where the trader took a position of $524 million on Bitcoin’s price decline. Besides, the alleged insider trading on Trump’s crypto reserve news and the airdrop of HYPE token also highlighted the existence of Hyperliquid earlier this year.
So what is so special about Hyperliquid and why are people leaving popular crypto exchanges like Binance or Bybit and moving onto it for trading crypto perpetuals? Let’s find out;
What is Hyperliquid?
Hyperliquid is a decentralized crypto exchange (DEX) platform and it is launched specifically for trading crypto perpetuals. It offers trading experience of centralized exchanges while offering typical DEX-like features such as no kyc requirement, decentralized orderbook and external wallet connectivity. Unlike Binance and other crypto exchanges, Hyperliquid does not have any owner or controlling entity.
One of the key functionality of Hyperliquid is allowing users to speculate on crypto asset prices by trading perpetuals. Here, every trade takes place on hyperliquid’s own blockchain network rather than a centralized cloud server. Traders can use leverage of up to 40x to trade crypto perpetuals as well as trade several assets on spot markets.
How Hyperliquid is different from Binance and other crypto exchanges?
Binance and other crypto exchanges are considered centralized platforms, which are controlled by some entities and function as a corporation. Hyperliquid on the other hand, is a decentralized platform and it is not controlled by any specific entity. It is developed by Hyper Foundation and managed independently by the community of traders and HYPE token holders.
What is HYPE Token?
HYPE is the native token for Hyperliquid exchange and it has various uses. One of the key functions of HYPE is in staking where token holders lock their holding and help in securing Hyperliquid’s blockchain network. HYPE is also a reward token airdropped to traders who actively trades on the platform and collects points.
Benefits of Using Hyperliquid
Hyperliquid offers several benefits to traders including no-kyc requirement, external wallet support and transparency. Below are some of its key benefits;
No KYC Needed
Traders are not required to submit their KYC details on Hyperliquid in order to be able to trade crypto assets. They can just connect a wallet and start trading without giving any personal details.
External Wallet Connectivity
Users can start trading directly by connecting their choice of wallet. It supports a wide array of crypto wallets including Metamask, OKX Wallet, Coinbase Wallet and all other compatible with the WalletConnect functionality.
Decentralized & Transparent
Hyperliquid is completely decentralized and transparent with open access to everyone. Traders can use the platform without any restriction and find all the available data on its Hypurrscan explorer.
Globally Accessible
Compared to Binance, Coinbase and other crypto exchanges, Hyperliquid does not restrict users from specific countries regarding regulatory policies. It is available globally and everyone can access it seamlessly.
How Secure is Hyperliquid?
Hyperliquid is one of the most secure crypto trading platforms and it is audited by the blockchain security firm Zellic. It currently has over $318.9 million in total value locked (TVL) while accumulating millions in daily trading volume. Being a leading decentralized crypto perpetual platform, Hyperliquid assures industry standard security measures to prevent any hacks or exploits.
Although Hyperliuid’s HLP Vault recently took a loss of $4 million due to trading algorithm manipulation, it was not a typical exploit on the platform.
How to Trade on Hyperliquid?
To get started trading on Hyperliquid, all you need is a crypto wallet. Anyone can access Hyperliquid’s trading dashboard regardless of geographic location. Following is the step-by-step process to start trading on Hyperliquid;
Step 1: Go to Hyperliquid dApp
The first thing to do is going onto the official Hyperliquid dApp.
You can search for the dApp on Google or visit via this link directly.
Step 2: Connect Your Crypto Wallet
Connect you crypto wallet by clicking on the ‘Connect’ button visible at the top-right corner.
You can choose any wallet from the available wallet list. It currently supports multiple crypto wallets such as Ronin Wallet, Metamask, OKX Wallet, Coinbase Wallet or any other wallet compatible with WalletConnect’s functionality.
Step 3: Deposit Funds
Before placing any trade, you would need funds for margin. Click on the ‘Deposit’ button to make deposits. It currently only allows the deposit of USDC on Arbitrum or Bitcoin.
Step 4: Choose Crypto Asset to Trade
Now choose which crypto asset you want to trade. Hyperliquid has a list of hundreds of supported crypto assets that can be traded perpetual contracts as well as on spot.
Select the asset you want to trade.
Step 5: Place Trade
Now enter the amount of trade in “size” box and decide whether you want to go long or short. You can also choose to increase or decrease leverage.
Before confirming trade, cross-check all details and then click on the “Buy / Long” button if you are speculating for a higher price and click on the “Sell / Short” button if you think the asset’s price will go down from here.
You can additionally set Take Profit and Stop Loss price marks from where you trade will be automatically closed.
And that’s all. You can track your Long/Short position below the chart.
Final Words
If you are an experienced trader in the crypto space, you would not find it hard to catch-up with Hyperliquid trend but it’s also not any alien concept that beginners can not understand. This innovative exchange platform functions the same as any centralized crypto exchange like Binance and Coinbase but in a decentralized manner.
As the crypto industry keeps evolving, platforms like Hyperliquid will expand to a wider user base given that they are more trader centric and provide various benefits. Hyperliquid is now giving tough competition to leading exchanges and it has great potential to come out as a leading crypto trading platform in future.
Also Read: From Bybit to WazirX, is Lazarus Group the Bogeyman of Crypto?
