What Is the Hyperliquid Trading Platform?
Hyperliquid is a decentralised exchange (DEX) running on its own high‑speed Layer‑1 blockchain. It lets users trade perpetual futures with up to 50× leverage while paying zero gas fees and very low maker/taker fees. All orders live on an on‑chain order book, which makes every trade transparent and immutable. Thanks to its custom HyperBFT consensus, most orders finalise in under a second, giving a seamless experience similar to a centralised exchange while you remain in full control of your wallet.
Why Hyperliquid Is Unique and How It Differs From Other Platforms
Compared with traditional centralised exchanges
Hyperliquid lets you start trading in seconds—just connect your wallet; the platform never asks for a phone number, e-mail address, or KYC documents. This removes the lengthy sign‑up and verification routines typical of centralised exchanges and gives you full control over both your funds and your privacy.
Compared with other decentralised futures DEXs
Most DEXs rely on Layer‑2 roll‑ups or app‑chains and still batch orders off‑chain. Hyperliquid runs its own Layer‑1, processes ≈100 000 orders per second, and publishes every order directly to an on‑chain order book. The result is near‑instant execution, zero gas fees, and deeper liquidity, giving a trading experience close to CEX speed while remaining fully decentralised.
Strengths of Hyperliquid
- Decentralised platform – self‑custody and transparent ledger; no single point of failure.
- No registration or KYC – connect a wallet and you are ready to trade.
- Speed and liquidity for day trading – sub‑second finality and high order throughput keep spreads tight and slippage low.
Weaknesses of Hyperliquid
- Geared toward experienced traders – perpetual futures and high leverage can be complex for beginners.
- Not ideal for scalping / high‑frequency strategies – block finality still adds ~1 s latency, which can matter for micro‑second scalpers or quant trading.
- All trades are public – open order book means competitors can monitor your positions.
All trades on Hyperliquid are open and visible. There’s even a leaderboard - Source: Hyperliquid
How to Start Trading on Hyperliquid
Getting started is straightforward—make sure you have three things ready:
- A Web3‑enabled wallet
- Crypto assets for margin
- A trading strategy
Below we will look at each item in detail.
1 – A Web3 Wallet Compatible With Hyperliquid
Hyperliquid works on both desktop and mobile, but no matter which device you choose, you need a Web3‑enabled wallet. In this guide we will use Gem Wallet—an open‑source, self‑custody wallet that supports every feature Hyperliquid offers, keeps your keys safe, and never asks for personal data. The result is a perfect match: a private wallet plus a privacy‑friendly exchange.
2 – Preparing Your Crypto Assets
At the time of writing, the main margin asset on Hyperliquid is USDC bridged to its Arbitrum‑based Layer 2. If you do not yet hold USDC, Gem Wallet makes it easy to buy with a card or swap from another token; we will show both options later in this guide.
3 – Building a Trading Strategy
All trading carries risk, and leveraged perpetuals are especially volatile. Before opening your first position, decide how much capital you can afford to lose, choose sensible leverage, and write down clear entry, exit, and stop‑loss rules. A simple, tested strategy will keep your emotions in check when the market moves fast.
Installing and Setting Up the Hyperliquid Wallet
The first step is to install the Gem Wallet, Hyperliquid Wallet for your mobile device and complete the quick setup. After installation you can either import an existing wallet or create a new one for trading.
If you create a new wallet, the app will show you a 12‑word seed phrase. Write these words on paper and store them in a safe, private place. On Hyperliquid, your account is the same as your wallet, so if you lose the seed phrase you will lose access to your funds and any open positions.
Hyperliquid trading with Gem Wallet on mobile device
Connecting Gem Wallet to Hyperliquid via WalletConnect
The next step is to “register” on Hyperliquid. Simply open the exchange, choose WalletConnect, and scan the QR code with Gem Wallet to approve the connection. Accept the platform terms, and your wallet becomes your trading account. From now on you can deposit or withdraw funds and open or close positions directly from the interface. A full step‑by‑step guide is available in our documentation.
Getting USDC to Fund Your Positions
Hyperliquid settles all positions in USDC on the Arbitrum network. To trade, you need two things:
- A small amount of ETH on Arbitrum to cover network fees when you deposit, withdraw, and sign messages or transaction approvals;
- USDC on Arbitrum to use as margin.
Three Common Ways to Get the Assets
Choose the option that suits you best:
- Buy with a card — the quickest route is to purchase Arbitrum ETH and USDC directly in Gem Wallet using your debit or credit card.
- Bridge and swap existing crypto — if you already hold ETH or another token on a different network, you can bridge it to Arbitrum and swap to ETH (Arbitrum) and USDC inside Gem Wallet; the built‑in bridge keeps fees low.
- Withdraw from an exchange — if you keep USDC on a centralised exchange, withdraw the required amount straight to your wallet’s Arbitrum address.
Tip: For extra safety, create a separate wallet just for trading. Gem Wallet lets you generate unlimited accounts, so dedicating one to Hyperliquid is easy and protects your main holdings from unexpected trading losses.
Opening Your First Position and Applying Your Trading Strategy
After funding your Gem Wallet, you still need to deposit the assets on to Hyperliquid itself. Open the Deposit tab, choose USDC, confirm the transaction, and wait a minute or two for the on‑chain update. Once your platform balance shows USDC, you are ready to place your first trade.
Hyperliquid’s trading screen is familiar to anyone who has used a futures exchange: price chart on the left, order panel on the right, and open positions below. We will not review every button, only the settings that surprise spot‑only traders.
Margin Options
Cross vs Isolated
- Cross — your entire available balance backs the position.
- Isolated — only the margin you assign backs the position; liquidation affects that portion, not the whole account.
- Leverage slider — higher leverage means lower margin but higher liquidation risk.
Direction and Fees
- Long — you expect the price to rise.
- Short — you expect the price to fall.
The number of new traders on Hyperliquid is growing rapidly - Source: Hyperliquid
Trading fees on Hyperliquid are competitive with other futures venues: 0.045 % taker / 0.015 % maker at the time of writing. High‑volume traders receive lower tiers automatically.
Tip: A limit order usually pays the maker fee, which can be three to five times cheaper than a market order.
Hyperliquid Funding—An Extra Cost (or Reward) in Perpetual Futures
Hyperliquid Funding applies to perpetual contracts: your position stays open until you close it or hit liquidation. To keep the contract price close to the real spot price, the exchange charges a funding fee at regular intervals.
- If most traders are on the same side as you, you pay the fee.
- If you are on the minority side, you receive the fee as a reward.
The payment is taken automatically from your balance and does not require any action, but make sure you hold enough USDC to cover a few funding cycles so your position is not liquidated unexpectedly.
Final Tips Before You Trade
Having a clear trading strategy is what separates successful traders from everyone else. You can trade the news, follow indicators, or use time‑of‑day patterns, but every method shares one rule: manage your risk. Controlling and minimising risk is the first step toward steady, long‑term profits.
We will publish detailed guides on specific strategies in future articles. Good luck on your Hyperliquid journey—see you in Gem Wallet!
Below is a short video walk‑through that ties all the steps together.
