How to Trade On Hyperliquid | Ultimate 2025 Guide

Hyperliquid is a decentralized perpetual exchange built on Layer 1. The exchange performs like other popular centralized exchanges, with low transaction times, lots of liquidity, and a great user experience. In this article, we show you how to trade on Hyperliquid, the first decentralized perpetual exchange.

What is a perpetual exchange?

Perpetual exchanges allow for the trading of perpetual futures. Perpetual futures are derivate contracts that don’t have an expiry date, making traders be able to speculate on prices without any time limit. Perpetual futures allow for speculating on many different underlying assets, including different cryptocurrencies. You have the option to long or short a future, with leverage. Perpetual futures allow for increased liquidity and a higher return through the chosen leverage. Trading with leverage is also a big risk, especially with the nature of cryptocurrency being volatile.

How to make an account at Hyperliquid

• Visit the Hyperliquid Website and press “Start Trading“
• In the top right corner, press “Connect“
• Choose your method of registering. There are options like Email, WalletConnect, OKX Wallet, and Coinbase Wallet.

How to deposit funds into your Hyperliquid account

To get funds into your account you will need to bridge USDC from Arbitrum. You have the option to bridge through a Centralized Exchange or through a decentralized bridge.

To bridge through a decentralized bridge, visit the Arbitrum Bridge. Here you have the option to bridge USDC from the Ethereum mainnet as well as other orbit chains. Enter the amount you want to bridge, press “Move fund to Arbitrum One” and wait for the transaction to go through. To claim you will have to pay a Arbitrum One gas fee. Keep in mind that you need Ethereum on the Arbitrum network to pay the gas fees.

For centralized exchanges, all you have to do is transfer USDC.e to the address of your Hyperliquid account. You have now bridged your funds.

How to withdraw from Hyperliquid?

• On the Hyperliquid homepage, click on the withdrawal button in the bottom right corner.
• Enter the amount of USDC you want to withdraw and enter your Arbitrum Wallet address.

Now you just have to wait for the transaction to go through, no extra verification is needed. Simple right?

Hyperliquid Token (Hype)

The HYPE token is the main component of the Hyperliquid platform. HYPE currently has a market cap of $8B and comes with some good incentives for traders of the Hyperliquid platform:

Governance – Vote for platform changes to develop the exchange the way you want it.

Fee Payments – The native token for paying fees is the HYPE token. Using the HYPE token you will receive discounts on fees while trading.

Staking – Users can stake their tokens to increase the network’s stability.

Key Features of Hyperliquid

For many crypto traders like myself, we’re familiar with the classic order book trading platforms like Binance or KuCoin for trading futures. Hyperliquid does that while being fully decentralized. The orders placed are matched in price-time priority and works in the same way as centralized exchanges. Hyperliquid allows for fast transactions, without having to sign transactions through a 3rd party wallet, which makes for higher trading accuracy.

Multichain Trading

A pain for crypto traders is to constantly bridge tokens from different blockchains. This problem can be avoided through Hyperliquid. After you have bridged your funds to Hyperliquid you’re free to trade whatever token you want. Hyperliquid supports over 100+ cryptocurrencies to trade with leverage.

Order Types

Hyperliquid allows for 6 different order types:

• Market Order: Executes immediately at the current market price.
• Limit Order: Executes at the specified limit price or a better price.
• Stop Market Order: Converts into a market order when the price reaches the specified stop price, often used to limit losses or secure profits.
• Stop Limit Order: Converts into a limit order when the price reaches the specified stop price.
• Scale Order: Consists of multiple limit orders within a defined price range.
• TWAP Order: A large order divided into smaller suborders, executed every 30 seconds, with each suborder allowing a maximum slippage of 3%.

Margining

When opening a position, you choose a margin mode. The default is Cross Margin, which shares collateral across all cross margin positions for maximum efficiency. There’s also an Isolated Margin, where the collateral is limited to a single position. If an isolated position is liquidated, it won’t affect other isolated or cross positions. Likewise, liquidations in cross or other isolated positions won’t impact the original isolated position.

Vaults

Vaults is a way to copytrade successful traders on the Hyperliquid platform. Any user can deposit into a vault, where the Vault owner then earns 10% of all the profits. These vaults are operated by successful traders and you can sort by the highest earners. The top vault at Hyperliquid has done over 338% profit during 2024. Assess the risk before depositing into a vault, since you don’t know what trader owns it.

Conclusion

Since launching in 2024 Hyperliquid has hit new records in volume every week, reaching into the multiple billions. Hyperliquid is an ambitious project with lots of supporters, and I believe this will continue all year. If you’re looking for a platform to trade crypto, Hyperliquid might be the place.