Complete Guide to Hyperliquid (HYPE)

 

Hyperliquid (HYPE) Complete Guide: An Investment Guide Even Beginners Can Understand

Hello! Many of you are curious about Hyperliquid (HYPE), which has recently been receiving a lot of attention in the cryptocurrency market. Today, we will explain everything about Hyperliquid in detail so that even those who are new to cryptocurrency investment can easily understand it. We will explain complicated terms as easily as possible, so please stay with us until the end!

Introducing Hyperliquid (HYPE)

Hyperliquid (HYPE) is an innovative digital asset that has been rapidly gaining attention in the cryptocurrency market since the end of 2024. This project goes beyond simple cryptocurrencies and is building a comprehensive DeFi ecosystem that combines a decentralized exchange (DEX) and a derivatives trading platform.

What differentiates Hyperliquid from other projects is its 'on-chain order book' system. While most existing DEXs use the AMM (automated market maker) method, Hyperliquid has implemented an order book method similar to a centralized exchange on the blockchain. This allows users to trade at more accurate prices and significantly reduces slippage.

In addition, Hyperliquid is built on a Layer 1 blockchain and boasts incredible performance, capable of processing 200,000 transactions per second. This is about 13,000 times faster than the existing Ethereum, and can be seen as laying the foundation for true mass adoption.

Hyperliquid's history and development

Hyperliquid's journey began in early 2022 when a few former hedge fund traders and blockchain developers met. They witnessed the limitations of the existing DeFi ecosystem and came together with a vision to create a better alternative.

In mid-2022, the team began developing an initial prototype, and launched a private testnet in the first half of 2023. During this process, various technical challenges were solved, and the biggest challenge was maintaining decentralization while processing high-speed transactions on-chain.

In the second half of 2023, we launched a public testnet and started receiving feedback from developers and traders around the world. From then on, Hyperliquid began to make a name for itself in the cryptocurrency community.

Then, in October 2024, the mainnet was finally launched and the full-scale service began. Along with the launch, the HYPE token was also released, and it showed remarkable growth by entering the top market cap rankings in just a few months.

Hyperliquid's innovative operating principle

Hyperliquid's core technology can be largely divided into three. The first is the 'on-chain order book' system mentioned above. Like traditional centralized exchanges, buy/sell orders are sorted by price and executed, but all of this process is transparently performed on the blockchain.

The second core technology is a proprietary consensus algorithm called 'HyperBFT'. This is an improvement on the existing PoS (Proof of Stake) method, providing faster transaction processing and higher security. In particular, it has a built-in mechanism to fundamentally block MEV (Maximum Extractable Value) attacks, so even general users can trade with confidence.

The third is the 'Cross-Chain Bridge' function. Hyperliquid is connected to major blockchains such as Ethereum, Solana, and Arbitrum, allowing users to easily trade assets on various chains. This allows you to trade virtually all major cryptocurrencies on a single platform.

💡 Easy to understand: If you compare Hyperliquid to a traditional stock exchange, you can think of it as an exchange that has an accurate order book like the NASDAQ or New York Stock Exchange, but can be traded 24 hours a day and anyone from around the world can participate.

Hyperliquid's various applications

Hyperliquid's application range goes far beyond simple cryptocurrency trading. The most representative application is 'perpetual futures trading'. This is a futures contract with no expiration date, and leveraged trading is possible. Hyperliquid's great innovation is that it provides advanced trading functions that were previously only available on centralized exchanges in a completely decentralized environment.

Another notable application area is liquidity provision through the 'HLP (Hyperliquid LP)' token. Users can deposit their assets on the platform and receive a portion of the transaction fees as compensation. This is a concept similar to 'market making' in traditional finance, and is designed so that even ordinary investors can easily participate.

Recently, it has expanded into the NFT trading and GameFi sectors. By utilizing Hyperliquid's high-speed processing capabilities, real-time in-game item trading and NFT auctions have become possible. In particular, as projects related to the metaverse join the Hyperliquid ecosystem, it is showing potential as a future digital economic infrastructure.

Hyperliquid trading on major exchanges

Currently, Hyperliquid (HYPE) is actively traded on major cryptocurrency exchanges around the world. In Korea, direct KRW trading is possible on Upbit and Bithumb, and overseas, it can be traded on Binance, Coinbase, OKX, etc.

In particular, Binance is trading in the HYPE/USDT and HYPE/BTC pairs, and has the highest trading volume. Since being listed on Coinbase, interest from institutional investors has also increased significantly. There may be slight price differences between each exchange, so we recommend that you compare prices on multiple exchanges before trading.

There are also factors to consider when choosing an exchange. First is security. You should choose an exchange with no history of hacking and a clear asset protection policy. Second is transaction fees. In the long term, the difference in fees can have a significant impact on your profits. Third is the convenience of the user interface. Especially for beginners, it would be good to choose an exchange that is intuitive and easy to use.

Active Hyperliquid Community Ecosystem

One ​​of the driving forces behind Hyperliquid's growth is its strong community. The official Discord server has over 100,000 active users from all over the world, and information is exchanged and discussed in real time 24 hours a day.

The Korean community is also very active. Domestic investors actively share information on Naver Cafe, Telegram channels, and Discord Korean channels. Here, various topics are discussed beyond simple price predictions, including technical analysis, project roadmap analysis, and DeFi strategies.

The Hyperliquid team also regularly holds AMA (Ask Me Anything) sessions to communicate with the community. They transparently disclose the development progress every month and actively collect user opinions to reflect them in improving the platform. This open communication culture is becoming an important factor in increasing the trustworthiness of the project.

Wallet Guide for Safely Storing Hyperliquid

Choosing the right wallet is very important for safely storing Hyperliquid. The most basic way is to add the Hyperliquid network to MetaMask. MetaMask is easy to use and compatible with most DeFi protocols, making it a recommended option for beginners.

More advanced users may want to consider a hardware wallet. Hardware wallets such as Ledger or Trezor store private keys offline, so there is almost no risk of hacking. However, the setup can be a bit complicated, so we recommend that you learn enough before using it.

In a mobile environment, Trust Wallet or SafePal are good choices. These wallets provide an intuitive interface while maintaining high security. In particular, Trust Wallet is a wallet developed by Binance that supports various blockchains and has built-in DeFi functions, making it convenient.

🔒 Security Tips: No matter which wallet you choose, always keep your seed phrase (recovery phrase) safely stored offline. Never save it online or share it with others.

Things to know when investing in Hyperliquid

If you are considering investing in Hyperliquid, you must be aware of several important risk factors. First, the cryptocurrency market is much more volatile than traditional financial markets. Price fluctuations of 20-30% per day are common, and sometimes even sharp fluctuations of 50% or more can occur.

Second, Hyperliquid is a relatively new project. Since it does not have a proven history of more than 10 years like Bitcoin or Ethereum, unexpected technical problems or regulatory issues may arise. Therefore, it is wise to limit the investment amount to about 5-10% of the total portfolio.

Third, you should not overlook the risk of leverage trading. Although leverage trading of up to 50x is possible on the Hyperliquid platform, this increases not only profits but also losses at the same rate. If you are a beginner, we strongly recommend that you start with spot trading without leverage.

Lastly, you should be careful of fake information or fraudulent projects. Never believe exaggerated advertisements such as ""You can make a lot of money in a short period of time by investing in Hyperliquid"" through SNS or messengers. Investments should always be based on your own thorough analysis and judgment.

⚠️ Investment Principle: Remember the basic principle of cryptocurrency investment: ""Invest only with money you can afford to lose."" It is very dangerous to use living expenses or emergency funds for investments.

So far, we have provided comprehensive information on Hyperliquid (HYPE). We hope that this article will help you make investment decisions, and we hope that you will always invest carefully and wisely!

If you have any questions or want to know more, please leave a comment at any time. We would like to share better investment information with you. Thank you! 🚀