Is Gnosis (GNO) a Good Investment?
The Gnosis project may have been created in 2015, but despite being five years old cryptocurrency enthusiasts are still interested in trading it. Since August, there was a significant spike in trading activity, which spurred interest even for users who haven’t previously heard of the token.
The question remains, is Gnosis a good investment? The token quickly rose in value over the course of the past two months and has since gone through a retracement phase. Now would be the perfect opportunity to invest, as it is questionable if the token will ever reach lower prices.
This article will showcase the speculative value of Gnosis, how it helps the blockchain industry, and reveal what makes Gnosis a good investment. I will also inform you about which exchanges support trading GNO and which trading platform is the best one. Without further delay, let’s start a deep-dive into this interesting project by introducing the fundamentals.
What is Gnosis (GNO)?
Gnosis is an open-finance protocol founded in 2015 that plans to challenge markets built on the Ethereum network. However, this is not just any kind of market. Specifically, the project focuses on prediction markets. This is a type of market where traders speculate on which direction a certain asset will take. In most regulatory zones in the world, this is heavily restricted. Therefore, Gnosis wishes to provide a decentralized and free market for cryptocurrency investors interested in prediction markets.
GNO tokens behave in such a way that they lose or attain value depending on the outcome of a trade. The ICO for the token was held in 2017 and raised 250,000 ETH. The Gnosis ICO ended in only 15 minutes and sold a mere 4% of its total token supply. In 2017, the protocol launched Olympia, a test net version of its prediction market. A year later, developers launched Apollo, the first version of Gnosis, and DutchX, a decentralized exchange. Near the end of the year, they also launched a special wallet called Gnosis Safe.
Even to this day, the developers are working hard on turning blockchain-based predictive markets into reality. Another goal is to create an infrastructure for a massive number of dApps used as predictive tools, and information pools. Ultimately, the project wants to allow any entity to have access to its protocol so that it can successfully aggregate public opinion data. By doing so, Gnosis can act as a dependable platform for uncensored forecasting applications. In the future, the protocol could be applied to a huge number of real use cases. Mainly for government, insurance, finance decision-makers, and other related sectors.
Apart from GNO, the protocol also hosts the owl token. Both currencies are used for stabilizing the DEX and making sure that all transactions are uncensored, distributed, and reliable. The Gnosis architecture also contains three unique units that support the overall protocol. These include a core layer, a service layer, and an application layer.
The core layer makes the very foundation of the platform as it contains the DEX’s smart contracts. All tokens are located here, including the market and settlement mechanisms. GNO’s service layer acts as a user-level layer that powers payment processors, stablecoins, and chatbots. Later on, the service layer will also manage trading fees. Most external dApps, products, and services will interact with Gnosis via this layer.
Last but not least, there is the application layer. It contains all prediction market dApps that developers have built on Gnosis. A number of these dApps are created by the main Gnosis team, but a significant portion of them is provided by 3rd-party projects.
What makes Gnosis (GNO) a Good Investment?
As with most blockchain protocols, the value of a token rises with adoption levels and usage. At the time of its launch, a minority of investors traded predictive markets. Most were still stuck in spot and derivatives trading. Nevertheless, the situation completely changed in recent years. Most major cryptocurrency exchanges today offer a high number of predictive markets for multiple coins tokens. On platforms such as FTX and Binance, this category is called a move contract. Based on their current popularity, we see that predictive markets evolved and caught up with the rest of the industry.
Another important factor about Gnosis is that it is permissionless and fully decentralized. Anyone can make integrations, submit orders, and list tokens on the platform. It also enables users to utilize any token pair they wish without being forced to convert assets. Gnosis is also a first move in the market as it was the first project to introduce batch auctions, which brings uniform prices and prevents front-running.
14-day GNO Price Action
Based on these capabilities, it becomes very clear that Gnosis is a good investment. Consistent and active platform usage are the most important aspects of the project. And the team did a very good job of attracting customers in the last couple of years. It is only a matter of time before Gnosis achieves massive adoption and becomes the number one DEX in the predictive markets sector.
But when investing, be sure to understand the difference between the GNO and OWL token. For investments, you should definitely purchase the GNO token. The OWL token, on the other hand, is a DEX utility token used to pay fees. They are pegged to the dollar and function as a stablecoin, as Gnosis manages the OWL distribution to keep it consistently valued at $1. Later on, the protocol collects all the OWL tokens not used for fees and sells them for GNO, increasing the price of the latter token.
Where to buy Gnosis (GNO)
As a result of investor interest, the GNO token is available on a multitude of different cryptocurrency exchanges. You can find the token on both centralized and decentralized exchanges. But you cannot simply make your investment on just any trading platform. To consistently profit in this market and achieve new all-time highs for your portfolio, you must be an expert cryptocurrency trader. And every reasonably great trader trades only at the best exchanges.
But what makes a crypto exchange great? Well to start off, a great exchange respects your privacy, charges you the lowest fees possible, and saves your time by providing a simple user interface. To invest in Gnosis in a time and cost-effective way, you will have to pick the very best trading solution. After hours of research, I have finally handpicked the only exchange that fits all of my criteria, Coinuma.
Based in Europe, the exchange represents a one-stop-shop for all your cryptocurrency investments. Be it major coins like Bitcoin, Ethereum, XRP, or altcoins like GNO, Coinuma has you covered. It is one of the few crypto trading platforms that request minimal identity information. Moreover, Coinuma offers inverse commissions for everyone who provides liquidity on the exchange. This means that you can earn passive income by simply trading all day.
In the guide below, I will show you exactly how to make an account and purchase GNO. To do that you only need to complete three steps, register, deposit crypto assets and make the trade. All of these steps take up to five minutes in total, making Coinuma one of the fastest options for trading.
Creating a Coinuma Account
As I already mentioned, registering on Coinuma is simple and only takes a few steps. To create an account, first, visit the official exchange at Coinuma.com. From that point, click on the ‘Start Now’ button on the homepage. Continue by typing your email address and make sure to add a very strong password to ensure maximum security. After completing this step, the exchange will send you an email with a verification link that you need to visit.
After verifying your account, you have completed the first step. Armed with a Coinuma account, you can finally start trading. But before you do that, you must fund your account first. Start by visiting the ‘Finances’ tab and preparing your crypto wallet for a transaction.
Depositing Bitcoin or Tether to Coinuma
To trade and invest in GNO, you must first fund your account with cryptocurrencies. So far, Coinuma does not support fiat deposits. This would be the perfect moment to open your cryptocurrency wallet to prepare to transfer your assets. If you do not have a wallet or any assets at all, you will have to continue by purchasing either Bitcoin or Tether on another exchange or P2P trading platform.
On Coinuma, you can trade GNO with either BTC or USDT. Naturally, you will have to deposit either of these assets to purchase the Gnosis token in the next step. In this guide, I will buy GNO with Tether. Begin the process by searching for USDT in the ‘Finances’ tab and clicking on the deposit button. A new window with an ERC-20 address will pop up. Use this when transferring your USDT and make sure not to make any mistake when copying the address.
Once you make the deposit, you will only have to wait a few minutes for the transaction to be confirmed by the Ethereum network. After your funds are ready, you can continue to the next step and finally buy the Gnosis token.
Buying Gnosis (GNO) on Coinuma
Trading GNO on Coinuma is fast and easy thanks to the exchange’s minimalistic user interface design. To finally become a proud owner of GNO, visit the trading tab and find the trading pair section in the left part of the screen. In the search field, type ‘GNO’ and two trading pairs will pop out. Based on what you deposited, you will have to either select GNO/BTC or GNO/USDT. In this case, I will select the GNO/USDT trading pair.
If you have difficulties finding the specific pair, visit the following link.
At this point, you will see the trading screen for the GNO token. In the section next to the chart, select either a market order or limit order. If you want to purchase GNO at its current market price, select the market order. Alternatively, click on the limit order if you want to buy the token at a lower price for example.
Since I am buying with USDT, all I have to do is insert the number of USDT tokens I wish to spend and click on the buy button. After doing that, you finally own GNO tokens. Congratulations, you finally completed all the steps! Now, you can decide if you wish to store the assets on the cure Coinuma exchange wallet or withdraw GNO to your personal wallet.
Final Word
Today, you had the privilege to learn about one of the most advanced protocols for prediction markets. Gnosis is a reputable project that is active in the cryptocurrency ecosystem for more than five years. With enough interest and high adoption levels, the GNO token can become one of the hottest cryptocurrencies for this specific niche. Therefore, it is easy to conclude if Gnosis is a good investment.
As I previously explained, investing in cryptocurrencies is not that simple. Besides choosing the asset, you must choose the exchange you trade on as well. After carefully reviewing all the options that support GNO, I finally chose Coinuma as the best option. What is there not to love? You provide almost no KYC information and can register a new account in only a few steps. Moreover, the exchange rewards you for bringing liquidity with inverse fees. For every order you make that is not instantly filled, you earn a certain percentage of maker fees.
