Is Kyber Network (KNC) a Good Investment?
Bitcoin showed its strength in October in spite of several bad news, setting the ground for a potential altcoin relief. Therefore, a lot of investors ask if Kyber Network (KNC) is a good investment. Based on information from multiple technical analysts, KNC might be headed for a good bounce in the short-term. Moreover, its offering may lead to a great long-term investment.
But what makes Kyber Network a good investment? Here, I will discuss the main features behind KNC and which use cases it fulfills. Moreover, I will also give a great example of where one could invest in Kyber Network and you could trade the token with the help of a simple buying guide. Investing in cryptocurrencies is difficult, but it does not have to be. Then let’s start by exploring what KNC is.
What is the Kyber Network?
The Kyber Network is a multi-use blockchain protocol that aggregates liquidity from various sources. By doing so, the network provides instant, stable, and secure transactions on any dApp. Developers and traders can utilize the protocol to provide a liquidity infrastructure for the rising decentralized finance (DeFi) sector.
Kyber collects all liquidity from projects, market makers, liquidity pools, and token holders into one unique pool. In the end, the liquidity is transferred to consumers such as wallets, dApps, decentralized exchanges, and takers. Not only is it a single point for transferring liquidity, but the protocol also helps by providing liquidity at the best and most efficient rates.
The team envisioned a simple to use liquidity ecosystem where every kind of system can connect and build. Since all applications would work in a uniform space, Kyber would be capable of delivering transparent transactions, liquidity aggregation, and instant settlement.
The project progressed swiftly in the past years, creating various partnerships and integrations. Some of these integrations include Uniswap, DutchX, Bancor, Oasis, and Dex.Blue. Kyber’s team also made several steps towards becoming a powerful key player in the DeFi industry, working with several leading projects such as bZx, Aave, DeFi Zap, Fulcrum, and many others.
Anyone can join the network to provide liquidity in the form of reserves. By doing so, users profit while at the same time making use of their tokens by providing them to dApps and other users. On that account, everyone can earn spread and rebates for generating volume, increase their asset exposure and usage, and ultimately provide low slippage market making.
The KNC community also has the ability to join the KyberDAO. This is a decentralized autonomous organization where KNC holders can propose new changes and steer the direction of the protocol. They are also rewarded for participating in governance by receiving ETH in return, generated from network fees.
Essentially, the biggest reason to participate in the Kyber Network is to trade on a decentralized platform. Kyber is a great alternative to centralized exchanges, as they often require numerous preconditions. For example, CEXs will often ask for important KYC information that can potentially be stolen during a hack or shared with governments. Another great motivation for migrating to Kyber is that you own all your assets. The second you fund your Binance, Kraken, or OKEx account, you will temporarily lose full control over your cryptocurrencies.
Two good reasons why the Kyber Network represents a better option for liquidity providers is that it saves both time and money. Centralized exchanges often impose hefty fees for withdrawals, deposits, and trades, making it often inefficient to use for large accounts. And as for speed, Kyber users save a lot of time as the transactions are near-instant once they are created.
Is Kyber Network (KNC) a Good Investment?
Now that you know how good of a liquidity platform the Kyber Network is, it is time to learn more about KNC. Is the Kyber Network (KNC) a good investment for you as the investor? And does its KNC token serve any purpose? After all, you are investing in the protocol’s token and if it has no use case there is no reason to buy it. But do not fret, there are plenty of reasons to own KNC.
The Kyber Network Crystal (KNC) has an extremely important role in providing incentives for the community utilizing the liquidity protocol. Everything ranging from stakeholders, economic flow, and governance is ultimately supported by KNC tokens. The fees users pay for token exchanges are extremely important for the ecosystem. And who controls the feed models? KNC token holders.
Governance is very important on the Kyber Network and the KNC token is a critical founding block that supports it. And as users spend KNC for governance purposes, fees, and reserve rebates, the tokens are burned.
Additionally, the tokens are used to participate in the KyberDAO by staking KNC or using them to vote on proposals. Tokens used for voting are burned and in return, holders receive staking rewards in the form of ETH. This mechanism enables the circulating supply of KNC to reduce, leading to a higher price, while at the same time rewarding holders with a different currency, which they can use to buy KNC again.
Apart from staking, KNC tokens are also burned whenever a transaction is produced. Since the Kyber Network blockchain is primarily a liquidity protocol, this leads to a huge number of daily transactions. Therefore, an enormous amount of KNC will be burned on a daily time frame.
KNC holders also hold the keys to the Kyber Reserve. Just like with governance and normal transactions, users can also determine the network fees used as rebates for liquidity providers within the Reserve. Likewise, this also burns a significant amount of KNC tokens.
As you can see, the Kyber Network protocol made sure to completely alleviate selling pressure by implementing numerous token burning mechanisms. By doing so, there is no way for KNC to reach high inflation levels or for the token to become worthless through normal market activity. Since the circulating supply is reduced on a daily level, the value of the token is bound to increase.
Where to buy Kyber Network (KNC)?
Investing in cryptocurrencies is hard and difficult, especially when you do not know where to buy them. So why waste your time on research when you can read a perfectly good guide like the one I wrote below? You will find the KNC token on a lot of exchanges, but are they really the best trading platforms for your needs?
Oftentimes, you will find exchanges that are beyond centralized. They demand high trading fees, withdrawal fees, and sometimes even deposit fees. Some will even require that you send very sensitive information such as Know Your Customer (KYC) data. While this is something that you can freely share with any formal institution, it is unfavorable to send the same information to an unsecured crypto exchange that can be hacked at any moment.
To save your time, I decided to find out which crypto exchanges support KNC trading and which platform provides the best features. During my research, I discovered one European exchange that stands out not only as a potential place for your KNC investment but for all your future trading needs as well.
Which exchange am I talking about? Coinuma of course! It is a cryptocurrency exchange based in Spain that focuses on innovative cryptocurrencies. Their goal is to provide a one-stop-shop for all your trading needs, actively listing all the tokens that are in demand. Therefore, you will not have to switch over multiple exchanges, all you have to do is use Coinuma.
Moreover, the trading platform uniquely offers inverse fees. What does this mean? Every time you create an order that is not instantly filled, you receive the maker fees. Since you provide liquidity by actively trading, Coinuma will regularly reward you.
Coinuma Registration Process
Now that you know where to invest in KNC, it is time to create an account. Start by visiting Coinuma.com, from which you need to locate the registration page. Click on ‘Start Now’ in the top right corner and begin by inserting your account information. To register, all you need to provide to Coinuma is an email address and a secure password. See? Basically no KYC at all.
Once you register, Coinuma requests that you confirm your account by visiting the verification link sent to your email. Once you verify the account, you are ready to deposit funds and start trading. In this case, I will use Bitcoin for investing in KNC.
Transferring Bitcoin to Coinuma
To trade, you have to fill your empty Coinuma account first. In the top part of the screen, find and click on the ‘Finances’ there. This is the spot where you make all your important withdrawals and deposits, so make sure to remember it. From here, search for the asset you want to transfer. Since you are investing in KNC, you must transfer a compatible trading pair. In this case, Coinuma supports Bitcoin (BTC) and Tether (USDT).
Type Bitcoin in the search box at the top and click on the deposit button. A unique BTC address will pop up, which you need to use in your wallet when transferring Bitcoin to Coinuma. If you do not have a wallet or any cryptocurrencies at all, it would be wise to buy the new digital asset class. Unfortunately, you cannot do that on Coinuma as the exchange does not yet support fiat payments. Instead, find a Bitcoin ATM that is close to you since it is the easiest and fastest option. Alternatively, you can create an account on a peer-to-peer trading platform where you can digitally buy and sell BTC.
If you do not have these problems, feel free to open your wallet and transfer your assets to the given Coinuma address. After doing so, wait a few minutes for the transaction to confirm and you will find your assets in the balance section. Now that you completed this step, you are finally ready to invest in the Kyber Network.
Purchasing KNC with Bitcoin
To buy the KNC token, simply switch to the trading platform. From here, you can see the full list of all tokens and trading pairs that are available on Coinuma. Note that this is the final step, so once you invest in KNC you can see what else there is to trade. To find the token you are about to buy, type KNC in the search box in the top left part of the trading screen. Select KNC/BTC and the respectable trading section will appear. You can also do this by visiting the trading pair page directly here.
Now, you will have a full view of the token’s historical and current prices. If you wish, you can wait for a better moment to appear and buy at a lower price. To do this, select the limit order and set the number of tokens you want to buy and at what price. Execute the order by clicking on ‘Buy.’ If the current price is fine with you, select the market order, pick the number of tokens or BTC you wish to spend, and click ‘Buy.’
You have finished all the steps now, congratulations! Depending on what you chose, the market should either instantly fill your order or do so when prices decrease. Either way, you have already secured your investment by creating an account on Coinuma and trading. You will also have a chance to see if Kyber Network is a good investment in the following months, as the price develops along with the rest of the market.
After completing this guide and finding out about what the Kyber Network is, you have a better understanding of the blockchain-based liquidity protocol and what it offers. Additionally, you also had the chance to hear about Coinuma and trade on it. From now on, you can trade all cryptocurrencies on this exchange as it is simple and easy. Make sure to remember that you are rewarded for bringing liquidity, so actively trade to reap the best rewards.