Hey guys, it’s been a few days since my last “how to buy/simple explanation” type of post but I was swamped with some other things I have going on.
Before I jump into KNC, I just want to give you a quick update on what’s going on with my DMG tokens that I spoke of in my Where to Buy DMG Token? (What You Need to Know About DMG Token: 4X ICO Price).
Well, I’ve sold most of my position on it at around $1.65 today on MXC.co exchange. As I explained in my previous post, I participated in the public sale but I also bought more using some additional margin on MXC at around $0.80. The investment has more than doubled itself, so I took the majority of my profits and left a small bag for “mooning.” If you’ve missed it, don’t worry, the market provides tons of opportunities, regardless of what the price is. Just be patient and never chase trades, keep it calm!
By the end of this week, I will be publishing an article on one of the most hyped-up and long-awaited token sales that will take place next week. So stay tuned and if you’d like to know more about it, smash that follow button.
If you want to learn how to start margin trading on MXC, I suggest you take a look at my comprehensive guide here.
Now, back to Kyber Network, let’s see what that is and where to get some KNC tokens.
What is Kyber Network?
In Layman’s terms, Kyber Network is a tool that will allow you to swap tokens instantly without having to go through exchanges. When integrated with a vendor, for example, it allows them to accept various types of cryptocurrencies while still being paid in their preferred cryptocurrency.
The protocol is built mainly for Ethereum. However, any blockchain that’s based on smart contracts can integrate it.
If you want a more complex explanation, it’s essentially an on-chain liquidity protocol. It will aggregate liquidity from different reserve sources and power instant token exchange through any decentralized application (DApp).
One one side of the process we have the market makers, token projects, liquidity pools, and even token holders - these are the reserves that contribute liquidity.
On the other side, we have DApps, wallets, end-users, and exchanges, for example - these are the “market takers.”
How is the whole thing funded? As any other exchange - they charge fees - the beauty of the game.
So, What is the KNC Token?
In its core, KNC is an ERC-20 token. It’s an integral part of the entire ecosystem. In order to provide token liquidity, the third-party token reserves (see above) are required to purchase KNC to pay for their operation in the network.
Those fees that we mentioned above, they are paid IN KNC from these reserves.
So basically, if you want to take advantage of what Kyber Network offers, you’ll have to buy KNC.
The million-dollar question is why you should even consider buying KNC tokens. Well, for once, this is a very promising project with tons of partnerships and a great team behind it. It’s an established name in the industry with a serious reputation and it provides a very viable and comprehensive solution. It's also a project largely affected by the ongoing DeFi hype and if the trend continues, it's got a bright future ahead of it, at least in my opinion.
The more people start using it, the more KNC they’d have to buy in order to “fund” the fees. And we all know what happens when a lot of people buy a token.
Note that this is not advice to buy, I'm just presenting my thoughts. It's highly recommended that you do your own research.
Where to Buy KNC?
While there are a lot of exchanges where you can buy KNC from, I personally prefer MXC.co at this point. I’ve explained why I’m using it right now in the above guide, so I won’t be repeating myself here.
However, it’s also worth noting that MXC.co provides a 5x margin trading option on the KNC/USDT contract, which gives you more leeway to play without having to deposit as much. It’s something that I personally like.
These are my referral links and it would mean the world for me if you used them. I will make a tiny commission on the trading fees that you pay but it helps me keep this blog going so that I can provide more content of the kind for you guys!
The next thing I will work on is a guide on how to use Futures contracts at MXC.
I hope you enjoyed the content and if you did, a follow would be massively appreciated!
Disclaimer: None of the above content is financial advice. The information hereby provided is for educational purposes only. Do your own research before investing in cryptocurrency. Trading cryptocurrency, especially with leverage, comes with a serious risk of capital loss. Be careful! Never trade with money that you can’t afford to lose!