How to buy Arbitrum (ARB)
If you’re interested in purchasing Arbitrum (ARB), this helpful step-by-step guide will show you how. We’ll walk you through the process so you can learn how to buy Arbitrum (ARB) with ease. Whether you’re new to cryptocurrency or just looking to expand your portfolio, this guide can provide you with the information you need to get started. So why not give it a try and learn how to buy Arbitrum (ARB) today?
Step 1: Create an account on an exchange that supports Arbitrum (ARB)
First, you will need to open an account on a cryptocurrency exchange that supports Arbitrum (ARB).
We recommend the following based on functionality, reputation, security, support and fees:
1
Binance
Fees (Maker/Taker) 0.075%*-0.1%*
Cryptocurrencies
Available for Trade 500+
Sign-up bonus
10% reduced trading fees*
Available in
Europe, Asia, Oceania, Africa
2
MEXC
Fees (Maker/Taker) 0.2%*-0.2%*
Cryptocurrencies
Available for Trade 1500+
Sign-up bonus
10% reduced trading fees & up to $170 in USDT vouchers*
Available in
North America, South America, Europe, Asia, Oceania, Africa
3
Gate.io
Fees (Maker/Taker) 0.2%*-0.2%*
Cryptocurrencies
Available for Trade 1000+
Sign-up bonus
Up to $100 in USDT vouchers*
Available in
Europe, Asia, Oceania, Africa
When you’re signing up for a cryptocurrency exchange, you’ll typically need to provide some basic information. This might include your email address, password, and full name. Depending on the exchange, you may also be asked for additional details like your phone number or address.
It’s worth noting that some exchanges have more stringent requirements, such as a “Know Your Customer” (KYC) procedure. This is typically the case with licensed and regulated exchanges. KYC procedures help ensure that exchanges comply with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations. If you’re required to complete a KYC procedure, you’ll typically be asked to provide additional information, such as a government-issued ID or proof of address.
Step 2: Deposit funds into your account
When buying Arbitrum (ARB) on a cryptocurrency exchange, many of them allow you to use fiat currencies like EUR, USD, and AUD to make your purchase directly. To do this, you’ll need to fund your account with one of several deposit methods, including credit and debit cards, e-wallets, and direct bank transfers. If this is not an option on the cryptocurrency exchange that you have chosen, then simply move onto the next step in this guide.
It’s important to note that different payment methods may have varying fees associated with them. For example, credit card payments may have higher fees than other options. To avoid paying unnecessary costs, it’s a good idea to research the fees for each payment method before funding your account.
Step 3: Buy Arbitrum (ARB)
Buying Arbitrum (ARB) on a cryptocurrency exchange is a simple process. Look for the search bar or navigation menu and search for Arbitrum (ARB) or Arbitrum (ARB) trading pairs. Next, find the section that allows you to buy Arbitrum (ARB). Enter the amount of cryptocurrency you want to spend or the amount of fiat currency you want to use to buy Arbitrum (ARB). The exchange will calculate the equivalent amount of Arbitrum (ARB) based on the current market rate.
Before confirming your purchase, always double-check the transaction details, such as the amount of Arbitrum (ARB) you’ll receive and the total cost of the purchase. Additionally, some exchanges offer a proprietary software wallet to store your Arbitrum (ARB), but you can also create your own software wallet or purchase a hardware wallet for the highest level of protection.
How to create a Binance account
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Step 1: Go to the Binance website.
Step 2: On the registration page, enter your email address, and create a password for your account.
Then, read and agree to the Terms of Service and click “Create Account”.
Note: Your password must be a combination of numbers and letters.
It should contain at least 8 characters, one UPPER CASE letter, and one number.
Step 3: Complete the Security Verification.
Step 4: The system will send a verification code to your email. The verification code is valid for 30 minutes. If you can’t find the email in your inbox, check your other mail folders as well, or click “Resend Email” to resend.
How to complete KYC (ID Verification) on Binance
Step 1: Log in to your Binance account and click “User Center” and then “Identification”.
Step 2: click “Start Now” to verify your account.
Step 3: Select your country of residence.
Ensure that your country of residence is consistent with your ID documents.
Step 5: Enter your personal information and click “Continue.”
You won’t be able to change it once confirmed.
Refer to the respective options offered for your country.
Step 7: Follow the instructions to upload photos of your document. Your photos should clearly show the full ID document.
Do not wear hats, glasses, or use filters, and make sure that the lighting is sufficient.
Once your application has been verified, you will receive an email notification.
How to buy cryptocurrency on Binance
Step 1: Log in to your Binance account and click “Buy Crypto” and then “Credit/Debit Card”.
Step 2: Here you can choose to buy crypto with different fiat currencies. Enter the fiat amount you want to spend and the system will automatically display the amount of crypto you can get. When you have selected the amount you wish to spend then press “Continue”.
Note: You might not be able to purchase every cryptocurrency directly using fiat, if you’re looking to purchase something that isn’t offered in the currency list on this page, then you will want to purchase USDT. We will then show you how to exchange that on the spot-market for the cryptocurrency that you want in the next section of this guide.
Step 3: Click “Add New Card”. Then enter your credit card details and your billing address.
Step 4: Check the payment details and confirm your order within 1 minute. After 1 minute, the price and the amount of crypto you will get will be recalculated. You can click “Refresh” to see the latest market price. You will then be redirected to your bank’s OTP Transaction Page. Follow the on-screen instructions to verify the payment.
How to Conduct Spot Trading on Binance
Step 1: Log in to your Binance account.
Click on “Classic” under “Trade” on the top navigation bar.
Step 2: Search and enter the cryptocurrency you want to trade.
Step 3: Set buying/selling prices and buying/selling amount (or exchange total). Then click on “Buy”/”Sell”.
(Note: The percentages under the “Amount” box refer to percentages of the total account balance.)
Step 4: If you don’t want to set a manual price, you can place a “Market Order” to set the buying/selling price automatically.
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If you’re looking for more detailed instructions on buying cryptocurrency, our “Absolute Beginner’s Guide to Cryptocurrency Investing” can take you through the process step-by-step. This guide also covers how to send and receive cryptocurrency.
If you’re brand new to the world of cryptocurrency, don’t worry! We offer beginner, intermediate, and advanced level articles to help you get up to speed with everything you need to know. These articles cover a wide range of topics, so whether you’re just starting out or looking to expand your knowledge, we’ve got you covered. With our resources, you can confidently navigate the cryptocurrency space and make informed investment decisions.
What is Arbitrum (ARB)?
Since its mainnet launch, Arbitrum has successfully established itself as a prominent Ethereum (ETH) layer-2 solution. Focused on delivering a cost-effective, swift, and scalable network, Arbitrum addresses the ongoing challenges Ethereum faces even after its Merge upgrade in September 2022. Consequently, developers have been drawn to Arbitrum to create decentralized applications (dApps), and it now holds the rank of the seventh-largest blockchain by total value locked (TVL), as reported by DeFi Llama.
Before delving into its potential digital currency, it is crucial to understand what Arbitrum is and how it functions and how it functions within the blockchain ecosystem.
How does Arbitrum (ARB) work?
Arbitrum is a layer-2 functionality developed by New York-based company Offchain Labs. Its primary goal is to alleviate congestion on the Ethereum network by enhancing the validation process of smart contracts. The platform benefits from the security provided by the Ethereum mainnet while allowing smart contracts to operate on a separate layer, reducing network congestion.
This approach, known as “transaction rollups,” involves batching transactions and records, which are validated on the lower layer before moving to the Ethereum mainnet (layer-1). The Arbitrum network compensates nodes (referred to as aggregators) that actively validate the smart contracts powered by the Arbitrum chain with ETH. These aggregators are responsible for adding blocks to the Ethereum mainnet (layer-1).
The Arbitrum One ecosystem serves as a layer-2 mainnet that powers smart contracts, which are later validated by the Ethereum network (layer-1). Fees charged by Arbitrum are paid in ETH, and the development team anticipates a reduction of around 50 times the standard fees paid per transaction on layer-1. This implies that running smart contracts on Arbitrum should be more cost-effective than executing them directly on the ETH mainnet.
Arbitrum launched its Beta version on May 29, 2021, quickly attracting the attention of DeFi app developers seeking to minimize fees incurred by users during peak times on the Ethereum network. Today, Arbitrum hosts a thriving ecosystem of dApps, including decentralized exchange (DEX) GMX and liquidity management platform DeFiEdge. The protocol has also experienced a series of upgrades, such as the Arbitrum Nitro update in August 2022, which enhanced throughput and interoperability.
The Ethereum mainnet has faced criticism for its limited scalability, high gas fees, and slow transaction speeds. Several networks, including Polkadot (DOT), Cardano (ADA), and EOS (EOS), have emerged as alternatives, offering separate blockchains powered by proof-of-stake (PoS) protocols that aim to resolve Ethereum’s scalability issues.
However, unlike these alternatives, Arbitrum operates as an independent layer within the network, alleviating the ETH mainnet’s excessive transactions by facilitating the validation of smart contracts through optimistic Arbitrum rollups.
One of the unique features of the Arbitrum network is its compatibility with the Ethereum Virtual Machine (EVM). This means developers can build dApps on the Arbitrum mainnet without needing to learn a new coding language. While other protocols also strive to achieve similar improvements, Arbitrum stands out for its seamless integration with Ethereum’s existing infrastructure.
In September 2022, Ethereum shifted to a PoS consensus mechanism, which was expected to significantly increase transaction speeds and network scalability. However, it did not address the persistently high Ether gas fees. Arbitrum One managed to reduce fees by enabling batch validation of smart contracts while simultaneously compensating validators for their efforts.
What is the Arbitrum (ARB) Token?
The upcoming Arbitrum (ARB) token has already captured the attention of derivative markets ahead of its claim event scheduled for Thursday, March 23. Arbitrum developers confirmed last week that the ARB token would be airdropped to community members based on their prior network activity. This event will mark Arbitrum’s official transition into a decentralized autonomous organization (DAO), allowing ARB holders to vote on key decisions governing Arbitrum One and Arbitrum Nova networks. These networks enable users to transact on the Ethereum blockchain with increased speeds and lower fees.
What do we know about the Arbitrum (ARB) airdrop?
Arbitrum recently announced the launch and airdrop of its native governance token called ARB, which is a new layer-2 token that uses optimistic rollups. The airdrop will distribute approximately 1.275 billion ARB tokens to eligible wallets on March 23, 2023. The total supply of ARB tokens is 10 billion, with 12.75% of the total supply hitting the market during the airdrop.
Analysts are estimating the potential price of ARB tokens by comparing them to Optimism’s governance token OP, which has a similar technology stack and uses optimistic rollups. OP’s current market capitalization is approximately $839 million, with each token priced at $2.63, and a circulating supply of 314.8 million tokens. If ARB hits the same valuation as OP, it could be worth around $0.65 per token after dividing OP’s market cap by the number of ARB tokens that will be distributed.
Apart from the circulating supply, analysts are also turning to the project’s fully diluted valuation (FDV) to estimate the potential price of ARB tokens. The FDV of OP tokens, which is the estimated market cap based on the total token supply, is around $11.45 billion, given that the total supply of OP tokens is 4.29 billion tokens. Should ARB trade at a similar FDV as Optimism, rather than the circulating market cap, the price of the ARB token will be around $1.15.
The role that Arbitrum plays in the world of decentralized finance (DeFi) can also provide additional information on ARB token valuation. According to DefiLlama data, Arbitrum currently has the fourth-largest total value locked (TVL) in DeFi, amounting to roughly $1.77 billion. The TVL represents the total deposits into a network’s DeFi protocols and serves as an indicator of an ecosystem’s liquidity. Turning to the TVL ratio, which is calculated by dividing the TVL between two relevant projects, such as Arbitrum and Optimism, can provide another metric by which analysts can measure ARB token valuation.
According to the above estimations, the potential price of ARB tokens ranges from $0.64 to $2.07. Early Arbitrum users have been allocated 625 ARB tokens, corresponding to an approximate total airdrop value of between $400 and $1,250. The highest allocation per address is 10,250 ARB tokens, where approximately 4,400 wallets could receive anywhere between $6,500 and $20,600 in tokens. The exact price of ARB tokens after the airdrop remains uncertain, but the estimations can help the stakeholders understand the potential value of the new layer-2 token.
Arbitrum development updates in 2023
In 2023, Arbitrum, known for its Layer-2 scaling solutions for Ethereum, has witnessed several pivotal developments that have significantly impacted its ecosystem. Here are the key updates and changes:
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ARB Token Launch and Distribution: Arbitrum launched its ARB token as part of an airdrop campaign in March 2023, distributing approximately 1.16 billion tokens. These tokens serve a dual purpose, acting as rewards for early adopters of the Ethereum Layer 2 network and as a governance tool within the Arbitrum DAO. The airdrop represented about 11.6% of Arbitrum’s total supply of 10 billion tokens, aimed at incentivizing participation and empowering users within the ecosystem.
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Transfer of Unclaimed ARB Tokens: In a significant decision, the Arbitrum Crypto Foundation transferred 69 million unclaimed ARB tokens, worth around $57 million, into the Arbitrum DAO treasury. This move, in contrast to strategies employed by competitors like Optimism, demonstrates a commitment to strengthening the treasury resources for future development and expansion of the Arbitrum ecosystem.
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ARB Token’s Utility in Staking and Governance: The ARB token plays a crucial role in securing the Arbitrum network through staking. Token holders contribute to the network’s stability and reliability. Additionally, ARB tokens empower holders with governance rights, allowing them to participate in critical decision-making processes that shape the future direction of the Arbitrum project.
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Market Response and Price Movements: Following these developments, the price of Arbitrum’s governance token experienced slight fluctuations. However, it showed resilience, quickly recovering after initial dips. This reflects the dynamic nature of the cryptocurrency market and the robustness of Arbitrum’s economic model and community engagement.
These developments mark significant strides in Arbitrum’s journey, highlighting its focus on scalability, security, and community-driven governance in the blockchain and cryptocurrency space.
Official website: https://arbitrum.io/
Best cryptocurrency wallet for Arbitrum (ARB)
Navigating the world of cryptocurrency wallets can be quite an adventure, as there are numerous options available to suit different needs. To find the perfect wallet for you, consider your trading habits and the level of security you require. Generally, there are two main categories of wallets: hot storage wallets (digital) and cold storage or hardware wallets (physical).
Each type of wallet comes with its own set of advantages and drawbacks, so there isn’t necessarily a one-size-fits-all solution. As you embark on your journey to find the best crypto wallet for your Arbitrum (ARB) tokens, remember to keep an open mind and explore the features that align with your personal preferences and requirements.
When choosing the right wallet for your Arbitrum (ARB) tokens, consider the following factors:
- Trading frequency: Hot wallets are generally more suitable for active traders due to their quick login capabilities, allowing for seamless buying and selling of crypto. Cold wallets, on the other hand, are better suited for those who make less frequent trades.
- Supported cryptocurrencies: Although not all wallets cater to every cryptocurrency, some of the best ones can trade a vast array of currencies, offering a versatile experience. Make sure the wallet you choose supports Arbitrum (ARB).
- Security concerns: If you’re worried about potential hacking incidents, a physical cold wallet stored in a safe deposit box or a secure location at home provides the highest level of protection. However, if you’re confident in safeguarding your hot wallet, you might prefer its convenience.
- Associated costs: Investigate the costs of each wallet option. While many hot wallets are free to set up, cold wallets, being hardware devices, will require an upfront investment.
- Wallet features: While the basic functions of cryptocurrency wallets remain the same, additional features can distinguish one wallet from another. Hot wallets often come with advanced reporting tools, crypto market insights, and currency conversion capabilities. Security features can also be an essential factor when making your decision.
By considering all of these aspects, you’ll be better equipped to select the perfect cryptocurrency wallet for your Arbitrum (ARB) tokens.
For a more in-depth overview of cryptocurrency wallets visit our “Cryptocurrency Wallets Explained” guide.
If you’re planning to handle larger amounts of crypto, investing in cold storage can be a wise decision. Two of the most popular cold storage options are the Ledger Nano and the Trezor.
Ledger creates cold storage wallets designed for users who prioritize security. Their wallets are physical devices that connect to your computer, and you can only send cryptocurrency from them when they’re connected. Ledger offers a range of products, including the Ledger Nano S and the Ledger Nano X, which features Bluetooth connectivity.
Trezor, a trailblazer in the hardware wallet industry, combines top-notch security with an intuitive interface and compatibility with various desktop wallets. This blend makes it suitable for both beginners and experienced users. Trezor has earned a great deal of respect within the Bitcoin community over time. They offer two primary models – the Trezor One and the Trezor Model T, which comes with a built-in touchscreen.
Arbitrum (ARB) Price & Charts
- Market Capitalization And Daily Trading Volume
- Current Market Price Of Every Cryptocurrency Relative To USD (And Some Local Currencies)
- Circulating And Total Supply
- Historical Charts With Prices Relative To USD, Bitcoin (BTC), And Ethereum (ETH).
