How To Buy Frax Share (FXS)?

A common question you often see on social media from crypto beginners is “Where can I buy Frax Share?” Well, you’ll be happy to hear it is actually quite a simple and straightforward process.

Step 1: Create an account on an exchange that supports Frax Share (FXS)

First, you will need to open an account on a cryptocurrency exchange that supports Frax Share (FXS).
We recommend the following based on functionality, reputation, security, support and fees:

In order to sign up, you will need to enter some basic information, such as your email address, password, full name and, in some cases, you might also be asked for a phone number or address.

Note: On specific exchanges, you might need to complete a Know Your Customer (KYC) procedure in order to be able to purchase cryptocurrency. This is most commonly the case with licensed and regulated exchanges.

Step 2: Deposit funds into your account

Many cryptocurrency exchanges will allow you to purchase Frax Share (FXS) with fiat currencies, such as EUR, USD, AUD and others. Furthermore, they will also provide you with multiple deposit methods through which you can fund your fiat account, such as credit and debit cards, ewallets or direct bank transfers.

Note: Some payment methods will have higher fees than others, such as credit card payments. Before funding your fiat account on your chosen exchange, make sure to do your due diligence to find out the fees involved with each payment method to avoid unnecessary costs.

Step 3: Buy Frax Share (FXS)

This process is similar across almost every cryptocurrency exchange. All you have to do is find a navigation bar or a search bar, and search for Frax Share (FXS) or Frax Share (FXS) trading pairs. Look for the section that will allow you to buy Frax Share (FXS), and enter the amount of the cryptocurrency that you want to spend for Frax Share (FXS) or the amount of fiat currency that you want to spend towards buying Frax Share (FXS). The exchange will then calculate the equivalent amount of Frax Share (FXS) based on the current market rate.

Note: Make sure to always double-check your transaction details, such as the amount of Frax Share (FXS) you will be buying as well as the total cost of the purchase before you end up confirming the transaction. Furthermore, many cryptocurrency exchanges will offer you their own proprietary software wallet where you will be storing your cryptocurrencies; however, you can create your own individual software wallet, or purchase a hardware wallet for the highest level of protection.

For more in-depth instructions, our ‘Absolute Beginner’s Guide To Cryptocurrency Investing‘ will take you through the process step-by step. In addition to providing instructions for sending and receiving your cryptocurrency.
And if you’re completely new to crypto our beginner, intermediate and advanced level articles will get you up to speed with everything you need to know about the cryptocurrency space starting out. 

Simplecryptoguide.com

What Is Frax Share (FXS)?

The Frax Protocol is the first fractional-algorithmic stablecoin system. Frax is open-source, permissionless, and entirely on-chain – currently implemented on Ethereum (ETH) (with possible cross chain implementations in the future). The end goal of the Frax protocol is to provide a highly scalable, decentralized, algorithmic money in place of fixed-supply digital assets like Bitcoin (BTC). The protocol incorporates the following concepts:

Fractional-Algorithmic – Frax is a unique stablecoin with parts of its supply backed by collateral and parts of the supply algorithmic. The ratio of collateralized and algorithmic depends on the market’s pricing of the FRAX stablecoin. If FRAX is trading at above $1, the protocol decreases the collateral ratio. If FRAX is trading at under $1, the protocol increases the collateral ratio.

Decentralized & Governance-minimized – Community governed and emphasizing a highly autonomous, algorithmic approach with no active management.

Fully on-chain oracles – Frax v1 uses Uniswap (ETH, USDT, USDC time-weighted average prices) and Chainlink (USD price) oracles.

The Frax Protocol consists of two tokens. FRAX is the stablecoin targeting a tight band around $1 per coin. Frax Share (FXS) is the governance token which accrues fees, seigniorage revenue, and excess collateral value.

Before Frax, stablecoins were divided into three different categories: fiat collateralized, overcollateralized with cryptocurrency, and algorithmic with no collateral. Frax is the first kind of decentralized stablecoin to classify itself as fractional-algorithmic ushering in the 4th and most unique category.

What Makes Frax Unique?

The Frax Protocol is a community driven and unique design stablecoin. Over 60% of the supply of FXS is issued over several years to liquidity providers and yield farmers. It is an entirely decentralized protocol with governance on-chain. It is also the first and only stablecoin to incorporate the fractional-algorithmic hybrid design at the time of its launch in November 2020.

Who Are the Founders of the Frax Protocol?

The Frax Protocol is the brainchild of American software developer Sam Kazemian who came up with the first idea of a fractional-algorithmic stablecoin in 2019.

The founding team of Frax engineers includes Travis Moore and Jason Huan. Sam Kazemian originally devised the idea when he noticed that stablecoins were growing rapidly but none had any mixture of algorithmic monetary policy and collateralization. Projects that had purely algorithmic monetary policy had failed or shut down without any significant traction. Frax was designed as an answer to measure the market’s confidence in a partly algorithmic and partly collateralized stablecoin.

Frax Shares development updates in 2023

Frax Shares (FXS) has seen a variety of developments in 2023, making it an intriguing project in the decentralized finance (DeFi) sector. Here are some key highlights:

• Frax Protocol and FXS Token: Frax Shares is part of the Frax Protocol, a unique fractional-algorithmic stablecoin system. This protocol operates on Ethereum and combines collateral backing with algorithmic stabilization. FXS, the governance token of this protocol, plays a critical role in generating fees, revenue, and managing excess collateral value. The FRAX stablecoin, the other half of this two-token system, is pegged to the U.S. dollar and is partly collateralized by the USD Coin (USDC). The demand for FXS is driven by FRAX’s minting mechanism, as the creation of FRAX tokens leads to a proportional burning of FXS tokens, thereby impacting its price​​.

• Recent Performance and Listings: FXS has shown remarkable performance, with a significant price increase over a short period. This growth has led to FXS being listed on major exchanges like ByBit and Binance, enhancing its accessibility and market presence. The listing on these platforms followed the strong product lineup of Frax, especially its liquid staking derivatives (LSDs), which have been a talking point in the community​​.

• Layer 2 Scaling Solution – Fraxchain: A key development for Frax Finance is its plan to launch its own Layer 2 Scaling Solution, known as Fraxchain, by the end of 2023. This move is expected to boost the utility and efficiency of the FXS token and the Frax protocol overall. The introduction of Fraxchain is a response to the challenges faced by algorithmic stablecoins and is aimed at revitalizing the sector following the collapse of the Terra blockchain​​​​.

• FXS Price Trends and Predictions: Frax Share (FXS) has experienced significant fluctuations in its price, partly influenced by the broader cryptocurrency market dynamics. The announcement of Fraxchain and the performance of the Frax protocol in the DeFi space have impacted FXS’s market value. Price predictions for FXS vary, with some forecasts indicating potential growth in the coming years. However, it’s important to note that cryptocurrency markets are highly volatile and predictions should not be taken as guarantees​​​​.

Overall, Frax Shares (FXS) has made notable strides in 2023, particularly in terms of its technological development with Fraxchain and its performance in the DeFi market. The ongoing developments and future potential make it a project of interest in the cryptocurrency space.

Official website: https://frax.finance/#welcome

Best cryptocurrency wallet for Frax Share (FXS)

There are plenty of different crypto wallets available. The best one for you depends on your general trading habits and which provides the most security in your situation. There are two main types of wallets: hot storage wallets (digital) and cold storage or hardware wallets (physical). Both have their pros and cons, and there is not necessarily a right or wrong answer when it comes to figuring out which crypto wallet is best for you.

HOW DO I DECIDE WHICH cryptocurrency WALLET TO USE for Frax Share (FXS)?

Deciding which type of wallet to use depends on a variety of factors, including:

• How often you trade. In general, hot wallets are better for more active cryptocurrency traders. Quick login ability means you are only a few clicks and taps away from buying and selling crypto. Cold wallets are better suited for those looking to make less frequent trades. 
• What you want to trade. As mentioned earlier, not all wallets support all types of cryptocurrencies. However, some of the best crypto wallets have the power to trade hundreds of different currencies, providing more of a one-size-fits-all experience.
• Your peace of mind. For those worried about hacking, having a physical cold wallet stored in a safe deposit box at the bank or somewhere at home, provides the safest, most secure option. Others might be confident in their ability to keep their hot wallets secure.
• How much it costs. It is important to investigate the costs associated with each wallet. Many hot wallets will be free to set up. Meanwhile, cold wallets, like any piece of hardware, will cost money to purchase.
• What it can do. While the basics of each cryptocurrency wallet are the same, additional features can help set them apart. This is especially true of hot wallets, many of which come with advanced reporting features, insights into the crypto market, the ability to convert cryptocurrencies and more. Security features can also be a good differentiator.

For a more in-depth overview of cryptocurrency wallets visit our “Cryptocurrency Wallets Explained” guide.

If you’re going to be dealing in larger volumes of crypto, investing in cold storage might prove advantageous.
Most widespead examples of this being the Ledger Nano and the Trezor.

Ledger manufactures cold storage wallets designed for users who want increased security. Their wallets are a physical device that connects to your computer. Only when the device is connected can you send your cryptocurrency from it. Ledger offers a variety of products, such as the Ledger Nano S and the Ledger Nano X (a bluetooth connected hardware wallet).

Trezor is a pioneering hardware wallet company. The combination of world-class security with an intuitive interface and compatibility with other desktop wallets, makes it ideal for beginners and experts alike. The company has gained a lot of the Bitcoin community’s respect over the years. Trezor offers two main models – The Trezor One and Trezor Model T (which has a built in touch screen).