How To Buy Internet Computer (ICP)?
A common question you often see on social media from crypto beginners is “Where can I buy Internet Computer?” Well, you’ll be happy to hear it is actually quite a simple and straightforward process. Thanks to its massive popularity, you can now buy Internet Computer on most cryptocurrency exchanges, including Coinbase and Binance in 3 simple steps.
Step 1: Create an account on an exchange that supports Internet Computer (ICP)
First, you will need to open an account on a cryptocurrency exchange that supports Internet Computer (ICP).
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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 Internet Computer (ICP) 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 Internet Computer (ICP)
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 Internet Computer (ICP) or Internet Computer (ICP) trading pairs. Look for the section that will allow you to buy Internet Computer (ICP), and enter the amount of the cryptocurrency that you want to spend for Internet Computer (ICP) or the amount of fiat currency that you want to spend towards buying Internet Computer (ICP). The exchange will then calculate the equivalent amount of Internet Computer (ICP) based on the current market rate.
Note: Make sure to always double-check your transaction details, such as the amount of Internet Computer (ICP) 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.
What Is Internet Computer (ICP)?
What is Dfinity?
The DFINITY Foundation is a not-for-profit organization based in Zurich, Switzerland. The Foundation has research centers all over the world, including Zurich, Palo Alto, and San Francisco. Team members work from a variety of locations worldwide, such as Germany, the United Kingdom, and the Netherlands. Dfinity also has administrative centers in places like Neuchâtel, Switzerland. The dual purpose of the DFINITY Foundation is to research and develop technology that supports the Internet Computer, and to support developers interested in building on the Internet Computer. You can find the official website here.
What is the Internet Computer Association (ICA)?
The Internet Computer Association is a nonprofit members association that is based in Geneva. Its purpose is to support, coordinate, connect and advocate for Internet Computer ecosystem members — data centers, node providers, developers, educators, investors funding the building of dapps, enterprises wishing to use it, regulators, etc. You can find the official website at here.
What is the Internet Computer?
The Internet Computer is a new blockchain that uses breakthrough technology and cryptography which allow you to run Canister smart contracts at a far higher speed and far lower cost than ever seen before. It does this while simultaneously preserving decentralization and the security properties that a blockchain provides. We are of the opinion that all software systems can and should be run on top of a blockchain, and we are headed toward a future where many things will be tokenized.
Not only does the Internet Computer allow you to make transactions and run Canister smart contracts in a matter of seconds, it also allows you to host web pages. This means that your entire stack can be decentralized. This is a big advantage of the Internet Computer in comparison to other smart contract platforms, which often have users interact with the chains through something like Amazon Web Services.
Furthermore, the Internet Computer is infinitely scalable. With traditional blockchains like Bitcoin or Ethereum, new nodes don’t add extra capacity to the network. The Internet Computer is similar to the internet in that it has lots of different subnets that can communicate with each other. Its capacity can be continuously expanded by adding more subnets.
Finally, the Internet Computer can be easily upgraded or expanded through its native on-chain governance system, the Network Nervous System (NNS). Anyone can participate in this governance system by staking ICP, the Internet Computer’s utility token, in voting neurons within the NNS. Token holders who participate can make proposals to upgrade or expand the network. These upgrades occur seamlessly without disruptive hardforks, which allows the Internet Computer to quickly evolve and improve.
The internet computer has many different components: subnets, nodes, canisters, the NNS, neurons, proposals, votes, ICP, and cycles. Let’s briefly define each one to help you better understand what the Internet Computer is made of.
- Subnets: A subnet is a specific group of nodes. Anything that runs on a particular subnet is replicated across one to many nodes in the subnet.
- Nodes: A node is a single machine running somewhere in the world. Nodes combine their computing power and run the Internet Computer Protocol.
- Canisters: A canister is where an application runs on a subnet (or group of nodes). This means the canister is the code, state, memory, and storage for Internet Computer applications.
- The NNS: The Nervous Network System (NNS). This is a system of neurons, proposals, votes, ICP, and staking that governs the Internet Computer. By governance, I mean almost all changes to the internet computer have to go through the NNS in a proposal.
- Neuron: A neuron may contain staked ICP. When ICP is staked and the dissolve delay is greater than 6 months, the neuron is a voting entity in the NNS.
- Proposal: In order to change the Internet Computer in any way, you have to do it through a proposal to the NNS (there may be a few edge cases that do not require NNS proposals). The proposal will outline a specific change, and then everyone with staked ICP in neurons will vote on it to decide whether to adopt the change or not.
- Votes: Each neuron receives voting power based on how much ICP is staked in it, how long the ICP has been staked in the neuron, and how long the ICP has to be locked away (also called dissolve delay). When a neuron votes on an NNS proposal it earns rewards.
- ICP: The Internet Computer Protocol, ICP, is a utility token that can be purchased at common exchanges (Coinbase, Binance) and staked in a neuron to participate in the governance of the internet computer. You also receive rewards in ICP for staking and voting on NNS proposals.
- Cycles: ICP can be converted into cycles. For example, 1 ICP might be worth 5 trillion cycles. This conversion rate always changes based on NNS proposals. A cycle is an operation performed by a computer, so cycles are a more granular form of compute costs. Canisters (see definition above) do computations on the Internet Computer and consume cycles to do those computations.
What is the function of the ICP utility token?
The ICP token is used in a variety ways. First of all, it is needed to pay for computation in the form of cycles. 1 SDR of ICP can be converted to a trillion cycles. SDR is a stable basket of currencies tracked by the IMF. Its price sits around $1.42 USD at the time of writing. Cycles are burned to pay for computation, storage, and serving of web pages. As more applications are hosted on the Internet Computer, more ICP tokens are converted and burned.
The second use of ICP is in the NNS. If you want to vote and earn voting rewards in the NNS, you have to stake your ICP tokens in a neuron. When you vote, you receive voting rewards in the form of newly minted ICP tokens.
Lastly, ICP tokens are also minted as rewards to node providers. On the one hand, the total supply of ICP is deflationary because the tokens are converted into cycles and burned. On the other hand, it is inflationary because rewards are minted for node providers and neurons.
Official website: https://dfinity.org/
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