How To Buy Spell Token (SPELL)?

A common question you often see on social media from crypto beginners is “Where can I buy Spell Token?” 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 Spell Token (SPELL)

First, you will need to open an account on a cryptocurrency exchange that supports Spell Token (SPELL).
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 Spell Token (SPELL) 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 Spell Token (SPELL)

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 Spell Token (SPELL) or Spell Token (SPELL) trading pairs. Look for the section that will allow you to buy Spell Token (SPELL), and enter the amount of the cryptocurrency that you want to spend for Spell Token (SPELL) or the amount of fiat currency that you want to spend towards buying Spell Token (SPELL). The exchange will then calculate the equivalent amount of Spell Token (SPELL) based on the current market rate.

Note: Make sure to always double-check your transaction details, such as the amount of Spell Token (SPELL) 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 Spell Token (SPELL)?

Spell Token (SPELL) is a token that governs Abracadabra.money, a platform that lets users deposit collateral in the form of interest-bearing crypto assets (such as yvYFI, yvUSDT, yvUSDC, xSUSHI) in order to mint MIM, a stablecoin that attempts to maintain a value of US$1.00. SPELL can be staked to earn sSPELL, which grants governance rights and other rewards.

The Abracadabra protocol has two major tokens working in its ecosystem. The first is SPELL, the governance token of the platform, and the other is MIM (Magic Internet Money). Among other benefits, the primary function of the Spell Token is staking. Like most other tokens using the Ethereum platform, SPELL can be staked to gain various benefits. Two of them are:

Governance: Since the Abracadabra protocol is truly decentralized, the number of Spell Tokens you have will determine how much weight your opinion has in changing features such as liquidation fees, collateral and total value locked (TVL).

Passive Income: When Spell Tokens are staked, users earn a percentage of trading fees from the platform. These fees are interest that’s earned primarily from users borrowing MIM. 75% of the fee goes to token holders; 20% is allocated to the governance treasury, which aids liquidity pools; and the last 5% is kept in a multisig treasury that helps mitigate risks when market conditions worsen.

What Is Abracadabra?

The launch of DeFi 2.0 has unfortunately seen a repeat of the inefficiencies that existed in its predecessor, with capital inefficiency key among them. Abracadabra Money is a lending protocol that aims to solve this problem by using interest-bearing tokens like yvWETH, yvUSDC and xSUSHI to serve as collateral to borrow Magic Internet Money, otherwise known as MIM.

MIM is a stablecoin that mirrors the stability of the U.S. dollar and does what virtually every other stable coin (e.g., DAI and Tether) does. With Abracadabra Money, cash doesn’t need to sit idly in the bank. There’s a new way to passively earn, using leverage, with close-to-zero risk involved.

How Does Abracadabra Work?

Abracadabra Money uses a technique which is different from that of most protocols to provide lending services to traders. Called “isolated lending market,” the technique was first used with Kashi, a SushiSwap-owned lending platform. By using isolated lending, Abracadabra can successfully leverage the use of interest-bearing tokens and eventually allow users to produce Magic Internet Money. There are a few steps involved in this process:

Step 1 — Users need to deposit collateral (first USDT into yEarn, then collateralization of yvUSDT) on Abracadabra.

Step 2 — Abracadabra allocates a debt allocation, with interest, to the borrower.

Step 3 — After that, MIM tokens are deposited into the borrower’s wallet at the borrower’s chosen level of leverage.

Step 4 — Users take their MIM wherever they like. They can swap it to USDT, withdraw it or repeat the process of depositing in yEarn to get yvUSDT and more MIM.

The question now is, how can you get your collateral back? The answer is that after you repay your debt with the accrued interest, you’ll be able to withdraw your collateral.

The Magic Internet Money Token (MIM)

An integral part of the protocol, the MIM token is a dollar-pegged stablecoin that’s supported by ibTKNs. MIM tokens are Ethereum-based and minted by Ethereum multisig holders. The good thing about stablecoins is that they’re not injected into circulation until they’ve been collateralized. There are persuasive (though unverified) claims that future improvements will include a bridge to other blockchains.

The amount of MIM you get as a loan depends primarily on two factors:

1.   The collateral you’ve put down in USDT.
2.   The loan-to-value ratio.

To help you understand how Abracadabra Money works, let’s run through a hypothetical scenario.

Lukas is an average crypto trader who got lucky with an ETH airdrop and now has $100,000 USDT to his name. Since he has some knowledge of yEarn, he decides to stake his newly found wealth to earn returns and uses the USDT V2 yVault for this.

Now, Lukas has approximately $100,000 worth of yvUSDT, an amount that will grow, thanks to loan fees. Lukas then decides to start a business and wants to adopt a low- or no-risk approach with his money. How can he do this? Well, if you suggest that he convert yvUSDT to USDT, then USDT to cash to fund the business … you’re on the right track.

However, he can also choose to deposit his yvUSDT into Abracadabra. Let’s assume he mints 60% of his tokens: then, he’ll be given 60,000 MIM. He’ll pay interest of 0.8% on the loan, but his initial capital is still on yEarn, yielding returns.

Official website: https://abracadabra.money/

Best cryptocurrency wallet for Spell Token (SPELL)

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 Spell Token (SPELL)?

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).