How To Buy Synthetix (SNX)?
A common question you often see on social media from crypto beginners is “Where can I buy Synthetix?” 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 Synthetix on most cryptocurrency exchanges, including Coinbase and Binance in 3 simple steps.
Step 1: Create an account on an exchange that supports Synthetix (SNX)
First, you will need to open an account on a cryptocurrency exchange that supports Synthetix (SNX).
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
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 Synthetix (SNX) 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 Synthetix (SNX)
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 Synthetix (SNX) or Synthetix (SNX) trading pairs. Look for the section that will allow you to buy Synthetix (SNX), and enter the amount of the cryptocurrency that you want to spend for Synthetix (SNX) or the amount of fiat currency that you want to spend towards buying Synthetix (SNX). The exchange will then calculate the equivalent amount of Synthetix (SNX) based on the current market rate.
Note: Make sure to always double-check your transaction details, such as the amount of Synthetix (SNX) 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.
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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How to create a Gate.io account
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Step 1: Go to the Gate.io website.
Step 2: Choose your username, your email address and your password. Then check “I certify that I am 18 years of age or older, and I agree to the Gate.io User Agreement Privacy Policy” and click “NEXT”.
Step 3: Set your fund password and click “Create account”.
Note: Your fund password must contain at least 6 characters and can not be the same as your login password.
Step 4: An activation email will be sent to your email address. Complete the rest of the registration process by following the instructions in the email to activate your account. Once this is done done, click “Email activated, please log in”.
How to complete KYC (ID Verification) on Gate.io
In order to ensure the safety of your assets, and to reduce fraud, money laundering, blackmail, and other illegal activities, Gate.io makes it mandatory that all users obtain KYC ID Verification. Only after your account has obtained KYC ID verification, can you withdraw funds or use credit cards or debit cards to buy cryptocurrencies.
Step 1: Log in to your Gate.io account.
Place your cursor on the top-right profile icon and go to “KYC (ID Verification)”
Step 2: Click “Individual (Verify now)”
Step 3: Select your country, input your full legal name (twice), fill in your ID information, upload photos of both sides of your ID card, and a photo of you holding your ID together with your User ID (UID) for Gate.io. You will see your User ID by placing the cursor on the top-right profile icon on the main page. Make sure everything is filled in correctly and then click on “Confirm and Submit”.
Step 4: After you have submitted all the requested information, you will see the pending approval.
Approval can take anywhere from a few hours to a few days to complete.
Once the KYC is approved, you’re ready to make your first cryptocurrency purchase.
How to buy cryptocurrency on Gate.io
Step 1: Log in to your Gate.io account.
Then in the Menu Bar at the top of the page, click “Buy Crypto” and select “Credit Card”.
Step 2: Enter the amount you wish to spend in the “Buy with Fiat Currency” tab and select the cryptocurrency that you want to buy under the “Currency Purchased” field. Then select one of the “Service Providers” below and click the “Place Order” button to enter the confirmation page.
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: On the confirmation page, select “Buy Crypto” or the “Create Order” button to complete the payment.
Note: To ensure a quick and secure way of receiving the order, users might need to conduct an additional Identity Verification (KYC) with a third-party service provider. Once successfully verified, the service provider will immediately transfer the cryptocurrencies to your Gate.io account.
How to Conduct Spot Trading on Gate.io
Step 1: Log in to your Gate.io account.
Click on “Spot Trading” under “Trade” on the top navigation bar.
You can either choose “standard” or “professional” version. This tutorial uses the standard version.
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 click on the last prices on the order book to set the buying/selling price automatically.
Step 5: Confirm the price and amount. Then click on “Place Order” to place the order, followed by “Confirm Order” to confirm it.
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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.
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What Is Synthetix (SNX)?
Synthetix is a software that allows users to mint new crypto assets that mimic both real-world assets (like the U.S. dollar) and crypto assets (like Bitcoin).
One of an emerging number of decentralized finance (DeFi) cryptocurrencies, Synthetix enables this service through code alone, without the need for a financial intermediary. Rather, Synthetix is simply a collection of smart contracts running on the Ethereum blockchain.
This means Synthetix users do not need to trust a particular institution or person to manage the crypto assets they create. They need only trust that its code will execute as written.
Synthetix is able to generate these new assets using a process called collateralization.
To collateralize an asset on Synthetix, users must purchase its SNX cryptocurrency, which once locked in a special contract can be used to generate these new assets (called synths).
For example, one synth designed to mimic the value of the U.S. dollar is called sUSD. Another synth, which mimics the Bitcoin price, is called sBTC. Still, synths can be created for any asset, be it a commodity like gold or silver, or cash like the euro or Korean won.
Synths are then able to track the value of other assets using special data feeds, called oracles, which enable users to gain exposure to gains or losses in those markets.
How Does Synthetix Work?
Synths use decentralized oracles, which are smart contract-based price discovery protocols, to track the prices of the assets represented, allowing you to hold and exchange Synths as if you actually own the underlying assets. In this manner, Synths provide exposure to assets normally inaccessible to the average crypto investor — gold and silver, for example — and lets you trade them quickly and efficiently. Synths are different from tokenized commodities, such as Paxos’ PAX Gold (PAXG), which is backed by gold bars. Owning PAXG means that you own the underlying gold and that Paxos holds it for you, whereas owning Synthetix’s sXAU means that you do not own the underlying asset – you merely have exposure to the price of gold.
Because Synths are issued on Ethereum, you can deposit them on other DeFi platforms such as Curve and Uniswap and use them to provide liquidity and earn interest. Synthetics and derivatives are important for building mature markets (i.e., markets that have reached equilibrium) by facilitating price discovery and helping to hedge against volatility.
For example, if you anticipate that the value of your asset will rise in the future, but are hesitant to accept the risk that would come with the possibility that the asset’s value fails to rise, you can buy an options contract. Options contracts are agreements between two parties that give you, the buyer, the option to buy or sell an asset at a future date at a predetermined price. This way, if the asset’s value fails to rise, you can buy a contract that allows you to sell it at a certain price up to a certain date.
On Synthetix, all Synths created by staking SNX tokens are backed by a 600% collateralization ratio, which is determined through community governance. Stakers must manually manage their ratio on Mintr by minting sUSD if it is too high and burning sUSD if it is too low.
When you stake SNX and mint sUSD, you take on debt reflecting the amount of sUSD that must be burned to un-stake your SNX. This debt, which also represents a proportion of all the debt on Synthetix, is denominated in sUSD and increases and decreases in accordance with the supply of Synths and their exchange rates. For example, if half of Synthetix’s Synths were synthetic ether (sETH) and the price of ether doubled, the total debt and each staker’s debt would rise by one quarter.
Because the system’s total debt is distributed in this way, the stakers act as a “pooled counterparty” to trades. This means that you do not need counterparties when you exchange Synths, and instead convert them directly through a smart contract. This system mitigates counterparty risks and slippage and ensures that there is sufficient liquidity for trading.
When you stake your tokens, you are eligible to receive two types of rewards if your collateralization ratio remains at 600%: staking rewards, denominated in SNX, and exchange fees from all Synth trades, denominated in sUSD. Exchange fees are distributed in accordance with the amount of debt each staker has issued. Linking rewards to the collateralization ratio ensures that Synths are always sufficiently backed by collateral. If you want to un-stake your SNX tokens, you must burn sUSD. Because the debt pool fluctuates, you may need to burn more or less sUSD than you initially minted.
What is Kwenta?
Kwenta is a decentralized exchange (DEX) on which you can trade Synths (which can also be traded across a variety of DeFi protocols). Unlike other DEXs, the exchange does not have an order book and instead utilizes peer-to-contract trading, meaning all trades are executed against a smart contract. Chainlink oracles provide price feeds, which are used to set an exchange rate for each asset. A variable fee between 0.3% and 1% is levied on each trade and sent to a pool where it can be claimed by SNX stakers.
Kwenta users can buy and trade 13 different cryptocurrencies and inverse cryptocurrencies (which inversely track the price of cryptocurrencies), synthetic gold and silver, synthetic U.S. dollars, synthetic Australian dollars, and synthetic Euros. Synthetix also offers two synthetic cryptocurrency indexes: sDEFI, which tracks a basket of DeFi assets, and sCEX, which tracks a basket of centralized exchange tokens. Both asset baskets were selected through community governance.
Synthetix Governance
Synthetix was originally governed by the Synthetix Foundation, a not-for-profit foundation based in Australia, but shifted control to three decentralized autonomous organizations (DAOs) in 2020. The protocolDAO controls protocol upgrades and Synthetix’s smart contracts, while the grantsDAO funds community proposals for public goods on Synthetix, and the synthetixDAO funds entities advancing the network’s development.
Synthetix provides you with exposure to a wide array of both crypto and non-crypto assets in a decentralized, permissionless, and censorship-resistant way, enabling you to participate in the DeFi ecosystem despite not holding those assets. Likewise, it has taken a leading role in bringing derivatives to the crypto market, further advancing the maturity of the ecosystem.
What is the SNX token?
Synthetix works with overcollateralization – that is, each synthetic asset is collateralized by more value than it represents.
Synths are created by users staking collateral (SNX) and minting a synthetic asset against it. In other words, each Synth is essentially debt against the posted collateral.
Each debt position needs to maintain a certain collateralization ratio. This ratio is determined by governance. It aims to ensure that Synths are sufficiently collateralized and there is no deficit in the system even during outlier events such as a big market crash.
Stakers must manually manage this ratio by minting and burning Synths (debt) or adding more collateral to ensure they can continue to earn staking rewards.
Who are the founders of Synthetix?
Founded by Kain Warwick, Synthetix began as a protocol called Havven, which raised about $30 million selling 60 million HAV tokens in 2018. Havven’s goal was to create cryptocurrencies that mimicked the performance of cash like the U.S. dollar or the euro on multiple blockchains, including Ethereum and EOS.
At the end of 2018, Havven rebranded to Synthetix, at the time expanding its goals to include the creation of synthetic assets for cryptocurrencies and commodities. In 2019, Synthetix raised $3.9 million by selling SNX tokens to Framework Ventures.
Synthetix was initially governed by a non-profit foundation, but it was dissolved in June 2020 and replaced by three decentralized autonomous organizations or DAOs. These DAOs are the mechanisms by which holders of the SNX cryptocurrency can now vote on changes to the protocol and make decisions about its future.
Official website: https://www.synthetix.io/
Best cryptocurrency wallet for Synthetix (SNX)
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 Synthetix (SNX)?
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).
Market Overview
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Coinmarketcap will be your cryptocurrency go-to for just about everything. Here you can see the following: