How To Buy THORChain (RUNE)?

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

First, you will need to open an account on a cryptocurrency exchange that supports THORChain (RUNE).
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 THORChain (RUNE) 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 THORChain (RUNE)

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

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

THORChain is an independent blockchain built using the Cosmos SDK that will serve as a cross-chain decentralized exchange (DEX). It uses an automated market maker (AMM) model that resembles the first iterations of Bancor (BNT) or Uniswap where THORChain’s native token (RUNE) will be the base swap pair. This model allows traders to move between different asset pools using RUNE as a somewhat hidden intermediary. It also rewards liquidity providers (LPs), those that deposit or “stake” assets on either side of a liquidity pool, with a portion of trading fees.

THORChain uses an AMM model to facilitate crypto asset swaps and an independent crypto network that aims to enable the exchange of assets across disparate blockchain networks in a non-custodial manner. Its protocol features a cross-chain bridge system (known as the Bifröst Protocol) to connect different chains. THORChain also uses an adapted version of Bancor’s “smart tokens,” which it calls Continuous Liquidity Pools (CLPs), to facilitate the exchange of assets. The key difference is that CLPs reward users for contributing to the liquidity in each pool. THORChain features a native token, RUNE, that owners can use to participate in the network or add to a liquidity pool.

The THORChain project was founded in 2018 under the premise that the use of centralized exchanges to transfer cryptoassets between different blockchains was flawed. Non-custodial exchanges, otherwise known as decentralized exchanges (DEXs), were the long-term solution. Therefore, the THORChain team set out to build an independent blockchain that could bridge to external networks and thus facilitate cross-chain transfers, functioning similarly to a DEX.

The problem often facing DEXs is finding sufficient liquidity. Traders gravitate towards platforms where they won’t lose any value due to slippage. But these same traders are the ones to provide enough liquidity to prevent slippage in the first place. In response, the THORChain team plans to implement an adapted model of Bancor’s “smart token” to create what it calls Continuous Liquidity Pools (CLPs). These pools of available assets give traders access to liquidity without needing to find or contact another buyer or seller.

THORChain also distributes rewards in the form of RUNE (the network’s native token) to any user that adds tokens to a liquidity pool. At the same time, token owners can stake their assets and earn the fees accumulated from other users accessing the pool.

THORChain is a Tendermint-based chain, and therefore uses Tendermint BFT (Byzantine Fault Tolerance) as its consensus mechanism. It also employs Proof-of-Stake (PoS) for Sybil resistance. As part of the PoS element, a system of validators can stake RUNE tokens to run network nodes and validate transactions. THORChain allows token holders to delegate to these validators, which keeps validators in check and permits delegators to a portion of each block reward.

What is the RUNE token?

RUNE serves a crypto-economic function within the THORChain system by providing incentives and deterrents for network participants. Some uses for RUNE include:

• Validators must stake RUNE to be part of the Validator Sets, which are subject to a lockup period to prevent nothing-at-stake attacks.
• All network transaction fees (gas or “fuel” for changing the protocol’s ledger) are paid in RUNE. The network can require fees for executing transactions, trades, and cross-chain exchanges.
• Staking RUNE in Continuous Liquidity Pools (CLPs) to earn on liquidity fees.
• Block rewards for Validator Nodes are paid in RUNE.

What is Tendermint?

THORChain is a Tendermint-based chain, which is the same architecture and consensus system first used by the Cosmos network. Tendermint employs its own BFT (Byzantine Fault Tolerance) consensus mechanism that relies on synchronicity. Therefore, like Cosmos, THORChain caps the number of validators (100 to start) in order to reach finality for each proposed block. It also supports a Proof-of-Stake consensus mechanism since Tendmint requires each Validator to have a weight on the network determined by the stake they hold.

What is a Continuous Liquidity Pool (CLP)?

The THORChain team plans to implement an adapted model of Bancor’s “smart token” to create what it calls Continuous Liquidity Pools (CLPs). This system incentivizes participants to supply liquidity in exchange for fees and RUNE rewards. Traders can then access and exchange with these token pools directly, which gives CLPs an on-going supply of liquidity. The protocol also tracks the ratio of RUNE to the asset held in each CLP, which creates an inherent on-chain price feed for individual assets.

What is the Bifröst Protocol?

The Bifröst Protocol is THORChain’s cross-chain bridging system. The protocol leverages THORChain’s Proof-of-Stake (PoS) validator set, the on-chain price feeds generated by CLPs, multi-signature (multi-sig) accounts to create and secure these bridges. Every bridge uses validating parties to verify transactions. But the multi-sig system randomly assigns validators to each transaction to limit centralization concerns. Each bridge is customizable, where the end-user determines the number of parties required to sign-off on a transaction (a three-of-four multi-sig arrangement is less secure but faster than a 20-of-21 schema). The Bifröst Protocol also uses the on-chain price feeds created by CLPs to give each bridge a security profile (how likely is a bridge to fail) and to identify and punish bridge validators that act against the network’s rules.

What is the Yggdrasil Protocol?

The Yggdrasil Protocol is a sharding mechanism designed to help scale THORChain. Unlike more traditional sharding applications, which split items into horizontal components, the Yggdrasil Protocol uses a vertical sharding technique on entire chains. The team says this technique allows THORChain to apply sharding to cross-chain ecosystems, as opposed to sharding an existing chain. As for shard consensus, THORChain does not engage the full Validator Set to monitor each shard. Only a subset of validators will finalize cross-shard transactions. But the others will be able to monitor the consensus reached on every shard.

THORChain development updates in 2023

THORChain (RUNE), a standout project in the cryptocurrency landscape, has experienced significant growth and innovation in 2023. This year has been a pivotal period for the project, marked by key strategic initiatives and groundbreaking developments. Here’s an overview of the most important updates:

• Introduction of THORChain Lending Feature: In August 2023, THORChain introduced a lending feature, allowing users to secure USD-pegged TOR loans using BTC and ETH. This initiative led to a significant boost in adoption and liquidity for THORChain, with the token surpassing $1 billion in liquidity volume and experiencing a price surge from $0.40 to $5.90 between August and November. Analysts remain optimistic about its future, predicting a continued upward trajectory​​.

• THORChain Becomes Third-Largest DEX by Trading Volume: In November 2023, THORChain’s native token, RUNE, saw a 56% price surge, reaching $6.09, coinciding with THORChain becoming the third-largest decentralized exchange (DEX) by trading volume. The platform’s trading volume hit $1.32 billion in a week, with $334.3 million in daily volume. THORChain’s unique value proposition as a multichain version of Uniswap, facilitating large-scale Bitcoin trading, has attracted significant investor interest​​.

• Significant Growth in Q3 2023: The third quarter of 2023 marked a 114.4% surge in THORChain’s total trading volume, reaching $2.38 billion. Liquidity fees collected increased to $3.38 million, demonstrating the project’s growing presence in the crypto realm. On-chain metrics showed a price increase from $3.38 to $6.16 in a week​​.

• Scheduled Mainnet Launch: THORChain has planned a mainnet migration by Christmas. The mainnet launch is expected to bring unlimited staking to the network, further expanding THORChain’s capabilities and reach within the decentralized economy​​​​.

• Integration with Terra (LUNA): Nine Realms Capital is working on integrating Terra (LUNA) into the THORChain network. Terra, known for its fiat-pegged stablecoins powering price-stable global payments systems, is expected to enhance the functionality and reach of THORChain once integrated​​​​.

• Community Engagement: THORChain’s community has been highly involved and supportive, particularly through the project’s major losses and downswings. Community members, holding a bullish stance on the project, have expressed their confidence and enthusiasm on social media platforms, underscoring the strong community backing THORChain enjoys​​​​.

These developments not only underscore THORChain’s commitment to innovation and growth but also highlight its potential to continue shaping the future of decentralized finance. Despite being in a recovery phase, THORChain remains a promising project with a lot to offer in the evolving landscape of cryptocurrency and blockchain technology.

Official website: https://thorchain.org/

Best cryptocurrency wallet for THORChain (RUNE)

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 THORChain (RUNE)?

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).