How To Buy Tidal Finance (TIDAL)?

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

First, you will need to open an account on a cryptocurrency exchange that supports Tidal Finance (TIDAL).
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 Tidal Finance (TIDAL) 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 Tidal Finance (TIDAL)

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

Note: Make sure to always double-check your transaction details, such as the amount of Tidal Finance (TIDAL) 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.

Alternative ways to buy Tidal Finance (TIDAL)

Because the project is very new, it is only offered directly on a select number of exchanges. If you’re not comfortable connecting your bank account to any of these smaller exchanges, or if you cannot connect your bank account to them for geographical reasons. Then you can instead create an account on any of the major exchanges and simply transfer the funds from there.
Out of the major exchanges we recommend the following based on functionality, reputation, security, support and fees:

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 Tidal Finance (TIDAL)?

TIDAL is a decentralized discretionary mutual cover protocol that offers the DeFi community the ability to hedge against the failure of any DeFi protocol or asset. By directly leveraging up the reserve to cover multiple protocols at the same time, the enhanced capital efficiency attracts reserve providers while a competitive insurance premium attracts buyers.

Tidal primarily consists of cover (insurance) buyers and reserve providers. Since pure peer-to-peer matching platforms on an individual bases have failed to gain traction in areas related to both lending and insurance, Tidal pools capital from reserve providers to offer covers to buyers. This allows for higher capital efficiency as the same reserve backs more covers than can be individually paid out and also eliminates a peer matching process resulting from double coincidence of wants.

Capital pooling is known to be very efficient as well as effective as the probability of every protocol that an insurance provider cover is very low. However, this also requires proper risk management to reduce the chances of bankruptcy and consequent default on the insurer’s front while also charging insurance purchasers an appropriate premium to account for the risk they transfer to the insurer.

Tidal achieves this balance by maintaining the Mutual Coverage Pool which is a collection of protocols that its reserves back. When a cover seller (also called a reserve provider) adds capital to a Mutual Coverage Pool, he chooses one or more protocols his capital should cover. The more protocols he chooses to cover, the higher is his income as he receives premiums from each of them. Similarly, his risk increases proportionately as an incident with any of the protocol covered leads to the reserve provider losing his share in the reserve to a payout (following a successful claims process). A cover buyer can rest assured that the capital backing his cover is only over-leveraged to the extent of the protocols in the same Mutual Coverage Pool.

Tidal Finance’s features

Tidal introduces four key features that distinguishes it from its competitors. They are:

Tidal Insurance Pool

In Tidal, insurance pools can be created through selecting one or more contracts to cover. Here, users have the leverage of being able to select different coins across various platforms. This means that a user could pick Uniswap as a platform and then select ETH as his coin. 

This way, the creator of the pool enjoys the leverage of being able to pick assets from different platforms available on the market. At the same time, he also determines the coverage duration, the leverage ratio, and a whole lot more are put into consideration.

After a pool is created, a vetting process is immediately carried out to determine the level of insolvency attached to. And once the insolvency level is attained and the risks associated with the product are determined, it becomes available to the market players to interact with.

Tidal Pool stats and ranking 

To better help the market players make better choices and also choose pools that best suit their needs, each pool would be ranked while its statistics would be available for the market actors to view.

Pools are mostly ranked based on the following standards:

• Current (and Max) pool capital.
• Current (and Max) return on capital.
• Current (and Max) covered amount.
• Capital/Covered amount (fractional reserve %).
• Estimated payout in next claim.
• Covered contract audition score

Tidal Algorithm control 

In order to avoid insolvency, Tidal is designed to provide pool creators with some set of guidelines that can help protect the risks involved with each pool. 

To effectively achieve this, the protocol has some controlling algorithms which are initialized at launch. These algorithms would implement these rules:

• Reserve levels of the pool cannot go lesser than a certain percentage which is dependent on the correlation of contracts inside the pool.
• Non-audited coins would be flagged as they would require a higher level of capital reserve.
• Covered duration would also be limited to months, instead of years, especially when the capital reserve is less than the covered amount.
• Any pool offering a higher level of leverage would also have to pay a higher level of issuance fees into the Treasury Wallet. This fee would be used as a form of fail-safe reserve fund.

Tidal Payout Assessment

Tidal community governs the payout system. Claims are assessed by the native token holders who might have staked their tokens during the assessment process.

For a claim to be successful, it has to enjoy the majority of votes, which is at least 70%. Then, the protocol auditor team does the final vetting before a payout is processed. In situations where the process is denied, another round of voting occurs.

What is the TIDAL token?

The Tidal Finance token (TIDAL) is designed to reward pool creators and the early buyers of the products so that it can increase the adoption rate of the product.

Holders of the token would also be able to accept a certain portion of the fees generated by the TIDAL Protocol. It should be noted that the majority of funds generated by the protocol would be deposited into the Treasury Wallet as an emergency backup fund. This is to avoid situations where a pool runs out of reserves to pay claims. 

Regardless of this, token holders are liable to receive a certain percentage of the fees as their profits, as well as a means of encouraging further participation in the ecosystem. This fee is subject to certain situations like the level of current funding in the TIDAL Treasury Wallet, as well as the total liability of all insurance pools and others.

TIDAL would also be used for governance purposes of the community, which means that stakeholders will be able to propose, vote, and implement changes to the protocol in a transparent and collective fashion.

Long-time holders of the token would also be able to vote on backbone governance issues of the protocol, which include the audition processes, risk assessment, and much more.

Tidal Finance development updates in 2023

Tidal Finance (TIDAL) has undergone several important developments in 2023, marking its advancement in the world of decentralized finance (DeFi). Here’s a summary of the most significant updates:

• Market Performance: As of the latest data, Tidal Finance’s price is around $0.0003238, having experienced an 11.83% change within one day. The market cap of Tidal Finance stands at approximately $280,152, placing it at a relatively lower ranking in the vast landscape of cryptocurrencies​​.

• Platform Features and Offerings: Tidal Finance operates as a customizable marketplace for risk hedging contracts. It empowers underwriters, including security professionals, project teams, and liquidity funds, to create their own insurance pools and policies. These policies cover a wide range of protection options, such as smart contract protection, de-pegging, slashing, insolvency, and even real-world events. The platform also caters to digital asset holders by providing them with a selection of protection policies. Moreover, for capital providers, Tidal Finance offers high yields by pooling multiple policies’ premiums and incentives into one collateral pool​​.

• DeFi Insurance Platform: Tidal Finance positions itself as a DeFi insurance platform, built to enhance the security and stability of the DeFi ecosystem. It focuses on maximizing capital efficiency and offering competitive insurance premiums, which in turn attract liquidity providers and buyers.

• Case Studies and Use Cases: The platform showcases its utility through various case studies. For instance, liquidity funds can launch multiple policies to protect their portfolios from smart contract hacks, and security auditors can grow their businesses by launching protection policies for their clients. Additionally, ecosystem foundations and project teams can create their own protocol insurance funds to attract liquidity and users, thereby expanding their operations while mitigating losses.

The developments in 2023 reflect Tidal Finance’s commitment to enhancing its offerings in the DeFi insurance space, catering to a diverse range of users from security professionals to ecosystem foundations. As the platform continues to evolve, it is likely to further solidify its position in the DeFi market.

Official website: https://tidal.finance/

Best cryptocurrency wallet for Tidal Finance (TIDAL)

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 Tidal Finance (TIDAL)?

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).