How to Buy Augur (REP) in 3 Simple Steps

Augur is a decentralised, peer-to-peer prediction market network that allows users to create betting markets and participate in them using the network’s native token, REP. Augur is potentially revolutionary in that it obviates the need for a central bookmaker in the gaming space.

Although many coins have found their way into the digital currency world, some have an edge over others. Knowing the reliable and secure picks among the pack will definitely help you make the right choice. Is Augur a viable cryptocurrency? How to buy Augur (REP)? All these questions and more are answered in this guide.

Table of Contents

Where to Buy Augur?

When purchasing Augur the first time, it is vital to understand the various trading methods and possibilities available. Fundamentally, most investors will choose between buying and trading the token, which differ in terms of ethos and practicality.

When you purchase Augur, you’re taking ownership of the cryptocurrency, with the intention of holding it in order to benefit from price discovery. Those that use this strategy believe that Augur will escalate in value over a period of time. Generally, this is considered a long-term strategy.

Conversely, trading cryptocurrencies involves benefiting from price movements in the token over a relatively trivial period of time. Augur traders are managing the market extremely closely in order to predict minor fluctuations.

Trading Augur is definitely a short term strategy and one that many users opt for to trade through CFD as a valid approach. CFD contracts enable leveraging, which means that gains and profits can be magnified. It is also riskier, and this doesn’t necessarily appeal to beginners.

Before entering into any Augur trading, it’s important to consider the many factors involved diligently. Trading Augur is relatively complex, and it is certainly possible to lose money as well as making a profit.

Thus, familiarising yourself with the market and related issues should be considered essential. This should include extensive research into setting up cold storage wallets, all online security issues related to cryptocurrency, not to mention compatibility.

How to Buy Augur with a Broker

One of the most obvious ways to begin your Augur journey is via a crypto broker, particularly if you have never traded cryptocurrencies previously. Brokers will execute trades on your behalf, and greatly simplify the whole process of trading cryptocurrency. They also reduce the amount of market participation required by investors, and also the extent to which you need to monitor up to date information.

However, before you have committed to a broker, you should definitely research the market extensively. There can be big differences between the various brokers, with fees and security being two of the most obvious areas for comparison. Regulation of the cryptocurrency space has also accelerated in the last few years, and it is vital that your broker is fully conversant with all of the most recent legislation.

You can also send instructions to your brokers via stop-loss orders and other information, which shape the way that they respond to the market.

1. Register with the Broker

Before you can inform brokerage traders on your behalf, you must of course register with the brokerage platform in question. This is definitely a straightforward process nowadays, with a significant amount of effort having gone into ensuring that all online platforms are user-friendly. You will need to confirm your identity, though, but this is usually as simple as providing a few personal details, and some form of address.

However, you may notice a few differences in the registration process, depending on the ethos of the platform that you choose. Plus500 is known for an emphasis on social media, while eToro purely uses an account name and password system.

2. Verify your Identity (KYC Process)

The ‘Know Your Customer’ (KYC) verification process has become more prominent in the cryptocurrency space in recent years, as the platforms involved have attempted to gain increasing mainstream credibility. KYC has been used by high street banks for quite some time, and is a legislative process associated with confirming the identity of customers.

The utilisation of KYC by cryptocurrency platforms has definitely attracted the attention of mainstream outlets, and this can only lend credibility to the crypto niece. You can, therefore, expect virtually any platform to use KYC, but don’t expect this to inconvenience you in any significant way.

3. Deposit Funds with your Preferred Payment Method

The next important stage in trading Augur is depositing funds on the website that you have chosen. This is another relatively straightforward process, but you should definitely confirm that your chosen payment method is indeed available before you begin. Generally, the most common payment methods will be supported, but this is not necessarily inevitable.

This is another area where speed and fees are also important, and it is certainly recommended to have adequate firewall and antivirus software provisions in place before depositing any money. It is also advisable to check with customer service at the platform in order to ensure that your deposit process has been completed adequately. Most exchanges and brokers will have intuitive online funding mechanisms.

4. Open a Position to Long/Short Augur

One of the most fundamental decisions that you will face with a cryptocurrency platform is whether or not to go long or short on the token. These are fundamentally different positions that reflect a completely different perspective on the market.

Going short on Augur means that you believe it will decline in value in the foreseeable future. Shorting, short selling, taking a short position, and sometimes just selling are all used to describe this process of betting against a particular cryptocurrency. On the other hand, those entering into a long position believe that a cryptocurrency will escalate in value.

Anyone entering into a short position on Augur, or indeed any other cryptocurrency, will need to opt for a CFD contract in order to benefit from any price discovery. These enable more leverage, which is attractive in a short-selling strategy. Conversely, beginners to the cryptocurrency space may wish to opt for purchasing a token and holding it thereby opting for a long approach.

There are many other considerations and possibilities in association with trading, with stop loss, market and limit orders important ways that you can transmit instructions to brokers. Each of these options informs your broker to make certain market decisions at predesignated points.

5. Close your Position

Closing any position in a cryptocurrency is obviously one of the most important things that you will ever do during your trading journey. The good news is that this is another straightforward part of the process, that can be achieved simply by issuing a stop-loss order. This informs your broker to close your position when certain market conditions have been met; essentially when you believe that it will be to your advantage to close your position.

Another scenario in which you may choose to issue a stop-loss order and close your Augur position would be when you have lost money in the market, and believe that your strategy is not working. At this point, an investor may wish to get out early due to the losses already incurred.

How to Buy Augur with an Exchange

Purchasing Augur via a cryptocurrency exchange is one of the easiest ways to acquire the token, as these platforms have been designed diligently in order to make the process as risk-free and straightforward as possible. Anyone that has purchased goods through a website should be able to easily acquire Augur via an exchange platform.

Nonetheless, it’s also important to choose the appropriate exchange for your particular requirements. Fees and security will again come into the equation here, as they can significantly differ between platforms, and are always major considerations for users. Regulation and encryption are other important aspects of the process, and it’s certainly best to investigate all of these issues before beginning your trading, and possibly to even speak directly with the developers of the websites.

1. Set up an Augur Wallet

Storing Augur in a cryptocurrency wallet is an absolutely essential part of the process. Both hardware and software wallets are available, and they both have their advantages and disadvantages.

Software wallets are flexible, and easily accessible via a wide range of computing platforms. They offer optimum control over cryptocurrency investments, but are perhaps not as secure as their hardware wallet equivalents.

Hardware wallets utilise a technique referred to as cold storage, which is considered the most secure way to store cryptocurrency tokens. However, these are a little less flexible than software wallets, and this may be a consideration for the more casual investor.

2. Choose and Join an Exchange that sells Augur

There are many cryptocurrency exchanges available on the Internet now, for those who are looking to buy and sell Augur. Some of the most popular exchanges include the following:

CEX
Coinmama
Binance
Coinbase
Poloneix

There are usually a few differences between these platforms, including the amount of money that you pay in order to use them. User interfaces will also differ, as will the different security provisions that have been put in place. Exchanges also accept different currencies and payment methods, while registration and licensing can also be significantly different. All of these issues underline the fact that it is important to investigate and research a particular exchange before committing to any investment process.

3. Choose Your Payment Methods to Buy Augur

There are many payment methods available to purchase Augur, and these all have their own particular strengths and weaknesses.

Debit cards – These are very affordable ways to purchase Augur, but don’t have the security that is built into credit cards.

Credit cards – Credit cards are fast and secure, but you can expect to pay fees when you choose to purchase Augur via this method.

PayPal – This digital payment system is also popular, but does come with drawbacks. PayPal is widely available, but it can lead to delays in purchasing. Fees can be charged by PayPal and there is a dispute resolution mechanism in place too.

Bitcoin – It is also often possible to purchase Augur via the market-leading cryptocurrency, but this is significantly less flexible than other payment methods.

4. Place an Order to Buy Augur

Buying Augur requires users to register for a cryptocurrency exchange. Next, you will confirm your identity, before registering your chosen payment method. You should next deposit money on the website, before identifying a suitable investment.

Finally, you will purchase the Augur token, and store it securely in your wallet solution.

5. Safely Storing Your Augur in a Wallet

Storing Augur in a wallet is an important process, particularly if you intend to hold on to your tokens for an extended period of time. Typically, hardware wallets require you to keep a private key in order to gain access to your tokens. This is extremely important, as if you lose this private key it will be difficult to access your investment. Equally, security is critical, so private keys should always be stored in an encrypted or private location.

Should you Buy or Trade Augur?

Buying or trading Augur is really dependent on your requirements. It is certainly worth mentioning that going through a professional broker is often advantageous, particular for those taking the first steps in cryptocurrency trading. This still requires a certain knowledge of the market, though, as investors will need to inform brokers of their particular intentions.

Purchasing and holding tokens doesn’t require such a huge amount of interaction or monitoring of the market, and thus may be a good choice for beginners. But anyone choosing to trade has many options at their disposal, not least the fact that you can make money regardless of whether Augur increases or decreases in value. Investors wishing to buy for the long term should use an exchange while traders who wish to exploit the price volatility should go for brokers.

What’s the Difference Between an Augur Exchange and a Broker?

Augur exchanges are effectively online shopping websites for cryptocurrencies whereas brokers act as intermediaries for investors, and complete trades on their behalf. There are advantages and disadvantages of both of these approaches, and investors of varying degrees of experience indeed opt for each of the two choices.

Brokers make it possible to speculate on the price of Augur via derivative contracts, with CFDs and futures both being particularly prominent. These make it possible to profit from the token, without actually having to own and store the coin itself. This makes for an easily accessible and convenient option, particularly for those intending to buy and trade over shorter time frames.

Another advantage of CFD contracts is that they allow increased leverage which can magnify profits in any successful trading strategy.

Augur: Long Vs Short Term Investment

Long-term investment in Augur is focused on the coin achieving price discovery over a period of time. Conversely, a short-term investment in Augur is more associated with trading, and can even be completed within a matter of minutes in some circumstances. Certainly, day trading involves sometimes extremely quick trades being placed in order to benefit from what can often be tiny fluctuations in the market.

Long-term approaches can be considered more solid, is based on market fundamentals, while short-term trading is riskier and more volatile. Conversely, a short-term investment can deliver profit in a very short time frame, if you make wise choices with your investment strategy. Leveraging is also more readily available with trading and short-term strategies, and it can be a critical way for experienced investors to magnify profits.

Nonetheless, those choosing to purchase Augur are holding a physical asset, and this can have its advantages as well, not least the fact that it can be used for other purposes.

Other Ways to Buy Augur

Aside from the methods mentioned previously, probably the best approach is to mine the token. This is cost-effective, and ultimately what the cryptocurrency space is all about. There may also be Augur tokens available on P2P exchanges, so it is worth checking these out.

Augur has established itself as a viable project and is expected to increase in value in the years to come. This is one cryptocurrency that is worth keeping an eye on.

5 Things to Consider if you Want to Buy Augur

Anyone considering buying Augur (REP) will have to take into consideration the factors of speed and security. While this is considered a given, other investors might also want to look at transaction sizes, payment methods, and trading portfolios in addition to the other points of note explained below.

1. Carefully choose your preferred secure payment method

You surely want to use a secure payment platform for your transactions irrespective of where you live around the world. While all payment options might not be explicitly listed in this guide, you may want to pinpoint the security features available before you proceed. You might also be keen on immediate value for your payments, and this could shape your decision on the payment method.

On some websites, before you can use a credit card, the Verified by Visa or Mastercard Secure prompt must pop up for you to enter passcodes to authorise the payments. Some users lookout for this service as a hallmark of legitimacy.

2. Will you need to set up your own wallet?

Depending on how and where you buy your REP tokens, the need for a personal wallet should be considered. Cryptocurrencies are stored in wallets, and without one in place, you do not have control over your digital tokens. When using a trading platform like an exchange, you get a wallet by default as your account is opened. Exchange wallets are less preferred because of hackers that target them. However, with Augur CFDs (contracts for difference), which are derivative products, there is no requirement for a wallet as your broker validates your trading contract without the need for physical possession of the underlying REP tokens.

3. Comparing costs

Every transaction has a cost element, whether small or significant. It is good to consider what the charges could be on the token’s network before proceeding with a transaction. There could be costs involved with sending REP tokens over the Augur network, with depositing or withdrawing money from your brokerage or exchange account, or with trading (most platforms charge a trading commission).

4. Safety and security

The blockchain is a hotbed of security features with cryptography, hash functions, and consensus mechanisms as the gatekeepers. Augur is operational on the blockchain and this shows with its operations closely aligned with the best practices on-chain.

You will need to assess the security features of the platform you use for your purchase as well. Features like 2-factor authentication and SSL encryption can help to protect you, and you should also check the site’s history vis-a-vis hacks to ensure your funds are safe.

5. Can you understand and navigate the platform?

Any platform offered by a broker has to be simple to navigate and understand. As a user, you want to be able to follow simple prompts and not get stuck in a cluttered dashboard. You can always try your hands on a demo trade to see how a platform works before you commit your funds or make a deposit.

For most brokers, their platforms can be reviewed for ease of use after you have registered a new account. At this stage, you still have time to decide whether to use the broker or not. When you are satisfied with how the platform works, you should be free to go ahead with your trades.

What is the Best Payment Method for Buying Augur?

Several payment methods are available when you are ready to buy Augur (REP). While the decision ultimately depends on your preference, you might want to consider the transaction cost and processing speed before you make the call.

Buying Augur with PayPal: PayPal is relatively cheap to use and comes with additional security for investors who do not want to use their debit or credit cards on open platforms.

As good as the features of PayPal are, the service might not be available where you live, and this explains why it is not supported by all brokers. Most payments here are fast and instantaneous except when e-checks are used, which are processed in the US within 3 days.

Buying Augur with Cash: To get a seller of Augur who accepts cash can be a difficult task. Apart from this, it is also unsafe to move about with cash when you hardly know the seller. While a private arrangement could also work for cash transactions, the logistics involved in getting a seller with REP to sell make it a difficult path to tread.

Buying Augur with Bank Transfer: Using a bank transfer works well when buying Augur if you are within the same region as the platform payment processor. If you are a resident abroad, bank payments may attract delays of up to 2 days or more. Large payments might necessitate bank transfers and they work well for institutional buyers who also use wire transfers in place of other options.

Buying Augur with Credit Cards or Debit Cards: Bank cards are convenient to use and are by far the preferred option of payment by many Augur traders. What needs to be celebrated here is the instant payment and value when you buy Augur tokens with credit cards or debit cards. Credit cards may attract hefty fees, however.

What Fees are Involved in Buying Augur?

When buying Augur, you should be prepared to pay some kind of fee in addition to the token value, and this is not specific to a particular platform. Whether you are using an exchange or a broker, buying fees are always in the mix. Some considerations worth looking at include:

Transaction Fees: The fees here are primarily blockchain charges, which are incurred when the tokens are moved from the seller’s wallet to yours. Your payment method may also attract a fee, such as a credit card charge or PayPal’s 4% Buyer Protection fee.

Deposit Fees: As to fees associated with deposits, some platforms might allow free deposits, while others do impose minimal charges. What the platform decides on is one that is relative and could be a response to marketplace competition.

Withdrawal Fees: The rates that apply here are again subject to the platform’s judgment. Some platforms impose no fees while others have a minimal charge, usually in the region of $5.

Safely Storing Your Augur

Storage of Augur can be done on a number of cryptocurrency wallet options. Whether to go with an online alternative or a removable physical storage option is a decision that you need to contemplate. Here are the leading storage options:

Web Wallet: By default, most cryptocurrency exchanges have a web wallet that users can access upon registering a new account. You need to log in to the platform to access the wallet, and a private key or transaction passcode could be required to authorise trading or withdrawals. At the point of setting up your new account, you are prompted to use 2FA as additional security. So, to make a transaction, you will need the codes sent to your email, mobile phone, or one generated by your 2FA software.

Mobile Wallet: Users can be safer with wallets than the web wallet, which is considered prone to pilfering by hackers. Your mobile device can house your wallet just by downloading it from online stores for Google and iOS devices. Augur tokens can be stored in Trust, Mycelium, Abra, and other ERC-20 compatible wallets. The major pitfall in mobile wallets is the risk of physical loss or compromise through phishing attacks. However, if you are on your guard, you will not click on questionable emails and open your device to malware infiltration.

Desktop Wallet: PCs serve an added purpose when desktop wallets are downloaded onto them. They are also rated as medium-level safe since they are physically inaccessible to intruders. The risk that is most reported is loss of data due to malware that can infect the host computer. Some storage options here include Atomic and Augur (REP) multi-platform wallets.

Hardware Wallet: Hardware wallets are celebrated as the most secure since their use only enabled when they are connected to a computer. Some of these devices can be plugged into PCs to perform any transaction you desire. The access is controlled with the use of hidden passcodes, which when supplied load the private key in order to unlock the vault. Trezor, KeepKey, and Ledger are the most common examples here.

What Other Coins Can I Trade or Use to Buy Augur?

The leading cryptocurrencies such as XRP, BTC, ETH, and USDT are commonly offered by trading platforms as default trading pairs and can be used to buy Augur tokens. Once you fund your account with any of these digital currencies, you can buy REP tokens safely and quickly.

What’s the Smallest and Largest Amount of Augur I Can Buy?

Augur is denominated in five decimal places, making 0.00001 the smallest unit. However, to buy REP on most trading platforms, you need to have at least $10 — this is the lower limit that is generally enforced. If your profile is verified and you have completed more KYC steps, you could buy up to $2 million or more in one transaction depending on the platform in question.

Can I Buy Augur Anonymously with no ID? Is it Safe and Legal to Buy Augur?

Augur is traded in many countries on exchange and broker platforms with no restrictions. While it is possible to buy REP tokens anonymously, it is not advised as most marketplaces that offer such services are not regulated. If your focus is on buying Augur safely and legally, then use a regulated platform and stay safe.

Will Buying Augur Make Me Money?

As with any investment, nobody can predict the future outcome of a trade. Investing in Augur may turn out to be a profitable venture if you correctly time the market, or if the use of REP proliferates such that the value of the tokens increases over the long term.

The best way to ensure profitability with your REP purchase is to conduct sound fundamental and technical analysis in order to minimise the risk of losses due to mistakes or poor timing.

How to Spend your Augur

PayPal has started accepting a range of crypto for online payments and account settlements. While Augur is not yet listed, it surely makes this digital currency more marketable. You can easily swap your REP tokens for any of the accepted cryptocurrencies like Litecoin, Bitcoin, Ethereum, and Bitcoin Cash. There are several other online merchants that use a layer on the blockchain to convert accepted tokens like REP to cash for transaction processing. Bitpay, Alfacoins, GoCoin, and CoinBank are some of the online gateways with crypto payment processing efficiency.

How to Sell your Augur

In an open marketplace, you can sell Augur (REP) tokens for cash or your preferred payment method. Using a broker is also easy with the order completion almost instantaneous on many platforms. No matter your payment method, the process is easy and fast. You might also prefer to spend your tokens directly using a merchant site with such capacity since Augur is also a recognised medium of exchange.

If you hold any Augur CFD, your broker can easily give you value for it with no hassles as the financial instrument is liquid and available for trading on many platforms. You must only close the trade to sell your REP and realise your profits.

Frequently Asked Questions

Who developed Augur?

Augur was developed by the Forecast Foundation, a group of developers who make their contributions toward maintaining and developing the protocol but don't control or own it. The co-founders of Augur are Peterson and Krug, developer and computer scientist respectively, who among others developed it in 2014.

Why use Augur?

Augur technically is a wagering cryptocurrency. It is a reputation token that can be used to bet on sporting events, economies, political outcomes, or anything within the prediction markets. Augur's platform has a specific structure that incentivises appropriate outcomes, penalises passive holders who fail to stake on disputes and forks, and penalises reporting on incorrect outcomes. Augur Rep tokens are also used for money transfer purposes since they are exchangeable for cash and other cryptos easily.

What else can I do with Augur?

Through Augur, users can create their own markets for specific questions and benefit from the trading processes. More accurately, users are allowed to purchase positive and negative shares as far as the outcome of a future event is concerned.

How does Augur work?

Augur is a decentralised prediction market that is Ethereum-based. It leverages the people's wisdom to create a search engine for a future event that runs on its token (REP). It is also a peer-to-peer enabler that provides transparent and universal access to its markets. Decisions are reached based on consensus, and no individual or group lauds it over the other community members.

Is Augur legal?

Yes. Augur is legal in over 100 countries and traded on open marketplaces and allied platforms. Many brokers and exchanges that facilitate Augur trades are also legal and regulated in their respective places of registration and operations.

Is Augur price stable?

No. Like most cryptocurrencies, the price of Augur is volatile, and this has varying effects. For profit-making, volatility is loved by financial traders, as price movements provide greater opportunities to rake in more gains. On the other hand, for holders, in the short term, it could mean loss of value, and the holding strategy only pays off over time with value appreciation.

Has Augur any chance of becoming a major payment network?

This is relative. Augur is already a market leader in the prediction markets. As a payment network, this role is ancillary to its major purpose as a reputation token. As long as it is traded across borders and markets, it will play a role as a payment network too.

Is Augur taxable?

Yes. Cryptocurrencies have recorded major price leaps in recent years, which led to tax authorities defining how they can be taxable. In some countries, you pay taxes on the profits you make for trading Augur, while others treat it as an asset that attracts capital gains tax at its disposal.

Can I fork Augur and modify it?

Yes, this is perfectly possible. Augur is free, public, open-source software, portions of which are licensed under the General Public License and portions of which are licensed under the Massachusetts Institute of Technology license. All users are free to fork the Augur codebase and modify, as long as the open-source software licensing is respected.