How To Buy Golem | Ultimate Guide To Buy GLM
As investors continue to explore and embrace decentralised ways of handling money, many new traders wonder if cryptocurrencies could be the right investment instrument for them. As an ERC 20 token, Golem (GLM) is carving a niche as a processing power renting service to software developers to perform intensive designs within a short time. Experts see in Golem great potential for growth for the future, and many traders are investing in this digital asset lately. If you are one of those interested in this new opportunity, you will find everything you need to know to buy Golem in this article.
5 Steps to Buy Golem with eToro Now
Buying any cryptocurrency with eToro is easy, simply follow the steps below:
1Sign up for free with eToro, entering your details in the required fields.
2Fill out the questionnaire, this is both educational for you and eToro.
3Click 'Deposit', you'll then be asked how you want to fund your account.
4Choose your required payment method, follow the simple steps to link your payment.
5Enter the amount you want to deposit and you're good to go!
Our recommended platform to buy Golem
Many platforms offer the opportunity to buy and trade digital assets, but if you wish to jump straight into trading, below is a list of our selection of the most reliable and user-friendly options on the market, taking into consideration aspects such as security, available services and efficient interface.
Where to Buy Golem in 2021
There are different ways in which you can purchase Golem. The most common method is through some online platform that supports the Golem token. A good trading platform lets you track a coin’s historical data to take advantage of its uptrend or downtrend. Because digital assets have gathered interest and are seen as an alternative investment, people want to play safe by trading them.
CFDs allow investors to trade an asset with a cryptocurrency broker rather than going all the way and directly buying the coin. CFDs (contract for differences) are derivatives financial products that allow two parties to gain a profit from the difference between the initial price of the asset and the price of the same at the end of the contract. If the difference between these two quantities is a negative number, the trader will lose money.
The other method you have to own a cryptocurrency like Golem is to purchase it from a cryptocurrency exchange. This will give you the ownership of the asset and you will be able to store it in your wallet, contrary to what would happen with a CFD. This option is usually associated with a long term strategy because it requires more involvement than trading with a broker. Let us analyse both options in the further section.
How to buy Golem with a broker
To trade Golem, as a first step you should look for brokers that support this ERC-20 token. Choosing your broker is essential to consider the security system they use to protect their users, such as encryption. Regulated platforms look to ensure that personal information about users is correct and verify it.
1. Register with the Broker
Once you open the Pepperstone landing page, click on the “trade now button”. You will have the chance to register with Facebook, Google or with your email. At this point, you will be asked to insert your personal information and take the suitability test. It is a questionnaire to test the user’s ability to trade derivatives that includes about seven questions.
As part of the regulation standards, Pepperstone verifies the investor’s identity with documents such as a photo ID, which could be a passport or national identity card. When your account is approved, the next step will be funding your account to start trading.
To create a brokerage account with Plus500, follow the steps below. To begin trading, go to Plus500.com and select the “Start Trading Now” option. You will be sent to a new page where you’ll have to enter your email address and create a password. After that, you’ll be instantly redirected into Plus500’s Web Trader, where you may finish your account verification and upload a scan of a valid photo ID. After your account is approved, you can start funding it.
2. Verify your identity (KYC process)
KYC (Know your Customer) regulations enforce compliance with anti-money laundering (AML) standards. The purpose of KYC is to forestall intentional or unintentional hijacking of financial/non-financial businesses by cronies to launder money and finance terrorists across the globe. In this way, businesses effectively monitor the activities of clients and avoid risk. The requirements for KYC vary across different exchanges.
The requirements usually asked from the platforms are the following:
- Date of Birth
- Email or Phone number
- Residential address or country of residence
- A photo or government-issued scanned document
- Utility Bill
- A complete photograph of the investor holding an ID
3. Deposit funds with your preferred payment Method
Users can deposit funds with a credit card or directly from their banks. While credit card payments are processed immediately, transfers from the bank can take up to three business days to finalise the process. Once the funds are reflected on the account, you will be able to start trading.
Whatever payment method you prefer is acceptable, as long as it ensures the security of your transaction. However, it is always a good idea to keep an eye out for any hidden transaction fees. Also, take into consideration the amount of time required from the broker to show the funds in the account after you made the payment.
4. Open a Position to Long/short Golem
Both long and short positions are two realities for a trading Golem to earn profit. A trader going “long” hopes to get an increase in price at a particular point and may purchase Golem. On the other hand, a trader or user hopes that price declines at a particular point while trading a “short” position, thereby selling Golem CFDs.
A CFD (Contract for Difference) is a legally binding agreement in which the seller or buyer promises to pay the difference between an asset’s current and future prices when the buyer chooses to conclude the contract. Cryptocurrencies are very volatile, which means that the profits you make might be reversed in a short amount of time. As a result, risk management should take precedence. Stop-loss, take-profit, and training stops are examples of risk management methods that can help you safeguard your portfolio.
A stop-loss order is a type of order that traders employ to limit their losses and decrease their risk. If the price swings against the investor, he places an order to quit the investment. A stop-loss order allows a trader to leave a position at a loss, although a lesser one than if he had held it for a longer period of time, bringing his losses to a halt. This helps to keep market exposure to a minimum.
A trailing stop is a type of stop order that protects gains by enabling a position to stay open and profit as long as the price moves in the investor’s favor. The order executes and closes the transaction when the price goes against the position by a specific percentage.
5. Close your position
Exiting a current position in the market is referred to as closing a position. If you’re closing a position, for example, you’d sell the cryptocurrency to get out of it. In the same way, if you’re short on a cryptocurrency, you purchase it back to close your position. Both moves are in direct opposition to the trader’s initial position.
Traders close their positions for two reasons: profit or loss minimisation. If you are long and hoping to profit from a rise in the price of cryptocurrencies, you may be compelled to terminate your position if the market goes against you (prices are falling). Similarly, after your price objective has been met, you may close your trade and pocket winnings.
Though most traders trade with a timeframe in mind, there are situations when a trader may be obliged to exit a position early. This is especially true for cryptocurrencies that are very volatile.
Because the crypto market is so unpredictable, one of the most important elements to consider when picking a broker is their ability to cancel out holdings fast. Using a broker that experiences frequent outages and is unable to get you out of a position might have a negative impact on your investment.
How to purchase Golem with an Exchange
Before using an exchange, investors should look at the security challenges of the platform in the past, if any; the identity of the exchange or its impression to the trading community; how the exchange has troubleshooted security issues in the past. Generally, dig deep before creating an account with an exchange to purchase Golem.
An investor should not open an account with an exchange where KYC standards or requirements are unavailable. Besides, before creating an account, users should hunt for trustworthy exchanges. If accounts are generated too quickly, it may be an indication that the platform is not safe.
Checking if the broker is regulated is another technique to ensure the protection of your assets. A regulated broker is one who is registered with financial regulatory authority and follows the rules and procedures set out by the regulator. Using a registered broker ensures capital security and protects traders from fraud.
Another issue to consider while looking for a platform is transaction costs. While some have modest trading commissions, some have large commissions. The frequency with which you can enter and leave positions is affected by the amount of commission paid on transactions. Traders frequently choose brokerages that offer minimal or no trading fees.
1. Set up a Golem Wallet
A wallet is required if you want to purchase and hold Golem. A wallet is a gadget that you use to keep your cryptocurrency safe. A private key, public key, account balance indicating funds, transaction history, and security features are all shared features of common wallets.
A hardware wallet is a physical device that lets you keep your private keys and currencies safe. Your coins are kept offline by being stored on a physical device, making them unhackable. This makes it the safest type of wallet, however, it is also the most costly.
Software that saves currency and private keys is known as a software wallet. These are the most popular wallets, and they are available in online, desktop and mobile versions. Hot wallets keep user data and information in the cloud or on a server, and therefore require an internet connection to access, use, and administer them. As a result, they are vulnerable to hacking and theft.
For convenience’s sake, mobile wallets are very easy to access. The wallet provider stores your private key either on its app or your smartphone. A downside of using mobile wallets is compromising your wallet’s data should another person know your phone’s password and access the private key on it.
Mobile wallets are convenient, yet they can be unsafe. Add a security verification step to your wallet to tackle its loose security.
If you are thinking about keeping your Golem offline, Hardware wallets are the way to go. They are basically physical cryptocurrency wallets for your Golem. Apart from being physical, they are also offline and can be used to exchange value, goods and services.
2. Choose and Join an Exchange that sells Golem
Users or traders will discover several exchanges out there to purchase Golem. It is left to traders to conduct due diligence by evaluating the information on the exchanges such as regulatory requirements and KYC standards. While some exchanges are really tough on registration requirements, others may only ask for basic information such as the users’ full name or email to complete registration. Regardless of your preferences, play safe by transacting with regulated exchanges to purchase Golem. CEX, Binance and Coinbase are some popular exchanges.
3. Choose Your Payment Method to Buy GLM
The payment methods supported by the best exchanges out there are credit card or debit card payments, wire transfer or deposit, cash and PayPal. Traders should purchase Golem with an exchange that offers the least transaction fees. Users or traders can pick a payment method for the exchange of their choice.
On Coinbase, users link a payment method by going through settings > Payment methods. Bank account is suitable for large and small investments. In terms of convenience, large trading organisations use this option to provide liquidity in the market. The downside is that it takes 4-5 days for the funds to be available. Depending on the bank’s security requirements, verification is usually straightforward.
Debit card payment option requires a photo ID verification. It is the best payment method for small investments and withdrawals. While trading is limited with the Debit card option, funds are added to an account almost immediately.
Wire transfer is used to move large investments where verification is in layers to deposit funds into Coinbase. In terms of convenience, wire deposit or withdrawal minimums do not exist. Incoming transfer will cost you $10 and $25 for outgoing transfers. In terms of speed, funds appear within 2-3 business days.
Just like debit card payment, PayPal payment method is instant. Funds are made available instantly and the trader could deposit and withdraw on the platform. However, PayPal is not widely available.
4. Place an Order to Buy GLM
You are now ready to buy Golem after depositing cash into your exchange account. You may purchase the coin by placing a buy order. Placing a purchase order is mostly the same across all exchanges, with minor variations. For example, to make a Binance purchase order, go to the main page, choose the cryptocurrency, and click on ‘Buy’. A cryptocurrency information page with a chart, market price, and news about the coin will appear. Input the amount and click on Buy.
5. Safely storing Your Golem in a Wallet
As previously stated, there are several options for storing your cryptocurrency in your wallet. The safest way, though, is to keep the money offline in a hardware wallet. This form of cold storage puts your money offline, making them unhackable. Keep your hard wallet in a handy and secure location that is easy to remember.
If you’re a trader, though, you won’t need to keep your coins as regularly because you’ll need to remain liquid to profit from price fluctuations and market volatility. As a result, you’ll need to keep your coins close at hand. In this instance, you can leave your crypto coins in the exchange wallet to complete your transactions because you might need them quickly.
Should you Buy or Trade Golem?
There are two ways to trade cryptocurrencies. One method is to go through a broker; the other is through the cryptocurrency exchange. Investors purchase cryptocurrencies with fiat and buy/sell various cryptocurrencies. Also, traders use asset pairs available on the exchange to trade any asset. Trading cryptocurrency this way encourages traders to invest the small amount they have to make profit on Golem. Brokerage is a suitable alternative and appeals to users who prefer trading with bigger liquidity and more leverage. While traders can invest little cash in exchanges, a broker can leverage investment by expanding into bigger markets.
What’s the difference Between a Golem Exchange and a Broker?
As you saw, you may get Golem in two ways. You have the option of buying and holding or trading. Buying and holding is a fundamental analysis-based long-term investing approach. The investor chooses which currency to purchase based on basic aspects such as blockchain technology, mining ability or liquidity. Those who buy and hodl overlook short-term price fluctuations.
Traders, on the other hand, use technical indicators to profit from market volatility. Traders use technical indicators like the RSI, MACD histogram, volume, and Bollinger bands to enter and exit positions faster, resulting in smaller but more frequent profits.
A remarkable difference between investing with an exchange and a broker is the audience. Buyers look at the long-term or mid-term investment of a digital asset to purchase and save it securely in a hardware wallet. Speculative traders like to use brokers to take advantage of margin trading opportunities. In terms of verification, traders operating with an exchange and those speculating with brokers have flexible verification processes. However, verification on an exchange is faster than for brokers.
Golem: Long Vs Short Term Investment
Traders can hold their position for a long-term investment to gain profit on Golem as its price climbs steadily and slowly. It may take many years sometimes for any meaningful profits if you choose the long term approach. Alternatively, traders can trade Golem currency pairs on a short-term basis to earn profit on a regular basis. With a brokerage, Golem can be traded on a short-term basis and users can also make use of margin trading.
3 Tips to Buy Golem
Let us discuss some tips to consider if you want to purchase Golem.
1. Choose the right time and Do Your Own Research on Golem
Users should ensure that they conduct due diligence on trading Golem. Traders should pay attention to uptrends or when Golem appears to be bullish to take advantage and trade. Doing a personal research on Golem gives the trader confidence to trade Golem and close an opening position with a profit.
2. Comparing Costs to buy Golem
Traders can purchase Golem from exchanges knowing that the prices may vary because of fees. Since most platforms encourage frequent trading, you may come across many platforms that offer similar no-fee structure for large trading volumes. The essence of running comparison is to allow the trader to get the best and competitive deal possible.
3. Safety and Security when Buying Golem
All users should use a secure payment method. However, the first consideration before purchasing Golem is the platform. Is it vetted or approved? Is the exchange respected in the trading community? Traders should also assess the payment method accepted on the platform looking at the transaction fees involved. To secure a wallet, traders can add extra security layers to keep their Golem safe from hackers.
What is the best payment method for purchasing Golem?
- Buy Golem with cash: Exchange Golem with regular fiat currency.
- Buy Golem with credit card: Purchase Golem directly with a credit card. This payment option is instant.
- Buy Golem with Bank Transfer: Purchase Golem using a bank transfer. This option usually takes 4-5 business days.
- Buy Golem with Bitcoin: Use Bitcoin to purchase Golem. Purchase is instant with this option.
- Buy Golem with PayPal: With this option, payment is instant. But it may not be available in all countries.
Other ways to buy Golem
Golem can be purchased on any cryptocurrency exchange that supports the token. Golem can also be mined to earn GLM. The GLM-Stake-pool is a smart contract that lets holders of GLM tokens to yield farms. Golem is offering a new approach to distributing unused computing power to whoever needs it. The service is particularly interesting because it is on-demand. Golem creates a P2P network bringing both sellers and buyers together to share computational resources and complete tasks.
A peer-to-peer (P2P) network may also be used to purchase coins. P2P is a feature that allows buyers and sellers to deal on an exchange without risking their money. The exchange serves as a middleman, connecting buyers and sellers. A buyer sends the appropriate amount to the seller, who then deposits the coins in an exchange-managed escrow account. After payment has been verified, the exchange releases the coins to the buyer’s account.
Frequently Asked Questions
The team behind Golem wishes to create a future where privacy is improved and freedom is non-negotiable. Therefore, Golem is building networks to foster and create such freedom. The answer is creating peer-to-peer networks that crawl through all nations without censorship risks.
People can catch the latest content and activities about Golem on Discord. There are also enthusiast Golem communities on Facebook, Twitter, LinkedIn, Telegram, and YouTube.
Yes. Most jurisdictions treat crypto transactions as taxable but check your local laws to identify your tax liability.
Yes. But cash transactions are usually facilitated by P2P exchanges or unregulated platforms. This method is risky and regulated exchanges should be used as far as possible.
Yes. Register with a secure exchange and go through their verification requirements to purchase Golem.