The Golem Network is trying to become a decentralized sharing economy of computing power. What does that mean? Well, say you have a powerful gaming PC, rendering rig or server farm, the majority of the time you won’t be running these machines at anywhere near max power.
What Golem is proposing and rapidly implementing, is a way to rent out latent processing capabilities. Put simply, other people can connect to your computer over an Ethereum based blockchain and run that data intensive task that their notebook/phone/tablet couldn’t or shouldn’t.
Golem users connect to a secure virtual machine abating the security risk blockchain is incredibly secure. It is still early days but Golem has emerged as a contender for the world’s first scalable peer to peer computer.
How to Buy Golem – Step-by-Step Guide
While Golem is a popular altcoin, you will struggle trying to buy Golem with fiat currency. It’s just the way it is with cryptos at the moment. The largest, and by extension the most trustworthy exchanges only trade Bitcoin and sometimes a few other popular coins.
To buy the Golem coin we need to use altcoin exchanges like Bittrex, Poloniex and Binance.
Granted there are a few exchanges that will let you buy golem coins in the UK with fiat currency, but for the sake of simplicity, I think that it is best to buy Bitcoin, Ethereum, Litecoin trade it for fiat and send it to Bittrex; and then buy Golem.
Buying Crypto on Coinbase
Coinbase is a U.S regulated exchange which according to their website has exchanged over 50 billion dollars in cryptocurrency. I wouldn’t surprised if this figure has doubled since it was written. I mean 66 billion was pumped into crypto just in the last 24 hours, and that is a slow day.
Read our full Coinbase review here.
You can’t buy Golem on Coinbase. I will be purchasing some Ethereum, which I will then send to Bittrex and use to buy Golem.
First we need to create a Coinbase account. To do go on www.coinbase.com via our invite, click on the signup button and follow the prompts. I recommend that you set up the two factor authentication now – especially if you don’t have a webcam – and want to verify your identity with your phone.
Confirming your email address and adding a phone number is pretty self-explanatory. Once you have done that you need to upload a piece of photo ID to verify your identity. They accept driver’s licences, Passports and other Photo ID. You have the option of uploading the ID with a webcam, or you can use your phone camera. Coinbase will send a link to your phone via SMS. Click on it, and follow the prompts to upload the photos.
It could take anywhere from 2 hours to 2 days for Coinbase to get around to verifying your ID.
The email that is meant to tell you that they have finished with your ID doesn’t always get sent, so check back on the site regularly until it’s a go.
Once it is verified, you need to add a payment method so the you can make deposits and – depending on where you live in the world – withdrawals.
To link a debit or credit card, Coinbase will make two small withdrawals from your bank account. You need to log into your internet banking find out how much they took out and fill out the exact number in the “Link Your Credit/Debit Card” form. The money they take out is returned in a few days.
You can now buy cryptocurrency on Coinbase. To do that click on buy/sell in the top navigation bar
It will bring up an order form where you can choose the currency you want to buy, how much of it you want to buy and the payment method you want debited.
The currency will show up in your wallet instantly. Now we have to send that crypto to our Bittrex wallet, so we can buy golem coin. To do that we need to create a Bittrex account. Like I said before, this will also work for Bitfinex, Poloniex or any other alt exchange where you can buy Golem. I just chose Bittrex, because it is what I use.
fill out Bittrex’s create account forum. You don’t need to verify your identity on Bittrex. It only takes a few minutes to create a account. Once you have made it log in.
Click on wallet in the top navigation bar to find all the wallets. Bittrex has a kind of cross chain. It isn’t a decentralized blockchain, and I am sure there are exploitable weaknesses that hackers could wiggle in through, but that bit of centralization is a necessary sacrifice for the convenience that it allows.
The transaction is now pending on the blockchain. Depending on how congested the blockchain is it could take anywhere from 20 minutes to 2 days. Once that arrives we need to sell it for Bitcoin. If you sent a crypto other than Bitcoin, you will need to do the same.
Bitcoin is kind of like the intermediary coin on Bittrex. If you want to buy Golem, you will first need to buy Bitcoin.
Selling The Crypto We Sent To Bittrex
To sell the coin, search for its market and click on its call sign. Ethereum’s call sign is ETH. Click on the “$Market” button on Bittrex’s top navigational bar and type in the name or call sign of the crypto you are selling. This will take you to the coin’s main trading page. Here you can place your buy and sell orders on Bittrex or sell cryptocurrencies for Bitcoin.
Now that your crypto is all Bitcoin you can buy Golem. In Bittrex, Golem it is a bitcoin market, so you need to click on “ɃMarket” in the top navigational button and search for GNT (Golem’s call sign)
Now we go to Golem’s main page and enter our buy order into the Trading section. You select the units (the amount you want) and the bid (how much you want to pay. The other button “Good Till Cancelled/Immediate or Cancelled, with either keep your order on the books until it is filled, or cancel it if it isn’t filled immediately. You can set the price as high or low as you want, but the order will only be filled if someone is willing to sell the Golem at the price you want to buy.
Storing Golem In Wallets and Why You Should Move it Off Bittrex
Bittrex is a hot wallet connect to the internet on a popular exchange. It isn’t the safest place to keep your Golem investment. Something like 1/3 of all exchanges have been hacked. Bittrex was in the news last October for losing a few thousand Bitcoins. I mean it is a secure exchange that cares about it’s security but why risk it. The bad things happen to other people mentality is how you lose your coins. So how do you move your Golem to another wallet?
Golem is built on the Ethereum blockchain, but it isn’t an ERC20 token. It does not implement the (transferfrom) and (approve) functions and therefore it can only be used with the TokenSeller smart contract. To the best of my knowledge, all wallets that support ERC20 tokens also support Golem. I recommend sending the tokens to MyEtherWallet, which definitely supports it.
- My EtherWallet doesn’t store your private keys
- It can be run locally and entirely offline
- Supports all ERC20 tokens
- allows you to interact directly with the Ethereum blockchain
To send coins from Bittrex go into the withdraw section by pressing the button that looks like a negative symbol in the wallet section. In the withdrawal field, you enter your MyEtherWallet address.
MyEtherWallet is a complex wallet that takes a bit of fiddling to set up. It would take me an entire page to go through how to use it. I recommend watching this YouTube tutorial. He goes through how to use MyEtherWallet both online and offline. Golem can also be sent to Trezor and Ledger hardware wallets. Do a little bit more research before you send Golem to other wallets. It’s not quite and ERC20 token makes it a little bit more ify when it comes to what will support it.