How To Buy Waves | Ultimate Guide To Buy WAVES
Blockchain was a groundbreaking technology when it launched and left many people in awe with its wide-ranging use cases. However, it soon became apparent that blockchain-based projects would struggle to scale. This is when Waves protocol was proposed as a solution.
The Waves platform introduces speed, user-friendliness and utility in Blockchain. Also, peers on the platform can exchange value with the help of WAVES, the network’s native token. Because of its growth potential, the WAVES price has been ticking up lately, and market interest is exploding. Here is how to buy Waves online in 2021.
5 Steps to Buy Waves 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 Waves
This guide has two main goals, to enlighten you concerning the Waves token and to show you where to buy it. For those already knowledgeable about this particular digital currency, we wish not to waste your time. Instead, we will point you where to buy WAVES right away. The following platforms are our top recommendations.
Where to Buy Waves in 2021
Regulation of cryptocurrency varies depending on the country, which also affects ownership. In some jurisdictions, owning the cryptocurrency in question is more convenient than trading it and vice versa. How do trading and owning Waves differ?
For the uninitiated, cryptocurrency is a currency, just like banknotes. This notion couldn’t be further away from the truth. Crypto assets such as Waves are classified as securities by some jurisdictions. As with other securities like stocks, an investor can choose to buy and hold or trade the price fluctuations.
Owning Waves means buying the digital currency from crypto exchanges and packing it in a cryptocurrency wallet. You could use the tokens to purchase things from merchants or send them to a peer on the Waves platform. Also, you could sell the tokens for fiat currency or other digital currencies in the cryptocurrency market.
Investors who think the value of a cryptocurrency will be higher in the future tend to prefer owning the token. This strategy involves setting up a crypto wallet to hold the coins. Some exchanges provide crypto custody services, but this option raises security issues. For example, the exchanges are targets for hackers who might jailbreak the vault and steal the coins.
Therefore, the best option is to set up your wallet. But this option requires lots of work on your part. For instance, you need to conduct extensive research to find the best crypto wallet provider. The due diligence should help you know if you should choose a cold or hot wallet and choose a hardware or software wallet.
Some people might not want to do all the work that goes into owning Waves; what alternative do they have? There is the option of trading Waves without carrying the burden of storage. Online cryptocurrency brokers exist to help you in this regard.
Online cryptocurrency brokers offer instruments such as contract for differences (CFDs), which are ideal for those who wish to trade price fluctuations of the underlying asset. A Waves CFD is a contract that gives you the right to buy or sell WAVES coins at a later date. The advantage of this product is that you do not own the coins and trade both market directions.
CFDs trading has some clear advantages over owning the Waves token. On the one hand, CFDs do not require storage. The online Broker gives you a range of prices, which is the only information you need to make a decision. Also, some brokers allow traders to take leveraged positions. Traders can make trades whose value far outweighs the funds in the trading account.
How to Buy Waves with a Broker
An online broker is responsible for linking you to the cryptocurrency market and securing the funds in your trading account. The brokers charge fees for these services. Therefore, the right Waves broker provides the services at an affordable cost. Also, the right Broker observes all regulatory guidelines and has all the required licenses as proof. Make a habit of reading online reviews about brokers to avoid getting involved with shady entities.
1. Register with the Broker
Your Waves trading journey begins with identifying and selecting the right Broker. All online brokerage platforms require new users to set up an account. Please think of the trading account as your online identity in the cryptocurrency market.
The account setup process begins with registration. Generally, the registration process is the same across different platforms. A few differences might occur concerning the depth of personal information required. For example, Plus500 only asks for your email and account password.
On the other hand, Pepperstone takes new users through a series of steps before setting their accounts. The first registration window only asks for a verifiable email address. Also, Pepperstone accepts the setting up of accounts via Google and Facebook.
2. Verify your Identity (KYC Process)
While an email address contains identifying information, the details are shallow. Also, people can easily set up an email address with false information. But regulations obligate online brokerage platforms to only work with people who have clear intentions. To achieve this objective, brokers implement a strategy called know-your-customer (KYC).
The KYC process involves verifying the identity of an account user. Brokers achieve this aim by demanding and verifying documents such as national identification cards, bank statements, driving licenses, passports, among other relevant identifiers.
Besides regulatory obligations, KYC enables brokers to ascertain the suitability of new clients. Also, a qualified client does not pose security risks to other clients on the Broker’s platform.
3. Deposit Funds with your Preferred Payment Method
The KYC process is the most critical stage of the account registration process. Your account should be ready for use if the Broker approves the documents you provide. Brokers provide several payment methods from which you should choose the preferred one.
Let’s say you chose to trade with Pepperstone. The image below shows the various payment options you could use to fund your account. It would help to note that payment methods available to you might appear different from those in the figure below. Brokers select payment methods based on the client’s location for faster transaction speeds and accessible dispute resolution.
Each of the payment methods listed follows a unique procedure for settling transactions. For this reason, the transaction speeds and costs may vary. Bank cards such as MasterCard settle transactions fast, but bank transfers may take even a week. On the other hand, PayPal is more convenient because everything happens via an online portal. Ultimately, the payment method you decide to use should settle transactions fast, charge low fees, and ensure high security for your funds and personal information.
4. Open a Position to Long/Short Waves
As with the traditional financial markets, cryptocurrency trading involves specific terms and phrases used to describe strategies and many other concepts. For example, you might come across words like going long or short positions.
Going long or taking a long position refers to purchasing Waves and expecting that its price will rise in the future. This strategy makes sense when market analysis tells you that upward movement of Waves price is the most likely scenario.
The opposite of going long is going short. A pessimistic view of the Waves future price is the primary basis for short positions. Investors arrive at such perspectives after exhaustive due diligence. Long positions are ideal for long-term traders who are willing to forego quick and smaller profit margins. On the other hand, short positions are flexible, and they allow traders to exploit volatile markets.
To place an order for a long position, go to the trading window of your preferred Broker and select the right WAVES pair. Follow prompts and finish by clicking the “Buy Button.” For a short position, follow the prompts and click the “Sell Button.”
Thankfully, some brokers make it easy for you to trade, whereby you can copy other traders’ strategies. For example, Skilling has a copy trading feature called c-copy, a solution offered by Spotware Systems ltd and integrated into the cTrader trading platform.
Brokers offer risk management tools when taking leverage long/short positions. The stop loss and take profit tools are a crypto trader’s best friend. Stop-loss exits the market automatically when the market touches a predetermined price. The same is true for taking profit, only that it happens when you are winning. Trailing orders (stop/take profit) adjust constantly based on a pre-set margin to ensure that you earn the most profit possible.
5. Close your Position
The risk management tools are critical at this stage. Remember, the price at which you exit the market determines the profitability of your position. Stop loss and take profit tools are ideal when trading in a volatile market. In this market, prices change quickly, sometimes faster than your finger can type. Using stop loss and take profit tools could save you a lot of trouble.
What happens when you are happy with the day’s earnings even when the take profit price is still far? In this case, you are free to exit the market. Sometimes you might opt out of the market before hitting the stop-loss price because you do not see the point of suffering any loss.
How to Buy Waves with an Exchange
Waves trading is not for everyone, as some wish to own the token. If you belong to the latter category, then a cryptocurrency exchange is your platform. Like online brokerages, crypto exchanges take funds from clients (it could be a fiat currency or digital currency) in the form of deposits. As such, issues such as platform security, transaction fees, and transaction speeds should matter.
Your preferred crypto exchange must guarantee the safety of your funds and personal information. Also, the exchange should demonstrate that it plays by the established regulatory guidelines. Because many exchanges are in operation, make sure to select an exchange that ticks all the right boxes.
1. Set up a Waves Wallet
The first important piece of information you need after deciding to purchase Waves is that the tokens need a wallet for storage. The Waves wallets could be hardware or software, and hot or cold. The hardware type resembles a memory stick, and they are often cold, meaning they are accessible offline only. On the other hand, software wallets are executable files installable on a desktop computer or a smartphone. These wallet types are primarily hot, meaning you need an internet connection to access them.
2. Choose and Join an Exchange that sells Waves
The Waves protocol belongs to the same category as Ethereum; both are crypto projects whose smart contracts are applicable in many respects. The WAVES token is available on various reputable cryptocurrency exchanges, including Huobi, Coinmama, Binance, Crypto.com, Poloniex, among many others.
It would be helpful to note that each exchange implements a unique service charter, and features also vary. However, all reputable exchanges will take you through a KYC process to ensure nothing can compromise the platform’s security.
3. Choose Your Payment Methods to Buy Waves
A good thing about the crypto exchanges mentioned herein is that you can choose the preferred payment method from a wide-ranging list. The list ranges from bank transfers to payment service providers. The best thing about bank transfers is security. Banks have the best safety protocols for guarding your funds and the integrity of your personal information. For this reason, you are unlikely to hear that people lost their money when using banks to move funds.
On the other hand, online payment service providers such as PayPal are more convenient. With proper security measures in place, such as using two-factor authentication (2FA), the payment method could be the number one choice for everyone. Also, credit/debit cards have unique benefits, especially when speaking about the speed and costs of transactions.
4. Place an Order to Buy Waves
With the Waves wallet set up and ready to receive funds, the next step is to place an order to buy WAVES. As discussed above, various exchanges offer access to the token. Perhaps we should add that you can also purchase the cryptocurrency directly from the Waves DEX (decentralised exchange).
For those who choose to buy through traditional cryptocurrency exchanges (such as those mentioned earlier, Poloniex, Huobi, Binance, etc.), the first step involves logging into your account. Next, go to the BUY tab and select the amount you want. The platform will then ask you to specify the fiat currency or digital currency you wish to settle the transaction. If all goes well, the “buy” button will activate, and pressing it will set the transaction in motion.
5. Safely Storing Your Waves in a Wallet
Please note that the Waves tokens are automatically deposited in your Waves wallet after the transaction is successful. If you wish to hold the coins for a short period, it is prudent to let them stay in the Waves wallet. However, you could transfer the tokens into a private wallet if you wish to HODL (Hold On for Dear Life, an investment strategy popular in the crypto-verse where investors overcome the urge to dump the coins even when the environment is hostile).
To transfer the crypto funds, log into your account and go to the “Withdraw” tab; some exchanges include this tab under the “Balances” section. Select the WAVES amount you wish to withdraw and then input the destination wallet address. When you click “Send,” some exchanges will ask for 2FA confirmation, although it depends on whether you configured the mechanism or not.
Should you Buy or Trade Waves?
You might have noticed a trend so far where we keep talking about brokers versus exchanges, trading Waves versus buying Waves. Oftentimes, investors buy a cryptocurrency for long-term holding. It means going to an exchange and acquiring WAVES tokens for storage in a private wallet.
Trading WAVES is a different concept than buying and owning. For starters, crypto traders do not wish to own the physical tokens. Instead, they feel comfortable trading the price fluctuations of a given token through derivatives such as CFDs. You can access the WAVES trading services through professional crypto brokers such as eToro or Binance.
What’s the Difference Between a Waves Exchange and a Broker?
A Waves exchange is an online platform that operates as a marketplace. Marketplaces bring together buyers and sellers of goods and services, each looking for the best deal. In a Waves exchange, your account identifies you in the market. When you place a Buy order, the exchange floats it in the market, waiting for a seller willing to accept the conditions.
A Waves Broker is different whereby the entity links you to the marketplace. It means the Broker could be a participant in the market. Usually, cryptocurrency markets have a high entry threshold in terms of funds, which locks out small-scale traders. Brokers enter the market as traders and then divide up their access to thousands of retail investors.
Therefore, each platform belongs to a different category of investors, depending on their profile. The crypto exchanges are ideal for investors who have deep pockets and have a long-term investing strategy. On the other hand, crypto brokers often serve retail traders, and whose investing strategy is short-term.
Waves: Long Vs. Short Term Investment
A long-term investment approach entails buying Waves tokens today, hoping that the price will grow in the future. It is important to note that long-term investment strategies require a great deal of prior research. You might have to study the entire crypto market and try to anticipate future developments.
On the opposite side of a long-term approach is the short-term investment approach. It entails holding a trading position for a day or less. This strategy is ideal for investors who choose to register with online cryptocurrency brokers because such platforms offer CFDs trading opportunities that enable short-term exposure to Waves.
Long-term investing indicates confidence in the cryptocurrency, and it attracts more investors. In case the price shoots up, long-term investors benefit the most. Contrariwise, short-term investing suits impatient investors. With this strategy, traders could earn small but numerous profits that could add up to vast amounts after some time. Also, the approach prevents investors from making huge losses if the cryptocurrency’s price collapses to the floor.
3 Tips to Buy Waves
Now you know how to buy WAVES, but what are the best practices while at it?
1. Choose the Right Time and Do Your Own Research on Waves
Knowledge of the right time to buy Waves only comes from extensive research. A great approach is to read through material from different sources to obtain a better perspective. Also, plenty of information creates the perfect conditions for better decision-making. If your research indicates the market is underpricing the Waves tokens, then this is the right time to buy. You could make huge profits if the insights are correct.
2. Compare Costs to Buy Waves
We believe that by now, you know how to get Waves through different platforms. However, it helps to realise that each platform charges differently for its services. If we must caution you, always compare the fees against the quality of service and against what competitors are offering. This way, you should be able to land the best deal there is.
3. Safety and Security when Buying Waves
Safety and security are other issues whose importance cannot be gainsaid. Although each platform claims to implement top-notch security mechanisms, it helps to check them out. For instance, you could read through the website to see what kind of encryption algorithms are in place. Also, find out if the platform has proper and valid licenses. Lastly, add a layer of security by configuring 2FA protection.
What is the Best Payment Method for Buying Waves?
- Buy Waves with Cash: The Waves DEX platform accepts cash for WAVES.
- Buy Waves with Credit Card: Credit cards are one of the fastest payment methods to buy Waves.
- Buy Waves with Bank Transfer: All platforms that list Waves accept bank transfers.
- Buy WAVES with Bitcoin: Some platforms accept Bitcoin as a payment method for Waves.
- Buy Waves with PayPal: PayPal offers the most convenient method of paying for Waves.
Other Ways to Buy Waves
Besides buying Waves through crypto exchanges and online brokers, the token is accessible through the Waves DEX (also called the Waves exchange). Another way of acquiring Waves is through staking. Staking involves “lending” your coins to the Waves Blockchain to be used as fuel for transactions and making the network more stable and secure.
So, to sum it up, Waves is a great investment opportunity for those willing to take the risk. Its presence on reputable trading platforms speaks volumes about market confidence. We believe that Waves suits long-term investment strategies based on its performance so far. Since its founding, Waves’ return on investment (ROI) – as of May 13, 2021 – is 2,246.38%. Nevertheless, the most important thing to note is that the best cryptocurrency investors follow a strategy, so should you.
Frequently Asked Questions
WAVES staking involves owners of Waves tokens delegating their assets to public nodes on the Waves platform in exchange for regular payouts. When you entrust the assets, they do not leave your wallet but are instead frozen such that you cannot spend them.
The Waves protocol is the blockchain network on which the WAVES token and the Waves DEX are built. Users can create decentralised applications as well as launch assets based on smart contracts.
Yes. While Waves and Ethereum protocols seem to accomplish the same goal, they are different in the way they operate. For example, almost all transactions on Ethereum are via smart contracts. As such, users have to develop some technical understanding of the network, which means learning to code. On the contrary, the Waves protocol accepts plug-ins that simplify transactions. It means users do not have to code sophisticated contracts to accomplish simple tasks.
The total supply of WAVES is 105 million as of May 13, 2021, and all of the coins are in circulation.
The Waves protocol uses a version of the Proof-of-Stake (PoS) consensus system called Leased Proof of Stake (LPoS). Unlike the traditional PoS, LPoS relies on the participation of wallet users to validate blocks. The wallet users lease their WAVES tokens to miners on the platform, who perform the actual validation block validation.