How To Buy Yearn.finance | Ultimate Guide To Buy YFI
The cryptocurrency industry has gone sky high earlier this year, attracting countless people from all over the world. While many have come for the growing prices, they stayed for numerous other opportunities that the crypto sector brings, particularly the DeFi sector, which emerged in 2020, and has been rapidly growing ever since.
Projects like yearn.finance (YFI) have been particularly attractive to investors, as they serve as aggregator services that allow users to maximize their profits from yield farming. So, if you are interested in investing in YFI, this guide will explain everything that you need to know.
5 Steps to Buy Yearn Finance Instantly!
1Visit our recommended platform to buy Yearn Finance by clicking the button below.
2Enter your details in the required fields to create a new account.
3Fund your account using your preferred payment method and confirm your new balance.
4Choose Yearn Finance and select a "Instant/Market Order” to buy it instantly.
5Enter the amount you want to buy (you’ll see the equivalent in YFI) and confirm your order!
Our Recommended Platform to Buy yearn.finance
If you already know about the token and simply wish to purchase it, below is a list of recommendations of several platforms that offer excellent prices, fees, and are very user-friendly, so that even first time buyers can easily navigate them.
Where to Buy yearn.finance in 2021?
Buying Yearn.finance is best done through one of the numerous crypto brokers, which allow users to access multiple trading platforms from one spot, thus allowing traders and investors to buy their preferred cryptocurrency at the best prices. With that said, users have a choice to buy and hold Yearn.finance (YFI) or to trade it in order to benefit from its price movement.
Those who choose to buy the coin and hold it need to be prepared for the fact that it might be years before the price grows enough to make their investment worthwhile. This would require discipline and patience, but the end result is certainly worth the wait, in most cases. However, doing so will also require extensive research into the coin, crypto wallets, how to set up proper security, and alike.
Trading, on the other hand, allows users to make profit faster, although in much smaller amounts. The downside here is that traders have to constantly buy and sell whenever YFI price moves in one way or another. Fortunately, however, brokers also allow them to trade CFDs (Contract For Differences), which allows traders to bet on the coin’s price movement. That way, they can make a profit even during the bearish markets, when the prices are falling. Provided, of course, that they made the right prediction.
How to buy Yearn.finance with a Broker?
Before you do anything, you should make sure to choose the best possible broker for buying YFI. Different brokers offer different offers, and there can sometimes be a very large difference between them. Some brokers may have larger fees than other, or more fees that the trader needs to pay (for example, some companies may charge a withdrawal fee, while others may not).
There is also a matter of security and ease of use that traders need to consider before they start working with any company. Lastly, always choose a broker that is fully regulated, as they are required by law to be licensed and regulated. If a broker is not regulated, investors and traders should stay away, as it may very well be a scam. Other than that, here is what you need to do to purchase YFI.
1. Register with the Broker
Naturally, registering with a broker is the first step to make, as you cannot trade without an account. After you find a broker that has acceptable fees, security and other details mentioned earlier, you can go on ahead and click on the register button. The process is very quick and easy with most of these services, and they usually only require a few basic details, such as username, email and password.
Let’s say that you chose eToro. The necessary requirements are exactly that, and even the password doesn’t have to be particularly long, as long as it is complex and not easy to guess. It should be between 6-20 characters long, with lowercase and uppercase letters. You can also strengthen it with numbers and symbols. The platform also allows you to sign in with your existing accounts, like Apple, Facebook or Google.
Platforms like Pepperstone also let you log in with Google or Facebook accounts, or you can create a new one, starting with your Email, and then completing a four-step process that will see you complete the application, confirm your identity, and finally, fund your account and trade.
2. Verify your Identity (KYC Process)
The next step is to verify your identity, which is also a necessary step in order to start trading. Verifications are obligatory, as they are required by the current regulations. That way, nobody can try to pose as you and potentially harm you or your reputation in any way while trading on one of these platforms.
As mentioned, Pepperstone will quickly guide you through the verification process immediately, while eToro lets you register first, and verify your ID later on.
3. Deposit Funds with your Preferred Payment Method
The third step would be to deposit funds to your platform by using the payment method you prefer. Most platforms support a number of payment methods, such as credit cards, debit cards, wire transfers, and even PayPal and other online payment processors.
eToro, for example, allows you to use credit/debit card, PayPal, Skrill, Bank Transfer, or Neteller, although different brokers might have different methods support, especially when it comes to different countries.
4. Open a Position to Long/Short Yearn.finance
Lastly, with your account now funded, you are ready to open a long or short position. To do that, of course, you will first have to gather as much information as you can in order to make a prediction. Once you have a general idea of what the coin is going to do next, you can make your move.
Some platforms, such as eToro, allow you to buy and own the coin, which is great for opening long positions without leverage. As for short positions, you should consider entering into a CFD to make a bet on the price movement. Naturally, owning an actual coin and then seeing its price drop will mean that you are experiencing a loss. But, using CFDs, you can bet that the price will drop, and if it does, you can earn money for making the right prediction.
You can open a long position via a CFD as well, but that would only mean that you can earn money if you are correct. If you buy an actual coin, however, you can use it to get passive income thanks to it being a DeFi token and offering that functionality.
Lastly, we should also mention risk management tools, such as stop-loss, trailing stop-loss, and take profit orders. These are special orders that allow you to select a certain level, and if the price ever reaches that level, your position will be closed automatically. Stop-loss and trailing stop-loss are great if you expect the price to grow and it suddenly drops. Stop-loss allows you to select a level below the price, and if it touches it, your position will be closed instantly.
Trailing stop-loss works in a similar way, but if the price keeps growing, the target price you set will keep moving up with it. That way, you will still make some profit if the price grows first, and then drops suddenly. As for take profit, it is a target that you post above the market price, and if it grows to reach it, your position will also close automatically, ensuring profits.
5. Close your Position
One more thing to remember is that you can also close your position if you find that things are not going the way you expected them to. Closing a position early could help you prevent further losses. You can also close your position if you are done with trading for the day, or if you are satisfied with the profits that you had made. Also, it is a good idea to do it if you notice that you keep losing, and decide to retire for the day.
You can close your position manually, or automatically, through stop-loss, trailing stop-loss, and take profit, as explained in the previous step.
How to Buy Yearn.finance with an Exchange?
As an alternative to brokers, you can also go directly to a cryptocurrency exchange to buy Yearn.finance. There are benefits to this, if you can find an exchange with acceptable fees, good security, and alike, that has YFI listed, and paired against coins and tokens that you are interested in, or if simply allows you to deposit funds to buy Yearn.finance, or lets you purchase YFI directly.
Obviously, that means that you will have to do a bit of digging, and you will have to compare different exchanges to see which one offers better terms. Remember that it is in your best interest to find a platform that offers the lowest fees and the best prices, and that it has the best security. Once you identify the platform you wish to use, here is what you should do next.
1. Set up a Yearn.finance Wallet
The first thing you need to do actually doesn’t have anything to do with the exchange itself, but with securing and managing your coin. That’s setting up a wallet. Wallets are apps that allow you to store and manage your cryptocurrencies in a safe way. They are only accessible by you, or, more precisely, by people who hold its keys. This is why it is important to keep the keys hidden from everyone, for if they get stolen, you will lose your money in a flash.
Now, there are multiple types of wallets, including web wallets, hardware wallets, mobile wallets and desktop wallets. Web wallets are the most convenient, as they are always on the internet, in the form of a browser extension or a website. You can quickly and instantly transfer your funds to an exchange and trade them. However, that also makes them the most vulnerable, as hackers can just keep attacking them until they gain access.
Hardware wallets are the total opposite, as they are physical USB-like devices that you can plug into your computer to transfer funds, and just plug them out once you are done. Once they are plugged out, no hacker can do anything to your funds unless they can physically access the device. But, that also makes them less practical when it comes to trading, as you need to be near a computer to plug them in in order to trade.
Mobile wallets and desktop wallets are pretty much a middle ground between web and hardware wallets. Obviously, mobile wallets are on your phone, while desktop wallets are apps installed on your computer. What makes them great is that you can disconnect your device from the internet and turn it into a hardware wallet, or connect it and make it almost a web wallet at any time. This works particularly well if you have a secondary smartphone/laptop that you can keep disconnected until the moment you wish to start trading.
With that in mind, choose your wallet carefully, set it up, and proceed to the next step.
2. Choose and Join an Exchange that sells Yearn.finance
Naturally, you now have to choose an exchange that you will want to use. There are many reputable platforms, such as Binance, Coinbase, CEX.IO or Poloniex. Like brokers, they all differ from one another in one or more features, such as security, fees, listed trading pairs, and more. Keep in mind that the registration process might be different from one platform to another due to regulations. Some may allow you to trade up to a certain limit without verifying your identity, while others won’t even let you access your dashboard without going through all of the registration and verification steps first.
3. Choose Your Payment Methods to Buy Yearn.finance
Once again, you need to choose a payment method to deposit your money to the platform. Depending on where you live, you may have many different available methods, or only a few. Regardless of which it may be, remember to compare them and see which is better for your situation. Some, like credit/debit cards, are very fast when it comes to depositing money, but they also charge more. But, if you are not in a hurry, you can use bank transfers that will likely take a few days, but at a much smaller fee.
4. Place an Order to Buy YFI
The last step is to place your order and buy YFI. This is very simple to do, and all there is to it is to locate the Buy coins button, or some variation of that (exchanges like to keep it very visible at all times), click on it, and in the new window, enter the coin you wish to buy, the amount, and other details, if there are any required, which will — once again — slightly differ from platform to platform.
Once you are done, check all the details you entered, and click buy.
5. Safely Storing Your Yearn.finance in a Wallet
One thing that you should know is that it is never a good idea to keep your coins in your exchange wallet. Instead, once you buy them, if you don’t plan on using them, it is best to transfer them to your private wallet, as they will be much safer, and you will be their sole owner. If they remain on the exchange, they will be exposed to hackers, or the exchange’s own will, as centralized exchanges are the ones who hold your keys in your stead.
Should you Buy or Trade Yearn.finance?
A lot of newcomers to crypto become confused when presented with a choice to either buy or trade Yearn.finance. As noted before, both are perfectly legitimate approaches. However, it depends on the type of person you are to decide which is better for you. Patient people tend to go down the investing route, buy YFI, and then hold if for as long as it takes for its price to grow. More dynamic individuals would rather participate in trading, many continue to buy and sell multiple times per day. However, keep in mind that, you should also choose whether to use an exchange or a broker.
What’s the Difference Between a Yearn.finance Exchange and a Broker?
There are several differences between exchanges and brokers. For example, exchanges are much simpler and quite straightforward with what you can do on them. You can register, deposit money, buy the coin at the listed price, and then withdraw it to the wallet, or trade it for some other coin. They also allow you to deposit previously owned coins and exchange them for another crypto or sell them for fiat currencies. They offer various tools for price predictions, strategising, and alike, but that’s pretty much the gist of it.
Brokers, on the other hand, are connected to multiple exchanges, so they let you see which exchange offers which price, so you can buy at a lower one and sell at a higher one without having to go to those exchanges. Without brokers, you would need an account on each individual exchange, and then you’d have to switch your money from one to the other to compare prices and chase the best profit, which is both time consuming and costly. Plus, brokers can also offer CFDs, which are crucial for making a profit when the prices are dropping.
Yearn.finance: Long vs Short Term Investment
When it comes to YFI, you can choose to invest for the long-term or short-term. If you go for the short term, that means that you will have to keep track of the news, new partnerships, development updates, team AMAs, community’s thoughts on the token, the project, positives, negatives, price changes, and more. You will need to employ different strategies depending on different price movements, you will need a wallet, numerous price prediction tools, and potentially even trading robots to keep watch over the market while you are busy.
But, you get profits almost on a daily basis. Typically, they will be small, maybe tens, or hundreds of dollars, depending on the size of your investment, your skill and whether or not you trade with leverage at increased risk.
On the other hand, you can study the project, decide if you like it or not, whether it has a future or not, and if you are satisfied with what you find, you invest, lock up the coins, and you’re done for the next few years. Leave them in and wait for the project to develop and mature. Over time, you can buy more of them, or use them within the project’s ecosystem for earning passive income, thus increasing your holding automatically. This approach is used by long term hodlers.
3 Tips to Buy Yearn.finance
If you decide to go for it and buy YFI, here are a few tips that we can share, free of charge. Hopefully, these will be of some use to you in days to come.
1. Choose the Right Time and Do Your Own Research on Yearn.finance
First of all—remember that you are responsible for your money. That means that any mistake that you make is on you. If someone gives you an advice, and it turns out to be bad advice, it’s your fault for listening to it. That’s something you have to remember when it comes to crypto trading. Think for yourself, and make your own choices, for if you make a bad one, there’s no one else to blame.
Also, make sure to plan your moves properly, and choose the right time to buy or sell. It does matter when you enter or exit the market, so, wait for those opportunities.
2. Comparing Costs to buy Yearn.finance
Different platforms have different fees and they they list different prices. So, check between a few of them to see which one has the best deal. Don’t just go for the first deal you see but take an extra few minutes to check around, as it could make a great difference in the long run.
3. Safety and Security when Buying Yearn.finance
Lastly, remember that safety always comes first. Make sure that you know what kinds of protections your platform uses, and make sure to use all security features you can find. Yes, things like 2FA are annoying most of the time, but they could save your money if a hacker decides to target your account, so better you be annoyed 1,000 times than a single hacker to get lucky once.
What is the Best Payment Method for Buying Yearn.finance?
- Buy Yearn.finance with Cash — this is a good solution if you can find a crypto ATM
- Buy Yearn.finance with Credit Card — a fast but expensive way to buy YFI
- Buy Yearn.finance with Bank Transfer — slow but has low fees
- Buy Yearn.finance with Bitcoin — Buying crypto to crypto is usually the fastest and cheapest way
- Buy Yearn.finance with PayPal — You can use PayPal on P2P platforms or to send money to supported brokers, like eToro
Other ways to Buy Yearn.finance
As Yearn.finance is a DeFI token, it is likely going to be listed on several Ethereum-based decentralized exchanges, where you can buy it with ETH directly, or in exchange for another ERC-20 token. Of course, there are P2P platforms where you can buy it anonymously from anyone who offers, or earn it through yield rewards.
Frequently Asked Questions
Ideally, you should buy YFI after its price drops to a lower level. Once it seems that the drop has stopped, and that a recovery is about to take place—that is when you buy. But do your own research and decide as per your budget and duration of the investment.
Yearn.finance is a legitimate DeFi protocol, so from the security point of view, yes, it is perfectly safe. With that said, there is still the risk of volatility that accompanies all coins and tokens.
Yes, yearn.finance was audited multiple times by some of the best-known blockchain security firms which pointed out flaws and potential issues that have since been fixed.
You can either lock it up into your wallet and hold it as a long-term investor, or you can keep buying and selling it in order to use price volatility. And, of course, you can also use it for making passive income through yield farming.
That depends on the platform you are using. Different exchanges have different minimum investments, and some exchanges don’t have any limits at all.