How to Buy and Trade Golem in 2017

The Beginners Guide to Buying, Trading and Selling Golem

What is Golem

Golem is Airbnb. Confused? Let me explain.

Airbnb uses idle rooms or properties to make money for the property owner. If the landlord does not have a use for it at that time, they can rent it out.

Walkthrough Video that Explains How to Buy Golem Online

The same logic applies to Golem. However, rather than using vacant property it uses idle computing power. Computers and other devices can sit idle not using portions of their computing power. Golem aims to harness this idle power to help boost processing, software performance and speed on other devices.

The provider of the idle energy will be rewarded in Golem tokens.

A similar analogy is when investing in company shares. Excess (or idle) capital not being used, is put to work for the company whilst paying the investor (or user) a dividend (or golem token).

What is so special about Golem

If Airbnb is anything to go by then Golem certainly has a good idea on its plate. And I would imagine that very few people would dislike the idea of using idle power to essentially move the internet into a more fluid state.

The Potential of Golem

This technology would certainly have huge benefits for businesses around the world. Individuals, companies and institutions would have access to a large reserve of energy to fill any service gaps they require.

Should a company have peak times their power output is tested, the Golem system can be used. Should a company come under attack from computer virus, the company would have access to extra computing power to fight it.

This will be able to speed up multiple processes within a company's infrastructure, which ultimately will increase efficiency and widely speaking efficient businesses are more successful businesses.

Golems Ethereum Connection

Now, saying and doing are two different things. Currently the Golem tokens are rewarded using the Ethereum platform through smart contracts. So, already we have something Golem is dependent on. Should Ethereum start to encounter problems and, lets say, begins to wither out of the crypto market, this will have a knock-on effect on Golem and unless they can devise a new way to trade Golem tokens, Golem will ultimately follow suit.

Currently Ethereum is second in the cryptocurrency market cap table and does have lots of prospects but it is a risk none the less.

Golem Risks

There are other risks associated with Golem, basic supply and demand. If the demand for power out weighs the supply, the service would essentially not work. If a user wanted it for a specific demand or for their peak power times and there is a shortage of power in general, then Golem is not producing the product it advertises.

Given the examples mentioned, if you were under attack by a computer virus and wanted extra power, when it does not arrive, that service did not fulfil its obligation. 

The same principle applies to your heating at home. If you are cold during winter and you go to turn the heating on, if it does not come on, your energy provider has not fulfilled their obligation and you ultimately will go to someone you feel will.

The other side of the coin is when supply exceeds demand and the incentive to the providers becomes fruitless.

Should I buy or trade Golem?

Buy Golem

As we have discussed above, Golem is far from finished article. But do you want to buy it when it is? Once a product is completed and adopted by the masses, the price has already increased and stabilised. The investment potential is often gone. 

That being said, Golem is still an idea but the idea phase can offer you the best return on investment. Especially in the case of Golem, if the idea comes to fruition the upsides are huge. 

As is the case with nearly all investments, when there are huge returns at stake, there is often huge risks at stake. In the case of Golem, because you are investing in a product that is still in the idea phase, there is every chance that it will not progress through that phase and ultimately fizzle out as an idea and product or technology. This would likely mean you would lose 100% of your investment.

Given the current price of Golem ($0.31 per token, as of time of writing), there may be good reason to play the long game.

Trade Golem

As Golem is a relatively new cryptocurrency, it is yet to make it onto any brokers radars just yet. Meaning that you currently cannot trade it in the form of CFDs. 

That said, you can still trade it through cryptocurrency exchanges. The likes of Poloniex, coinswitch and other exchanges make trading Golem very easy. 

As with all cryptocurrencies, price movements are very volatile due to the nature of such a new phenomenon. Unlike traditional currencies that have been around for hundreds of years, the recent introduction of cryptocurrencies into the world of trading is very exciting. 

Seeking out the best places to buy and sell is certainly an opportunity to make some short-term cash but as with all trading, you run the risk of losing your investment. Given the volatility we see in the cryptocurrency markets, caution is advised.

How to buy Golem online - step by step guide

Despite Golems market share being in the top 20, it is still not available on all major exchanges. It is very difficult to buy it outright with your fiat currency (GBP, EUR, USD etc), but not impossible. I recommend however that you go through more familiar institutions who have a good reputation within the industry.

This will create an extra step in the process of buying Golem. The extra step is involves buying another more popular cryptocurrency that is easy to buy directly with your fiat currency. Once you have a cryptocurrency, simply exchange it for Golem at any advised exchange.

Before you can buy Golem, you must first get a wallet that stores your Golem tokens. This acts much the same as a cash wallet and has similar security procedures to your email. Your wallet address is where people can send Golem to you and has a password that only you will know.

I will now take you through how to buy Golem.

 

- Firstly, you must buy another cryptocurrency to exchange it for Golem. I will use Bitcoin because it is the largest cryptocurrency. The easiest way to buy Bitcoin is through Coinbase, which is one of the largest and most trusted exchanges. You must set up an account, filling in your details. 

Coinbase Sign Up

 

- Once you set up an account, you must add a payment method. You can either directly link your bank account to the Coinbase account or use a credit / debit card. Click 'add payment' and select the method you wish to use. You will then have to wait for this to be verified by Coinbase, this may take a little time because of the huge upswing in popularity for Bitcoin and other cryptocurrencies. 

Coinbase Payment

 

- Once verification is complete, you will be able to fund your account with USD, EUR or GBP. Then you can then buy as much Bitcoin as you choose.

 

- You now own some Bitcoin and must find an exchange to transfer your Bitcoin into Golem. I recommend coinswitch.co because it gives you a choice of exchanges to use and lets you compare their prices.

 

- On coinswitch.co, click 'continue' to get to the price comparison page.

Coinswitch Front Page

 

- Enter the amount of Bitcoin you intend to exchange in the 'You have' section. This will determine how many Golem coins you are due and provide you the options of different exchanges to choose from. Click 'Exchange' your preferred exchange.

Coinswitch Price Comparison

 

- Next you must enter the address of your Golem wallet. This is the address you were given when you opened your Golem wallet. Tick 'I agree to terms' and then click 'next.

Coinswitch recipient Address

 

- You will then be taken to a processing page where the transaction is completed. You will then receive an address to send your Bitcoins to. You must go back to Coinbase and make a payment for the same amount to the address you were provided with.

How to buy Golem with a credit card

There are no straight forward methods to buying Golem using a credit card. The methods that are available are untested I recommend you avoid until they are proven. Be careful if you are buying Golem directly using a credit card.

The safest method to buying Golem with a credit card, is to go through the process mentioned above and buy Bitcoin using a credit card and exchange for Golem.

How to buy Golem with Paypal

PayPal once embraced digital currencies and made it possible to buy things like Bitcoin through its payment platform, but recently it has withdrawn somewhat and only offers users of cryptocurrency the option of depositing money from the sale of Bitcoin into their PayPal accounts. This is again done through Coinbase, and because of that, only works with Bitcoin, Ethereum and Litecoin.

 

To use PayPal with Golem, there is not much opportunity, but it once again is linked back to Bitcoin, and is only useful when depositing money. A Golem holder could sell their Golem for Bitcoin, send it to Coinbase, and then withdraw that money into PayPal for fiat currency such as Dollars.

How to trade Golem

There are various exchanges whereby you can actively trade Golem. Poloniex is one of the most trusted sites to trade Golem with other cryptocurrencies. Given the huge price swings Golem and other cryptocurrencies are experiencing, there is no surprise at the increase of people wanting to trade these markets. 

Brokers are now getting in on the act and allowing you to trade cryptocurrencies using CFDs, this opens a huge market for speculators who want to profit from the price movement of markets like Bitcoin, Ethereum and Golem.

A popular broker that offers you access to trading cryptocurrencies is AVA Trade. Creating an account with AVA Trade is just as quick and easy as setting up an account with Coinbase.

 

- Go to AVATrade.com and sign up by providing basic details. Alternatively, you can sign up using Facebook or Google+. {PIC}

AVATrade Sign Up

 

- You will need to provide information on various topics, so AVA Trade can gage your experience and in turn the level of support they can offer you.

 

- When asked to select a trading platform, I would recommend selecting 'Floating Spread Account' with MetaTrader4 (MT4). MT4 is a hugely popular trading platform thousands of people use across the world. This will give you access to all the cryptocurrencies they offer.

 

- You then must fund your account. Decide the method you wish to do so with and similar to Coinbase you can make a direct deposit into your newly created account. Click web-trading or download MT4 and you can begin trading.

AVATrade Platform

The future of Golem trading

Golems idea of renting out idle computer power is certainly a great one and should the developers succeed then this technology will increase productivity and efficiency around the world. 

The project is expected to take nearly 4 years from its ICO, which was in November 2016. That gives it three and a quarter years to make significant progress.

Golem Problems 

There are more notable difficulties lying ahead than that of other cryptocurrencies.

Computers will be connected throughout the world and the ability to deliver the transfer of information and power is bound to take time. 

This means there will undoubtably be a time delay. In an ideal world, it could almost be used as an on / off switch. In reality, for this to happen, technology will need to evolve quickly, but I would hazard a guess that the progress of Golem will be quicker than that of improving connectivity speeds significantly.

Now, we mentioned supply and demand earlier. This is a problem if one out weighs the other. However, there is an issue before we get to that. Actually getting the technology adopted by the masses. If people are not using it, then the product is not there. Following that comes the supply and demand issue, this strikes me as a 'cross that bridge when we get to it' kind of issue. I would imagine a solution is available to this.

The final hurdle is legal issues. Since data is being sent across borders, there is the matter of data protection and cyber security. Without either, users willingness to participate in the network will diminish.

But it is cheap

Despite the negativity in bringing up the potential hurdles Golem may encounter, if it can pass those tests, the upside is huge. Considering the price, it is trading at the moment, the risks aren't huge as you can buy only a small amount.

 

 

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