How to buy Curve Dao token online
Our guide explains everything you need to know before you invest in Curve DAO tokens. We clarify the history of Curve Finance and explain how it works, and we also take a look at where to buy Curve DAO tokens.
Compare where to buy Curve DAO tokens, and open an account
If you are already familiar with Curve, you can invest straight away by following one of the links to a recommended broker in the table below. Whether you want to trade Curve DAO tokens or buy them to hold for the long term, these brokers are strong platforms for your investments. For more on Curve and Curve DAO tokens, keep scrolling.
What is Curve?
Curve is a cryptocurrency exchange that runs on Ethereum, and Curve DAO (CRV) tokens are the in-house currency that powers the platform. The exchange allows users to swap stablecoins: coins or tokens that are tied to the value of an underlying asset.
Traditional exchanges use something called an order book, but if this was to be used for a cryptocurrency exchange, there would be issues with liquidity due to the high volume of transactions and canceled transactions overwhelming the blockchain technology. To resolve this issue, Curve uses something called liquidity pools to ensure that trades can always be made.
Curve was founded by Michael Egorov and has quickly become one of the most popular exchanges for Ethereum-based tokens. CRV tokens have increased in value massively since Curve was launched, and a real growth moment occurred in January 2021, when Curve collaborated with Yearn Finance.
How does Curve work?
Curve works by allowing users to swap between a variety of stablecoins and assets by using liquidity pools. These pools are individually filled with pairs of stablecoins, and because the coin pairs are always ready in the pools, trades can take place immediately without the need for a conventional order book. The stablecoins are provided by people known as liquidity providers, and they are backed by the value of a fiat currency, like USD, or some kind of asset, such as gold.
Curve users can swap stablecoins with a low trading fee of 0.04%. The liquidity providers that facilitate these swaps are rewarded with CRV tokens and can redeem over 300% interest on deposited funds, and holders of CRV tokens are also able to vote on platform governance. To constantly refine the platform, Curve offers ‘bug bounties’ worth up to $50,000 to users who can find errors in their code.
Several companies now offer cryptocurrency exchanges with liquidity pools, such as Uniswap and SushiSwap. These platforms prioritise liquidity, whereas Curve focusses on stability. When users make trades on Curve, they are made through a single transaction from stablecoin to stablecoin, reducing the slippage, which is the difference between what a user expects to pay and what they end up paying. On other exchanges, all tokens and assets must be converted into Ethereum first.
How to buy CRV online – a step-by-step guide
Step 1. Find an exchange to purchase CRV
If you want to know where to buy CRV tokens, cryptocurrency exchanges are a good place to start. We have reviewed some of the best cryptocurrency exchanges around, but not every exchange supports CRV tokens. Here are two reputable exchanges that do:
- Binance: CRV can easily be exchanged through Binance, which is one of the largest cryptocurrency exchanges. It has an intuitive interface that is also easy to use. See if it suits you and open an account with Binance today >
- Bitpanda: As one of the most popular crypto exchanges around, Bitpanda offers exchange services for over 50 cryptos including CRV. Purchase CRV tokens today by registering with Bitpanda >
Step 2. Sign up and fund your account
To use an exchange to buy CRV tokens, you will usually need to sign up by creating an account. This often includes a photo ID verification check.
The payment methods accepted by each exchange differ. Some platforms will allow you to buy CRV tokens with fiat currency, whilst others will need you to pay in cryptocurrency. If this is the case, buy some Bitcoin from a Bitcoin exchange and load them into your account.
Step 3. Buy CRV
Once your account has been set up and funded, exchange the funds in your account for CRV. For example, if your account is loaded with GBP, check out the CRV/GBP pair. If your account is full of Bitcoin, go to the CRV/BTC pair.
Step 4. (Optional) Get a suitable wallet
Wallets can enhance the security of your assets. We explored what Bitcoin wallets are and most of these wallets are compatible with CRV tokens. However, a CRV wallet is only really worth considering if you want to hold CRV for an extended period of time. Otherwise, most exchanges will allow you to store your tokens in your account. Below are two of the best CRV wallets.
- Guarda Wallet: Guarda supports any ERC20 tokens along with many others. It is an increasingly popular online wallet solution and is a good place to store your CRV tokens. Open a Guarda Wallet to hold your CRV in now >
- Freewallet: As one of the most popular cryptocurrency wallets, Freewallet supports over 100 different cryptocurrencies, including CRV. Open a Freewallet to store your CRV in >
How to trade CRV – a step-by-step guide
Step 1. Find a broker
If you want to trade CRV tokens successfully, you will need to open and close positions quickly to capitalise on market fluctuations, and a broker facilitates such a strategy well.
Before signing up to any broker, you must check if they provide CRV trading services or not. CRV continues to grow in popularity, but not every broker will support it. Plus500 and eToro are two of the most popular crypto brokers so if anywhere is going to support CRV, it is likely to be them. Check the table at the top of this page for more options.
Step 2. Deposit money
Brokers usually allow you to fund your account with fiat currency, and you can use this to directly trade crypto. Make sure you check the trading fee before finalising anything because it could be too high for your liking.
Step 3. Decide how you’d like to trade
Step 4. Start trading
Your account should now be set up, funded, and ready for trading. However, before you jump in with both feet, consider a demo account so you can learn the basics of trading before putting your capital on the line. You should avoid using leverage when getting started because whilst it maximises your exposure to any potential upside, it also increases the risk you will face.
When deciding your trading strategy, consider whether you want to take a long position or a short position. If you take a long position, this means you buy CRV in the belief that it will rise in value. If you go short, this means you borrow CRV tokens and sell them in the hope you will soon be able to buy them back at a lower price and pocket the difference.
Once you feel knowledgeable about a particular trading strategy, you can trade CRV and implement it. Always be on the lookout for new and potentially profitable strategies that you can utilise, but never take any unnecessary risks or do something you don’t properly understand. Above all, never trade with funds that you can’t afford to lose.
This is a lot of information to absorb, so take your time to consider Curve, CRV tokens, and the financial opportunities they can create for you. To help you process this information, here are the pros and cons of Curve, alongside some important questions to think about.
- Safe and stable trading due to non-volatile stablecoins and less slippage
- Audits on smart contracts have shown Curve’s security is strong
- Low trading fees
- Multiple ways to make money such as liquidity mining
- There have been issues with Curve smart contracts and systemic issues with other stablecoin exchanges
- Risks to liquidity providers can be high
- The interface is complex and difficult to master
If you still aren’t ready to make a decision, here are three more things to consider before you decide to invest in CRV tokens.
1.) Is now a good time to buy CRV?
This depends on your investment strategy, which could be either short-term or long-term. In the long-term, Curve Finance could become an increasingly popular cryptocurrency exchange, resulting in its native CRV token rising in value Now could be a good time to buy in before major growth events.
In the short-term, this vision of growth is less important. Instead, you need to focus on technical indicators to inform your trading decisions. If you spot a trend in the price of CRV as it unfolds, there is usually a profit to be made.
To keep you informed, Invezz brings you the latest analysis of Curve Finance and CRV tokens so you never miss a beat:
Chiliz (CHZ), Curve DAO (CRV), TomoChain (TOMO) price analysis
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2.) What problem does Curve solve, and what are Curve’s investment prospects?
Curve provides a more seamless cryptocurrency swapping service than other exchanges, some of which have liquidity problems. The platform also provides more stability than other exchanges by minimising slippage. With increasingly volatile financial markets throwing up unexpected results, and momentum growing behind decentralised finance (DeFi), Curve appears strongly positioned for long-term success.
In the short-to-medium term, it will be interesting to see if this relatively new platform has any teething issues and what innovations it has up its sleeve. Curve’s smart contracts are secure, but reported issues have been a prominent topic of discussion. Curve’s interface also remains a little clunky and unaesthetic.
The key to Curve’s future investment prospects is refinement. What Egorov and his team have developed is a fine tool, but now they need to polish the rough edges to turn Curve Finance into a go-to cryptocurrency exchange. Click one of the links below to read the latest news about Curve:
3.) Do you want to hold CRV for the long term?
Buying CRV to hold it for prolonged periods of time and buying CRV to trade it quickly are two completely different strategies with varying pros and cons. Before you opt for either one, make sure you make the key considerations listed below.
Considerations for a long term investment strategy
If long-term value is on your mind, you need to focus on the fundamentals. Review the foundations of Curve’s business model and project how you expect it to perform in the future. Get in early by choosing an exchange to buy CRV tokens, and consider holding them in a wallet for added security.
Considerations for a short term trading strategy
If short-term gains are more of a focus for you, use technical analysis to read the market so you can buy and sell CRV tokens at the right time. If you want to trade CRV, sign up with a broker that has low fees to execute your trades instantly.