How to buy Komodo coin online
This beginner’s guide introduces you to Komodo and its KMD token. You can find out where to buy Komodo coin and what you should think about before you do.
Compare where to buy Komodo, and open an account
You can buy Komodo straight away through one of the links below. These are some of the most popular brokers, as reviewed by our team of crypto experts. If you aren’t ready to buy yet, keep reading to learn more about Komodo.
What is Komodo?
Komodo is a system that lets blockchains and cryptocurrencies talk to each other. Early generation blockchains have been like isolated islands, and Komodo creates shipping lanes between them, facilitating trade and pooling their resources to create much stronger security.
The Komodo system is run by its KMD token. While KMD doesn’t have as many practical uses as some competitor coins, there is a reward scheme for holders and it plays a role in its decentralised exchange. That exchange lets users swap cryptocurrencies directly, rather than using Bitcoin as an intermediary.
Komodo was formed in 2016 as a spin off of the Zcash platform, which itself was a spin off from Bitcoin. In each case, the developers wanted to create a platform with more decentralisation and privacy than what came before. Komodo’s leaders have tended to keep their identities secret and operate under pseudonyms.
How does Komodo work?
Komodo works by creating a master blockchain that syncs together all the projects on the system. Each project that builds on Komodo can have its own coin and rules, and store its transactions on its own public blockchain. Komodo combines these all together and adds them to its own chain.
With this ‘multi-chain’ system, every project built on Komodo can talk to and trade with any other. It also means they all share security, that Komodo achieves by backing itself up onto the Bitcoin blockchain every ten minutes. To compromise Komodo, a hacker would have to break into both Bitcoin and Komodo’s chains at the same time. That’s virtually impossible with existing technology.
How to buy Komodo online – a step-by-step guide
Step 1. Find an exchange to buy Komodo
To buy Komodo you need to find a cryptocurrency exchange. Most of the top ones will let you buy and sell KMD, but you won’t be able to buy it directly with fiat currency (like GBP, USD, or EUR). Instead, you need to transfer your cash into a cryptocurrency, like Bitcoin, first. Here are two of the top exchanges you can buy KMD with:
- Binance: Binance lets you buy and sell over a hundred cryptocurrencies. It has more volume than any other exchange, so you’ll almost always find someone to trade with. Sign up for Binance >
- Bittrex: Bittrex has a huge range of cryptocurrencies available and is ideal for beginners and experienced traders alike. Join Bittrex now >
Step 2. Sign up and fund your account
To buy cryptocurrency on an exchange, you need to sign up for an account. You might need a form of ID to prove your identity, and it can take an hour or two for the verification to come through. Once that’s all done, you can usually fund your account with fiat currency, but you should check the terms and conditions.
Step 3. Buy Komodo
When your account is funded, the last thing to do is to buy KMD. This usually means getting some Bitcoin, looking for the KMD/BTC crypto pair and hitting buy.
Step 4. (Optional) Get a suitable wallet
There’s one final step depending on how many coins you’re planning to hold. If it’s a lot, or you’re concerned about security, getting a wallet might be a good idea. You can store your coins in your exchange account, but wallets offer much more security and control without the risk of anything happening to the exchange.
Here are two of the top wallet providers available:
- Freewallet: On Freewallet you can hold more than 100 different cryptocurrencies. It’s ian online cryptocurrency wallet that can be accessed both through a browser and a dedicated mobile app. Get Freewallet now >
- Ledger Nano S: The Ledger Nano S is a hardware wallet that lets you store your cryptocurrency offline. It keeps it safe even if you connect to an infected computer. Get the Ledger Nano S today >
How to trade Komodo – a step-by-step guide
Step 1. Find a broker
To trade KMD you want a broker with low fees. You should consider other things too, like deposit and withdrawal limits and trading limits, but low fees are the most important if you intend on doing lots of trades.
Step 2. Deposit money
Brokers normally only accept deposits in fiat currency. You should check the fees for deposits and withdrawals as well.
Step 3. Decide how you’d like to trade
Most brokers offer two ways of trading cryptocurrency. These are contracts for difference (CFDs) and spread betting. In both cases you use them to speculate on the performance of an asset rather than owning it directly. CFDs tend to be more popular with casual traders and you can also use them to trade stocks, forex, and commodities as well.
Step 4. Start trading
If you’re a new trader, starting with a demo account could be the best way to go. With a demo account you can trade pretend money and get used to how the market works before you start staking your own money.
When you start trading you’ll be speculating on KMD’s price moves. If you think it’s going to go up, you back it, which is known as taking a long position. If you think it’s going to go down, you take a short position.
There are some more advanced trading strategies you can use once you’re familiar with the market. One of these is trading with leverage. Leverage means you make big trades by only putting up a small percentage of the trade yourself, essentially loaning the rest from your broker. This can lead to big wins, but also big losses as you’ll always be liable for the whole value of the trade.
You should always take time to hink about any investment, and that’s particularly true of cryptocurrency. Here are some of Komodo’s pros and cons, followed by a few more questions for you to think about.
- Can use KMD as an investment in many different blockchain projects
- KMD offers some rewards for holding on
- Komodo is one of the purest blockchain platforms in terms of decentralisation and privacy
- KMD is a bit limited in terms of practical use
- The people behind Komodo tend to stay in the shadows
Below are three questions to help you make a final decision on whether to invest in Komodo.
1. Is it a good time to buy Komodo?
Whether to buy Komodo now depends on your investment goals. If you want to use KMD to hold and join its rewards scheme, then you should buy straight away. It offers 5% return on the coins you stake, but it’s quite a manual process and might not be suitable for casual investors.
If you’re planning to buy KMD tokens as an investment, there are a few more things to consider. Both long and short term investors should look for signs of more projects joining the Komodo platform and the growth of its AtomicDEX exchange. You can use our latest market analysis to help you keep track:
2. What problem does Komodo solve, and what are the coin’s investment prospects?
Komodo solves the problem of different blockchains being unable to communicate with each other. It provides the framework to build blockchain projects that can share information between them, and are safer thanks to its collective security.
For KMD to be a good investment it needs to stand out. There’s a lot of competition to offer the same sort of cross-communication that Komodo provides. One of the ways it can do this is with its AtomicDEX exchange, where it lets people trade different small-cap altcoins directly instead of needing Bitcoin as a go-between.
AtomicDEX is also an example of how Komodo has stayed true to the ideals of decentralisation that’s behind a lot of the growth in the popularity of cryptocurrencies. You should always do your research, and some of that could include learning more about the team behind Komodo, while it’s good to know all the latest news and developments. You can find that below:
3. Do you want to hold Komodo for the long term?
Smaller cryptocurrencies can see a lot of price movement that might interest long and short term traders. As a long term investment it depends on whether you think Komodo can stand out from the crowd, while in the short term it’s more about whether the current KMD price creates an opportunity for a quick profit.
Considerations for a long term investment strategy
As a long term investor you want to see more projects join the Komodo system. You also want to see growth on its AtomicDEX exchange, offering more cryptocurrency pairs for trade that might attract more people to the platform. If you’re convinced of its potential, you should sign up for an exchange and buy KMD coins straight away.
Considerations for a short term trading strategy
Short term traders need a broker with low trading fees and a grounding in technical analysis. That means you can use the indicators to try to predict price moves and perform lots of trades without giving up too much money in fees.