How to buy THORChain tokens online
This page will help you invest in THORChain by teaching you about the project’s history, the best places to buy THORChain, and the price outlook for RUNE tokens.
Compare where to buy THORChain, and open an account
If you are already knowledgeable about THORChain, you may want to invest now. If you do, click one of the links in the table below and sign up to one of our recommended brokers with low fees. These are the best places to buy RUNE tokens. Read on if you want to learn more before you invest in THORChain.
What is THORchain?
THORChain is a cryptocurrency network that allows users to swap any cryptocurrency token with another, even if they run on different blockchains. The platform uses liquidity pools, which are individual pools of cryptocurrency token pairs. One of the tokens is always RUNE, THORChain’s native token, so users can easily change any crypto into RUNE and then into their desired cryptocurrency. RUNE is also the platform’s governance token, and it helps power THORChain’s security and incentivisation system.
There are other platforms that offer cryptocurrency swapping services, such as popular crypto exchange, Uniswap, but Uniswap only supports Ethereum-based (ERC20) tokens. THORChain is the first solution of its kind, and it aims to turn the cryptocurrency market into a thriving ecosystem full of liquidity that isn’t constrained by blockchain barriers. Founded in 2018, the platform has gained momentum in recent years, and the price of RUNE has risen as adoption increases.
How does THORChain work?
THORChain works by bonding users’ cryptocurrency with RUNE tokens and allowing them to be swapped via liquidity pools on an exchange known as BEPSwap, though THORChain eventually plans to change over to the Asgardex exchange. Because tokens are always sitting in the liquidity pools, swapping is always possible and there is no need for a conventional order book model. To incentivise individuals who provide liquidity to the pools by lending tokens, THORChain provides rewards in the form of RUNE.
Coins and tokens can be swapped because of THORChain’s unique protocol known as BiFrost. The THORChain team developed this system from scratch, and it allows all of the existing blockchains to connect with each other. It also allows for the integrity and security of the system to be maintained by punishing those who engage in malicious behaviour and validating transactions using nodes: computers connected to the THORChain network. Those who validate transactions are rewarded with RUNE.
In the long-run, THORChain aims to create a better trading environment with lower transaction fees and greater staking rewards. There are potential issues relating to scalability as the platform grows, but THORChain is using a protocol known as Yggdrasil to increase its throughput by using sharding: tearing transactions into smaller, more manageable pieces. The final protocol that powers THORChain is Aesir, and this powers the rewards of the platform and helps to craft strong governance.
How to buy RUNE online – a step-by-step guide
Step 1. Find an exchange to buy THORchain
The best place to buy cryptocurrency is to use an exchange. There are a lot of options out there that offer different features depending on your level of experience. You can use our comparison table to help you pick, or choose from one of these top exchanges:
- Binance: Binance offers over 100 cryptocurrencies and is the most popular exchange by trading volume. It’s recently added a beginner-friendly lite version on its mobile app to help you get used to crypto trading. Sign up for Binance >
- BitMEX: BitMEX is an exchange for trading in Bitcoin. It’s ideal if you want some more extensive options, as it includes its own wallet and features like futures trading as well. Join BitMEX now >
Step 2. Sign up and fund your account
Before you can buy coins on an exchange, you need to sign up for an account. To do that you need to provide some contact details, like an email address and phone number, and show a form of photo ID. The top exchanges let you fund your account in either fiat currency (like GBP, USD, or EUR) or cryptocurrency but some might only accept deposits in Bitcoin.
Step 3. Buy THORchain
To buy THORChain you need to make sure you have some cryptocurrency to hand first, as you can’t buy it with fiat currency. The easiest way is to buy Bitcoin first. The THORChain ticket symbol is RUNE, so to buy it you need to search for the RUNE/BTC pairing and execute the trade.
Step 4. (Optional) Get a suitable wallet
Wallets are a secure way of storing your coins, seperate from an exchange account. For the most part, exchanges are perfectly safe and might be all you need if you only own a small amount of crypto. If you have a larger holding, a wallet offers you much more control and security over what you have. They come in online or offline versions depending on the amount of security you want. Here are two wallets you can try:
- Freewallet: Freewallet is an online crypto wallet that lets you access your coins through a web browser or a dedicated mobile app. It can hold over 100 different cryptos and comes with its own integrated exchange as well. Join Freewallet now >
- StrongCoin: StrongCoin is another online wallet that lets you access coins online but encrypts your private key before it’s stored on a server. For extra security, you also get an offline paper backup of your keys. Sign up with StrongCoin >
How to trade THORChain – a step-by-step guide
Step 1. Find a broker
The most important thing for trading cryptocurrency is using a broker with low fees. As a trader you want to open and close positions quickly and often, and high fees every time you do this can be a drain on your finances.
THORChain is not available with many brokers yet. Brokers tend to only offer the coins with the most trading volume, so if THORChain continues to grow it might become available. When that happens, eToro and Robinhood are two top brokers with no trading fees.
Step 2. Deposit money
Brokers only accept deposits in fiat currency. Before you sign up make sure you understand the fee structure, as many brokers charge for deposits and withdrawals.
Step 3. Decide how you’d like to trade
Contracts for difference (CFDs) are the most popular way to trade cryptocurrency. There are other ways too – spread betting is another common way of doing it – but CFDs are a good place to start. You can learn more about trading CFDs in our guide, but the simplest explanation is that it’s a way of speculating on the price of a coin without having to own it.
Step 4. Start trading
As a new trader, a demo account is a good place to start. Almost every broker worth using will give you the option of trading with pretend funds and learn about the market without risking your own money.
In terms of the actual trading itself, you need to decide whether a coin is going to go up or down. If you have a positive outlook and think it’s going to go up, take a long (buy) position. Otherwise, take a short (sell) position.
Once you get more experience, you can delve into more advanced strategies. A popular method is trading with leverage, a way of making big trades by only putting up a small deposit (known as the ‘margin’) and borrowing the rest from your broker. Be careful with leverage, as it can lead to big losses just as quickly as big gains.
Not sure whether to invest in THORChain yet? We’ve summarised its pros and cons to help you. After that are a few more questions to guide you towards a final decision.
- Seamless swapping regardless of different blockchains
- Highly secure
- Innovative with a first-mover advantage
- Offers scalability via sharding
- An entirely new way of thinking about the crypto ecosystem
- Low fees and greater rewards
- Consequences for malicious behaviour
Here are three questions for you to think about. After reading them you’ll be well placed to decide whether to invest in THORChain.
1. Is it a good time to buy THORChain?
The answer to this question depends on your ultimate goals. There are times when you want to hold cryptocurrency for the long term, and others where its volatility benefits high frequency traders. RUNE is a good buy if you plan on using the exchange, as it’s one of the pairs in every coin swap.
As a short term trader, the price might be the most important factor. If it looks like an opportunity to buy now and profit from an upward swing, you should. Sometimes it can be market moves or new developments that cause these swings, and you can use our latest market analysis to help you find them:
2. What problem does THORChain solve, and what are the coin’s investment prospects?
THORChain solves the problem of not being able to exchange cryptocurrencies built on different blockchains. Where traditionally it has been difficult to swap Ethereum-based tokens for anything else, the THORchain exchange uses its RUNE coin as a go-between to facilitate the swap.
There’s a lot of competition around, and many established exchanges have the jump on THORChain. That could harm its investment prospects. However, it’s unique in the way it lets you trade cryptocurrencies across blockchain boundaries. By offering a different way of trading, it might be able to stand out.
If you’re buying THORChain as an investment, that competition is something you need to track. There are all sorts of incidents – hacks, new coin launches, the performance of centralised exchanges like Binance – that could affect RUNE’s price. It’s important to do your research and stay on top of what’s going on. All the latest news is right here:
THORChain (RUNE) goes live to enable multiple-asset trading
THORChain (RUNE) listing on SushiSwap results in a 35% price surge
3. Do you want to hold THORChain for the long term?
You want to hold RUNE for the long term if you want to use the exchange. Buying and holding as an investment also entitles you to rewards if you stake them to help run the platform, and you get the chance to vote on its future. Here are some final things to think about whether your timescale is long or short term.
Considerations for a long term investment strategy
Long term investors want to see signs of the price going up. That might be news or developments that set THORchain up better than the competition. When you see those signs, you should sign up to an exchange and buy some coins straight away. You could also think about a wallet if you want somewhere to hold coins for the long term.
Considerations for a short term trading strategy
Short term traders want to learn how to use technical analysis to predict price moves. The long term prospects are less important, but you should still keep an eye on the news for anything that might affect the price. Most importantly, find a broker with low fees.