How & where to buy Yearn.finance (YFI) online
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This introductory guide explains what Yearn Finance is and the benefits of holding its YFI token. Scroll down the page to find out where to buy Yearn.finance token, and what the investment prospects are for YFI tokens.
What are the best exchanges to buy YFI on?Copy link to section
If you want to find the best place to buy YFI tokens online, we can help. Simply follow any of the links below to visit one of our recommended crypto brokers and open an account. If you want to know more before making a decision, keep reading to learn more about Yearn.
How to buy YFI online – a step-by-step guideCopy link to section
Step 1. Find an exchangeCopy link to section
As far as how to buy YFI tokens in the UK or elsewhere, your best option is finding it on a reliable cryptocurrency exchange. These are like giant online marketplaces for cryptocurrencies and the vast majority of them support Yearn Finance tokens.
Here are two of the top exchanges that offer YFI:
- Binance: One of the biggest names in the cryptocurrency trading space, Binance allows users to trade hundreds of different cryptocurrencies, including YFI. Open a Binance account now >
- Bitpanda: A simple exchange that offers exposure to a wide range of cryptocurrencies, including YFI, using several fiat currency options if you are a user operating from the EU (and the UK). Open a Bitpanda account today >
Step 2. Sign up and fund your accountCopy link to section
It’s common when using cryptocurrency exchanges to have to sign up for an account before you can fund your trades. This usually involves a level of identity verification that varies from platform to platform but can mean providing a copy of a photo ID. These days, most exchanges accept deposits in fiat currency, although some still can only be funded with cryptocurrency.
Step 3. PurchaseCopy link to section
Once you have set up and funded your exchange account, you’ll be able to exchange the cryptocurrency in your account for YFI. If you have loaded your account with Bitcoin then you will want to head to the exchange and look at the current price of Yearn Finance in the YFI/BTC crypto pair and execute your trade.
Step 4. (Optional) Get a suitable walletCopy link to section
For added security, you can get your own wallet and transfer your YFI into it for safekeeping. You don’t have to do this, and most exchanges will allow you to hold your coins within your account. The only real reason to consider this is if you’re planning on holding a large amount of YFI coins for the long term.
Here are some wallets you can use to store your coins:
- KeepKey: KeepKey is a hardware wallet that stores your cryptocurrency offline. Hardware wallets are especially secure as your personal key never even comes into contact with the internet. Sign up for KeepKey today >
- CoolWallet: Another hardware wallet, CoolWallet is designed to appeal to smartphone users and can store your coins in an offline app instead. You can manage your account using a bluetooth connection. Join CoolWallet now >
How to trade Yearn Finance- a step-by-step guideCopy link to section
Step 1. Find a brokerCopy link to section
Make sure any broker you choose is able to support YFI trading. If you’re looking to trade YFI, then you need to find a reliable broker that can execute your trades. The top brokers let you trade cryptocurrencies, and many also offer assets like stocks, forex, and commodities that you can trade as well. eToro is one of the biggest brokers you can sign up with.
Step 2. Deposit moneyCopy link to section
Brokers usually let you deposit fiat currency (for example GBP, EUR, and USD) and use that to purchase crypto. Remember to take into account the trading fees each broker charges on every trade, so you can get the best value for your money.
Step 3. Decide how you’d like to tradeCopy link to section
Two ways of trading with an online broker are spread betting and contracts for difference (CFDs). Our online courses explain what each of these strategies involves so you can decide which one is best for you.
Step 4. Start tradingCopy link to section
When your broker account is set up, you can start trading. Beginners should consider starting out with a demo account to learn how to trade cryptocurrency without the risk of losing money.
Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Invezz.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB.
Still undecided?Copy link to section
It’s always best to take time to think over any potential investment, and this is especially true when it comes to cryptocurrency. Here are some pros and cons to consider when it comes to investing in YFI, along with some key questions to think about below.
ProsCopy link to section
- You can earn dividends on YFI coins by holding them for the long term
- YFI is backed by a popular decentralised finance system that carries inherent value
- YFI has been known to see big spikes in value, creating short term trading opportunities
To help you decide whether to take the plunge, we’ve come up with a few more questions. Read on to find out a little bit more before you invest in Yearn Finance.
1. Is now a good time to buy Yearn Finance?Copy link to section
Whether YFI is a good investment depends on what you want to achieve. If you want to use the YFI token to participate in the Yearn community, then it’s almost always going to be a good time to get involved. Similarly, if you want to use Yearn Finance to invest some of your other crypto assets, then holding YFI gives you the opportunity to have a vote and a say over its direction and investment strategies.
Yearn’s high price over much of its short trading life has meant it’s not the most realistic option, particularly for new crypto investors. Its volatility could offer trading opportunities, however, as it has been known to soar and then collapse in price over a very short period of time. After opening under $1000 in July 2020, it was over $34,000 in September, then halved in value in the space of ten days. You can track the latest price movements with our market analysis below:
2. What problem does YFI solve, and what are the coin’s investment prospects?Copy link to section
Yearn Finance automates the process of working out where’s the best place to invest your cryptocurrency. It’s a gateway to decentralised finance with a range of services that offer different investment strategies depending on your experience and level of risk tolerance.
YFI’s investment prospects depend on the success of the platform and the continued restriction of the YFI supply. In its early history, the YFI token traded at a very high price – it surged even higher than Bitcoin within six weeks of listing – but its limited total supply makes it volatile. The community has the power to mint more coins at any time if a majority votes in favour.
While increased supply might stabilise the price, it would also cause it to fall and the politics of the Yearn Finance system are unpredictable. One of the most important things to keep track of is whether the community does decide to release more tokens. Any action on this front could have serious implications if you own YFI coins. You can follow that and all the latest Yearn Finance news below:
A costly script error: Yearn Finance loses 63% of its treasury
Yearn.finance (YFI)’s sudden 45% price dip triggers insider trading speculations
Yearn Finance (YFI) makes a 33% gain amidst a $7.5M buyback
Do you want to hold YFI for the long term?Copy link to section
If you think Yearn Finance is going to be a success or simply think that the continued low supply of YFI coins makes them a good investment, it could be worth holding onto them for a long time. It also depends on whether you can afford to have that much money locked up for a long period. With so few coins in circulation, one big holder selling out can put a lot of pressure on the price. So if you do decide to invest for the long-term, you should be aware that you will probably have to ride out some lows along the way.
Considerations for a long term investment strategy
If you believe in the YFI system, want to participate in its governance, or simply think it’s only destined to go up in value, then you’ll want to sign up with a reliable cryptocurrency exchange and get some coins. If you plan to hold the coins for a long time and don’t intend to use them for anything else, you might consider getting a wallet to store your them.
Considerations for a short term trading strategy
YFI’s volatility could offer opportunities for short-term traders who are looking to benefit from trends in the crypto market. In that case, the overall strength and long-term potential of the coin’s price is less important. To succeed at short-term trading you should make sure you understand technical analysis and sign up with a broker that offers low trading fees. Using charts and indicators to anticipate price movements gives you the best chance of making money out of short-term trading.
Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >