As its developers are keen to point out, Holochain is not blockchain. Read on to find out about this ‘agent-centric’ framework and learn how to buy HoloToken (HOT) and HoloFuel (HF), its native currency.
Where to buy Holochain
Read on to find out about Holochain and how it works or jump ahead to our step-by-step buyers guide if you’re ready to start investing.
What is Holochain?
Holochain is an attempt to break from the standard blockchain model to create a network that is more scalable and customisable. It dispenses with centralised servers, ledgers and middlemen to deliver a distributed ‘post-blockchain’ framework and, in theory, complete user control.
How does Holochain work?
Holochain differs from blockchain in that it is agent-centric. This means that all agents (or nodes) in the network run their own individual blockchain and a cryptographic key connecting them to the public chain.
Unlike a conventional blockchain, nodes don’t connect to a distributed ledger and reach a universal consensus. Instead, Holochain is composed of individual source chains that are synchronised only when necessary and validated via distributed hash tables.
Holochain’s distributed hash table (DHT) architecture is an innovative attempt to create a platform that beats conventional blockchain technology when it comes to scalability and performance. Consequently, Holochain promises a superior dApp (distributed application) development ecosystem.
HoloFuel (HF) is the platform’s native currency, while the original placeholder token is HoloToken (HOT). Only HOT can be bought, and later switched for HF.
How to buy Holochain online – step-by-step guide
Step 1. Get a suitable wallet
There are loads of HOT-compatible wallets to choose from, so we’ve listed our top three to narrow down your search:
- Ledger Nano X: One of the safest options for storing your HOT is the Nano X hardware wallet from Ledger. It’s not the cheapest wallet out there, but if you’re serious about security, it’s one of the best.
- MyEtherWallet: If you’re not looking to spend money on a wallet, web-based MyEtherWallet (MEW) is a great option.
Step 2. Find a Holochain exchange
The next step to securing those Holochain funds is to find an exchange. There are plenty to choose from, so to narrow your search and save you some time, we’ve picked out a couple of our favourite places to buy Holochain tokens:
- Coinswitch: Coinswitch is essentially an exchange marketplace that compares rates then allows you to buy without signing up to the multiple accounts. Simply go to the website, find HOT in the dropdown and away you go. You’ll probably need a popular crypto like BTC or ETH if you want to buy HOT.
- Binance: We also recommend Binance, the world’s biggest crypto exchange. But, while it offers a huge crypto marketplace with competitive fees, you won’t be able to buy using Fiat currency, so you’ll have to acquire Bitcoin or Ethereum in order to exchange it for HOT.
Step 3. Withdraw your Holochain
It’s a good idea to withdraw your Holochain funds from the exchange as soon as you’ve acquired them – it’s much safer to keep cryptocurrencies in a digital wallet than on an exchange.
How to trade Holochain – step-by-step guide
If you’re only interested in trading rather than buying and owning HOT, then there’s no need to set up a wallet as you’ll simply be predicting whether the price of HOT will go up or down.
Step 1. Find a broker
In our experience you may struggle to find a trading platform that offers HOT, but that situation may change. Plus500 and eToro are two of the most popular crypto trading platforms, so make sure you check them out.
Step 2. Deposit money
Once you’ve chosen a broker, you’ll need to put some cash down as a deposit. The process is fairly straightforward and minimum deposit requirements are usually pretty low, so you can start with a relatively small bankroll.
Step 3. Decide how you’d like to trade
There are two main ways to trade cryptocurrencies: spread betting or CFDs (contracts for difference). While there are some differences, both methods require you to take a position on whether you think the price of your chosen cryptocurrency will rise or fall over a set period of time. If you’re just starting out, it might be worth doing some research on spreads and CFDs before you jump in.
Step 4. Start trading
Once you’ve put down a deposit, you’ll no doubt be raring to go, but we recommend you set up a demo account with your broker before you start trading for real. It’s easy to win and lose money very quickly when trading, so it makes sense to get a feel for the platform you’ve chosen as well as the ebb and flow of the cryptocurrency market.
In essence, all you need to do is take a position on whether the price of your cryptocurrency will increase or decrease. If you think it will increase take a long position (buy) and if you think it will decrease, take a short position (sell).
You may opt to take advantage of leveraged betting, which is a feature of most trading platforms. Leverage enables you to put down a fraction of your trade’s total value as a type of deposit called a ‘margin’. However, this is a high-risk strategy, so it’s probably not for beginners. Experienced traders understand this, and use stop loss orders to mitigate risk.