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Internet Computer (ICP) is a digital blockchain network where you can create apps, websites, and other web-based services. It runs on digital tokens and, hence, has value. It was created by the Dfinity foundation back in 2016, and it aims to create an even decentralized form of the internet. Think of it as a new network where you can run any app just like on this internet, but in a more free and unregulated way.
Table of Contents
- Internet Computer (ICP) Tokenomics
- Where to Trade Internet Computer (ICP)?
- How to trade Internet Computer (ICP) with PayPal?
- How to trade Internet Computer (ICP) with Credit Card?
- Safe Storage
- Alternate Ways to Trade Internet Computer (ICP)
- How to invest in Internet Computer (ICP)?
Internet Computer (ICP) Tokenomics
Tokenomics stems from token and economics simply put together to mean economics of the token. What this actually means is that it’s a measure the investors look at before making an investment in a particular asset.
Blockchain-based cryptocurrencies and tokens have pre-set, algorithmically generated issuance timetables. This means that they can forecast how many coins will have been made by a specific date in time with a high degree of precision. Though most crypto assets may have their issuance schedule changed, it usually requires the approval of many individuals and is quite difficult to accomplish. This gives some comfort and assurance to owners since they understand tokenomics and the degree to which their assets will be generated in a far more predictable manner than governments issuing money.
There are different factors that makeup tokenomics. One of them is mining and staking. Right now, the ICP has ample computational powers because only a small part of it is open for trading to the public and the rest lies with the team of founding developers and investors.
Another is yields. Decentralized platforms offer higher yields than the competition to their investors. Yet another parameter is limited vs unlimited supply and the ICP doesn’t have unlimited supply. That will save it from token burns just like Ethereum kept burning a part of their tokens in the form of a transaction fee.
Where to Trade Internet Computer (ICP)?
The most popular choice is to trade cryptocurrency are cryptocurrency exchanges, payment services, and mainstream brokerages. However, the easiest of all is trading through an exchange. Binance is the largest ICP trading exchange by volume.
How to trade Internet Computer (ICP) with PayPal?
Due to the limitations of the service, it’s not possible to directly trade ICP with PayPal. But there’s a workaround for that too. First, you’ll need to trade Bitcoin.
For that, you can either choose to trade Bitcoin via a crypto exchange like Binance or eToro or opt for a P2P marketplace like Paxful or LocalBitcoins.
Once you have purchased Bitcoin, and it’s reflected in your wallet, you can exchange it with ICP on crypto exchanges. However, this process is a little tedious.
In addition to that, you can choose a mainstream brokerage like Binance that offers a smooth PayPal integration. That way you can directly trade ICP by making a deposit from PayPal.
How to trade Internet Computer (ICP) with Credit Card?
All the major crypto exchanges, like Binance, Coinbase, and Huobi Global (Chinese exchange), etc., support purchases with a credit card. Similarly, mainstream brokerages, like Binance, support payments via credit cards as well. However, you’ll need to update your payment method accordingly.
As more and more people are trading crypto, the crypto market has become a lucrative target for hackers. According to Atlas VPN, the hackers stole over $292 million in cryptocurrency from 12 crypto-exchanges in 2019, while they stole around $3.74 billion from different wallets and exchanges in 2020.
This makes the safe storage of Internet Computer supremely important. Essentially, there are three methods through which you can keep your ICP safe.
The first is via a Hot Wallet. This category includes all the cryptocurrency wallets that are online. For example, Huobi Pro which guarantees assets, and Coinbase Wallet which is US regulated and is listed on NASDAQ.
The main feature that these online wallets offer is convenience. You have your wallet with you on your phone all day long, and you can make payments anywhere.
Another popular option is the use of Cold Wallets. These are preferred for storing a large amount of cryptocurrency. They’re essentially offline and the private and public keys are stored on a physical device like a hard drive or a USB stick. But because it’s a physical wallet, it can get stolen, or there’s a chance of you misplacing it.
However, companies like Ledger and Trezor offer good encrypted devices where you can store your ICP. These devices protect the tokens by using a pin code.
Alternatively, you can choose asset storage services and banks like Swiss Sygnum Bank and Revolut that offer a lot of services including loans.
It’s generally recommended to use two-factor authentication that includes at least one biometric verification measure. Additionally, regular backups can mitigate human or machine failure. There are several free additional encryption tools available that you can use to fortify the security of your wallet.
And lastly, you should use passwords with multiple special characters and keep them safe.
Alternate Ways to Trade Internet Computer (ICP)
In addition to the above mentioned ways, you can trade ICP through some other ways. For example;
Internet Computer (ICP) ATMs
Since ICP is an alternative digital currency to Bitcoin, it cannot be purchased directly with money. As of now, crypto ATMs don’t support Internet Computer purchases. But even if they do, in near future, they don’t recommend using that option.
It could come with a lot of legal implications like the potential to be used in human trafficking and other illicit activities. For example, crypto ATMs are illegal in Singapore and the UK.
And the governments that have allowed crypto ATMs aren’t very approving of them either. That is largely because of the lack of control over the crypto market. Some groups have speculated that cryptocurrencies could be used to launder money or fund illegal activites. Regardless of the case, it’s one of the least preferred options.
The mainstream crypto exchanges have made their own cryptocurrency pairs in which you can perform P2P exchanges.
For example, Binance has ICP to BTC, ICP to USDT, ICP to BUSD (stablecoin), ICP to EUR, ICP to RUB, and ICP/BNB pairs which allow P2P exchange. Similarly, you can exchange other crypto or fiat currency with ICP on other crypto exchanges.
Another option to trade Internet Computer (ICP) is via mainstream brokerages listed below. You can start trading ICP as soon as you sign up with them.
It offers commission-free crypto trading, and it’s regulated in the US. Their currency selection includes ICP. However, they faced a controversy about selling their users’ data to third parties.
It’s US regulated and offers more than 1000 cryptocurrencies including ICP. However, their costs are a bit higher than the competition. Coinbase Review >>
They give your rewards for buying some cryptocurrencies. And they offer higher interest rates for your crypto holdings. However, they charge significantly even on low volume trades. Also, their trading platform is more suited for advanced users. Beginners may face difficulty while using the website. Crypto.com Review >>
How to invest in Internet Computer (ICP)?
Before you start investing in Internet Computer (ICP), you should be aware of all aspects associated with the ICP. It is a disruptive technology that will take on the major giants in cloud-based application services like Microsoft Azure etc. That coupled with low transactional costs and complete decentralization are some of the important features of ICP.
One of the ways to invest is to trade ICP through a crypto exchange or brokerage and wait for the prices to go up. The supply will eventually limit and demand will rise up. It’s one of the tried and tested methods that you can follow.
Moreover, there’s Stacking (crypto ETP) where you lock up your crypto assets for the long-term and earn passive income. It’s a good way to invest if you’re indifferent of the price changes, and you’re focused more on the long-term.
In addition to this, you can trade invest in ICP by trading them as a pool of ICP (crypto ETF) that are made available by the brokers to trade.
To sum it all up, Internet Computer (ICP) is a disruptive technology, and it might be a good investment. The Dfinity group is making sure that its stays true to its actual spirit. Now you have a pretty good idea on the tokenomics of ICP, where to trade and how to safely store it. They have also discussed alternate ways to trade ICP and how to invest in it.
WeInvests is a financial portal-based research agency. We do our utmost best to offer reliable and unbiased information about crypto, finance, trading and stocks. However, we do not offer financial advice and users should always carry out their own research.Read More