Oct

2021

How to Buy Dogecoin (DOGE)

By Samuel Becker | Growing Wealth, invest, Investing | Comments Off

Dogecoin may have started as a joke cryptocurrency, but it’s evolved into a very real digital asset. Like all cryptocurrencies, there are multiple ways that traders or investors can purchase DOGE.

There are two basic ways to buy DOGE: Through a cryptocurrency exchange, or through an online stock trading platform or application.

How to Buy Dogecoin in 4 Steps

Buying Dogecoin is a fairly simple process — it’s more or less the same process you would follow if you were trying to purchase Bitcoin or any other altcoins.

While this may seem complicated for crypto beginners, it’s a fairly straightforward process, whether you’re buying crypto to keep for the long-term or to spend right now.

Here’s a detailed walkthrough of each step:

1. Choose Where You Want to Buy Dogecoin

If you understand the basics of Dogecoin and are interested in buying DOGE, you’ll need to decide whether you’d like to use either a cryptocurrency exchange or an online trading platform. No matter which route you go, you’ll need to establish an account with the platform or exchange (if you don’t have one). That may require banking information (account numbers, etc.), addresses, phone numbers, email addresses, and in some cases, your Social Security number.

Crypto Exchanges

Crypto exchanges are platforms that allow interested parties to buy, sell, or trade different cryptocurrencies. They’re not all the same — some cryptos are available on some platforms, but not on others, for instance — and they tend to work like stock markets.

That is, traders and investors are exchanging cryptos, much like they would with stocks or bonds on the stock market. There are different types of exchanges, too, including centralized, decentralized, and hybrid exchanges.

A quick Google search will reveal plenty of them, if you’re interested in going this route.

Exchanges tend to have a large variety of crypto choices, are generally simple to use, and make it pretty easy to trade. However, some of them may have high fees for trading, and may not grant users complete control over their storage options. While nearly all exchanges will let you buy or sell crypto, some may support more advanced orders such as limit orders or margin trading.

Online Stock Trading Platforms

Aside from crypto exchanges, which can be used to buy Dogecoin, there are also stock trading apps — of which there are also many choices. And, again, a simple Google search will yield plenty of results, if you want to find a few options to start trading.

These trading apps generally work similarly to exchanges for end users. Essentially, it’s a matter of opening and funding an account, and executing the trade. But the apps and platforms in question are generally known for trading stocks, bonds, and ETFs rather than cryptocurrencies, as opposed to crypto exchanges.

They act as brokerages, in other words, and may charge a markup or fee for executing a trade.

That said, many of these apps have opened themselves up to crypto trading as demand has grown. And, for the most part, trading crypto on these platforms is a similar (if not the same) process as trading stocks.

As for the pros and cons of using these apps, it’ll depend on the specific platform. Some may require minimum deposits to open an account, for example. Others will charge fees of varying degrees (or none at all), and some will be less user-friendly than others. On some brokerage platforms, you can’t withdraw your crypto directly from the account, instead, you’d need to sell your assets to be able to withdraw the balance to other accounts.

It’ll take a little research and experimentation to find one that you like, if you choose to use one of these apps to buy Dogecoin or other cryptos.

2. Setup a Payment Method

Once you’ve decided where you want to buy Dogecoin, it’s time to get down to brass tacks: Laying the lines to execute a transaction. That means setting up a method to pay for your new Dogecoin holdings.

Depending on whether you choose an exchange or a trading app, the specifics of this step will vary. But in general terms, it’s connecting a way to make a payment to the exchange or brokerage — usually by connecting a credit or debit card, or a bank account — to your account, so that you can make purchases or trades.

3. Purchase Dogecoin

At this point, it’s simply a matter of executing the transaction to buy Dogecoin. This process will vary depending on the exchange or app you’re using. But it’s usually as simple as inputting the amount of Dogecoin you want to buy, and hitting the “purchase” button to initiate the purchase.

4. Safely Store Your Dogecoin

Securely storing your cryptocurrencies isn’t quite as simple as holding a stock or ETF. Both exchanges and crypto wallets have become targets for hackers, so it’s important to make security a priority after you’ve purchased crypto.

Depending on whether you’ve used an exchange or an online trading platform to buy Dogecoin, your storage options vary. Crypto storage is a deep topic all on its own, but what you need to know is that specific exchanges and platforms may store your coins differently.

Platforms may store your Dogecoin in either “hot” or “cold” wallets. The essential difference is that “cold” storage is offline — making it more difficult for hackers, or other bad actors, to access. Conversely, coins held in “hot” storage remain online, and can be accessed quickly to facilitate trades.

Some platforms use a combination of hot and cold storage. Again, it depends on the specific platform you choose.

You can also transfer your Dogecoin to your own digital wallet, of which there are many to choose from with varying degrees of security and features. You can also choose from DOGE-specific wallets or those that allow you to store multiple types of cryptocurrency.

The Takeaway

The process of purchasing DOGE is similar to that of buying other cryptocurrencies. Once you’ve decided whether you want to go through a crypto exchange or a brokerage platform, you simply need to create an account and execute the purchase. Keep in mind that like all cryptocurrencies, DOGE is a risky investment with extreme price volatility.

Photo credit: iStock/StockRocket

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Crypto: Bitcoin and other cryptocurrencies aren’t endorsed or guaranteed by any government, are volatile, and involve a high degree of risk. Consumer protection and securities laws don’t regulate cryptocurrencies to the same degree as traditional brokerage and investment products. Research and knowledge are essential prerequisites before engaging with any cryptocurrency. US regulators, including FINRA , the SEC , and the CFPB , have issued public advisories concerning digital asset risk. Cryptocurrency purchases should not be made with funds drawn from financial products including student loans, personal loans, mortgage refinancing, savings, retirement funds or traditional investments. Limitations apply to trading certain crypto assets and may not be available to residents of all states.

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Oct

2021

What is Proof of Work? Definition & Guide

By Laurel Tincher | Growing Wealth, invest, Investing | Comments Off

Cryptocurrencies are known for their high level of security — and in many cases, that security is made possible by a proof-of-work (PoW) algorithm. The proof-of-work consensus algorithm is currently used by Bitcoin, Ethereum, Dogecoin, Litecoin, and many other cryptos (although the Ethereum network is transitioning to a different algorithm known as proof-of-stake).

Proof of work largely serves to prevent double spending, which is when the same coins are spent more than once. Digital currencies are prone to double spending since they don’t have any material exchange — it can seem easy and tempting to forge transactions that are just numbers on a screen.

Proof of work and the blockchain keep track of every transaction to prevent this from happening. The algorithm is extremely secure and complicated, making it nearly impossible to double-spend Bitcoin and other PoW cryptocurrencies.

The concept of proof of work was originally developed to prevent denial of service attacks (DDoS) and spam emails, but in 2004 Hal Finney adapted it for use in blockchain digital currency networks. Bitcoin was the first cryptocurrency to put the idea to use.

How Proof of Work (PoW) Works

Proof of work is basically what it sounds like: proof that work has been done. The “work” is the conversion of electrical energy into “weight” on the Bitcoin blockchain through the use of computing power and a complicated mathematical calculation. Overall, this work makes forging transactions on the blockchain prohibitively expensive and difficult.

The mathematical calculation involves a hash function, which in turn generates a long string of unique numbers. This helps validate transactions and create the next block on the blockchain. Each block contains information about a specific Bitcoin transaction. As the transactions are validated and recorded on the chain, this ensures that double spending hasn’t occurred. Once information has been stored on the blockchain, it cannot be changed or deleted. This helps to keep the private keys of Bitcoin owners secure and anonymous.

Miners’ Role in Proof of Work

Bitcoin miners (nodes) run specialized machinery that works to solve the equation as quickly as possible, and they are rewarded with new bitcoins depending on how much computing power, or hash power, they contribute to keeping the network running.

The objective of PoW is to extend the blockchain. The miner that creates the longest chain gets the reward as well as the transaction fees contained in the block. The best way to solve the calculation is through trial and error, so the more computing power a miner can put into doing as many trials as possible as quickly as possible, the more likely they are to win the block reward.

Why Proof of Work is Needed

Proof of work ensures that double spending doesn’t occur in digital asset networks. It provides security and a record of transactions as well as an incentive for miners to keep the network running.

Proof of work is also needed because Bitcoin has no central authority (vs. a bank, for example). A central authority would keep track of transactions as well as issue new bitcoins to the network. Instead of this, the network of miners keeps track of the blockchain.

Proof of work also adds value to Bitcoin because it shows that people are willing to convert energy, a material resource, as well as fiat currency, into the production of the cryptocurrency. This provides more confidence for those who are interested in investing in Bitcoin.

Pros and Cons of Proof of Work

There are several reasons why PoW is used for Bitcoin and other popular cryptocurrencies, but there are arguments against it as well.

Pros of Proof of Work

• PoW helps keep the network secure

• It prevents double spending

• It adds value to the network through the use of energy

• It is an integral part of the decentralized authority system of the network

Cons of Proof of Work

• It requires computational power, which uses a significant amount of electricity

• PoW has low performance capacity for the execution of on-chain transactions

• Getting involved in mining requires a large upfront equipment cost and ongoing maintenance and electricity costs

• There is a risk that miners may group together to attack the network, undermining its decentralized nature

Which Cryptocurrencies Use Proof of Work?

Proof-of-work is the most commonly used algorithm for cryptocurrency networks. However, some cryptocurrencies use other algorithms, such as proof of stake. The following cryptocurrencies use proof of work:

• Bitcoin (BTC)

• Ethereum (ETH) (for now until it moves to proof-of-stake)

• Bitcoin Cash (BCH)

• Litecoin (LTC)

• Monero (XMR)

• Dogecoin (DOGE)

• Ethereum Classic (ETC)

• Bitcoin SV

• Decred

Proof of Work vs. Proof of Stake

Since PoW has some downsides, developers have been working on many other types of consensus algorithms for cryptocurrency networks. One of the most anticipated is proof of stake (PoS).

Rather than miners, PoS uses validators who are chosen to create blocks based on how many coins they hold, rather than having to compete to create the blocks. Proof of stake rewards validators that hold the most coins with the ability to mine blocks and validate transactions.

The benefit of PoS is that it uses a lot less electricity. However, PoS rewards nodes for holding tokens, resulting in hoarding rather than use of the crypto. PoS is also vulnerable to 51% attacks, where an individual crypto miner or group of miners gets control of more than 50% of a network’s blockchain.

The Takeaway

Proof of work is the original way to secure blockchains and protect cryptocurrency from being double-spent and potentially devalued. Bitcoin uses the PoW consensus algorithm, as do a number of other cryptocurrencies.

Photo credit: iStock/MesquitaFMS

Oct

2021

What Is Enjin Coin (ENJ)? A Beginner’s Guide

By Samuel Becker | Growing Wealth, invest, Investing | Comments Off

Crypto investors have an increasing number of choices lately — including Enjin Coin (ENJ), which launched during the summer of 2018.

Unlike many other crypto investing options on the market, Enjin Coin (also referred to as ENJ crypto) is a bit different in that it was designed for a specific purpose: To help the gaming community and to manage digital or virtual assets.

Here’s everything curious investors and crypto fans need to know about Enjin Coin.

What Is Enjin Coin?

Enjin Coin , or ENJ, is a cryptocurrency created and designed by a software company called Enjin . Enjin’s software allows users to create virtual goods — like NFTs, or non-fungible tokens — on the Ethereum blockchain network.

While that may require some background reading about Ethereum’s blockchain network and NFTs, what you should know is that Enjin’s software is designed to create and manage in-game goods and assets. In effect, Enjin makes it easier and more efficient for participants in certain virtual worlds to create in-game assets, and to transact them.

Enjin Coin, or ENJ, then, is the native token to the Enjin network.

Recommended: What is a Crypto Token?

How Does Enjin Work?

The basic idea behind Enjin Coin is that blockchain can smooth out the process of transacting in-game or virtual assets. Much like blockchain can do the same in the real world with other assets (think of Ripple and XRP, which is designed to help facilitate financial transactions), ENJ is used to manage virtual inventories.

If it all sounds a bit meta — a virtual currency designed for virtual assets — that’s because it is. As for how it actually works, Enjin has software development kits (SDKs) that allow game developers to “mint.” Using SDKs, developers can create virtual items inside of games or applications. These created items are given a corresponding value in ENJ, which makes it easy to trade and or sell them via Enjin’s marketplace.

Because each asset has a value in ENJ, which is a traded cryptocurrency, it also has a real-life value, too. These digital assets are, in effect, NFTs, and can be traded for many times their initial values.

Developers who want to create in-game assets can start out by purchasing ENJ from an exchange, “minting” an item, trading or selling it in-game, or even “melting” it — which means turning the item back into ENJ.

While Enjin Coin is designed to function and incorporate blockchain-backed swapping systems in video games or virtual worlds, it can be used in other ways, too. For instance, sports teams or clubs may be able to use it to mint digital assets to hand out as rewards.

Example of ENJ Crypto in Action

Here’s a simplified, hypothetical example of how Enjin coin works in the real (well, virtual) world:

Say you’re a game developer, and you’re actively playing, participating in, and developing an MMORPG (massively multiplayer online role-playing game). You want to create a special weapon for the game, a longsword, and decide to buy some ENJ from a crypto exchange to do so.

You make the purchase, and with your ENJ, you “mint” the longsword using an SDK, a corresponding programming interface created by Enjin to help build and deploy the asset into the game.

Once created, the longsword also has a value equal to, say 10 ENJ. You sell the longsword to another player on Enjin Coin’s marketplace, banking 10 ENJ. You decide you’d like to accumulate more ENJ, so you trade a shield in your inventory for a spear that you plan to “melt” — which is, as you might remember, like liquidating an asset for its ENJ value.

You melt the spear and collect 5 ENJ. Now, you have 15 total ENJ, that you can either use to create more in-game assets or sell on an exchange.

While this is a very simplified version of Enjin Coin in action, it should give you the gist of the cryptocurrency’s use cycle.

Enjin Coin: Benefits and Disadvantages

As with any cryptocurrency, Enjin has its benefits and drawbacks. Here are a few:

Benefits of Enjin Coin

• Potential for Growth: The gaming industry (and virtual world-building in particular) is big and growing. That means there’s a lot of potential runway for Enjin Coin ahead.

• Relatively affordable price: For crypto investors, ENJ is still affordable for almost anyone — unlike Bitcoin or Ethereum. (See more on price in the next section.)

• A large, built-in community: Enjin already has marketplaces operating and integrated, with many participants. The fact that it’s been so widely adopted may be an indication that won’t just disappear overnight.

Disadvantages of Enjin Coin

• No easy mining: Enjin doesn’t operate on its own blockchain, so it can’t be mined directly — at least not easily.

• No physical backup: As with all other cryptocurrencies, there’s no physical asset or commodity to backup Enjin Coin.

• Technical know-how: Crypto isn’t easy to understand, and Enjin Coin is no different. That’s particularly true if you plan to use it to create NFTs or assets — you’d need to do some studying before you could put it all together.

Enjin Coin Price

While Enjin Coin isn’t dirt-cheap like some coins on the exchanges, it hasn’t reached astronomical levels, either. As of mid-to-late September 2021, it’s trading at around $1.25.

Over the past year, its price has fluctuated in a big way. At the end of 2020, Enjin Coin’s price hovered around $0.15, then it saw a big spike in the spring, topping $3.45 at one point. Since then, it’s come down and has mostly stayed between $1 and $2.25 ever since.

Enjin Coin Staking

Further, some exchanges and platforms do allow users to stake Enjin Coin, if you know where to look. But by and large, it seems that most larger exchanges don’t give users and investors the option to stake ENJ.

Recommended: What is Staking Crypto?

That said, Enjin is rolling out a new ecosystem called Efinity, which will also have its own cryptocurrency, Efinity Token (EFI). As a part of that ecosystem, Enjin Coin can be staked to earn Efinity Tokens.

How to Invest in Enjin

For most investors, investing in Enjin Coin is pretty much the same as any other cryptocurrency. You start by picking a crypto exchange, opening an account, funding it, then placing an order and transferring your holdings to your crypto wallet.

You can also swap your ENJ tokens for others on some decentralized exchanges, but again, for most investors, sticking to a large, trusted exchange is probably the way to go.

The Takeaway

There are many types of cryptocurrencies out there, and the list seems to be growing each and every day. Enjin Coin is a relatively new coin with some fairly unique use cases, and it may be of particular interest to crypto investors who are into gaming and the gaming industry.

Photo credit: iStock/svetikd

Sep

2021

What Are Vanilla Options? Definition & Examples

By Susan Guillory | Growing Wealth, invest, Investing, Terminology | Comments Off

Once you’ve started investing, you may want to learn about different assets beyond stocks and bonds. Among the alternative assets you might consider, are options, and vanilla options are a great way to get started with this type of investment.

Options give investors the — you guessed it — option to purchase or sell a stock at a certain price over a certain period. Options are derivative financial instruments, which means they are based on an underlying asset. Vanilla options are the most basic type of option contract, and they’re often standardized and traded on exchanges.

Vanilla Option Definition

Vanilla options, in contrast to exotic options, which have customization features, have simple and straightforward terms of the strike price, or the price for which an investor buys or sells a stock, and the period in which they can exercise their option. The last day that an investor may exercise an option is known as the expiry date.

How Do Vanilla Trades Work?

Let’s look at how options trading works with vanilla trading.

Each option has a strike price. If that price for purchase is lower than the market value of the stock, investors call that option “in the money.”

Investors pay a premium to own an option. This premium reflects several factors, including:

• How close the strike price is to the market price

• The stock’s volatility

• How length of time before the option expires

Investors don’t have to wait until the option expires to complete the trade, and they are typically under no obligation to exercise the option.

What are the Different Types of Vanilla Options?

When it comes to options for vanilla stock options, there are two types, calls and puts.

Calls

A vanilla call option gives an investor the option to buy an asset at a certain price within a certain period. A call option is a bit like a down payment; the investor pays the premium so that, later, they can buy the stock at a good price and profit from it.

However, an investor can pay the premium and never exercise the option. If they decided not to exercise it, they would either lose what they paid for the premium, or they could sell the call option to someone else before it expires.

Puts

In contrast, a put option allows an investor to sell an asset at a fixed price within a certain time period. If a stock tanks in value over the period that option is exercisable, the investor can still sell it for the put price and not lose as much of his investment. But if the stock’s value goes higher than the put price in the market, the vanilla options are worthless because the investor could sell it at the market price and realize more of a profit.

Characteristics of Vanilla Options

Like all investments, vanilla options include a level of risk and volatility. But they can also provide the opportunity for profit.

Premiums

Whether you are interested in a vanilla call or put, you will pay a premium, in addition to what you would pay to purchase the stock with a call. The premium isn’t refundable, so if you don’t exercise the option, you’ve lost what you paid for the premium.

Volatility

The volatility of an option determines its price. The higher the volatility of the option, the higher the premium because there is more opportunity for profits (as well as the risk of loss).

One way to reduce volatility is to use an options trading straddle where you buy a put and call option simultaneously.

Risk Level

Like most other types of investments, options are not without risk. If a stock is lower in price on the market than a call option, the option is worthless. And if a stock has a higher price on the market, the put option won’t net more return on investment.

However, a vanilla option may be less risky than buying a stock outright, since the only thing you’re guaranteed to spend is the premium.

Pros and Cons of Vanilla Options Trading

Trading vanilla options can have potentially great returns…or large losses. Here are the pros and cons.

Pros	Cons
Minimizes risk; no obligation to exercise	Risky; may lose premium investment and more
Option to control more shares than buying them outright	May be complex to understand
May offer large returns	Fluctuations in market may render option worthless

Pros

Options may be less risky than buying a stock outright, since you’re only buying the option to purchase or sell a stock at a certain price. The premium is all you invest initially.

Typically you can purchase more shares through options than you could buying them on the market, so if you’re looking for larger investment opportunities, options could provide them.

And while they’re volatile, there is the potential for larger returns.

Cons

That being said, you don’t always see large returns. You can lose your entire investment if the option is out of the money when it expires.

Options can be complicated or confusing for new investors. Not only should you fully understand the risks you take with this investment tool, but you also should understand options taxation.

Examples of Vanilla Options

If you’re considering vanilla options as part of your options trading strategy, here are a few examples to illustrate how they work for both calls and puts.

Example of a Vanilla Put Option

A put is a bit like insurance in case your stock you’re holding goes down in value. It’s one way that investors might short a stock. Here’s an example.

Let’s say you own 100 shares of a stock that is currently trading at $25 per share. You buy a put option at a premium of $1 per share that expires in two months at a strike price of $25. So in total, you paid $100 for a premium for 100 shares.

In a month, the stock price drops to $18 per share. This is a good time to exercise that premium because your strike price allows you to sell the shares for $25 rather than $18. You wouldn’t gain any money because you’re essentially selling the stocks for what you paid for them ($25), and you would even lose a little (that $1 per share premium), but the alternative would be to lose even more if you waited and the price dropped more or you didn’t have the option.

Example of a Vanilla Call Option

A call option allows you to purchase a stock at a certain price within a specified time period. Bullish investors who expect a stock to go up in price typically purchase call options.

For our example, let’s say you’re interested in a stock that trades at $53, and you can buy a call option for this stock within one month to purchase the stock at $55 per share. The option is for 100 shares of this stock.

The premium for this option is $0.15 per share. So you would pay $15 for the premium. You aren’t obligated to purchase the stock. If the stock trades at more than $55.15 (option price plus premium), you can realize a profit.

Let’s say in two weeks, that stock is trading at $59. It is, as they say, “in the money.” Now would be a great time to exercise your option because you can realize $3.85 per share and $385 for 100 shares. You can sell the shares immediately to cash in on that profit or hold onto it to see if the stock price continues to rise.

The Takeaway

Vanilla stock options can be a way to diversify your investment portfolio and increase your investing savvy. When it comes to options trading, it helps to have a platform like SoFi’s, which boasts an intuitive design. Plus, you’ll have access to educational resources to learn about any other terminology that comes up on your options trading journey.

Trade options with low fees through SoFi.

Sep

2021

What is MANA (Decentraland Coin)? How to Buy MANA

By Matthew Zeitlin | Growing Wealth, invest, Investing | Comments Off

There are layers to cryptocurrency. Services, products, even nascent legal systems can be built on top of and within blockchains. For example, a whole range of cryptocurrency types are built on Ethereum and its blockchain, including something that combines services, products, and legal system — in fact, it’s a whole virtual world.

That’s the idea behind LAND, a non-fungible token (NFT) that’s the basis of the “land” in Decentraland, a virtual game world built on cryptocurrency. To get LAND you need MANA, the cryptocurrency of Decentraland — and quite literally the coin of the realm. Except this realm is governed by…well not by any one person exactly. After all, it’s Decentraland, not Centraland.

What is Decentraland (MANA)?

MANA is the currency that is used in Decentraland . Decentraland is made up of LAND, non-fungible digital plots of virtual space (or land) that make up the game. The developers of Decentraland created a fixed amount of land, encouraging users to “develop” what they have and thereby creating a market for the currency used to transact with it, MANA. Also, because LAND is a type of NFT, any individual parcel can not be replicated or duplicated. LAND first went up for sale in December, 2017 and since January the land has been owned by “participants” in Decentraland.

LAND isn’t the only asset available within the Decentraland universe — one can also buy virtual goods using MANA in the Decentraland Marketplace. These include “wearables” like virtual clothing as well as names that are unique within Decentraland.

MANA Price

As of late September 2021 the price of MANA was around 70 cents.

Like many cryptocurrencies, the value of MANA is quite volatile, with the price changing substantially over time. Anticipating and dealing with the rapid and extreme change in prices is one of the basics of investing in crypto.

According to CoinMarketCap , MANA is the 78th most valuable cryptocurrency with a “market cap” or total value of just under $1.2 billion. Like many cryptocurrencies, MANA shot up in price earlier this year, jumping from 25 cents to just over a dollar in less than a month starting in late February. It fell and rose again, getting as high as $1.57 in early May.

History of Decentraland

The Decentraland white paper — the official founding document of the cryptocurrency that explains its purpose and the technical specifications for it — was published in early 2017, several months before the virtual universe and its MANA cryptocurrency came into being.

The main idea behind Decentraland is that thanks to the proliferation of cell phones and computers, many people are in a kind of “virtual world” most of the time anyway. Decentraland positions itself as a 3D as opposed to 2D interface.

True to the ethos of cryptocurrency that animates everything from how Bitcoin mining works to the skepticism around some crypto regulations, let alone crypto taxes, another animating concept behind Decentraland was that as opposed to other virtual worlds — think Second Life, World of Warcraft, Fortnite — there would be no central authority in charge of it.

The group behind the white paper got started in 2015 and started working on a 2D grid that they referred to as Decentraland’s “Stone Age”. Another prototype was the “Bronze Age” and the public launch would be its “Iron Age”. Soon after the white paper, Decentraland was able to raise over $20 million in an initial coin offering.

A total of 2.8 billion MANA tokens have been in circulation since September 2017. There’s a maximum total supply of about 2.2 billion MANA coins; this, combined with the fixed amount of LAND tokens, is designed to avoid runaway or unpredictable devaluation of the assets within Decentraland, as can be an issue with other “currencies” like airline miles, for example. Instead of devaluation through inflation, there’s actually been some increased valuation of MANA through deflation.

How Does the MANA Coin Work?

The MANA coin works as a token on the Ethereum blockchain. This means that the Decentraland token MANA requires Ethereum and its token, Ether, to be purchased and exchanged.

To do this, the first step is connecting your crypto wallet holding Ether to the Decentralized marketplace . Once you exchange Ether for MANA, you can then use MANA to purchase items within Decentraland, including parcels of land.

How and Where to Buy MANA Crypto

There are a few different ways to buy MANA — both of which will be familiar to anyone who’s looked into investing in most other types of crypto.

Centralized Exchange

On a central exchange, you can swap your fiat currency like U.S. dollars for a crypto coin, which is then stored using a crypto wallet. The following exchanges offer MANA:

• Coinbase

• Gemini

• Binance

• Kraken

• Gate.io

Decentralized Exchange

You could also purchase MANA by purchasing Ether tokens through brokers or exchanges and then swapping for MANA. It’s possible to buy MANA in this way from:

• SoFi Invest

• Kyber

The Takeaway

Decentraland has created an entire virtual world where participants can use the cryptocurrency MANA to buy parcels of LAND, an NFT that represents actual land in that world. One can also use MANA to buy and sell goods and services within Decentraland — like virtual clothing — on the Decentraland marketplace.

For investors looking to trade crypto, SoFi Invest® offers a range of cryptocurrencies including Ethereum, Bitcoin, Litecoin, Cardano, Dogecoin, and more.

Find out how to start trading crypto with SoFi Invest.

Photo credit: iStock/RichVintage

How to Buy Dogecoin (DOGE)

How to Buy Dogecoin in 4 Steps

1. Choose Where You Want to Buy Dogecoin

Crypto Exchanges

Online Stock Trading Platforms

2. Setup a Payment Method

3. Purchase Dogecoin

4. Safely Store Your Dogecoin

The Takeaway

What is Proof of Work? Definition & Guide

How Proof of Work (PoW) Works

Miners’ Role in Proof of Work

Why Proof of Work is Needed

Pros and Cons of Proof of Work

Pros of Proof of Work

Cons of Proof of Work

Which Cryptocurrencies Use Proof of Work?

Proof of Work vs. Proof of Stake

The Takeaway

What Is Enjin Coin (ENJ)? A Beginner’s Guide

What Is Enjin Coin?

How Does Enjin Work?

Example of ENJ Crypto in Action

Enjin Coin: Benefits and Disadvantages

Benefits of Enjin Coin

Disadvantages of Enjin Coin

Enjin Coin Price

Enjin Coin Staking

How to Invest in Enjin

The Takeaway

What Are Vanilla Options? Definition & Examples

Vanilla Option Definition

How Do Vanilla Trades Work?

What are the Different Types of Vanilla Options?

Calls

Puts

Characteristics of Vanilla Options

Premiums

Volatility

Risk Level

Pros and Cons of Vanilla Options Trading

Pros

Cons

Examples of Vanilla Options

Example of a Vanilla Put Option

Example of a Vanilla Call Option

The Takeaway

What is MANA (Decentraland Coin)? How to Buy MANA

What is Decentraland (MANA)?

MANA Price

History of Decentraland

How Does the MANA Coin Work?

How and Where to Buy MANA Crypto

Centralized Exchange

Decentralized Exchange

The Takeaway

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