Amp (AMP) is a digital collateral token that aims to make instant, irreversible transactions possible. Amp supports a wide range of protocols and use cases, including the Flexa Network.
If you’re interested in learning more about AMP and adding this token to your portfolio, our beginner’s guide will make investing easier.
What is Amp?
AMP is an ERC-20 token. An ERC-20 token is a project built using the Ethereum blockchain. Independent ERC-20 projects can be used to power a variety of protocols, using Ethereum’s smart contract system to execute agreements according to predefined characteristics. ERC-20 tokens have the benefit of a wider range of storage options and more compatibility between projects when compared to independent blockchain projects like Bitcoin and Litecoin.
Brief History of Amp
Introduced in 2020, AMP is a digital collateral token that can verify transfers of value among different asset types. Projects can use Amp to secure transactions and build networks that are able to initiate and execute transfers instantly and without interference. The AMP token is open-source and decentralized, which provides more potential for the integration of new assets and value transfers.
Amp is currently the 252nd largest cryptocurrency project when measured by total market capitalization. It has a daily trading volume of about $983,000 and a total market capitalization of over $119 million.
How to Buy AMP
- Open an online account.
Before you can invest in most types of cryptocurrencies, you’ll need to open an account with a cryptocurrency broker that supports Amp like Binance and Crypto.com A crypto broker provides you with a trading platform that you can use to buy and sell cryptocurrencies, usually in exchange for a small fee or commission.
Though AMP isn’t the most popular cryptocurrency on the market when compared to major offerings like Bitcoin and Ethereum, there are still multiple exchanges that you can use to buy, sell and convert AMP. Some of the factors you might want to consider when comparing crypto brokers may include:
Access to other cryptocurrencies: If the only crypto you’re interested in trading is AMP, be sure that the brokers you’re considering opening an account with support AMP. If you want to create a more diversified crypto portfolio, it can be helpful to create a list of cryptos you’re interested in investing in and cross-referencing it with each broker’s list of supported coins and tokens. Both Binance and Crypto.com have a huge selection of cryptos and are best for traders looking for a large variety of tokens.
Commissions and fees: Almost every crypto broker will charge you a fee or commission when you buy and sell crypto using its platform. If you’re a frequent investor, these fees can quickly cut into your profits. Be sure that you understand both your broker’s fee schedule and any additional account maintenance fees they charge so you can most accurately calculate your profits.
Local availability: Not every broker is able to provide cryptocurrency support in every state and country. Be sure to check the broker’s availability and local restrictions before you open an account.
- Buy a wallet (optional).
If you plan on holding your AMP for more than 1 week without actively trading it, you’ll typically want to store your investment in an off-exchange wallet. An off-exchange wallet keeps your crypto protected in the event that your exchange is targeted in a hack.
You can typically choose from 2 types of private crypto wallets. Hardware wallets are physical devices that store your coins and tokens offline, while software wallets allow you to store your investments online through a software application. Although hardware wallets will incur more of an upfront cost, they provide superior protection because they keep your coins in cold storage.
Explore a few of our favorite wallet choices for ERC-20 tokens like AMP below.
- Make your purchase.
When you’ve fully opened your brokerage account and decided how you want to store your tokens, you can place an order to buy AMP.
First, open your broker’s trading platform and choose the type of order that you’d like to use to buy AMP. Take a look at the current price of AMP and decide if you believe that the price will move up or down. Then, select an order type. Most brokers will provide you with a multitude of order types, but the most commonly used orders are:
Market orders: A market order executes at the current market price of the asset you want to invest in. It provides you with less control over the amount you pay per token but it ensures that your order will be filled quickly.
Limit orders: A limit order tells your broker that you want to buy an asset at a particular price or lower. When you set a limit order, you’ll specify a price that you’re willing to pay per token. If your broker is able to buy each token at or below your price, they execute the order. If not, the order remains unfilled.
Once you’ve placed your order, your broker will execute it according to your specifications. If your order cannot be filled, your broker may leave the order open indefinitely or cancel it at the end of the trading day.
Where to Buy AMP
Binance and Crypto.com support AMP. Our top choice is Binance, as it has such a large collection of cryptos and trading pairs, which let's you easily convert your cryptocurrency to any other digital asset supported by the platform. Crypto.com also has an incredibly long list of supported cryptocurrencies and a wide range of features in its easy-to-use mobile app.
Recommended Crypto Wallets
You can pick a hardware wallet or a software wallet.
Best Hardware Wallet: Ledger Nano X
Long considered the gold standard for cryptocurrency cold storage, the Ledger Nano X provides investors with a private set of keys to store Bitcoin, all ERC-20 tokens and many additional assets offline. Your private Ledger key remains safe in a secure chip, and you can assess and access your investments wherever you go.
The Ledger Nano X can also connect with the Ledger Live app, which allows you to send and receive coins and tokens from other users on the network. You can also install up to 100 decentralized applications to your Ledger Nano X device, which can be an ideal feature for those interested in learning more about decentralized finance.
Best Software Wallet: Coinbase Wallet
Coinbase is one of the internet’s largest cryptocurrency marketplaces — and its newly introduced Coinbase Wallet makes it easier to manage your investments on-the-go. The Coinbase Wallet is a software program that provides you with complete support for Bitcoin and any type of ERC-20 project.
Have you ever wished that you could split bills between your friends using cryptocurrency? The Coinbase Wallet allows you to send crypto to other users without memorizing a long wallet address — simply enter a name and transfer crypto in just a few minutes.
Bonus: BitBox02 by Shift Crypto
You can also protect your coins with the latest Swiss-made hardware wallet: BitBox02. The BitBox02 features a dual chip design with a secure chip. The source code has been independently audited by security researchers and is fully open source.
It features easy backup and restore with microSD card and supports Bitcoin, Ethereum, Litecoin, Chainlink, BAT and more than 1,500 other cryptocurrencies. The BitBoxApp is at the center of the BitBox ecosystem. It’s an all-in-1 solution to securely manage your coins.
AMP facilitates instant, verifiable assurances of value transfers made on protocols built using its chain. One such protocol, the Flexa Network, has recently partnered with Gemini, a major crypto exchange. This may increase the price of Amp as more users depend on its network to facilitate transactions.
Trade or Sell Your Cryptocurrency
When you see your tokens in your exchange wallet, your next step is to decide how you want to earn a return on your investment. These are primary strategies you can use to earn a return on your AMP investment:
- Long-term holding and selling: If you believe that the price of AMP will increase over the course of months or years, you may want to take a long-term approach and hold your investment. Long-term holders typically store their tokens in an off-exchange wallet for the highest possible level of safety.
- Active trading: Traders can also capitalize on short-term price movements by strategically buying and selling AMP on their exchange of choice. When you decide to take profits, you can convert your AMP to a stablecoin like Tether or directly back to a fiat currency depending on your broker.
No matter which strategy you choose to take, you’ll want to monitor the price of AMP and how it’s changing regularly.
Current Crypto Prices
The cryptocurrency market can be exceptionally volatile. Monitor how the market is changing today with our chart below.
The Future of AMP
Though Amp’s network is currently not one of the most popular cryptocurrency projects currently trading on major exchanges, it still retains a positive investor sentiment for the future. If you’re thinking about investing in AMP, you may want to diversify your portfolio with other types of Ethereum-based token projects, like Chainlink or AAVE.
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