Want to jump straight to the answer? You can buy MIM on Gemini.
Perhaps one of the larger uses of crypto is in the borrowing and lending industry. Users can borrow crypto for low rates without having to go through a lengthy verification process. However, the current decentralized finance (DeFi) system has a few flaws that may inhibit it from widespread use. Magic Internet Money (MIM) is hoping to change this. By combining the best aspects from multiple lending mechanisms, it is hoping to change the loan industry for good.
- What is Magic Internet Money?
- Brief History of Magic Internet Money
- How To Buy Magic Internet Money
- Cryptocurrency Wallets For MIM Token
- Trade, Sell or Convert your Magic Internet Money
- Current Crypto Prices
- Is Magic Internet Money a Good Investment?
- Frequently Asked Questions
What is Magic Internet Money?
Magic Internet Money is a soft-pegged stablecoin that is linked to the U.S. dollar. This means the price will stay close to $1 due to the monetary policies enacted by the project, but may fluctuate by tenths of a penny. This happens because the asset is backed by interest-bearing tokens across the blockchain instead of USD.
Magic Internet Money is minted every time a user deposits collateral into the token’s project Abracadabra.money. This project is essentially a lending service. However, it incorporates multiple parts of traditional crypto lending programs to create a powerful new project.
There are two main types of lending platforms. Dai (DAI) allows users to deposit crypto and receive a liquid asset back. For example, a user can deposit Ether (ETH) and receive DAI as a reward. The other lending mechanism involves illiquid tokens. An example of this is SushiSwap (SUSHI). Users can deposit SUSHI and receive xSUSHI back. The xSUSHI is accumulating interest, but cannot be traded. It is essentially a receipt of deposit and allows users to get back their original investment.
MIM combines both of these mechanisms. It allows users to deposit illiquid assets, such as xSUSHI, and receive MIM in return. This allows users to take their illiquid assets and turn them liquid. With this added liquidity, users can essentially leverage their staking. They can collateralize an asset that is illiquid in exchange for MIM. Before, these illiquid assets would be useless until they were redeemed. MIM has changed this by allowing users to gain value from their previously unusable tokens.
Each time someone takes out MIM, new tokens are minted. Because of this, there is no maximum limit on the supply for the token. The token is also an ERC-20, meaning that it is based on the Ethereum blockchain and inherits a handful of Ethereum’s properties, such as its security and decentralization.
While MIM’s price fluctuates, it rarely goes below $0.97 or above $1.03. This is because when the price is less than $1, users are incentivized to pay off loans for a discount, whereas they are incentivized to take out loans when the price is more than $1 to receive a premium.
Brief History of Magic Internet Money
MIM was officially released in September by its anonymous founder dubbed Squirrel. His goal for the project was to create an extremely decentralized and easy-to-use asset that granted users access to the realm of decentralized finance, allowed them to undo their assumptions about money, cryptocurrencies and lending.
MIM is currently trading for just under $1, with a market cap of nearly $2 billion.
How To Buy Magic Internet Money
Now that you understand the basics of MIM, you may be interested in purchasing the token. Fortunately, doing so is fairly easy and only involves a few short steps using your preferred cryptocurrency exchanges. The medium of exchange is up to you, but remember that often the largest exchanges offer some of the best support and services.
- Open an online account.
The first step to purchasing MIM is to open an account on a supported trading platform. While there are several that support trading MIM, Gemini stands out because it’s easy to use, secure and has low fees.
To open an account on Gemini, navigate to its website or mobile app and create a free account using an email. Afterwards, you may have to provide some basic documentation before you can fund your account and begin trading.
- Buy a wallet (optional).
While storing your MIM on Gemini may be the easiest option, it may not be the safest. Crypto wallets are physical devices or software that allow users to store their crypto separately from any single entity. This gives users full custody over their tokens and can be much safer than storing on an exchange.
- Make your purchase.
Now that you have funded an account on Gemini, you are ready to purchase MIM. To do so, navigate to the MIM page using the search function. Use the trade feature and select buy. From there, enter in the amount of MIM you would like to purchase, execute the trade and your MIM will be in your portfolio.
Cryptocurrency Wallets For MIM Token
Best Hardware Wallet: Ledger
Hardware wallets are physical devices that store the private keys needed to send crypto. Without the physical device present, the wallet is locked. This is often regarded as the safest way to store crypto.
Ledger is a brand of hardware wallet that supports MIM and all other ERC-20 tokens. It offers Nano S and Nano X models. The Nano S only has necessary safety features. The Nano X is much easier to use, with a larger screen and bluetooth connectivity.
Best Software Wallet: MetaMask
Software wallets store the private keys online in servers. While this is not as safe as hardware wallets, it still gives users full custody of their funds. They can also be much easier to use.
MetaMask is one of the most popular software wallets. It is extremely easy to use, as it is a Chrome extension and can be accessed through most websites. It also takes a variety of security measures, such as cold storage and two-factor authentication to keep your crypto safe.
Bonus section: Keep an eye on the amount of tokens MIM supports. This can increase the use for the token and can attract new users.
Trade, Sell or Convert your Magic Internet Money
To convert your MIM to another token, navigate back to your position through your portfolio. Use the trade feature and locate the token you would like to swap. Enter in the amount of MIM and execute the trade. From there the new token can be found in your portfolio.
To sell the token, use the sell feature. Enter in the amount you would like to sell, and execute the trade. From there, you will have fiat currency that you can either use to purchase new tokens or withdraw to your bank account.
Current Crypto Prices
The depegging of Terra and downfall of FTX has hit the crypto sector hard. It’s difficult for investment advice to determine where the crypto industry is going. You can invest in digital assets while they are cheap, taking them “at the dip”, but there’s no way to know how long the “dip” will last for an array of crypto assets.
Is Magic Internet Money a Good Investment?
If you are hoping to invest in MIM for a profit, then you should look elsewhere. The token will stay relatively stagnant, hovering around $1. However, if you are looking for a safe way to enter the crypto market, MIM may be a great choice. It allows users to own crypto and not have to worry so much about extreme price fluctuations. If you are in search of stability, MIM may be for you.
Frequently Asked Questions
Can you get crypto tips from social networks?
You might see crypto tips on social networks, but you must test those tips against common sense and your own research. Don’t invest in anything you don’t understand.
What is the potential impact of cryptocurrency?
Cryptocurrency will give investors more items to invest in and more currency types for the public, but it is has not broken through in terms of adoption because it is not as heavily regulated as other types of investments.
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