Want to jump straight to the answer? You can buy OHM on a decentralized exchange with ETH from eToro!
Stablecoins have become a major topic of discussion. Governments in countries such as France are experimenting with implementing them into their financial markets. OlympusDAO is hoping to create a new version of stablecoin that is controlled by members of its community. The project aims to create a new way for users to interact with a crypto that limits volatility while still having a floating price.
What Is OlympusDAO (OHM)?
OlympusDAO is hoping to change the nature of stablecoins. Most stablecoins are pegged to an underlying asset, such as USD, to hold value in a somewhat volatile market. Unlike traditional stablecoins, OlympusDAO uses a unique system to keep its value stable.
To uphold the value of the OHM token, members of the decentralized autonomous organization (DAO) vote on whether to mint new coins or burn existing coins. When it finds the coin to be undervalued, it burns coins to increase the value of each coin. When it thinks the token is overvalued, it mints new coins to decrease the value of all coins.
OlympusDAO also holds DAI tokens in its treasury that partially backs the coin’s price. A DAI token is the price floor of OHM, but it trades higher in practice. This system allows the price of the token to be driven by the market but also allows it to have some control over the price.
OHM is the project’s native token. It is an ERC-20, meaning that it uses the Ethereum network. This token can be used in a variety of ways. The first way is that it can be used to vote on proposals on Scattershot, allowing holders of the token to have a say in where the project goes.
Another use for the token is staking. Users can stake their OHM position and earn interest. As of right now, OHM offers over 8,000% APY on staked tokens. Interest is paid out every 5 days.
Users can also buy crypto bonds with OHM. This opportunity is much less risky than staking but offers lower returns. These bonds are used to provide liquidity and typically offer around 3% to 4% ROI.
OHM is a governance token looking to create a stable asset that can be used as a form of payment. It also offers features that allow users to earn interest on their OHM position.
Brief History of OlympusDAO (OHM)
OHM was launched in March 2021 through a Discord offering and an initial decentralized exchange (DEX) offering (IDO). Users that joined the Discord early enough were able to purchase 141 OHM for a price of $4 per OHM. As many as 50,000 OHM were given out, and an additional 18,260 tokens were given through the IDO on SushiSwap. Within a month of this release, the token hit all-time highs of nearly $1,500. This level meant that the initial investment of $564 in the Discord was worth over $200,000 in less than a month.
How to Buy OlympusDAO (OHM).
Now that you understand the basics of OHM, you may be interested in purchasing the token. Fortunately, doing so is not difficult.
- Open an online account.
The first step in purchasing OHM is to create an account on a centralized trading platform. While you can choose from many trading platforms, a few stand out due to their security, fees and ease of use.
Coinbase Global Inc. (NASDAQ: COIN), eToro, Gemini and Webull are all great trading platforms to open an account on. To open an account, you provide an email, password and basic personal information.
Once you have an account that is funded through a bank transfer, you can purchase ETH. To do so, navigate to ETH’s page on the exchange and enter in the amount of ETH you’d like to purchase. Once you execute the trade, your ETH will be stored in your account.
- Buy or download a crypto wallet.
OHM is not currently offered for direct purchase on trading platforms, so you need a wallet to purchase the token on a decentralized exchange (DEX). There are 2 types of wallets: hardware and software. Hardware wallets are physical devices that hold the private keys to a crypto wallet. Software wallets are online wallets that use passwords to secure the crypto inside.
- Make your purchase.
Once you have acquired ETH on a centralized exchange, you can send it to your wallet. First, find the wallet address for ETH on your wallet, a list of 64 letters and numbers. Enter this into the centralized exchange and send it to your wallet.
Once the ETH is in your wallet, connect it to a DEX like Uniswap or SushiSwap. From there, select the pair of ETH/OHM. Enter in the amount of ETH you’d like to swap for OHM and execute the trade. Once the trade has been executed, you can view your OHM position in your wallet.
Best Crypto Wallets For OHM
Best Hardware Wallet: Ledger
Ledger is a hardware wallet that supports ERC-20 tokens, including OHM. Hardware wallets offer an extra level of security to crypto investments as the physical device must be present in order to send crypto.
Ledger currently offers 2 versions of its hardware wallet. The Ledger Nano S is a hardware wallet designed for beginner users and only offers necessary features. The Nano X is for more advanced users and gives users more ability when trading crypto.
Best Software Wallet: Coinbase Wallet
Coinbase Wallet is a wallet operated by Coinbase. However, all crypto holdings in the wallet are directly owned by the user, whereas Coinbase holds all funds on iits main exchange.
Coinbase Wallet is a versatile software wallet that can be used in a variety of situations. This wallet is a great option for new crypto users looking to enter the decentralized finance (DeFi) space.
Trade, Sell or Convert your OlympusDAO (OHM)
To cash out on your OHM, you essentially do the same thing you did to purchase the token. Navigate back to a DEX and enter in the amount of OHM to convert back to ETH. Execute the trade, and your ETH will be stored in your wallet. To cash out your ETH, send it back to a centralized exchange and sell it from there.
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Current Crypto Prices
In mid November 2021, Bitcoin (BTC) and Ethereum (ETH) saw strong pullbacks from their all-time highs in the weeks prior. The drop may be reflective of bearish sentiment in the markets, but it also could just be a slight correction after hitting all-time highs.
Crypto investors could be in store for another bear market, where crypto prices might crash. On the other hand, they could skyrocket and hit new all-time highs tomorrow. No one knows where the crypto market will go from here, but it is imperative that investors approach trades with caution.
Is OlympusDAO (OHM) a Good Investment?
Though OHM hopes to be a stable store of value, the price has been extremely volatile in the past year. It has risen to nearly $1,500 and dipped as low as around $160. These variations are the opposite of the stability the project was hoping for. However, the volatility is most likely attributed to the amount of tokens given out. Users were able to make huge gains and cashed in those gains. If OHM can prove that it can be stable, it may be a solid investment.
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