Ravencoin (RVN) is a unique open source protocol designed to improve the speed and functionality of transactions on the blockchain. It operates primarily through a mining system, allowing users to verify transactions using their computing power. Its main goal is to further decentralize the blockchain by moving computing power away from large-scale mining operations.
What Is Ravencoin (RVN)?
Ravencoin is a store of value and is given as a reward for those who partake in a proof of work system (PoW.) You can use your own computing power to verify transactions on Ravencoin’s mining algorithm to receive RVN as a reward. The mining algorithm is called KAWPOW and operates on a fork of the Bitcoin chain.
The project has four main goals, including a guarantee of 5,000 RVN given to miners every minute, a strict coin supply of 21 billion and their own algorithm. Through this, the project is able to give more power to individual miners and restrict development of ASIC miners. ASIC miners are typically used in large mining operations and detract from the decentralized mining system the blockchain seeks to provide. KAWPOW combats this issue by using graphics processing units (GPUs) to provide computing power.
Brief History of Ravencoin (RVN)
Ravencoin began giving rewards to miners on January 3, 2018. It was created by Bruce Fenton, Tron Black and Joel Weight. They are well known in the crypto sphere, working for huge companies such as the Bitcoin Foundation and Morgan Stanley (NYSE: MS). RVN began trading at around $0.02 and reached all-time highs of over $0.24 in April 2021. Now that the project has a solid foundation, it is looking to expand its capabilities, announcing an upcoming integrated messaging and voting system.
How to Buy Ravencoin (RVN)
Now that you understand the basics of Kusama’s platform, you may be interested in purchasing the token. Fortunately, doing so is fairly easy and only requires a few short steps.
- Open an online account.
The first step in purchasing RVN is to open an account on a crypto exchange. This simple step usually requires only an email or phone number. It is offered on a few exchanges, such as Crypto.com and Huobi Global. If the hype surrounding the project increases, you can expect it to be listed on more crypto exchanges.
- Buy a wallet (optional).
Wallets differ from exchanges in that they are a decentralized place to store crypto instead of trading it. You can choose from multiple forms of virtual wallets and make deposits using a payment method that suits you best.. While having a crypto wallet is not a necessity to buy RVN, it can add a level of security to your digital assets.
- Make your purchase.
On Huobi Global’s wallet feature, you use the search feature to locate USDT. When you have located USDT and have a balance, you click the Swap button and enter the amount of RVN you would like to purchase. After this, RVN is stored on your Huobi Global wallet. This process is essentially identical if you choose to use Crypto.com instead of Huobi Global. You can also send it to a hardware wallet, such as Ledger, if you wish.
Cryptocurrency Wallets for RVN
- ERC-20 tokens
Best Hardware Wallet: Ledger
Ledger is a hardware wallet that is extremely easy to use and supports the sending and receiving of Tether (USDT), which you will need later on. Once you have purchased a Ledger hardware wallet, you download its software onto your computer and create an account. You’ll be assigned a wallet address (typically a long string of letters and numbers), and then you can send and receive USDT through the wallet. Hardware wallets offer an extra level of security as opposed to software wallets, but they cost money while software wallets are typically free.
- Intermediate Traders
Best Software Wallet: Huobi Global
Huobi Global offers the RVN token and is easy to use. Opening an account is simple and quick. However, it is not available to U.S. residents. All you need is an email address or phone number and a funding source if you are outside the U.S. You can also send funds from another exchange like Coinbase (NASDAQ: COIN) to your Huobi Global wallet.
To do this, you locate USDT on your Coinbase account and hit the “Send” option. From there, you enter the wallet address associated with your Huobi Global account. Hit send, and the funds should be in your Huobi Global account. After you have the funds in your exchange account, you’re well on your way to buying Ravencoin.
Tip:
Watch for news surrounding PoW verification. News of regulation or environmental impacts can impact the price of RVN.
Trade, Sell or Convert your RVN
To sell or convert your RVN, you navigate back to the token’s profile and select the Trade or Convert option. Or, you convert the token back to Tether (USDT.) The full list of convertible currencies can be found on coinmarketcap.com.
While you cannot directly sell your RVN tokens for fiat currency, you can convert them to a stable coin, such as USDT. You can then sell your stable coin for fiat (USD) and deposit it back into a bank account. Selling a cryptocurrency usually involves transaction fees whereas converting to another coin does not.
Current Crypto Prices
In late September 2021, China banned all cryptocurrency transactions, leading to a market frenzy. Altcoins surged, interest rates fluctuated and major currencies saw an increase in volatility. This event forced miners and investors to experiment with new forms of decentralization. From moving offshore to going underground, crypto enthusiasts in China are pushing the limits of decentralization. Indeed, they are changing the future of cryptocurrency as a whole.
While some say crypto may be entering a bear market, others view the drop as a minor setback. Either way, the increased volatility is defining the current market. Volatility provides opportunities to profit but can also lead to severe losses. Make trades with a calculated approach to mitigate risk.
Is Ravencoin a Good Investment?
Ravencoin has the potential to be a major player in the future of crypto. It furthers decentralization, and the barrier of entry for miners on their platform is fairly low. However, many currencies, most notably Ethereum, are moving away from a PoW verification system to a proof of stake system. There are several negative environmental impacts associated with a PoW system. If PoW systems begin to fade away, Ravencoin may become obsolete. However, if RVN can maintain a high level of transactions to support its PoW network, the price has almost limitless potential.
Frequently Asked Questions
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About Caden Pok
Caden has been involved with crypto since 2018, when he began investing, trading, and mining tokens. He took part in undergraduate research studying cryptoeconomics at the University of Michigan, where he will graduate Phi Beta Kappa with a bachelor’s in economics in 2025. He is experienced with DeFi technology and multiple blockchains, currently investing in Ethereum and Bitcoin.