How to Buy Synthetix (SNX)

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Contributor, Benzinga
Updated: August 10, 2022

Want to jump straight to the answer? You can buy SNX on SoFi.

Synthetix (SNX) is a derivatives liquidity protocol that runs on the Ethereum network. The Synthetix token allows users to track the price of an external asset. For example, the sUSD token tracks the price of the U.S. dollar. There are many synthetic assets, or “Synths,” tracking the price of assets like indexes, including everything from commodities to fiat currencies. In theory, this system can provide an immutable record of trading data for real-world assets using an impartial system.

Like any cryptocurrency, it’s now easier than ever before to invest in Synthetix. Our guide will help introduce you to a few of our favorite brokers and crypto wallets, as well as some more information on the buying process. 

  1. Open an Online Account.

    The 1st step to buying Synthetix (or most other ERC-20 tokens) is to create an account with a cryptocurrency broker that supports the purchase and sale of SNX. A cryptocurrency broker is an online platform that allows you to buy and sell coins and tokens by placing orders through the broker’s unique trading platform. Like stockbrokers, your crypto broker might charge a fee or commission on each purchase or sale you complete on the platform.

  2. Buy or download a Wallet.

    There are 2 major types of cryptocurrency wallets: hardware wallets (cold storage) and software wallets (hot storage).

    Hot storage: Hot storage wallets are apps that require a connection to the internet in order to access your coins. While hot wallets are free and tend to hold more coins than cold wallets, they provide a lower level of safety for your investments.

    Cold storage: Cold wallets are physical devices that store your cryptocurrency offline. Cold storage options are more expensive than hot storage options but provide you with the highest possible level of security and protection.

    We recommend that investors purchase a cold storage device to ensure the lowest possibility that they lose their coins and tokens. Here are a few characteristics you might want to consider when you shop for a wallet:

    Coin support: When you start searching for a cold wallet, you’ll notice that not every wallet supports every type of coin. It can be helpful to write down all of the tokens that you need to store before you buy a wallet to ensure that your investment will be able to carry all of your assets.

    Price: Some cryptocurrency wallets offer features like Bluetooth compatibility and direct market access. These models can cost nearly $150, which might not be realistic if you only need to store a small amount of cryptocurrency. Consider how you’ll balance price and must-have features when you shop.

    Touch-screen access: If you travel often and want to manage your coins on the road, it can be helpful to choose a wallet with a touch screen. This feature allows you to track and manage your holdings without connecting to your laptop or a public Wi-Fi service.

  3. Make Your Purchase.

    Once your wallet is set up and you’ve opened an account with an exchange, you can finally place your buy order! You’ll do this by using your exchange's unique platform and ordering system to request a buy order for SNX. Depending on the type of order you choose, you might need to submit a maximum price that you’re willing to pay for each coin. Check the current market price of Synthetix before you place your buy order to get a better idea of how the market is moving that day.

    Once you place your order, your broker will fill it according to your instructions. If the broker cannot fill the order, they’ll usually cancel it at the end of the business day and notify you by email. 

Best Crypto Exchanges for SNX

There are a few cryptocurrency exchanges to buy SNX and one of the best is SoFi. If you don’t already have an account with a platform that supports SNX, consider opening a SoFi account today to buy SNX.

SoFi

SoFi is a fantastic platform that offers trading on most of the major cryptocurrencies as well as a myriad of other extremely useful services like fee-free loans. SoFi offers trading with $0 trading comission and a $0 account minimum, making it a great platform for newer investors as well as experienced ones. You can trade stocks, ETFs, cryptos and more all on the SoFi platform.

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Best Cryptocurrency Hardware Wallets

Best for Portability: CoolWallet S

Need to manage your cryptocurrency on the go without carrying around a heavy device? Consider the CoolWallet S. It’s the size of a credit card, which means that you can easily store it in your pocket or wallet when traveling. When you need to access your coins, you can connect the wallet to the CoolWallet app using the card’s Bluetooth connection. Military-grade, multi-step security processes ensure that only you have access to your coins. In addition to Synthetix, the CoolWallet S also supports Bitcoin, Litecoin, Ethereum and most other major cryptocurrencies and ERC-20 tokens. 

Best for Affordability: SecuX W10

If you’re looking for a mix of affordability and security, the SecuX W20 might be the right choice for you. The SecuX W20 wallet holds most major cryptocurrencies, from Bitcoin to Synthetix and beyond. It also includes a convenient 2.8-inch full-color touch screen, which can allow you to track your holdings and manage your coins without connecting to a phone or desktop computer. With high-level security, a wealth of supported coins and a price that’s less than $50, the SecuX W20 can be an excellent choice for beginners looking for safe storage without breaking the bank. 

Trade or Sell Your Cryptocurrency

When you see your SNX in your account wallet, congratulations! Your order was filled and you’re the newest Synthetix investor. From here, you’ll need to decide how you want to hold your tokens.

There are 2 major strategies that investors take when it comes to cryptocurrencies:

  • Long-term holding: Long-term investors hold their cryptocurrencies for weeks, months or even years at a time. If you think that the price of Synthetix will increase over a long period of time, you should move your coins into your wallet after purchase.
  • Short-term holding: Short-term investors trade frequently by taking advantage of daily price movements. If you plan on making multiple trades a day or week, you might want to leave your coins in your brokerage account’s wallet to save on transfer fees.

Not sure where to begin your trading career? Consider starting your search with a few of our favorite brokers below. 

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Current Crypto Prices

Tracking how prices on the cryptocurrency market are changing over time can help you determine the best time to place your buy order. Crypto prices are always changing, which means that you’ll need to check in on the market regularly. Browse today’s top movers and the overall cryptocurrency market at a glance below.  

Adding Cryptocurrency to Your Portfolio

Cryptocurrencies like Synthetix, Bitcoin and Ethereum can add a one-of-a-kind level of diversification to any portfolio. However, unlike investments in stocks or bonds, there is no oversight body that regulates the cryptocurrency market. Prices can change drastically with little warning, so be sure that these volatile options make up only a small percentage of your overall portfolio. 

Frequently Asked Questions

Questions & Answers

Q
What is Synthetix?
A

Synthetix is a digital currency that tracks different assets such as indexes, commodities and currencies. The purchasers hold tokens that lock it into these asset classes.

 

Q
How can I buy Synthetix?
A

You need to establish an account at a cryptocurrency broker, buy a wallet to hold it and make your purchase.

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