Contributor, Benzinga
October 6, 2021

Want to jump straight to the answer? You can buy THORChain (RUNE) on FTX Exchange, Crypto.com, Gate.io and Binance.

THORChain is a blockchain protocol that offers cross-chain liquidity via swapping digital assets between different blockchains. THORChain was built using the Cosmos SDK — regarded as the internet of blockchains — which is designed to bring liquidity to the entire crypto market. The THORChain team aims to further push the boundaries of decentralized finance (DeFi) by building a suite of DeFi products. One such product is the THORChain decentralized exchange (DEX) that allows anyone to trade or lend their digital assets and earn a return. It aims to be a decentralized version of Coinbase and Binance, devoid of a 3rd party controlling the funds.

The flagship DEX on the Binance Smart Chain, BEPSwap, uses THORChain’s Chaosnet, a multichain cryptocurrency exchange that facilitates cross-chain swaps across the Bitcoin, Ethereum, Litecoin and other blockchain protocols. THORSwap is the world’s 1st multichain DEX that uses the THORChain network to provide a front-end user interface to perform trading. The THORChain team is developing several DEX interfaces based on the protocol.

The RUNE token has had an excellent performance this year and is still up more than 500% on the year. In May, RUNE hit its all-time high and is currently trading around $8 after a sharp market correction over the summer. Price performance should continue to improve as more chains are integrated into THORChain because nodes will require many RUNE to be staked to bootstrap these new chains to the network.

What is THORChain?

THORChain is a layer-1 protocol that allows users to transfer cryptocurrencies between blockchains instantly. THORChain plays the role of the backend for the next generation of cross-chain DEXes. It uses an automated market maker (AMM) model similar to Bancor (BNT) or Uniswap, with THORChain’s native token RUNE acting as the base pair. This model allows traders to earn a portion of the trading fees when they stake their assets and become liquidity providers (LPs).

THORChain uses a proof-of-stake consensus mechanism, which means node operators earn RUNE tokens for securing the network and validating swaps. RUNE is a utility token used for governance, staking, bonding, rewards and trading. Staking RUNE earns users votes on governance proposals and fees from trading. A decentralized stable coin and a set of cross-chain DeFi protocols are also on the horizon for THORChain.

The broader goal of THORChain’s team and community is to create decentralized liquidity and eliminate the need for centralized parties who can withhold access to funds or services from users. THORChain’s team plans to completely hand over control of the network to its community by the summer of 2022.

Brief History of THORChain

In 2018, an anonymous team of developers founded THORChain during a Binance hackathon. The project has about 20 self-organized developers, and many of THORChain’s resources are also created by its community. With the recent government scrutiny that DeFi protocols have been under, it’s understandable that a team may prefer anonymity. Team anonymity would typically cause concern for most projects, but THORChain is highly transparent, consistently publishing development updates and treasury reports. In addition, THORChain’s code is open source and has been audited by reputable firms like CertiK and Gauntlet.

In 2019, the RUNE token debuted with a maximum supply of 500 million and about ½ of that in circulation. During its initial coin offering (ICO) in 2019, the price of RUNE was about $0.03 and hit its all-time high of just over $20 in May 2021. Delphi Digital Inc. and Zee Prime Capital were early investors that allowed work to begin on the 1st decentralized liquidity network. Before THORChain could start building its product suite, it had to wait for the launch of the Cosmos SDK.

After the Cosmos launch, the project began making huge strides, releasing its 1st product, an AMM on Binance Smart Chain called BEPSwap. RUNEVault, a vital tool for community engagement and an incentivized staking mechanism, became very successful in 2020. ASGARDEX is another THORChain product that enables users to stake and swap Bitcoin, Ethereum and Binance tokens from within their wallets. These products are achievements outside of the core THORChain main net, which will go live in the 1st quarter of 2022. The project aims to build an independent blockchain that bridges external networks and facilitates decentralized cross-chain transfers.

How to Buy THORChain.

The best place to buy RUNE is from an exchange with solid security features and low fees. Purchasing your first cryptocurrencies can be intimidating for beginners. Fortunately, several easy-to-use trading platforms make the process intuitive and convenient.

Step 1: Open an online account.

You need to sign up for an exchange account before you can begin investing. The crypto space is ever-expanding, and there are many excellent exchange options. The majority of exchanges will require you to complete their know-your-customer (KYC) process upon registration. Typically, KYC requires proof of residence and identity to gain access to the platform.

RUNE is available on some of the most popular cryptocurrency trading platforms in the U.S., including FTX Exchange, Crypto.com, Binance and Gate.io.

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  • Gate.io
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  • Binance US
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Step 2: Buy a wallet (optional). 

Wallets are a secure way of storing your coins, separate from an exchange account. It’s not a good practice to keep large amounts of cryptocurrency on a trading platform. A wise thing to do is keep most of your funds in your offline hardware or software wallet because you could lose your funds if the exchange is hacked.

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Best Hardware Wallet: Ledger

The Ledger wallet is ranked one of the best hardware wallets for securing your digital assets. In contrast to software, the Ledger hardware wallet is not connected to the internet and is the most secure way to store your crypto.

Best Software Wallet: Trust

Trust Wallet is a software wallet that operates on a mobile device allowing users to execute trades anywhere. The Trust Wallet platform also enables the staking of several assets directly in the wallet.

Step 3: Make your purchase.

Once you add funds to your account, you’re ready to make your purchase. Suppose you have done your research and found a good investment. You will need to search for the token’s ticker symbol, key in your desired trade size, then execute the trade.

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Bonus:

To provide network security, THORChain requires twice as much RUNE to be bonded by node operators as there is RUNE staked. Moreover, the amount of RUNE needed in the network is 3 times the amount of the non-RUNE assets locked. Once the main net is live, these factors should encourage upward price pressure on the token.

Trade, Sell or Convert your THORChain

Part of investing in cryptocurrency is learning to mitigate the risks, which means deciding when’s the right time to sell. To prevent regretting selling too soon, some investors choose to sell off just enough of their digital assets to remain financially viable and hold the rest long term. 

Keeping part of your assets digital allows you to stay exposed to the volatility of the crypto markets so you don’t miss out on potential gains. Most exchanges will allow you to convert your crypto into cash and deposit the funds directly into your bank account. Generally, day traders sell their tokens based on technical analysis for short-term gains. On the contrary, investors can ignore short-term price volatility to realize profits over the long term.

Current Crypto Prices

The crypto market may have just experienced a bullish reversal. Bitcoin made a big move to the upside going from $43,000 to $49,000 the week of Oct. 4. The overall market cap of the cryptocurrency market is back over $2 trillion, and the 24-hour volume is around $90 billion as of October 2021.

Is THORChain a Good Investment?

THORChain’s suite of cross-chain swap protocols is a small portion of what it is building. It plans to design a protocol covering all aspects of DeFi, borrowing, lending and synthetics services across various blockchains. In the short term, it will add support for Dogecoin (DOGE), Zcash (ZEC) and Monero (XMR) tokens. In addition, THORChain’s treasury has adequate funding guaranteeing the protocol’s long-term viability. Once the main net goes live in the 1st quarter of 2022, token demand should increase, which should also lead to gains for RUNE holders.

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