How to Buy Thorchain (RUNE) in 3 Simple Steps
Thorchain is an important part of the decentralised finance (DeFi) sector that helps users make token swaps across various networks while keeping full control of their assets.
This page will tell you how you can purchase RUNE, Thorchain’s utility token, and why RUNE is important to the platform.
3 Steps to Buy Thorchain
1. Choose a broker or exchange
The first step is to decide which platform you want to use. There is a range of platforms that offer RUNE, but it is important to select a secure and reputable platform if you want your funds and personal information to be kept safe. We’ve compared some of the best platforms in the next section but you can start now with our top choice.
2. Create and fund your account
You should fill in the registration form on your chosen platform with any details requested. You may also need to complete the KYC process which could involve providing a photo ID. Once your account has been verified, click “Deposit” to see the payment methods accepted in your country. Select one and follow the onscreen instructions.
3. Buy Thorchain
Find the trading pair for RUNE and the currency you just deposited and create a buy order. If you want to buy RUNE immediately, make it a market order. Alternatively, you can create a limit order which allows you to specify a future price at which RUNE will be purchased for you automatically.
Why trade Thorchain with a broker?
Fast and simple.
Trades are instant and easy to execute.
Pay your way.
Brokers accept a range of payment options including credit/debit cards and even PayPal.
No wallet needed.
No need to set up and maintain a wallet—you can manage your crypto directly from your account.
Where to Buy Thorchain: Compare the Top Platforms
When selecting a broker or exchange to use, it is beneficial to consider factors such as their fee structures and how easy they are to use. There are many available platforms out there but you don’t need to go through them all as we’ve shortlisted the best platforms below.
What Is Thorchain?
Thorchain is a DeFi platform that lets users easily and permissionlessly swap cryptocurrencies. They can make swaps across a range of networks and don’t need to provide personal information or give up custody of their assets in the process.
The platform is fully decentralised as the swapping happens through liquidity pools. Anyone can deposit their crypto assets into the liquidity pools in order to earn a passive income in the form of swap fees and system rewards.
RUNE is the utility token of the platform and is essential for securing the network and providing economic incentives. As well as providing governance rights, RUNE is paired with all the other assets in the liquidity pools to enable swaps to be made easily. Without RUNE acting as a settlement asset, every cryptocurrency would have to be paired with every other cryptocurrency, meaning many more pools and much less liquidity in each.
RUNE is also the currency used to pay transactions fees on swaps. These fees, along with protocol emissions, are used to reward liquidity providers.
Ways to Invest in Thorchain
Different people may choose to invest in Thorchain in different ways. RUNE can lend itself to both short-term and long-term investing, and which you opt for is simply a matter of preference.
Buy and hold Thorchain
Buying and holding is an easy strategy to follow and involves exactly what the name implies. No special skills are required for this strategy and it can potentially generate good returns without a big time commitment or any detailed analysis.
One of the advantages of holding onto RUNE for the long term is that you can lock it into Thorchain liquidity pools to generate a passive income as well.
Best Thorchain wallets
Long-term investors may want to set up their own private wallet to store their RUNE, instead of relying on a centralised service for access to their tokens. Private wallets can also provide an extra layer of security.
Software wallets tend to be free, user friendly, and can be downloaded for computers or mobile devices. Another option is hardware devices, like Trezor, BitBox, or Ledger, which can be expensive but provide the best possible security.
Traders can also make a profit from RUNE. They buy and sell it much more often than investors so as to generate returns more frequently. However, this requires more time and skill as traders often have to analyse the market to identify the best times to buy and sell.
Transferring tokens from a private wallet every time you want to make a trade can be time-consuming and costly. This is why traders often prefer to store their tokens in the free web wallet provided by their exchange where they can be accessed easily.
Should I Buy Thorchain Now?
This is something you will have to decide for yourself based on the available information. RUNE has a capped maximum supply and it’s possible this in-built scarcity could make the token a good long-term store of value.
Node operators must lock up a significant amount of RUNE, while the token is also required for providing liquidity, paying fees, and participating in governance. All of these sources of demand could be positive for RUNE price.
The economic design of Thorchain means that if 80% of RUNE is locked up in liquidity pools, the token’s market cap should be at least three times the value of all the other assets locked into Thorchain.
The price of RUNE is likely to benefit from the success of Thorchain. The project’s claims of eliminating the risk of impermanent loss have already seen it attract a strong following. As Thorchain adds support for new assets and more blockchains, it could appeal to yet more users and carve out a space for itself in the booming sector of DeFi.
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Frequently Asked Questions
No. Users can start or stop providing liquidity whenever they like.
Assets locked in the pools typically earn about 11% APY.
A node operator must acquire a minimum of 1 million RUNE to send to the network as “bond”. They need knowledge of Linux server administration and Kubernetes, as well as the ability to run multiple servers with very high uptime. Nodes that don’t adequately perform their duties can have their bond slashed, while those that do can earn 17% APY.
A new asset can be listed as a pool every few days. RUNE holders commit their RUNE to the asset they want to be listed and the one with the most RUNE committed gets listed first.
XDeFi and THORWallet both provide cross-chain wallets that can be used with Thorchain.