How to Buy Komodo - Where to Purchase KMD?
Komodo (KMD) can be described as a community-oriented blockchain project, which was amongst the first few pioneers to introduce a multi-chain architecture in this space. It’s an open and composable smart chain platform which aims at overcoming multiple challenges faced by other smart contract blockchain platforms.
Komodo is traded at $2.46, with a total market cap of $309 million at the time of writing this piece (May 2021). Komodo has been named as one of the ‘5 Lesser-Known Cryptocurrencies that Must be Bought before the Crowd’, by Nasdaq. Here in this guide, we will tell you all the important facts you should know about buying KMD.
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Why Trade rather than Buy Komodo for Cheap and Fast Returns?
You Don’t Need a Wallet:
You trade on the price movement of the coin without having to buy and store it.
You Can Use Standard Payment Methods:
All regulated brokers accept popular methods of payment such as credit/debit card and bank transfers.
Trades Are Fast and Withdrawals Are Easy:
Trades are executed within seconds and withdrawals will reflect instantly in your account.
What is the Easiest Way and Best Way to Buy? Compare the Top Komodo Brokers
With regard to the best website to buy KMD, it would depend completely on how experienced you are in the crypto trading activity. Novice crypto buyers who are often seen questioning where to buy KMD may find this activity slightly intimidating to begin with, especially if they instantly rush to an online crypto exchange for their first KMD purchase. Exchange platforms can be a little complicated for beginners.
Brokerage platforms on the other hand are simpler and offer a dynamic and convenient way to invest in Komodo. You can consider them as one of the best places to buy KMD online. Brokers provide easy-to-understand interfaces and financial derivatives like CFDs (Contracts for Difference), Options, and Futures too. Hence, they facilitate both buying and selling of KMD as well as speculative trading activity without the need of exchanging any coins.
If you’re researching the easiest way to buy KMD, you must start by shortlisting the best crypto brokers on the Internet, based on factors like their customer service operations, regulation, security protocols, value-added services and fees. After you’ve spent some time transacting on a regulated broker platform you’ll discover how easy it actually is to buy KMD.
5 Things to Consider if you Want to Buy Komodo
You’ll need to keep a few important points in mind before buying Komodo on the Internet. The idea is to be well-informed whenever you visit an exchange or broker platform to buy KMD. These points are detailed below.
1. Carefully choose your preferred secure payment method
It’s commonly seen that different countries across the world have different payment methods for cryptocurrency purchases. When it comes to picking the best of the lot, you must go with the one offering the lowest cost, quickest processing and no legal trouble.
2. Will you need to set up your own wallet?
Whenever you buy KMD you will need to store your coins safely in some wallet, to protect them from possible theft. Leaving them inside built-in wallets provided by exchange platforms is a big risk, as people have lost their entire crypto holdings from such exchange wallets in the past.
Please note, you’ll not need any wallet set-up if you invest in KMD through a CFD on a regulated broker platform. This is because there’ll be no KMD transfer involved in the case of a CFD.
3. Comparing costs
Whenever you engage in any Komodo buying and selling activity, you’ll need to pay a certain charge as blockchain fee for processing of that transaction. This fee can prove to be substantial if you transact in small quantities of the coin. Hence, you should be well aware of such charges beforehand, to avoid any last minute surprises. In this respect, it may be more prudent to use CFDs via a regulated broker platform, as it will involve no actual exchange of KMD coins.
4. Safety and security
Komodo secures its network through an innovative delayed Proof of Work (dPoW) consensus mechanism. A block record from the KMD chain gets written on the Bitcoin ledger every 10 minutes, providing Bitcoin-level security to every transaction. In essence, all Komodo users get Bitcoin-level advanced security at a very small cost. All KMD transactions are further secured through well-known cryptographic security protocols such as MetaTrader 4 (MT4), MetaTrader 5 (MT5), Two-Factor Authentications (2FA) and more, implemented by most regulated brokerage websites and exchange platforms.
5. Can you understand and navigate the platform?
Before you go ahead and use any website to buy Komodo, make sure that you’ve spent some time navigating it, to gain basic understanding of its workings. Please remember, you cannot afford to make any silly errors while transacting on these portals, as such mistakes can be very difficult to manage later. As a rule of thumb, avoid using any website which seems too complex to use. In that regard, broker platforms are known to provide very user-friendly interfaces, which is the reason they’re also the first choice of many experienced and new cryptocurrency investors.
Ultimate Beginner’s Guide to Trading Komodo
What is a Komodo Broker?
A cryptocurrency broker can be termed as an intermediary between the crypto buyers and the rest of the marketplace. Brokers are quite different from exchanges where people directly transact with each other.
Brokerage platforms offer you easy access to various crypto coins, including KMD. Not only do they facilitate easy buying and selling of KMD ownership, they also make available leveraged trading products like CFDs. Using CFDs you can easily bet on future price movements of KMD, and register potential profits.
What is a Komodo CFD?CFD is the short form of ‘Contract for Difference’, a financial instrument which enables you to speculate on a cryptocurrency’s future price movements, without any actual exchange of its tokens. Most brokers offer leverage options for the CFD trades, helping you maximise your profits. Using such a leverage facility you can borrow additional funds from the broker and gain a larger market exposure for your trades. However, please bear in mind, both profits and losses get magnified in equal proportion through this trading option.
What is the Benefit of Komodo Regulation?
Regulation has been a constantly-discussed topic in the crypto world for many years now. Regulating digital currencies is important from the perspective of investor protection. That’s the reason why you should use exchanges and broker platforms regulated by reputed global authorities. Doing so will ensure that you always have someone to turn to in case you lose your funds held with any such platform. Therefore, the next time a regulated broker asks you to upload a government-issued ID and proof of address, please comply, as it’s for your own benefit only, to protect you from bad actors.
What is the Best Payment Method for Buying Komodo?
If you’re keen on buying Komodo for investment purposes, you’ll be glad to know that you can choose from multiple payment options offered in the market. However, the ones available in your state or country of residence will depend upon the prevailing local regulatory laws.
Buying Komodo with PayPal PayPal has emerged as amongst the most convenient means of buying cryptocurrency on the Internet, over the years. Despite the fact it’s used by millions of crypto buyers across the world, not all crypto exchanges are receptive to it as a mode of payment. However, regulated brokers accept PayPal as a valid payment method, without any fuss. While PayPal isn’t the cheapest in terms of fees, it isn’t the most expensive either.
Buying Komodo with credit/debit cards As they are extremely convenient to use, credit and debit cards are another highly preferred mode of payment for crypto buyers all over the world. Almost all the crypto exchanges and brokerage websites accept them too. But their convenience comes at a price. The high fee charged for credit and debit card transactions makes them impractical for large or regular cryptocurrency purchases.
Buying Komodo through Bank Transfer By far the most commonly used method to buy cryptocurrencies online, bank transfers are a favourite of crypto buyers everywhere. Their main advantage is the low fees and their biggest drawback is the time taken for processing such transfers. This is because of a bank’s involvement in between. Furthermore, as brokers are more open to accepting various fiat currencies through this medium, they’re preferred over exchanges for purchases with this payment mode.
Buying Komodo with some other cryptocurrency To be able to purchase Komodo with another cryptocurrency, you will first need to find a reputed cryptocurrency exchange that pairs KMD with a crypto coin available to you. You’ll then need to open an account with that exchange and deposit your coins into it. Thereafter, you can easily trade your coins for KMD on that platform.
The Verification Process for Trading Komodo
Please remember, you’ll be asked to upload a government-issued photo ID and perhaps even a separate proof of address whenever you open an account with a regulated platform to trade or buy KMD. These service providers will ask you for such details to comply with their KYC norms. The basic intent here is to shield you from bad actors, by ensuring that people sign up for only the right reasons.
Komodo: Long vs Short Term Investment
You can buy Komodo for both short and long term investment. In case you purchase it for short-term trading, ensure that you acquire some trading experience before going all in. Educating yourself about a few well-known analytical tools can be of great help too. It is recommended that you open an account with a regulated broker for such trading activity. A broker will facilitate both buying and selling of KMD coins, as well as trading in Komodo through financial derivatives such as CFDs.
People investing in KMD with a long-term approach can buy the cryptocurrency from an exchange or broker, depending upon their personal preference. Please note, you’ll need to set up a cold wallet to store your KMD coins after their purchase. Implementing such an investment strategy won’t require any prior experience in or knowledge of crypto trading, and can pay off very well if you stay put in the market despite its inherent fluctuations.
Why Buy Komodo rather than Trade?
We learnt about different ways of buying Komodo earlier in this guide, now let’s discuss why some people may prefer buying KMD over trading it. Irrespective of whether you’re planning to buy or trade Komodo, you’ll look for the cheapest way to buy KMD, to put your respective strategy to work.
The long-term investors usually like to buy KMD instantly as soon as they locate their target price, and then they store the coins safely in a cold wallet, hoping to profit from its price surge at a later time.
At the other end are KMD traders, who having braved all kinds of upheavals in the crypto marketplace, are seasoned enough to book profit, regardless of which way the price moves.
While many crypto investors have benefited immensely from the Buy and Hold approach, there are an equal number of short-term traders who have made noteworthy profits by effectively putting their knowledge and analytical skills to use.
What Fees are Involved in Buying Komodo?
Whenever you transfer KMD to someone else, the transaction will get recorded on the KMD ledger, and there will obviously be a fee attached to it. Considering that Komodo prices are currently hovering around $2.50 per coin (May 2021), it may be impractical to transact in small quantities of the cryptocurrency.
Furthermore, you can potentially reduce your transaction costs by purchasing the cryptocurrency on a broker or exchange platform, and in bulk. Even though brokers/exchanges will charge a transaction fee too, it would most likely be lesser than what you may have to pay for direct transactions. Below are some of the commonly-known fees associated with KMD purchases.
Transaction fees As detailed above, all KMD transactions will attract a blockchain processing fee which cannot be avoided. However, you can potentially reduce this fee by purchasing the coin in bulk from a crypto exchange or broker website.
Deposit fees While most brokers don’t charge any deposit fee to the traders, thus encouraging more and more individuals to sign up with them, some may ask for a nominal percentage as a deposit fee. Still, it would be less than what’s usually charged by cryptocurrency exchanges. In addition, the fee percentage may be different for different modes of payment.
Withdrawal fees Both brokers and traditional crypto exchanges charge a small percentage of withdrawals in the form of withdrawal fee. Exchanges keep this percentage a little higher than what’s charged by brokers. To give you some idea, while brokers’ withdrawal fees are normally less than 3%, exchanges can charge anything up to 5%.
Safely Storing Your Komodo
Cryptocurrency wallets can be termed as software programs created specifically to help you safely store your crypto coins and provide easy accessibility to them, as and when you need. Below we have detailed some of the most commonly-known wallet types available in the market today. You can choose any based on your preferences and needs.
Web Wallet Various exchange and brokerage platforms provide web wallets as a part of their service. These wallets serve as convenient places to store and quickly access your KMD coins, but have limitations in terms of security. In the past, there have been instances of exchanges going bankrupt or owners fleeing with traders’ funds. Though these wallets provide easy accessibility, you can find more secure options in the market.
Mobile Wallet As can be gauged from its name, a mobile wallet is meant to be used on a mobile device. Such wallets come in the form of applications which are equipped with better security features than web wallets, such as inbuilt security protocols, unlock PIN codes and biometric verification. Having said that, being constantly connected to the Internet and installed on a mobile device, makes them vulnerable to hacking attempts and theft respectively. AtomicDEX is the official and native Komodo wallet used to store KMD coins. Apart from that you can opt for other popular ones like Abra, CoinCollect and Pungo too.
Desktop Wallet Even though desktop wallets are less convenient than mobile wallets, owing to the latter’s easy portability, they deliver a more secure environment for crypto storage. Used primarily on desktop and laptop computers, these software programs come equipped with some solid security enhancements and protocols including Two-Factor Authentication. If you’d like to store your Komodo coins in a desktop wallet, you can consider popular options like AtomicDEX, Ocean QT, Guarda, Atomic, Zelcore, and Verus.
Hardware Wallet As hardware wallets usually come in the form of physical devices, normally the size of Pen drives, and stay disconnected from the Internet (unless you manually plug them in), they are considered the safest of all the crypto wallets in the market today. Their offline mode also gets them categorised as a type of cold wallet. Some of the popular hardware wallets you can store your KMD in include models by Trezor and Ledger.
Wallet Combinations Some of the crypto wallets can be linked to each other, to provide you with higher security and greater convenience at the same time. For instance, you can store the majority of your KMD in a hardware wallet like Ledger and maintain a small portion, for quick access, in the AtomicDEX mobile wallet. This way, even if your mobile wallet gets compromised, the majority of your KMD holding will stay safe.
What Other Coins Can I Trade or Use to Buy Komodo?
In the event that you are unable to buy KMD using fiat currency on any of the exchange or broker platforms, you can always purchase it through the KMD trading pairs offered on the reputed crypto exchanges. For instance, you may be able to buy Komodo with Binance Coin, Tether, or some other widely-accepted cryptocurrency.
What’s the Smallest and Largest Amount of Komodo I Can Buy?
It’s normal to see new crypto investors asking questions such like “what’s the minimum purchase for KMD?” or wondering if they’ll be allowed to buy KMD without limit.
Exchanges may put some restrictions on the maximum KMD allowed to be bought on their platforms, or may even have to cap such purchases owing to existing regulatory restrictions. Furthermore, as the Komodo price is currently in the vicinity of $2.50, it may not be practical to purchase less than one KMD coin. Please keep in mind, some unregulated websites may allow you to purchase large quantities of Komodo, without any capping. You’d be better off staying away from such portals.
To sum up, it’s the platform you use for KMD purchase that will determine if you can buy small amounts of KMD or not, or if there’s any KMD buy limit on the bulk purchases.
Can I Buy Komodo Anonymously with no ID? Is it Safe and Legal to Buy Komodo?
If you’re wondering whether it’s possible to buy KMD with no verification, or if you can buy KMD without ID submission, we’d like to stress that though it may be possible to do so, on some unregulated websites, you’d be putting your funds at a great risk by taking such a step.
The best way you can buy KMD safely is by transacting on a regulated platform, which uses the strictest security protocols to safeguard your information and funds. Though it will ask you to upload some government-issued ID to complete your purchase, you’d at least be satisfied in the end that you made a secure KMD purchase, without falling prey to any criminal actors.
Will Buying Komodo Make Me Money?
So, does buying KMD make you money after all? Or is it possible to buy KMD to get rich?
We’d like to stress here that anyone who is buying KMD should keep in mind that the price of KMD, just like any other crypto coin, is prone to abrupt fluctuations, due to the fundamentally volatile nature of the cryptocurrency market. If you can stay patient and weather the market upheavals, you can potentially benefit a lot in the long term. Additionally, it’s not uncommon to see the prices of altcoins fluctuating by as much as 25% multiple times within 24 hours. Hence, short-term traders can also possibly do very well by dabbling in KMD. If you’d like some updated info on how much does it cost to buy KMD today, you can refer to our KMD Price Page for more details.
How to Spend your Komodo
Unlike Bitcoin, Litecoin, and other popular cryptocurrencies which are primarily used as a means of payment at online and off-line platforms, KMD coin is mainly used to facilitate and enable on-chain operations on Komodo. Hence, there’s not much chance that you will find any merchant accepting KMD for goods and services.
How to Sell your Komodo
When it comes to selling your KMD coins, it would be best that you sell them on a platform that you purchased them from originally. For instance, if you bought KMD at a crypto exchange and then transferred them to a wallet, you must move them back to the same exchange account, by paying a small fee. Then you can initiate a sell order on that exchange, and wait for potential buyers to respond.
In the event that you took the CFD route to invest in KMD, and chose a regulated broker platform for your trades, it would be very simple for you to sell your holdings. You’ll simply need to close the CFD trade and assume the corresponding profit or loss.
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Frequently Asked Questions
Komodo’s blockchain platform uses something called Atomic Swaps, which are peer-to-peer crypto trades that allow easy exchange between two different coins, from one user’s wallet to another’s.
The Komodo team claims to be working on a revolutionary set of use cases for the KMD coin. They’re creating the next-gen DEX and DeFi tech, promising to transform the whole blockchain industry. KMD is central to this novel initiative.
KMD has a max supply of 200 million coins, of which around 125 million are in circulation right now.
Komodo was founded by a developer named James Lee.
Komodo’s all-time high price was $11.54 on Dec 22, 2017, and the all-time low was $0.037 on Mar 13, 2017.
The market cap of Komodo at the time of writing this guide was around $324 million.
AtomicDEX is a highly secure native Komodo wallet that also works as a non-custodial decentralised exchange.
Regulated KMD brokers are bound to deliver a higher level of security to the traders/investors, compared to unregulated crypto exchanges. In fact, lacking in this department can potentially cost them their license.