Kusama is often referred to as the “canary” network for Polkadot, as it provides a testing ground for developers with the same blockchain architecture as Polkadot. The fast pace of development on Kusama and the project’s openness to experimentation could make it a hotbed of innovation in the years to come.
With its unique position and innovative technology, Polkadot’s “wild cousin” has attracted significant attention from investors, especially since the launch of its “parachains”. Keep reading to find out how to buy KSM and why this project could have potential.
The easiest way to buy Kusama is to purchase it online from a crypto exchange. Exchanges make it easy to buy and sell Kusama and other cryptocurrencies directly from your smartphone, tablet or computer. Check out our recommended platforms below and follow the steps to safely buy Kusama.
The first thing you need to do is decide which platform you want to buy KSM through. Security and reputation are two of the most important aspects to consider when selecting a platform, which is why we recommend brokers and exchanges which are well regulated. You can check out our recommendations in the table below.
Log in using the app and claim the Mystery Box to receive up to $10,000 in reward
One of the top digital asset exchanges by trading volume
Serving millions of users in over 100 countries
OKX is a world-leading cryptocurrency exchange, providing advanced financial services to traders globally by using blockchain technology.
Bank Transfer, Debit Card, PayPal, neteller, Credit Card, Wire Transfer, Visa, Mastercard, American Express, AdvCash, AliPay, QIWI, WeChat, Discover, Banxa, Simplex, Mercada Pago, PicPay, Bank Transfer: SEPA, Easypaisa, Esewa, FasterPay, Gcash, IMPS, Interac e-Transer, Itez, JazzCash, Mercuryo, Monese, MoonPay, Naqui, Papara, PIX, RAAST, Safaricom, Wise, Zain Cash, Zen, Cash App, M-PESA, PhonePe, Tinkoff, Vodafone Cash, Bank Transfer: UPI, Payoneer, Paytm, skrill
Trading in digital assets is considered high risk. Digital assets are NOT backed by any government or central bank. The risk of loss in trading or holding digital assets can be substantial. You should carefully consider whether interacting, holding, or trading digital assets is suitable for you in light of your financial condition.
Combines a user-friendly platform and low fees
Largest digital asset exchange in the Netherlands
Trade over 50 digital assets and pay a maximum trading fee of 0.25%
The Bitvavo platform was launched in 2018, with the goal to bridge the gap between traditional currencies and digital assets. Bitvavo is making digital assets accessible to everyone, by offering transparent fees, a wide range of assets and an easy to use platform.
Debit Card, Credit Card
Margin Trading with full legal compliance
Various Payment options
Cex.io offers exchange of fiat currency for Bitcoin Ethereum, Tether, and 23 other cryptocurrencies, as well as Bitcoin/Ethereum trading against the USD.
Debit Card, Credit Card, Wire Transfer, Cryptocurrencies, skrill
Once you’ve made your selection, create an account. A regulated broker will require you to go through the Know Your Customer (KYC) process, which will involve providing your name and contact information, and usually means uploading a photo ID and proof of address. Once done, go to make a deposit and choose one of the available payment methods to fund your account.
Now that you have an exchange or brokerage account with funds in, you’re ready to make a purchase. Search for KSM and select the KSM trading pair that contains the currency you funded your account with. Place a market order to buy KSM instantly, or a limit order to purchase it once it reaches a specified price.
Kusama is an experimental blockchain platform where developers can test out their decentralised applications (dApps). It inherits its infrastructure design from Polkadot and involves a large number of independent blockchains called parachains. Every parachain can host a different dApp, with each chain being optimised for a specific use case and having its own token and economics.
The KSM token has three main functions: it can be staked to secure the network in Kusama’s nominated Proof of Stake (NPoS) consensus system, it can be used to create parachains through bonding, and it functions as a governance token to allow holders to vote on things such as protocol changes, upgrades, and feature requests.
One difference between Kusama and Polkadot is that the on-chain governance process is much faster on Kusama, meaning developments and improvements are implemented quicker. This is why many developers are keen to deploy to Kusama and test their dApps in a scalable and interoperable environment.
Kusama has attracted a range of investors—all with different aims, levels of experience and amounts of free time. For this reason, people like to buy KSM in different ways—from short-term traders to long-term investors.
Simply buying and holding KSM can be a good way to take advantage of long-term price appreciation. Your KSM doesn’t have to sit idle while you hold it though—holders can stake their tokens to earn interest.
What’s more, with many projects deciding to crowdfund their bids for parachain slots, KSM holders can also bond their KSM to help a project win a slot. Successful projects may choose to reward those who contributed with airdrops of their native token.
If you decide to buy and hold KSM, you’ll need somewhere to keep it. The platform where you purchased it will likely provide you with a web wallet where you can store your KSM for free. While this is convenient, it isn’t the most secure storage solution, which is why many investors choose to self custody their KSM in a private wallet.
Software wallets such as MetaMask, Atomic Wallet and Trust Wallet can be downloaded onto a desktop or mobile device and tend to be free and easy to use. Hardware wallets, on the other hand, include the likes of Ledger, Trezor and KeepKey. While these are the most expensive type of wallets, they also provide the best possible security.
Those with less patience may also find Kusama appealing as its volatility makes it well suited to making quick profits. Traders can simply buy and sell KSM, but on a much shorter timescale than investors. Alternatively, they can trade derivatives such as futures, options, and contracts for difference (CFDs), which allow traders to speculate on the price of KSM without actually owning it.
Traders probably won’t need to set up their own private wallet for KSM, as constantly transferring tokens to and from an exchange or broker to make trades could be costly and time-consuming. The web wallet provided by the platform will likely be the most convenient option for traders.
This is something you’ll need to decide for yourself based on your own preferences, but there are a few factors worth considering. As the scalability issues and soaring gas costs of Ethereum become more apparent, developers and users alike have been looking for alternatives, and Kusama is already ahead of Ethereum in terms of throughput and efficiency.
One development that could contribute to KSM’s future price movement is the rollout of the parachain auctions. Kusama’s independent blockchains are being auctioned off to the highest-bidding crypto projects. Bids for parachain slots must be made in KSM and the winner will have the tokens they bid locked up for the duration of their lease period. This simultaneously drives demand and puts downward pressure on the token supply—potentially a very positive combination for KSM price action.
Even once Polkadot rolls out its own parachain auctions, Kusama could still be a valuable project. There will always be fresh startups looking for a testing ground, and even more established projects might prefer the faster pace of development and lower barrier to entry that Kusama offers.
Finally, Kusama is already developing its own decentralised finance (DeFi) ecosystem that might one day rival Ethereum’s, bringing more use cases and demand for KSM. Kusama certainly appears to have a lot of promise, which might explain why so many retail and institutional investors are starting to turn their attention to this innovative project.