How to Buy Synthetix (SNX) in 3 Simple Steps

How to Buy Synthetix

If you’re looking for a simple way to buy Synthetix, all you need to do is sign up with a crypto exchange. You can access it online with a computer, smartphone, or tablet to quickly buy and sell Synthetix and a range of other cryptocurrencies. The best platforms are listed below as well as a quick step-by-step guide on purchasing Synthetix.

1. Choose a platform

Start by deciding which platform you want to use to purchase SNX. This may depend on whether it provides specific features such as trading tools or a demo account. It’s also worth finding out what fees it charges before signing up. We’ve detailed some of the top platforms later in this guide to give you a starting point, but you can select the top choices quickly below.

2. Create and fund your account 

Create an account with your chosen platform by filling in a registration form, which will ask you for your personal details and contact information. You will also likely need to provide a photo ID before your account can be verified. Then you can make a deposit with any of the payment methods accepted.

3. Buy Synthetix

Now that you have a funded account, search for SNX in the relevant trading pair. For example, if you just deposited British pounds, you’ll need to find the SNX/GBP trading pair. You can now create a buy order for SNX—a market order if you want your tokens instantly, or a limit order if you want to buy at a specified future price.

What Is Synthetix?

Synthetix is a DeFi platform where users can gain exposure to a range of assets through synthetic assets known as “Synths”. Synths are blockchain tokens that track the prices of external assets such as cryptocurrencies, fiat currencies, commodities, and indices. For example, the sBTC Synth tracks the price of Bitcoin, while sUSD tracks the U.S. dollar.

This means Synthetix users can leverage the speed and convenience of blockchain to gain exposure to a range of crypto and non-crypto assets in one place—without actually owning the underlying asset.

Different Synths can easily be traded on Synthetix.Exchange without the friction that would normally come with swapping between different types of assets. Synths are created through the Mintr decentralised application (dApp) by staking the protocol’s SNX token as collateral. SNX stakers are rewarded for supporting the system with a share of the fees generated.

Ways to Invest in Synthetix

Each investor has different aims and different levels of experience. Some only invest for a short period while others invest for the long term. This is simply a matter of preference and both approaches have the potential to be profitable.

Buy and hold Synthetix

This is the simplest strategy to follow as it does not require much time or any special skills—anyone can buy SNX and hold onto it, making the buy and hold strategy an easy way of potentially generating profit.

There is also the possibility of earning a passive income while holding SNX as the token can be staked to earn SNX rewards and a share of the fees generated on Synthetix.Exchange.

Best Synthetix wallets

A private wallet may provide extra security and give the owner full and exclusive control over its contents. This is why many investors prefer to self-custody their SNX tokens after purchasing them. Most private wallets are either hardware or software.

Hardware wallets often come in the form of a USB stick and provide the best security. The only downsides are that they can be expensive and not as user-friendly as some alternatives. Popular brands include Trezor, BitBox, and Ledger. Software wallets can be downloaded onto computers or mobiles for free and are easier to use, albeit less secure, than hardware wallets.

Trade Synthetix

Those who aim to generate regular profits by buying and selling SNX on a much shorter time scale are traders. This is harder to master than the buy and hold strategy as traders often spend a lot of time analysing the market to find the best times to execute trades.

Transferring SNX from a private wallet to your trading platform every time you want to make a trade isn’t very convenient. This is why traders often favour web wallets provided by trading platforms for storing their SNX.

Should I Buy Synthetix Now?

This is up to you but it is best to be well informed before making this decision. The supply of SNX is subject to perpetual inflation, which can be seen as negative for long-term price. However, this inflation is distributed to SNX stakers, which could incentivise more people to buy SNX for staking and could mean that staking rewards will more than make up for inflation for those that stake.

As SNX is used to mint Synths, its value is directly linked with the usage of the Synthetix protocol, meaning greater success for Synthetix could see SNX rise in price. The protocol already attracts users by providing a convenient way to gain exposure to a range of asset types without any of the complications associated with owning and custodying the underlying assets.

This has benefits over the current, fractured financial system, and as Synthetix broadens the range of Synths available, it may attract more users and become the go-to platform for traders and investors who want a diverse portfolio.