5 Things to Consider if you Want to Buy Yearn.finance
Now that you have decided to get involved with YFI, there are a few things you need to consider before you start buying YFI. Consider these five things as a checklist that you need to cross out to ensure you are prepared to handle the digital asset.
1. Carefully choose your preferred secure payment method
A problem with accessing crypto-assets is the kind of payment modes supported on various platforms. Some regions have it bad compared to others, with exchanges opting to focus on specific regions and neglecting others due to regulations. Depending on where you are located, accessing the digital asset might be a problem since the payment modes supported don't allow you to make the purchase. There is a tendency to come across unscrupulous platforms in such markets that will pretend to offer the service only to steal your hard-earned cash. Therefore, you must pay attention to the payment modes available to you when starting this journey. At least they should be reputable, safe and secure.
2. Will you need to set up your own wallet?
The answer to this question depends on if you intend to deal with the actual asset or not. As you will see later, there are many ways to profit from dealing with YFI, both short-term and long-term. If you opt for brokers, there will be no need for a cryptocurrency wallet since you will be dealing with financial instruments attached to the digital asset.
3. Comparing costs
There are various costs you will encounter on your journey to purchasing Yearn.finance. The costs will be in the form of fees charged by platforms and the coin's network. Typically the best option is to choose the path with the most negligible fees without compromising the level of services you receive. It's important to note that fees can accumulate over time and eat a chunk of your profits, especially as a trader.
4. Safety and security
This has to be on top of your priority list since the last thing you want is to lose your investment. Going for reputable brokers and exchanges will help your cause since they already have robust security measures in place and have been audited to be safe for investors. Today, regulators will require these platforms to hold licenses with security certificates indicating that user funds are protected. Most will use cryptography and encryption to protect user accounts from hackers. Some top exchanges will store 90% of all the funds they hold in cold wallets to minimise the damage if they are breached and will even have insurance funds to reimburse users. On a personal level, users can protect their accounts using strong passwords and two-factor authentication (2FA) using Google Authenticator, SMS and email authentication. Also, these platforms will work with only reputable payment processors to enable you to access various digital assets such as YFI. If you opt to use decentralised markets or less reputable platforms, you will have to be extra careful, and DYOR since the risk of losing your capital is high.
5. Can you understand and navigate the platform?
It's good to test out the platform before settling to handle your business there. This means checking out various features and how easy they are to use. Great platforms will go for simplicity, making them less intimidating to new users with less experience. Also, they will have tutorials on how to navigate and easily accessible customer support in case you get stuck.
What is the Best Payment Method for Buying Yearn.finance?
The section below will cover the many payment options at your disposal when it comes to buying YFI using exchanges or even funding your broker account.
Buying YFI with Debit/Credit Card
This has to be the most popular mode of payment for online transactions today. Therefore it's one of the options you will find supported on various exchanges and brokers to fund your account. The process is simple and straightforward even though you might realise there isn't a direct way to access the token on exchanges. This means you will have to access another token before swapping it for YFI.
Buying YFI with Crypto
On exchanges where YFI isn't accessible directly using fiat options, you will have to use other crypto coins to get a hold of the token. This involves acquiring a popular cryptocurrency like Bitcoin accessible using a credit/debit card and then trading it for YFI. Some platforms that support many coins will allow you to swap popular coins such as BTC, ETH, and BNB for YFI directly at a minimal cost. What if accessing crypto is proving troublesome due to lack of supported platform within your region and regulation issues stopping financial institutions from facilitating crypto transactions?
Buying YFI Peer to Peer
P2P platforms are your best option, even in areas barring crypto assets. Most of these platforms are decentralised, which means they are not overseen by any single entity that can be answerable to anyone. They allow users to trade peer to peer. It's easy to get your hands on popular coins such as BTC and ETH using these platforms. Also, you have access to many local payment modes, unlike centralised exchanges. This makes it easy for anyone to buy and use crypto in restricted areas. Once you get a hold of BTC or ETH, you can transfer it to a platform that supports YFI and make the swap. If this process seems ambiguous, don't panic. Today, a few centralised platforms offer access to P2P services where you can get your hands on a stablecoin and swap it to YFI all on the same dashboard.
Buying YFI Using Third-Party Payment Options
Another popular way to buy YFI on exchanges or fund your broker account is to use third-party payment options. Popular options here include PayPal, Skrill, CashApp, and many others. Popular platforms will offer access to these modes, and you are free to use them if you find them convenient.
What Fees are Involved in Buying Yearn.finance?
This part will explain the various costs you are likely to encounter on various platforms and using different payment modes. These costs exist as fees, as mentioned earlier.
Different platforms will charge different fees when it comes to buying and selling YFI. You need to pay attention to these fees, especially if you are a trader since they can impact your bottom line. On exchanges, you will experience network fees that are part of the transaction fees. Brokers will most charge commissions for a given bunch of trades. Also, you are likely to encounter inactivity fees if you go for long without using your account.
These fees will come from the payment processor you choose to use to fund your account. Exchanges and brokers will not be charging any fees for this activity. Therefore, you have to consider the fees charged by various payment processors and see who charges fair fees or even no fees as long as you don't compromise the quality of service you receive.
These are fees associated with taking funds from your trading account if you're a broker or taking your coins from an exchange. They comprise network fees for sending tokens from one wallet to another. Most brokers will not charge any fees for this activity.
Safely Storing Your Yearn.finance
The section below will cover the various options available to you to store your YFI tokens.
Web wallets come in the form of exchange-supported wallets or browser extensions. Exchange custodial wallets offer a convenient way for users to store their YFI tokens for traders or people who need constant transactions. They are pretty convenient, however, they are risky since you will lose your tokens if the exchange gets hacked.
These are applications you install on your smartphone. They offer better security compared to exchanges due to inbuilt layers of security on the devices. They can be from popular crypto exchanges or companies that focus on building such software. They offer convenience as one has access to their YFI tokens on the go. However, they pose a security risk if one was to take hold of your mobile device and happen to have your login details. A popular example of a YFI mobile wallet is the Atomic wallet.
These are applications you install on your desktop that helps one store their YFI tokens safely. They are convenient for individuals who need regular access to their tokens, such as traders or those who need to conduct regular transactions. They are a bit safer compared to web wallets since they are mostly not online. Atomic wallet is a good example of such a wallet.
These are physical devices that resemble USB flash drives. They host apps that allow one to store their YFI private keys. They offer the best security since they are not connected to the internet most of the time and are recommended for individuals with significant investments and long-term holders. Popular YFI hardware wallets include Trezor and Ledger.
You are not limited to one category of wallets since you might be both a short-term and long-term investor. This means you need wallets that will help you trade and store your tokens for the long term. Here you can opt for a combination of the best web, mobile and desktop wallets for trading while using hardware wallets to safeguard your long-term investment.
What Other Coins Can I Trade or Use to Buy Yearn.finance?
You will find that YFI is paired with various coins that it can be traded against on popular exchanges. Most of these include stablecoins such as USDT and BUSD. Also, it's not uncommon to find pairs involving some popular coins such as BTC, ETH or BNB.
What's the Smallest and Largest Amount of Yearn.finance I can Buy?
Despite having only 30,000 tokens available and with one going for about $39,000, it's possible to access YFI tokens worth even $10 since the token is divisible up to eight decimal places. Most exchanges will allow you to buy tokens worth about $10 to cover network fees. As for brokers, you need to fund your account using the minimum allowed amount. This can be anywhere between $100 and $250.
You can buy Yearn.finance without limit but check your local laws since some jurisdictions impose a maximum limit on investments in a financial year.
Can I Buy Yearn.finance Anonymously with no ID? Is it Safe and Legal to Buy Yearn.finance?
Yes. This is possible using decentralised exchanges that don't ask for KYC. However, you need to be careful since the chances of getting scammed by anonymous individuals are higher. It is always good to do your due diligence on platforms and modes you opt to use to ensure a secure Year.finance purchase.
Will Buying Yearn.finance Make Me Money?
There is no guarantee on this, just like there isn't a guarantee on anything in life. But with an ROI of over 3500% over the past few months, it seems investors have made profits investing in this token. Brokers will allow you to make potentially more depending on your risk appetite. You should research the price of a token before investing. If you wish to learn more about the price history of YFI, please visit our Yearn.finance Price Page.
How to Spend your Yearn.finance
There is no limit on how you can spend your YFI tokens. You can buy goods at merchant points that accept the token, buy services and most importantly, convert the tokens to fiat and spend them as you wish.
How to Sell your Yearn.finance
The selling process is as easy as the buying process. The same platforms that offer access to this token are the ones that will allow you to sell your coins. Most platforms will have tutorials on how to go about this process if you get stuck or seek customer support services. On exchanges, you will need to transfer the YFI token and sell it.
On brokers, the process is much simpler as all you need to do is close the CFD trade.