What is Stratis?
Stratis was founded in 2016, so it is a relatively new cryptocurrency. It is based on Bitcoins technology, which gives it the same decentralised peer-to-peer network properties, as well as having Bitcoins reliability and scalability.
Walkthrough Video that Explains How to Buy Stratis Online
It almost comprises of two different avenues. The first is its primary blockchain that maintains the Stratis token as a cryptocurrency. This is the token you can trade and holds a dollar value. At the time of writing, the Stratis token is trading at $6.49.
The second avenue is the Stratis platform. Created to provide solutions for corporations that want to enjoy the benefits of blockchain technology. The platform was designed to deliver simple solutions and as an easy way to deploy a blockchain. Essentially a blockchain for dummies.
The platform can allow companies to experiment with blockchain technology and see whether it can serve a purpose to their business.
Stratis appeals to businesses
Blockchains are huge databases that are verified by the network, offering security and transparency. The application for this technology is growing by the day, not just focusing on cryptocurrency verification. Stratis is an excellent entry for businesses that are unsure of the technology. It’s very simple to create your own database and offers an academy to walk you through the whole process.
They offer a full service for development, deployment and management of blockchain applications and solutions. This means not only can you use the platform but they will basically help you develop the blockchain and walk you through the process, acting as consultants in the process.
It has been designed for real world financial services, for test and deploy strategies. And in the future, should be able to create a custom token where Stratis will facilitate the process of running a successful ICO.
What is so special about Stratis?
Stratis & Microsoft connection
Bitcoin uses C++ as its source code language whereas Stratis uses C#, which is considered a more modern language and arguably easier to learn (I am not a programmer, so do not quote me on that, but that is what I hear).
Using C# gives Stratis a huge advantage over other cryptocurrencies because it has been able to forge a partnership with Microsoft.
Maheshi Chand (previous 12-time Microsoft MVP and founder of C# corner) is a board member of Stratis, which is one of the most popular communities for Microsoft developers and programmers. This gives Stratis access to a multimillion user database of C# programmers who can build and develop advanced dapps (a new model for building successful and hugely scalable applications).
Stratis sidechains and mainchain
Stratis' ability to create private blockchains that can be launched by third party organisations can give many businesses access to a huge data base. These separate blockchains are also secured on the main Stratis blockchain and means that companies can launch their own blockchain applications without the inherent costs and complications of building and maintaining their own network. They can then take advantage of pre-existing features on other blockchains like Ethereum and Waves.
These sidechains will also allow businesses to benefit from the mainchain but not bloat it, meaning that transaction times are reduced and the workload for your computer system is relatively low.
Stratis tokens and its inflation
Stratis platform is built using Bitcoins node platform, where masternodes perform certain tasks and get paid to do so. Masternodes are only offered to those who have 250 thousand Stratis tokens, which at the time of writing this, is worth $1,622,500..
Now, I can't afford that I and am sure I am not the minority in that respect. Had you got in early, you might not have needed so much but either way it is a lot of tokens required to have a node. If you are one of the lucky few that can afford a masternode, then it is a great investment and will reap excellent returns.
For those of us that do not have that many tokens, the fact that all these Stratis tokens are out of the market will ultimately inflate the price of those that are left.
This is only relevant in the short-term because the ultimate aim is for the inflation rate to be 0%. There is no cap to the amount of Stratis coins however the increase will be minimal (<1% annually) and will continue to get lower.
Proof of stake
Rather than mining for coins like Bitcoin, Stratis uses proof of stake, which simply means that you are rewarded with more Strat coins as you stake your exisitng coins. The more you hold in your wallet the more are rewarded, although over time, rewards will reduce as more are handed out.
Should I buy or trade Stratis?
Should you buy and hold Stratis? Buy and hold strategies should be based on the fundamental properties of the asset in question. When you are looking to invest in assets or projects, you should focus on whether the asset has; longevity, scalability, reliability and value.
Bitcoin is the leader in the crypto market at the moment and as such has received vast amounts of research surrounding its workings. This has hugely increased its reliability and really pronounced its scalability. Given that Stratis uses the same technology as Bitcoin, it also gains a lot of the reliability and scalability that comes with Bitcoin.
I think Stratis also has longevity. Being more relevant to real-world applications I think gives Stratis a real advantage. As cryptocurrencies and blockchains are a relatively new innovation, being able to appeal to businesses that have little knowledge about the technology means that it can appeal to a huge market.
Given the point above I would also suggest that because of the scope Stratis has, there is certainly value in the technology.
Given the volatility we are seeing in the crypto markets, it definitely offers plenty of opportunities to trade cryptocurrencies like Stratis. The volatility can obviously offer huge gains as well as huge losses, so it is advisble to be careful when looking to trade crypto.
Brokers are becoming more relaxed about trading cryptocurrencies. They are now offering you the opportunity to trade cryptocurrencies on leverage, this is done by trading CFDs. They are beginning with the larger currencies, so your Bitcoins and Ethereum are available to trade using CFDs but the smaller cryptocurrencies are yet to make an appearance as a CFD.
There are lots of crypto exchanges where you can trade Stratis. You will be owning the actual asset and so must have access to a wallet in order to buy Stratis.
How to buy Stratis online - step by step guide
Stratis is not yet considered one of the 'big boys' in the crypto world just yet. And becuase of this it is difficult to buy it directly with fiat currency. The likes of Bitcoin and Ethereum are available to buy directly but not the smaller up and coming coins just yet.
This then means you must go through a two step process to won Stratis. The extra step involves buying one of the 'big boys' first and then trading it for Stratis. There are lots of exchanges you can use to trade either Bitcoin or Ethereum for Stratis.
Before you own Stratis, you need somewhere to keep it. This is called a wallet and must be downloaded onto your computer or phone. You can also store them online using online wallets. A crypto wallet works the same way as an email address, you are provided with an address and a password. The address is sent to the person you are trading with and they can send what you are buying into your wallet.
To buy Stratis we will show you how to firstly buy Bitcoin and then exchamnge it for Stratis.
- Top buy Bitcoin, there are various exchanges you can use. Make sure you choose one that allows you to buy using fiat currency. We will show you using Coinbase.
- On Coinbase you will be asked to open an account.
- Once you set up an account, you need to add a payment method. There are two ways; bank transfer and credit / debit card.
- Coinbase requires verification of identity for security reasons. You must provide a copy of a form of ID. Once sent over and verified, you are good to buy some Bitcoin.
- You can then fund your account with GBP, EUR or USD. You can then buy as much Bitcoin as you like depending on how much you have put into your account.
- The next step is to find an exchange where you can trade you Bitcoins for Stratis. Coinswitch is an excellent exchange that actually works as a price comparison sight. Comparing the best exchanges and the prices they offer.
- On coinswitch.co, choose the currency you intend to trade. This will be Bitcoin to Stratis. Then click continue.
- In the section 'You have', put in how much Bitcoin you intend to exchange. This will calculate how much Stratis you are due. You will then be shown various exchanges and the different prices they offer. Pick the one that suits you best and click 'Exchange'.
- Here you must enter your Stratis wallet address (you received this when you opened your Stratis wallet). Check 'I agree to terms' and then click 'next'.
- You will find yourself on a processing page where the transaction is completed. The final step is going back onto Coinbase and sending your Bitcoins over to the address you received in the processing page. Once you send over the coins, this will all be verified on the public ledger.
How to buy Stratis with a credit card
You cannot buy Stratis with a credit card directly yet, however I wouldnt be surprised if you can soon. Until that point you must go through the two step process and buy a more established cryptocurrency first and then exchange it for Stratis.
If you do find a way to buy using your credit card, I would advise you approach with caution because you may encounter some scam sites looking for an opportunity.
How to trade Stratis
As we mentioned earlier in this guide, there are various exchanges where you can trade Stratis; Bittrex and Poloniex are two of the leading exchanges in the market at the moment. when using these you must make sure you have a wallet because you will be trading the actual asset.
Compared to other means of trading where you are trading derivatives of assets. Brokers are beginning to offer derivatives of cryptocurrencies now. They are offering the larger coins as CFD products. AVA Trade for example are an excellent broker where you can trade Bitcoin, Ethereum, Litecoin and more.
If you are looking to trade Stratis as a CFD, unfortunately it is not available at the moment but assuming everything goes well with the 'big boys' of the crypto world then I would not be surprised to see the likes of Stratis as CFD.
Until then you can trade other crypto coins using brokers such as AVA Trade.
To open an account you must:
- Go to AVATrade.com and sign up by the normal details.
- You will be asked a series of questions to make sure that you have enough knowledge on the sector. This is simply because AVA Trade do not want anyone to blow an account and the better educated you are the less likely you will do that.
- You will then be asked about to choose an account, select 'Floating Spread Account' with MetaTrader4 (MT4). This is arguably the most popular trading platform on the market and can synch to any other broker. Getting used to it will be beneficial in the long run as most brokers use MT4.
- Next, you must fund your account. Similar vain to Coinbase, you must decide how to deposit and similar to Coinbase again you must deposit using a bank transfer or credit / debit card. You then have the choice to trade using a web browser or you can download thge software and have the complete package on your computer.
The future of Stratis trading
If Stratis is successful and can begin to create new tokens for companies to use, it can provide consultancy services, advising companies on which features to use and how to use them. If you bear in mind how many kinds of businesses require databases, from financial service companies to small restaurants, you can imagine the size of the market that Stratis could one-day appeal to.
For this very reason, I think that the future for Stratis looks bright. I like that it brings in simplicity to what is a complex idea, in blockchain technology.
The fact that the sidechains are non-disruptive to the primary blockchain is a positive. This technology is attractive to those billion-dollar companies who do NOT want to create projects that will co-exist with other companies. The smart contracts on Stratis eliminate risk as they work on their own side chain, no interference from other faulty tokens.
Easy reward process
I also like the way you are rewarded with the coins. Unlike Bitcoin that requires heavy-duty computing power to mine for the coins, Stratis simply stakes your coins and you’re rewarded for having them in a wallet. This will appeal to more people because they will not have to front a large amount of cash to buy the computers and the power they need.
The collaboration with one of the world’s largest and most famous tech companies (Microsoft), is also another benefit to the future of Stratis.
The combination of all these points, point to this cryptocurrency and platform being here for the long haul.
Enjoyed this Stratis guide? Then see our other cryptocurrency guides:
- How to buy and trade Bitcoin
- How to buy and trade Dash
- How to buy and trade Dogecoin
- How to buy and trade Ethereum
- How to buy and trade Golem
- How to buy and trade Litecoin
- How to buy and trade Monero
- How to buy and trade NEM
- How to buy and trade NEO
- How to buy and trade Peercoin
- How to buy and trade Potcoin
- How to buy and trade Ripple
- How to buy and trade Stratis
- How to buy and trade Tezos
- How to buy and trade Waves
- How to buy and trade Zcash