How to Buy and Trade Waves in 2017

The Beginners Guide to Buying, Trading and Selling Waves

What is Waves

Waves is claiming to be money for the internet or as their slogan says 'money, but better'. So, what actually is Waves and is it competition to money?

Waves is a new platform where you can create tokens to represent any asset; a car, a commodity like gold, a fiat currency or a cryptocurrency. 

It's core business is asset/custom token issuance, transfer and trading on blockchain.

Walkthrough Video that Explains How to Buy Waves Online

If you wanted, you could create a token to replace the US dollar. And then should you be deemed trustworthy, you can then use those dollar tokens in a transaction.

It gives people a way of digitising an asset, and makes the transaction of an asset a lot more seamless.

All transactions are done using blockchain technology. Meaning that transactions are recorded on a public ledger maintained by the network. You can earn money (or waves) by generating blocks to add to the blockchain. Each transaction comes with a fee, which is then rewarded to the person who adds to the blockchain. 

To add a block to the blockchain you must run a node, the bigger the node the more chance of adding to the blockchain and the more likely you will get paid.

Not only is Waves a decentralised cryptocurrency but it also acts as a decentralised exchange. It performs at the same speed to centralised exchanges but does not suffer from similar security frailties. 

What is so special about Waves

Custom Application Token

The first thing that stands out about the Waves platform is custom application token. The aim is to make it very easy to manage and issue their very own digital token.

This then allows decentralised crowdfunding, like other crowdfunding blueprints but all done on the blockchain.

If you are a company and you want to crowdfund, you can raise money by issuing tokens. Those tokens can then be resold by the token holders. 

Unlike traditional crowdfunders you do not have to wait until the product is launched and you can transfer your stake with another person. You can begin a campaign a lot quicker because there are no centralised moderators that approve your campaign. And as there is no centralisation, infrastructure is reduced which brings down costs.

Decentralised Exchange

Waves has a decentralised exchange. As the founder of the waves platform says "Decentralised blockchain tokens are being traded on very centralised exchanges. Essentially it's a contradiction in terms that manifests itself in these exchanges being hacked all the time."

So how does this differ from a centralised exchange? The Waves platform has a server that matches incoming orders but does not have access to your funds. You have full control of your funds at all times and so makes the Waves exchange considerably safer than centralised exchanges.

Once an order is matched, it initiates the transfer on the blockchain (therefore being transparent and is verified by the Waves network).

Rent your Waves

We briefly mentioned earlier that in order to add a block to the blockchain you must run a node. To run a node, you must have 10,000 waves, which is quite expensive now (Around $5 a wave). So how can you make money in the Waves network?

You can rent out the waves you do have. If you rent out 1,000 waves to someone who has 10,000 waves, they would then have 11,000 and would then have a higher chance of adding to the blockchain. If you add to the blockchain, you are then rewarded with transaction fees.

By renting out your waves, you are also helping to secure the network.

Should I buy or trade Waves?

Buy Waves

Waves current market cap is just over half a billion dollars, it like many other cryptocurrencies has seen a huge price increase this year. 

There has been talk of this crypto boom being a bubble. Whether thats true or not, people are still looking to invest in cryptocurrencies. When investing you should be looking at the ones that have a good underlying value. This basically means, do you think the technology that the cryptocurrency you invest in will hold up if the bubble bursts?

Waves are producing new technology and new ideas into the crypto market place. The introduction of a decentralised exchange is certainly something I think has a place in the future. 

However, I think namely the most exciting prospect to come from Waves is the ability to crowdfund so easily. This may begin the new wave of fund-raising, as its quicker but it also allows the token holders to transfer their own tokens.

 

Trade Waves

Since we have seen the large increase in price recently, we have seen an increase in volatility. Volatility is needed for traders to make money from any market. Now that we have that volatility the idea of trading Waves is a lot more attractive.

You can trade Waves through most crypto exchanges however it is not yet available to trade as CFDs through brokers. That being said, brokers are coming around to the idea of trading derivatives of cryptocurrencies.

It is fairly common to trade some of the larger cryptocurrencies through a broker and I would not be surprised to see some of the smaller ones slowly becoming more apparent on these types of platforms.

How to buy waves online - step by step guide

Thanks to the Waves platform, it is considerably easier to buy Waves than it is other cryptocurrencies. This has helped catapult the cryptocurrency into the top 20 for market share.

Other cryptocurrencies of similar size to Waves must go through a two-step process that involves buying a more established cryptocurrency before using an external exchange to transfer one cryptocurrency into the one they want. 

Below is a step by step to follow when buying Waves:

- First off you need to go to the Waves platform website and download a wallet. You can decide to have it on your desktop or mobile phone. 

- Next I would recommend downloading from the chrome store. This then downloads the WavesLiteApp and is saved to your computer. {PIC}

Wave Platform Register

- Once you have access to the WavesLiteApp, you must create an account. This is very simple, you must enter your name and a password. As you register you will see the address to your wallet just above the 'name' box. 

Waves Platform Download

- You then will have access to your wallet. In your wallet, you can hold US dollars, Euros, Bitcoin, Ethereum and of course Waves

Waves Platform Wallet

- As with all secure wallets you must verify your identity. The Wave platform uses an external partner to verify the account. Once you click deposit, they provide a specific link to your account to follow. 

- You will then find yourself on go.idnow.de who will verify your account and ask you to fill in various details. 

ID Verification

- Once verified, you are then able to deposit your fiat currency. Currently they only allow for US dollars and Euros. You will see that you have access to the various functions the Wave platform offers; portfolio, decentralised exchange, leasing, history, token creation and community.

Waves Platform Functions

- Now as mentioned, with other cryptocurrencies you must go to an external exchange to buy your cryptocurrency. With Waves, it is all on one platform, so you simply click the exchange tab and decide on the amount you wish to exchange into Waves. This is then sent to your Waves wallet.

How to buy Waves with a credit card

You can't buy Waves in the same way you may order an item of clothing from the internet but it is similar. You must create an account and then deposit into that account. Once you have deposited you can then buy Waves using the fiat currency you have just put into the account.

This is a lot easier than a lot of other cryptocurrencies of this Waves current market cap (which does show the advancement and potential Waves has).

How to buy Waves with Paypal.

PayPal once embraced digital currencies and made it possible to buy things like Bitcoin through its payment platform, but recently it has withdrawn somewhat and only offers users of cryptocurrency the option of depositing money from the sale of Bitcoin into their PayPal accounts. This is again done through Coinbase, and because of that, only works with Bitcoin, Ethereum and Litecoin.

To use PayPal with Waves, there is not much opportunity, but it once again is linked back to Bitcoin, and is only useful when depositing money. A Waves holder could sell their Waves for Bitcoin, send it to Coinbase, and then withdraw that money into PayPal for fiat currency such as Dollars. 

As you can tell, this is a long-winded process, but there is no other method if you are looking put the proceeds of your Waves into a Paypal account.

How to trade Waves

There are various exchanges other than the Waves platform where you can actively trade Waves, Poloniex is one of the most trusted sites to trade Waves with other cryptocurrencies. Given the huge price swings Waves and other cryptocurrencies are experiencing there is no surprise at the increase of people wanting to trade these markets. 

Brokers are now getting in on the act and allowing you to trade cryptocurrencies using CFDs, this opens a huge market for speculators who want to profit from the price movement of markets like Bitcoin, Ethereum and Waves.

A popular broker that offers you access to trading cryptocurrencies is AVA Trade. Creating an account with AVA Trade is just as quick and easy as setting up an account with Coinbase.

- Go to AVATrade.com and sign up by providing basic details. Alternatively, you can sign up using Facebook or Google+. 

AVATrade Sign Up

- You will need to provide information on various topics, so AVA Trade can gage your experience and in turn the level of support they can offer you.

- When asked to select a trading platform, I would recommend selecting 'Floating Spread Account' with MetaTrader4 (MT4). MT4 is a hugely popular trading platform thousands of people use across the world. This will give you access to all the cryptocurrencies they offer.

- You then must fund your account. Decide the method you with to do so with and similar to Coinbase you can make a direct deposit into your newly created account. Click web-trading or download MT4 and you can begin trading.

AVATrade Platform

The future of Waves trading

Waves Collaboration

Waves have recently joined forces with Deloitte CIS, who focus on applying innovative approaches in their operations. They will give necessary consulting and assistance to businesses and institutions who use the crowdfunding abilities that the Waves platform offers.

This new collaboration can help to regulate new ICO projects, which will help companies safeguard themselves from project risks and challenges after they complete the initial token offering.

The Waves blockchain platform will make the process as seamless as possible by providing technology solutions for the introduction of digital economy tools.

The ability to quickly crowdfund will give lots of businesses more scope to grow their companies. 

Mass adoption of Waves

The ability to digitise any asset you wish is certainly an exciting idea. We are becoming more and more reliant on technology so beginning to refer to assets in digital form may well be the start. However, I do think this kind of idea will still take a lot of effort to properly generate adoption from the masses.

People are accustomed to what they know, and the idea of digitally transferring a car may confuse people. 

So, despite Waves progressive platform, I would be surprised if this was an overnight sensation. I think this will likely be a slow burner.

If that is the case, one wave (when writing this) is $5.26 could be considered as relatively cheap especially when you compare to the likes of Bitcoin. Waves is not affected by inflation because it has a limited supply, which also bodes well for potential price increase.

The Waves platform is one of the first that offers a decentralised exchange, this makes the process of owning Waves and then exchanging for other cryptocurrencies very quick and easy.

Guide list

Enjoyed this Waves guide? Then see our other cryptocurrency guides:

 

Disclaimer: None of this is intended as advice, these are merely my thoughts

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