Why let your cryptocurrency tokens sit unused in a wallet when you can be earning additional rewards (or yields) on them? This is why yield farming has become such a popular option for cryptocurrency traders.
Snowswap is an exciting platform for comparing and trading Ethereum tokens that offer high yields. This way users can always get the best returns for lending their tokens out. Owning the SNOW token is a bet on the continued growth of yield farming in the cryptocurrency space.
In this easy step-by-step guide, we will show you exactly how and where you can buy and store SNOW and capitalize on yield farming’s continued growth.
What is SNOW?
Snowswap is a decentralized exchange (DEX) for yield farming tokens. Yield farming is a way of earning rewards on tokens you already own by lending them out. Yield farmers tend to compare a wide variety of options to decide which token will provide them with the highest yield at any given time since these yield percentages are subject to change.
Snowswap provides an all-in-one platform to not only compare yields of various tokens but also easily swap between them should a user find a token that is currently yielding a higher return than the one they currently own. On top of this users can also use Snowswap to deposit their tokens which will be lent out for yields.
SNOW is an ERC-20 (Ethereum) token and the native token of the Snowswap protocol. It is used primarily as a governance token that allows users to vote on changes to the protocol. When users lend their tokens on the Snowswap protocol they receive their rewards in the SNOW token.
Step 1: Register on Fiat-to-Crypto Exchange
Before you can begin your journey to holding SNOW you must enter the cryptocurrency ecosystem. In other words, you must convert your fiat money (such as dollars) into crypto. To do so you will need to register with a fiat-to-crypto exchange which is an onramp for trading between fiat money and crypto.
CryptoWallet provides a quick and easy registration process catered to new users and is, therefore, an excellent choice. The CryptoWallet app is available on both Apple and Android devices and even provides a crypto debit card that allows you to spend your crypto anywhere that accepts debit payments.
After downloading the CryptoWallet app and completing the guided registration process you are ready to move on to step 2, which is to buy cryptocurrency with your fiat money.
Step 2: Buy BTC with Fiat Money
The point of a fiat-to-crypto exchange is to move from your fiat money into crypto and in this step, this is precisely what we will do. After purchasing an initial cryptocurrency it will be much easier to swap for more niche cryptocurrencies such as Snowswap.
We recommend purchasing Bitcoin (BTC) as your initial cryptocurrency since it is the most widely accepted cryptocurrency, however, CryptoWallet also supports Ethereum (ETH), Litecoin (LTC), Ripple (XRP), and Tether (USDT). Best of all CryptoWallet allows you to buy any of these cryptocurrencies with your debit or credit card, making the process extremely familiar and easy.
Once you have purchased BTC on CryptoWallet you are ready to trade that BTC for SNOW which we will cover how to do in the next step.
Step 3: Transfer BTC to an Altcoin Exchange
You now own BTC and are ready to trade it for SNOW. To do so you will first need to send your BTC to an altcoin exchange that supports SNOW.
SNOW is currently supported on Gate.io and Bilaxy. Gate.io is an American altcoin exchange, while Bilaxy is based in Seychelles. Which one is better for you will be a personal choice. You can also use tools such as CoinGecko.com to compare rates between the two exchanges and see which one will provide you with a better deal when trading BTC for SNOW.
After completing sign-up on your chosen altcoin exchange you can navigate to your wallet within that exchange and find your BTC receive address. Copy this address and head back to the CryptoWallet app where you can then paste it into the ‘Send To’ section to transfer your BTC to the new altcoin exchange.
It may take 15-45 minutes for your BTC to arrive on the altcoin exchange. Once it has arrived you can search for the BTC/SNOW trading pair and execute your trade.
Last Step: Store SNOW Securely
Now that you own SNOW an important step is to consider how you will store it. You generally have two options for securely storing cryptocurrencies: software (online) wallets and hardware (offline) wallets. Each comes with its own set of tradeoffs. For example, software wallets are convenient, feature-rich, and free to use, while hardware wallets are the safest option (since your keys are stored offline) but are not ideal for regular use and require separate purchases of the hardware wallet itself.
For software wallets, CryptoWallet is a very good option for major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Ripple (XRP), and Tether (USDT). Funds stored in CryptoWallet are secured by BitGo (a leader in the digital asset custodian space) and the CryptoWallet crypto debit card is an excellent feature for those who would like to spend their crypto at any online or offline store that accepts debit card payments. Unfortunately, CryptoWallet does not support more niche cryptocurrencies like SNOW at the moment so it is not an option in this case.
Since SNOW is an ERC-20 (Ethereum) token there are plenty of other options available for software wallets. One example is MetaMask, which allows you to securely store your crypto in your browser for convenience and easy access.
In terms of hardware wallets, Trezor and Ledger are two industry leaders in terms of security and ease of use. Both are widely available and support ERC-20 tokens such as SNOW. A hardware wallet such as a Trezor or Ledger is generally the best and most secure option for storing large amounts or if you are looking to store your crypto for a long period of time without needing regular access.
Other Useful Tools for Trading SNOW
Other useful tools for trading SNOW include tools like CoinGecko.com and CoinMarketCap.com which provide you with a real-time price chart and statistics such as current market cap and trading volume. As mentioned in step 3, these tools are also excellent for comparing rates between exchanges to decide the best place to trade your coins.
You can also trade SNOW on a decentralized exchange like Uniswap. Decentralized exchanges allow you to make trades directly from your wallet without having to give custody to an altcoin exchange.
Uniswap uses Ethereum (ETH) for trading pairs, so in this case, you would need to purchase ETH instead of BTC on CryptoWallet. However, the fees for trading with ETH on decentralized exchanges can be quite high and the user experience is not quite up to the standard of traditional exchanges at this point. For these reasons, we recommend sticking to using BTC and a traditional altcoin exchange to trade for SNOW.
Latest News for SNOW
Snowswap recently announced its launch on Polygon, a second-layer scaling solution for Ethereum tokens. This means users can now trade between their favorite yield farming tokens with even lower fees.
Polygon uses side chains to break up the congestion that can cause high fees on the main Ethereum chain. Not all tokens are supported on Polygon so users will have to do their own research to see which yield farming tokens can be traded on Snowswap using Polygon at the time of their trade.
Can I buy SNOW with cash?
No, unfortunately not. Most smaller and niche cryptocurrencies such as SNOW are not available to buy with cash.
The most cash-like way to purchase SNOW is to use CryptoWallet to buy BTC with your debit or credit card, and then trade this BTC for snow on an altcoin exchange that supports this trade.
Are there any quick ways to buy SNOW in Europe?
The quickest and easiest way to buy SNOW in Europe is to use your debit or credit card on CryptoWallet to purchase BTC, and then send that BTC to trade for SNOW on an altcoin exchange that supports Snowswap.
Are there any alternative platforms to buy SNOW or Bitcoin with credit cards?
CryptoWallet is a very easy way to purchase BTC with your credit card and send it to an altcoin exchange to trade for SNOW. However, there are other options. You should do your own research as to which option is best for you and what the potential trade-offs are for your chosen platform.