The decentralized finance (DeFi) sector gained tremendous traction over the past year, with an influx of DeFi projects almost on a weekly basis. While investments in DeFi assets have soared incredibly, it can be somewhat daunting, particularly because many assets (like STONK) are not readily available to be purchased as easily as popular cryptocurrencies such as Bitcoin and Ethereum.
Ideally, STONK cannot be purchased directly with fiat currency as the token is only listed on a handful of crypto exchanges. Hence, converting your money into popular crypto-assets is the first step in the right direction. In this piece, we provide a step-by-step guide to purchasing STONKs.
What is STONK?
STONK (generally written as $STONK) is an Ethereum-based token that is leveraged to many of the top-performing decentralized finance (DeFi) assets such as Compound, ChainLink, Synthetic etc. In simple terms, STONK supports DeFi by providing a pool of top DeFi assets, allowing investors the opportunity to diversify their investments across various DeFi projects in a single trade.
In addition to the DeFi assets mentioned above (Compound, ChainLink and Synthetic), STONK’s first pool – referred to as the origin pool – also includes four other tokens (Ether, Kyber protocol, Loopring and Augur). According to the project developers, these tokens were specifically handpicked to make up the origin pool due to their revolutionary impact on the DeFi scene.
DeFi is a budding concept in the cryptocurrency industry which leverages blockchain technology to eliminate all third parties currently involved in our existing financial systems. DeFi simply aims to offer financial services at significantly reduced cost when compared to the fees and charges imposed by financial intermediaries such as banks, and STONK simply aims to bring into fruition a pool containing only top-performing DeFi assets for investors. You can think of this as a DeFi option tantamount to existing traditional market indexes like the S&P 500.
Now, let us look at how you can begin investing in STONK.
Step 1: Register on Fiat-to-Crypto Exchange
As mentioned above, investing in most DeFi projects will require the ownership of at least one major cryptocurrency. This is one easy feat as there are numerous fiat-to-crypto exchanges available today. While these crypto exchanges support fiat-to-crypto purchases and other similar functionalities, finding a secure and user-friendly exchange platform is essential. For example, platforms like CryptoWallet place a strong emphasis on ease-of-use and offer a seamless registration process with guides and infographics.
One key thing to note is that some platforms mandate a Know-Your-Customer (KYC) verification process before you can begin to make any transactions. Ideally, KYC processes require you to provide valid means of identification (most commonly an international passport or driver’s license); hence, ensure to have valid credentials on hand.
Step 2: Buy BTC with Fiat Money
Once you have successfully registered on the platform of your choosing, it is time to make your first purchase. While both ETH and BTC can be exchanged for STONK tokens, this piece will focus on purchasing BTC for a more straightforward explanation. However, the process is generally similar for purchasing ETH as well.
For example, buying BTC on CryptoWallet takes three simple steps. Simply top up your account with fiat currency (such as USD) via bank transfer or using your debit. Once this is done, navigate to the CryptoWallet cryptocurrency exchange to see the trading value of BTC, then enter the amount you wish to purchase and confirm the price.
Upon confirmation, your BTC will be deposited directly into your Bitcoin wallet on the platform and available for trading.
Step 3: Transfer BTC to an Altcoin Exchange
Now that you have your wallet funded with Bitcoin, the next step is to trade that for STONKs, yes? Well, not so fast. Many major exchanges do not list STONKs on their platform; hence, you will need to transfer your Bitcoin to an altcoin exchange that trades STONKs.
While it may sound overwhelming or stressful, this step is pretty straightforward. Additionally, only a few exchanges, such as Hotbit and MEXC Global(formerly MXC), currently list STONK for trading, so this should be seamless.
First, you will need to undergo a second registration process on any exchange of your choice, and most platforms often offer a guide to help with registration. Next, you will need to deposit your Bitcoins into the exchange. Many exchanges will have a deposit button next to the cryptocurrency you purchased, so look out for that and select Bitcoin.
You will be issued a Bitcoin wallet ID specific to your account on the exchange. Navigate to the crypto exchange where you bought your Bitcoin, input the wallet address and click “send”. For CryptoWallet, you only need to select the cryptocurrency you want to transfer (Bitcoin in this case), choose the amount of BTC you want to send, enter the Bitcoin wallet ID retrieved from the altcoin exchange, confirm the transaction and wait for your BTC in the new exchange. See CryptoWallet’s guide to help you through.
Security and Loss Prevention
NOTE: Be sure to select the correct wallet ID from the altcoin exchange, as doing otherwise will lead to loss of funds. This means that if you bought ETH on CryptoWallet or any other exchange, copy ETH wallet ID on the altcoin exchange.
There is only one simple reason for this. BTC can only go into a Bitcoin wallet ID, and ETH can only go into Ethereum wallet ID; hence, double-check as many times as you need to.
Also, note that the blockchain will charge a small network fee for the transaction, so you should factor that in as well.
Once you have received your crypto in the altcoin exchange, you are good to go. Simply swap your BTC for STONKs. A simple search for the “STONK/BTC” pair will suffice on many platforms, and then you decide how much STONK you want to buy.
Last Step: Store STONK Securely
Congratulations! You have just successfully bought your first set of STONK tokens. But then, what is the best way to securely store your tokens? Well, this depends on a number of factors.
Here is what we mean.
Cryptocurrencies are stored in wallets, of which there are two main types – hot and cold wallets. Hot wallets are always online and connected to the internet; hence, they are suitable for investors who intend to actively trade their tokens.
However, being online all of the time means that hot wallets are prone to hacking events, which are common in the crypto space, and your funds are only as safe as the exchange’s security.
Cold wallets, on the other hand, offer greater security in this regard and are a viable solution for storing STONKs, but at the expense of convenience. A prime example of cold wallets are Ledger hardware wallets – a popular offline crypto wallet that supports a wide range of currencies and only goes online when you want to trade your cryptos, making them more secure and less susceptible to hacks.
In essence, if you are holding your STONK tokens for the long term, it is best to utilize a suitable cold wallet solution of your choosing.
Other Useful Tools for Trading STONK
The security of assets in the cryptocurrency space is absolutely crucial. Given the decentralized nature of cryptos, stolen crypto assets are seldomly retrieved; hence one cannot be too careful. In addition to a tenable hardware solution, using a trusted VPN service is recommended.
While it does not guarantee absolute security, VPN services provide high-end encrypted connection, making it harder for malicious hackers to track and intercept your internet footprints when trading your cryptos. Although we recommend spending some time researching a reputable service that suits you, there are some well-known VPN service providers such as ExpressVPN and NordVPN – two of the world’s leading VPN services for PCs.
Latest News for STONK
With the STONK project yet to gain any significant traction, there is only a handful of information about the STONK token. However, Coinmarketcap recognizes the STONK token and reports its live price on a daily basis, as with most other currencies.
Are there any quick ways to buy STONK in Europe?
Yes! Although card deposits to crypto exchanges may incur more charges than regular bank transfers, they are best for instant cash deposits, making the process a lot faster.
Are there any alternative platforms to buy STONK or Bitcoin with credit cards?
Yes! There are platforms like Changelly that support purchasing BTC with credit cards. Once this is done, you can then transfer to your preferred altcoin exchange to buy STONK tokens.
Can I Buy STONKS anywhere?
Unfortunately, STONKs are not necessarily popular tokens yet; hence, they are not readily available everywhere. However, you can buy them on the platforms mentioned in this guide once you follow the steps therein.