Often people get overwhelmed with cryptocurrency when they first hear about it. What is it? Is it all just this Bitcoin we see in the papers, on CNN and local news channels? Well the answer is no, here we will talk about a form of cryptocurrency called a utility token. There is a bunch of terminology that can confuse people in the beginning so read on and learn what tokens are and how to acquire and store them.
In this article we will break it down to 4 main steps:
- Understanding what a token is
- Setting up your wallet
- Signing up to an exchange
- Purchasing your tokens
Step 1: Understanding what a token is
While this question may seem incredibly obvious for a crypto veteran, this can still confuse many people. It is quite easy to interpret what exactly a token is compared to its counterpart, a ‘coin’. For example a coin would be Bitcoin, a true digital currency created for monetary value. Unlike a coin, a token has monetary value but is also required to participate in using software on a blockchain platform, in this case Snovio’s Marketplace or Snovian.Space. A token is like petrol that powers a cars engine while also trading for value as an asset. The token is the fuel and the car is the software platform. The petrol can also be stored and traded on exchanges when not being spent to access the software platform..
Snovio’s token is called SNOV. That is their digital asset that can be traded and stored and is required to use Snovio’s Marketplace and Snovian.Space platforms.
Step 2: Where to store your tokens
All of the steps will be considered vital going forward, this is arguably the most important step. This is one’s digital bank and security deposit. This is the one place you should never forget how to access. The ‘place’ that is being referred to is in fact a wallet. No, this is not one’s average wallet that is brought to work and used at the local store. A digital wallet is needed to safely store all of your tokens. The ideal wallet is called MyEtherWallet or commonly referred as simply ‘MEW’ https://www.myetherwallet.com/.
MEW is the most ideal location to store you tokens. The steps in creating a wallet on MyEtherWallet are very clear to follow and they go as follows:
- Enter a strong password
- Click “Create New Wallet” button
- Save your keystore file and download
- Confirm and save your private key
- Confirm your official MEW address
- Print paper wallet and finished. A paper wallet is just a copy of your private key printed out. It is important to keep that somewhere safe as an offline backup to access your wallet.
Bam! That was a really painless process and easy for everyone to follow. Now, one may be wondering, “How do I get the SNOV tokens to my wallet?” Well, first things first, we need to take a closer look at exchanges and what they entail.
Step 3: Registering on an exchange
Now we have explained what a token is and how to set up a MyEtherWallet, we are ready to move onto the step of registering on an exchange.
Wohoo! Exciting times are ahead as acquiring tokens becomes even closer.
For this demonstration, we will first set up a Coinbase account where one will purchase Ethereum Then we will trade it for SNOV tokens at Kucoin, an exchange where you can trade your digital assets.
There are many major exchanges used for purchasing Ethereum and/or Bitcoin (these are needed in order to buy SNOV tokens). Some are Coinbase, Bitfinex, Kraken, Bitstamp etc. They are open 24 hours and operating in most countries They accept payment with debit/credit cards which make them an ideal choice when looking for an exchange. Now I am going to walk you through the process of registering on the exchanges. Keep in mind for this example, ETH will be purchased to keep it simple.
- Sign up and fill out the information required on your chosen exchange
- Verify payment details
- Select Ethereum (ETH) and enter the amount you would like to purchase (I will explain this further on and it will become much clearer as I continue to walk you through)
- Confirm your ETH purchase
Setting up an account on these exchanges is a very painless procedure and just requires you to be close attention to the steps. We are making our way closer to finally, purchasing SNOV tokens. Stay with us, we are almost there!
Step 4: Purchasing SNOV tokens
You may buy SNOV in different exchanges including Tidex, Kucoin, ForkDelta, Bibox etc. For this instruction, we will take Kucoin as an example.
- Now we will go to an exchange site to trade ETH for SNOV tokens
- Sign up at Kucoin.com and fill out the relevant information
- Click the confirmation email link in your email (often times in the junk folder)
- Set-up your Google Authenticator on your phone/computer
- Once done, select ‘Assets’ and find Ethereum then click deposit
- Copy the long string of letters and numbers this is your wallet address to deposit ETH, always double check the address twice before sending.
- Return to Coinbase. Find your ‘ETH Wallet’ located in the middle of the page on the left hand side
- Click Send
- In the box labeled ‘recipient’ paste the wallet address that was generated on Kucoin (see step 10) and enter the amount of ETH you want to send then continue
- Now is the time to stretch your legs or get a bite to eat because now your coins are transferring and take anywhere from 10 minutes to over an hour to complete
- The moment you’ve been waiting for: we can trade ETH for SNOV tokens
- Then go directly here https://www.kucoin.com/#/trade.pro/SNOV-ETH and locate the ‘Buy/Sell’ button and enter your two factor authentication code
- Click the ‘Buy SNOV’ button and enter the amount of SNOV you wish to buy located next to the ‘MAX” button.
- Click buy
- Send your SNOV tokens back to your MyEtherWallet for increased security) Click Kucoin logo on the top left
- Click ‘Assets’
- Get your Snovio and click withdraw
- Enter your wallet address that you copied from MyEtherWallet, enter amount of coins you want to withdraw and enter two step authentication code and confirm
- Withdrawal completed
- Check MyEtherWallet for confirmation
note: steps 15 to 20 are optional for increased security protocols.
This is may seem like a long list of tasks to complete, but they are detailed so you do not make any mistakes.
Long story short
- A token represents a specific asset that correlates directly to the blockchain of a crypto project.
- MyEtherWallet is the best available and recommended wallet option in the market.
- It is vital to find a secure and trusted exchange to purchase your ETH.
- Make sure to follow these detailed instructions and pay special attention when it comes to buying tokens and keeping them safe.