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How to buy Augur

How Augur and REP work.

Augur is designed to function as a betting platform, but it’s more of a fortune telling device – or augur if you will.

Augur is designed to use the wisdom of the crowd to consistently outperform expert predictions on everything from market movements to sports.

It costs REP to make a bet. Correct predictions reward gamblers with more than they bet, while incorrect predictions aren’t rewarded at all.

The end result is a decentralized prediction marketplace. You ask it a question, the question is put to the crowd and the wisdom of the crowd pumps out an answer that’s statistically more accurate than any expert answer.

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade.

Where to buy Augur (REP)

Name Product Deposit methods Fiat Currencies Cryptocurrencies
Gate.io Cryptocurrency Exchange
Cryptocurrency
USD, EUR, GBP, HKD, SGD, AUD, CHF, MXN

301
cryptocurrencies

Finder exclusive: New users get $90 worth of Gate.IO points and an airdrop of $5 in random tokens if trade volume exceeds $100 in their first week. T&Cs apply.
A feature-rich exchange with over 700 tokens including derivatives, yield farming and lending products.
Binance Cryptocurrency Exchange
Bank transfer (ACH)
USD, AUD, GBP, EUR, RUB, TRY, NGN, UAH, PHP, CZK & 20+ more

314
cryptocurrencies

Promo: New users earn up to USD 100 in bonus rewards on qualified deposits and trades. Valid till 31 December 2021. T&Cs apply.
Trade an extensive range of reputable coins on this world-renowned exchange, popular for its high liquidity and multi-language support.

US residents: As of September 2019, US-based users can only trade USD on the American dollar onramp of Binance, Binance.US.
UK residents: In addition to normal crypto trading services, Binance offers margin lending. As this is a regulated activity which they are not authorised to offer in the UK, we advise you not to use this service. If you're interested in margin trading, see authorised providers.
CA residents: Binance is not available for Ontario-based users.
KuCoin Cryptocurrency Exchange
Cryptocurrency, PayPal, Wire transfer, Credit or Debit Card, SEPA
USD, EUR, GBP, RUB, CNY, AUD, KRW, JPY, TRY, VND & 40+ more

434
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Finder exclusive: Sign up and use code 1xf56 for one month of VIP 1 benefits. Deposit/transfer more than 0.1 BTC to KuCoin within 7 days of registration for 1 month of VIP 2 benefits. T&Cs apply.
Browse a variety of coin offerings in one of the largest multi-cryptocurrency exchanges and pay in cryptocurrency.
Coinbase Digital Currency Exchange
Bank transfer (ACH)
USD, EUR, GBP, CAD, MXN, HRK, CZK, DKK, CLP, BGN & 10+ more

73
cryptocurrencies

Buy and sell major cryptocurrencies on one of the world's most renowned cryptocurrency exchanges.
OKEx Cryptocurrency Exchange
Bank transfer, Cryptocurrency, iDEAL, PayPal, POLi, SEPA, Faster Payments (FPS)
USD, CNY, EUR, ARS, AUD, BGN, BRL, CAD, CHF, COP & 20+ more

271
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Promo: Earn US$10 in BTC when you refer a friend and they purchase $100 of cryptocurrency. T&Cs apply.
Listing over 100 cryptocurrencies, OKEx offers its users a variety of payment methods and coins to choose from.
Bittrex Global
Bank transfer, Credit card, Cryptocurrency, Debit card
USD

280
cryptocurrencies

Buy from one of the largest cryptocurrency exchanges with a selection of over 190+ cryptocurrencies and 3 USD pairings.
Bitfinex Professional Trading Exchange
Credit card, Cryptocurrency, Bank Wire
USD, EUR, GBP, JPY

168
cryptocurrencies

Cryptocurrencies are a highly volatile investment product. Your capital is at risk.
Spot trade all of the major cryptos on this full-featured exchange and margin trading platform.
Bithumb Cryptocurrency Exchange
Cryptocurrency
KRW

193
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A global platform where users can make KRW and cryptocurrency deposits to purchase up to 15 popular cryptocurrencies.
ShapeShift Cryptocurrency Exchange
Credit card, Cryptocurrency, Debit card, Banxa
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50
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Quickly swap between more than 40 cryptocurrency assets or use your credit card to instantly buy bitcoin.
IDEX Cryptocurrency Exchange
Cryptocurrency
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257
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A decentralised cryptocurrency exchange where you can trade over 250 ERC20 tokens.
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Compare up to 4 providers

How does Augur work?

The main question on your mind might be whether Augur can really outperform experts. The remarkable accuracy of aggregate predictions has been known for decades. DARPA (Defense Advanced Research Projects Agency) and the CIA even started their own project in 2001, but lost funding in 2003 after being accused of wasting millions of taxpayer dollars on “terrorism betting parlours”.

Fortunately, blockchain technology has now allowed for an exceptionally cost-effective, flexible and secure decentralized terrorism (and sports, politics and everything else) betting parlour in the form of Augur.

Bets are placed through the purchase of “shares” in an event and the prediction itself takes the form of a price tag for each likelihood, showing the respective odds of each outcome according to the crowd.

  • The system is designed to indirectly give more weight to more confident answers, with the effect of encouraging more research among participants and encouraging better-informed users to bet bigger.
  • The betting odds are dynamically updated in line with previous bets. This is because all shares are routed through an interface that adjusts prices based on previous share purchases. In short, riskier and less popular guesses net higher rewards.
  • The sustainability of the system is mathematically ensured by the above. It can’t be gamed or otherwise compromised, and the integrity of results and fairness of the system is provable.

How it works

Someone creates an event and specifies the outcomes on which users can bet. Users place their bets by purchasing shares in each outcome.

For example, say someone wants to predict the outcome of a Red vs Blue sports match with no chance of a draw.

The shares on sale here will be “red team wins” and “blue team wins.”

The cost of the share will depend on the previous purchases. If everyone’s buying the “red team wins” shares, then those will be considerably more expensive than the “blue team wins” shares, and consequently pay out less.

For example, if the cost of a Red share is 90 cents and the cost of a Blue share is 10 cents, then the crowd is predicting a 90% chance of Red winning. It might be a safe bet, but they’d only be getting $1.10 back for every $1 spent on shares.

Someone might also buy a share in “blue team wins” for 10 cents. If they were correct with those odds, they’d get back $1.90 for every dollar put in.

The cost of each share is dynamically adjusted based on previous shares purchased. The wisdom of the crowds doesn’t immediately whip up a guess. Instead, it vacillates on the issue eventually settling on an answer, constantly changing rewards to incentivize those with the most knowledge or subject experience to bet more, and therefore have a larger influence on the prediction.

For example, Red’s star player might get injured, so people start buying up a lot of Blue shares, and the price swings around until Blue is selling for 70 cents and Red is selling for 30 cents. This means it’s now predicting a Blue victory with 70% confidence following the injury.

The beauty of Augur is that it can be used for much more complicated bets than this. In this case, the betters sell shares for specific margins of victory, specific players scoring goals or the chances of the entire game being cancelled alongside the plain victory prediction of others.

The end result, depending on the types of events being created, is a set of rich, detailed predictions that dynamically change until they settle on a final answer at the specified end time.

Things to consider before buying Augur?

The REP token itself is an ERC20 token that functions as a license to use the platform and is the main currency of exchange on Augur. It is used for buying shares and paying the nominal fees associated with participating and creating events.

The total supply of Augur is 11 million, without any kind of mining program, and it’s a divisible token.

People may feel that Augur is most interesting as a fortune telling platform, but may find that its most commercially viable applications are as a straight-up sports betting system and a very interesting type of futures trading platform.

As a simple betting platform, you may decide that the use of blockchain technology makes Augur a reasonable alternative to sports betting sites, given that it runs in a transparently fair manner and with much lower fees than current online betting systems. The Augur system also automatically runs the numbers on sustainable betting odds, automating what used to be an arduous process.

Futures trading is also betting. If you go long, you’re betting the price will go up. If you’re shorting, you bet that the price will go down. Augur is extremely similar to these and stands to disrupt that market. For all the talk of cryptocurrency futures trading, there still aren’t too many purely blockchain-based futures trading platforms and Augur stands to disrupt those too.

Traders will need to decide whether Augur’s relatively low supply of 11 million tokens, as well as its ability to be used as a trading platform, will help it grow. The growth of 0x, in particular, will start unlocking extra features in Augur and expand its functionality.

Also, gambling tends to be subject to serious regulations around the world, and traders will need to decide if a high-roller sports (and terrorism) betting parlour/futures trading platform will escape a government crackdown.

One concern traders need to consider is whether established industries will oppose Augur. Traders may find that Augur’s potential for gambling, insider trading and accurate predictions will give lobbyists a lot of ammunition.

Traders will also need to pay attention to how long its auguries will continue being accurate. Traders will need to make sure they don’t ignore the clear overlap between Augur’s crowd-sourced wisdom and the mechanisms behind machine learning.

Disclaimer: Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

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