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How to buy Komodo and how it works
Your guide to buying and trading Komodo (KMD) in Canada.
Komodo is an initial coin offering (ICO) platform designed to help developers launch transparent coin offerings. This decentralized platform allows each developer to set up an independent blockchain of their own, which they can then link to the Komodo ecosystem.
If a company wants to launch an ICO using Komodo’s infrastructure, it will need to pay a fee. This fee is payable in the Komodo ecosystem’s native token, the Komodo (KMD).
So, how does the platform work, what potential benefits does it offer and how can you buy KMD? Read on to find out.
Where can I buy Komodo?
You can buy KMD on a wide range of popular cryptocurrency exchanges, such as the following:
How to buy Komodo in Canada: Step-by-step instructions
Step 1. Create an account on the exchange
To exchange fiat currency (in other words, Canadian dollars or USD) for KMD, you’ll need to register for an account with a cryptocurrency exchange like Bittrex or Binance. To sign up, enter your email address and create a password.
Step 2. Deposit funds into your account
When you log into your account, you’ll be taken to your Dashboard. Click on the “Deposit” button to transfer funds into your account. You may have a variety of different payment options. You’ll likely need to verify your account for the deposit to be completed, so you’ll have to provide your email address, phone number, full name, address and proof of ID.
Step 3. Buy KMD
Click on the “Buy/Sell” button and then search for “KMD” in the box provided. Review the current buy and sell prices for the cryptocurrency and click the “Buy KMD” link. You may have to trade BTC for KMD, instead of directly trading fiat currency for it.
The next step is to do one of the following:
- Specify how much KMD you want to buy
- Specify the amount of CAD or BTC you want to spend
Once you click “Buy”, you’ll see the amount of KMD you’re purchasing, at what price, and the transaction fee amount. Click “Confirm Buy” if you’re happy to complete the purchase.
Note: As mentioned above, most cryptocurrency exchanges do not allow you to exchange CAD for KMD. On those exchanges, you’ll have to first purchase a major cryptocurrency such as Bitcoin (BTC) or Ethereum (ETH) before exchanging it for KMD.
Which wallets can hold KMD?
KMD can be stored in a range of wallets, including the following:
- Komodo CLI (Command Line Interface)
- Komodo paper wallet
- Ledger Nano S
Agama and Komodo CLI are desktop wallets, available for download for Windows and Mac OS. Agama is also available on Linux operating systems, while the Ledger Nano S is a hardware wallet.
How the Komodo platform works
You should never hold any cryptocurrency without first understanding how it works. In order to understand Komodo tokens, you’ll first need to learn about the Komodo platform.
Komodo’s development history dates back to 2014, but it officially started in September 2016 when the genesis block was mined. This blockchain platform aims to offer entrepreneurs the tools they need to create a blockchain ecosystem.
The platform uses zero-knowledge proofs to provide private or transparent transactions (as required) and a delayed-proof-of-work (dPoW) protocol to ensure security via bitcoin’s blockchain. It offers the following products and services to new coin developers:
- BarterDEX. This is a decentralized exchange and cryptocurrency market.
- Jumblr. This is an open-source and decentralized cryptocurrency anonymizer.
- Decentralized fiat currencies. These are cryptocurrencies that are pegged to a local, fiat currency.
- Decentralized ICOs. These allow developers to use the Komodo platform to launch their own blockchain and crowdfund their ICO.
KMD is a private cryptocurrency used within the Komodo ecosystem. This infrastructure coin is required to use many of the features on the platform and can be used for private digital payments. For example, KMD is the base currency of the BarterDEX exchange, allowing it to be used as a gateway to other cryptocurrencies.
What to consider before buying KMD
If you’re considering buying KMD, you’ll need to take in a wide range of factors including the following issues:
- Coin availability. KMD has a total fixed supply of 200 million coins. In the Komodo ICO in 2016, 90 million of those coins were distributed to holders, with 10 million kept aside for future development and marketing.
- Demand for KMD. The larger the user base of the Komodo ecosystem, the greater the demand for KMD. Increased demand obviously means increased value, so consider the real-world applications for Komodo to get an idea of how the level of demand could change in the future.
- Competition. Make sure you’re aware of Komodo’s competitors and the threats they may pose to the value of KMD. For example, Ethereum is its biggest competitor in the ICO space, while Monero, Dash and Zcash are all noted competitors in the privacy coin sphere.
- KMD rewards. Komodo has a built-in system that automatically rewards users for holding KMD. The annual reward rate is 5% annual percentage rate (APR) revenue.
- Future developments. Komodo is part of the SuperNET project, a collaborative community of cryptocurrency developers that is working on several projects based on the Komodo platform. Stay knowledgable of future projects and developments to learn more about the potential real-world applications of KMD.
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