Augur (REP): A guide to buy, sell and trade REP | finder.com
FEATURE.AUGUR

How to buy, sell and trade Augur

How Augur and REP work.

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Augur is designed to function as a betting platform, but in outcome, 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.

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. 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.

Where to buy, sell and trade Augur (REP)

Name Product Payment Methods Available Fiat Currencies Available Cryptocurrencies
Cash, BPAY, POLi, Cryptocurrency
AUD
BTC, BCH, ETH, XRP, ADA, XEM, LTC, XLM, MIOTA, TRX, DASH, NEO, XMR, EOS, QTUM, BTG, LSK, ETC, XVG & over 60+ more
CoinSpot is an Australian-based marketplace that allows you to easily buy, sell or trade more than 100 cryptocurrencies.
Credit card, Debit card
USD, EUR
BTC, BCH, ETH, XMR, ZEC, DASH, XRP, ETC, LTC, DOGE, XLM,1ST, ADX, AMP, ANT, BAT, BCN, BNT, BTG, CFI, CVC & 70+ more
Access competitive crypto-to-crypto exchange rates for more than 35 cryptocurrencies on this global exchange.
OKPay, PerfectMoney, Yandex Money, Payeer, QIWI, Cryptocurrency
USD, EUR, RUB
BTC, XRB, ETH, DCN, BCH, NIO, TRX, DASH, COB, DOGE, PRIX, DSR, XCPO, LTC, VERI, LOC, NUA, PKT, PPT, ICO & 80+ more
Supporting over 100 coins, you can exchange a variety of cryptocurrency pairs on this peer-to-peer platform.
Cryptocurrency
-
BTC, BCH, ETH, LTC, DOGE, NEO, XMR, POWR, DASH, PIVX, XEM, OMG, GNT & 500+ more
Buy and sell hundreds of cryptocurrencies with minimal verification on this all-in-one, New Zealand-based exchange.
Cryptocurrency
-
BTC, ETH, XRP, DOGE, XLM, ETC, STRAT, LTC, SC, DGB, BCH, LSK, XMR & 50 more
Trade various coins through a global crypto to crypto exchange based in the US.
Electronic Funds Transfer, SEPA, Wire Transfer *payment methods vary per country
USD, EUR, GBP, JPY, CAD
BTC, BCH, ETH, ETC, XMR, DASH, LTC, XRP, XLM, REP, ICN, MLN, ZEC, USDT, GNO, EOS
Exchange multiple cryptocurrencies through a range of payment methods, including Electronic Funds Transfer, SEPA or Wire Transfer.
Cryptocurrency
-
BTC, ETH, XVG, SC, XRP, DOGE, STRAT, XMR, ADA, OMG, ETC, BCC, XLM, DGB, UKG, QTUM, ZCL, RDD, LTC, NEO & 120+ more
Buy from one of the largest crypto to crypto exchanges with a selection of over 190+ cryptocurrencies.

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 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 parlors”.

Fortunately, blockchain technology has now allowed for an exceptionally cost-effective, flexible and secure decentralized terrorism (and sports, politics and everything else) betting parlor 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, effectively encouraging more research among participants and 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 crowd doesn’t immediately whip up a guess. Instead, it vacillates on the issue before 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, prompting people to start buying up a lot of blue shares and swinging the price 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 canceled, 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.

How to sell or trade Augur

  1. Visit the exchange platform you hold Augur on. If you have your Augur in a digital wallet, then you can choose any platform from the list above to complete your transaction.
  2. Transfer your Augur to BTC or ETH, via the platform.
  3. Continue on to sell or trade your BTC or ETH through the platform’s directions.

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, and there’s no kind of mining program. Plus, it’s a divisible token.

People may feel that Augur is most interesting as a prediction platform but may find that its most commercially viable applications are probably 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 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 sell short, 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 parlor/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.

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