Read our beginner’s guide to buying Aeternity tokens and where to store them.
Launched in 2017, Aeternity aims to improve the scalability of smart contracts and decentralised applications (dapps) by moving contracts off-chain. It also relies on an oracle to provide the real-world data needed for those smart contracts and offers a native currency, Aeon (AE), which is required to access the network and run dapps.
AE is a top 100 cryptocurrency by market cap. If you’re thinking of buying any AE tokens, read on for detailed instructions on what you need to do.
Quick guide to buying Aeternity (AE)
- Register for an account with an exchange like Binance.
- Enable 2-factor authentication.
- Verify your account.
- Click “Deposit cryptocurrency”.
- Transfer cryptocurrency such as Bitcoin into your Binance account.
- Click “Buy/Sell” at the top of screen.
- Search for “Aeternity” and click on “Buy AE”.
- Enter the amount of AE you want to buy or the amount of crytocurrency you want to spend.
- Review transaction details.
- Click “Buy AE”.
This is our quick guide to just one way of buying AE. Compare some other options in the table below.
Where to buy and sell Aeternity in Indonesia
You can buy and sell AE on the following crypto exchanges:
A step-by-step guide to buying Aeternity
So you’ve decided you want to buy Aeternity? Here’s what you need to do:
How to sell Aeternity
To sell your Aeon holdings, the process you need to follow is similar to that outlined in step 3. Of course, you’ll need to make sure that you enter your transaction details in the “Sell” tab rather than the “Buy” section.
It’s also worth mentioning that unlike major currencies like Bitcoin, which can be traded to an extensive range of coins and tokens, AE can only be exchanged for a limited number of currencies.
Which wallets can I use to hold Aeternity?
Rather than keeping your tokens on an exchange, which exposes you to a number of security risks, it’s recommended that you move your funds into a cryptocurrency wallet that lets you retain control of your private keys.
Aeternity is an ERC20 token on Ethereum, so there are plenty of good options out there to store Aeon safely. You can create a wallet at wallet.aeternity.com, use MyEtherWallet or purchase a hardware wallet like the Ledger Nano S or TREZOR.
How Aeternity works
Since the launch of Ethereum in 2015, there’s been no shortage of speculation and excitement about the potential uses for smart contract technology. However, the world’s leading smart contracts platform and second-largest cryptocurrency isn’t without its shortcomings – from a lack of scalability to working out an efficient way to integrate real-world information onto the blockchain – and it’s these problems that Aeternity aims to solve.
To improve scalability, Aeternity moves smart contracts off-chain, running them in private state channels. This minimises the amount of on-chain data and frees up network resources.
Next, it includes a decentralised oracle, the Aeternity Oracle Machine, to integrate the real-world data needed to execute smart contracts. For example, if the execution of a contract relies on the price of a specific share reaching a predetermined figure, an oracle can provide accurate, tamper-proof data about the share’s performance.
To achieve consensus, Aeternity uses a hybrid proof-of-work and proof-of-stake mechanism. Proof-of-work is used by miners to verify blocks, while proof-of-stake is used to allow AE token holders to vote on proposals and changes to the Aeternity network.
Based in Liechtenstein, the Aeternity team raised around US$5.2 million in an April 2017 pre-sale and US$24 million in a June 2017 token sale.
What to consider when buying Aeternity
Cryptocurrencies are complicated and speculative assets which are known for their volatility. There’s a high level of risk associated with buying any coin or token, so it’s essential that you understand and assess all the factors that could potentially influence a coin’s value.
- Supply. According to CoinMarketCap, at time of writing (June 2018), the circulating supply of Aeon was 233,020,472 AE, out of a total supply of 273,685,830 AE.
- Use. AE functions in much the same way as ETH. It is needed to use the Aeternity blockchain and to pay all system fees, and all Aeternity smart contracts settle in Aeon.
- ERC20. AE tokens were initially issued as ERC20 tokens on Aeternity. When the Aeternity mainnet goes live in 2018, these tokens will be exchanged for native tokens on the Aeternity blockchain.
- White paper. For a detailed explanation of the tech behind Aeternity and the problems it’s designed to solve, check out the project’s white paper.
- Upcoming mainnet launch. According to the project’s road map, Aeternity’s mainnet launch is scheduled for August 2018. The success (or otherwise) of the launch will be watched with interest by many in the cryptosphere, and until it’s been completed there will still be some uncertainty surrounding the project.
- Competitors. The battle to be the number-one platform for smart contracts and dapps is a fierce one. Not only will Aeternity be in direct competition with Ethereum, but it will also be in competition with a host of other strong contenders such as EOS, NEO and Cardano.
There are several other factors worth considering, so do your own research before deciding whether to buy any AE.
Image source: Shutterstock
Disclosure: At the time of writing the author holds ADA, IOTA and XLM.