Want to jump straight to the answer? You can buy Alchemix on Gemini!
As a project that allows users to create yield-backed synthetic tokens, Alchemix is an altcoin-based protocol that brings a no-cost way to lock in collateral. Users can get an immediate advance on their future leads, forging a new path for yield-based derivatives.
What is Alchemix?
Alchemix’s native governance token is ALCX, residing on the Ethereum blockchain as an ERC-20 token. It helps users pay off debts via yield-backed synthetic tokens, meaning that staking and yield loans are paid back automatically without any intermediation. As the cherry on top, there is no liquidation risk because of the fact that minted ALCX is used as synthetic collateral.
The project brings a unique experience to users: When earning yield through staking, it is directly and automatically deposited toward the person’s debt. This changes the game since users who hold longer will generate more yield and pay off more of the staking loan — without even lifting a finger.
The protocol allows users to deposit Ether (ETH) to create alETH stablecoin with a minimum of 400% collateralization ratio, all to assist in the yield-based derivatives. Before that, ALCX could turn into a MakerDAO (DAI)-backed stablecoin called alUSD, as users deposited DAI to mint alUSD with a collateralization ratio of no less than 200%.
In February 2021, pseudonymous developers founded Alchemix with full force toward the decentralized finance (DeFi) world. With plans to convert to a decentralized autonomous organization (DAO) and create a governance program that is completely on-chain, the Alchemix team is offering better and secure systems of yield farming and staking to users.
Brief History of ALCX
Before its inception in 2021, all of the ALCX was pre-mined and in February, the DAI to alUSD synthetic stablecoin vaults were opened so that users could start taking out loans.
In June 2021, the ETH to alETH vaults opened. Early after, however, there was a bug in the code, giving users the chance to not face any financial repercussions when withdrawing their collateral. Since none of the loans were paid off, the platform saw over 2,200 ETH missing. After a campaign to receive the missing Ether, the alETH vault has since been relaunched.
Recently, Alchemix released their v2 roadmap in their most recent Medium blog post, with an official launch date set for December 2021, but with no further updates at the time of writing.
Since the innovative technology allows hands-off collateral loan repayment, there have been many major investors including Spartan Group, eGirl Capital, Delphi Digital and many others.
Alchemix started its first year off strong, hitting an all-time high of $2,027 on March 20, 2021, while tapering down as the year went on, exchanging between $150 to $600 during the second half of the year. At the time of writing, ALCX is exchanging at $310.15 and has a market cap of $329,588,232, according to data from CoinMarketCap.
How to Buy ALCX Token
Thankfully, ALCX is already listed on a few popular crypto exchanges such as Binance and Gemini. Choose your preferred exchange based on Know Your Customer (KYC) regulations and personal preferences.
Step 1: Open an Online Account.
First, it is necessary to open an account with one of the chosen exchanges. Doing so requires any variation of KYC and personal information such as email address, phone number, citizenship and others.
Gemini is a cryptocurrency exchange and custodian that offers investors access to 26 coins and tokens. Founded in the US, Gemini is expanding globally, in particular into Europe and Asia. Offerings include both major cryptocurrency projects like Bitcoin and Ethereum, and smaller altcoins like Orchid and 0x.
Gemini is 1 of the only brokers with multiple platform options based on skill level. New investors will love the streamlined interface of Gemini’s mobile and web apps, while advanced investors might appreciate all the tools that come with ActiveTrader.
In addition to a host of platform choices, Gemini users also have access to insured hot wallets to store tokens without worrying about digital asset theft. Learn more about what Gemini can do for you in our review.
Best For
- New investors looking for a simple mobile and web app
- Experienced investors who need a more advanced platform with more tools
- Users looking for a 1-stop-shop to buy, sell and store all of their coins
- Easy and quick signups — can get started in as little as a few minutes
- Multitude of platforms to accommodate traders of all skill levels
- Hot wallets include insurance to protect your from theft and hacking attempts
- Charges both a commission and a convenience fee for users buying and selling through the desktop or mobile app
Step 2: Buy a Wallet (optional).
A cryptocurrency wallet is absolutely necessary if you choose to use a decentralized exchange (DEX) like Uniswap or a centralized exchange (CEX) like Coinbase, which has a built-in wallet and does not require any further actions from users. In regards to storing your ALCX, hardware or software wallets can help you with your needs, depending on your comfort with either option.
Best Hardware Wallet: Ledger
The Ledger Nano S can support just about any ERC-20 token — including ALCX — so that you can keep your coins safe until needing it. Its easy user interface and compact design can help you store any kind of crypto with ease and transportability. It is available in many languages and can be found at an affordable price.
Ledger also has another version called Ledger Nano X that has been developed with a secure and advanced chip known as ST33. Not only are the above features available, but this hardware wallet has a rechargeable battery, works via Bluetooth connection and has more storage space available. Between both options, either will do a great job storing your ALCX.
Best Software Wallet: Coinbase
Coinbase is a web-based crypto exchange that is a hot wallet and allows users to buy, sell, trade and convert all on one platform. Users can store a lot of crypto on Coinbase with a great amount of ease due to the high level of security that Coinbase offers. Users can easily convert and sell their ALCX with any other crypto and ERC-20 token easily and securely.
Step 3: Make your purchase.
Depending on the exchange you use, you need to deposit with a debit or credit card, or other methods of payment such as direct bank transfer. Since ALCX is set up for users to mint a synthetic stablecoin, you can deposit ETH or DAI into your chosen exchange, but Bitcoin (BTC) is also a great choice for beginners or those who can’t get enough of the flagship cryptocurrency.
Once your crypto is in the exchange, choose to buy ALCX in the drop-down bar or relevant section, follow the necessary 2-Factor Authentication (2FA) and once it is cleared, you now own some ALCX.
Thinking
Could synthetic stablecoins like ALCX change the way cryptocurrency products are produced?
Trade, Sell or Convert your ALCX
After connecting your wallet to an exchange, such as Gemini, you should transfer your ETH, DAI, BTC or coin of your choice to the exchange. This will mean that you can trade your coin for ALCX and start trading and staking for interest.
You also have the option to sell and convert your Alchemix. To sell, simply find the section that allows you to choose ALCX for any desired coin like ETH, go through the 2FA necessary, then you will have the equivalent amount of ETH from your former ALCX. This is similar to converting ALCX into another currency of your choice.
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Is ALCX a Good Investment?
From the beginning, the Alchemix team built a product that allows users a certain level of protection for loan collaterals. This ensures that…
