How To Buy Alchemix In 3 Steps • Benzinga Crypto


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.

1 Minute Review

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