How to Buy Spell Token
As decentralized finance (DeFi) continues to shape the world of finance, many cryptocurrencies have entered the market. One such is SPELL, the reward token for the DeFi protocol Abracadabra. Read on to find out how to buy Spell Token.
It's one of those small altcoins in the crypto market with huge potential. While moderately sized, it plays a crucial role in the lending and borrowing platform Abracadabra.money. The token is built on the Ethereum network, so it's an ERC-20 token.
However, before we dive deep into buying Spell Token, let's look at some fundamental knowledge.
What is Spell Token?
Decentralized lending platform Abracadabra.money offers two tokens - Spell Token (SPELL), the native token, and Magic Internet Money (MIM), a stablecoin pegged to the USD utilized to fund user loans.
Spell Token is the native token that can be farmed by providing liquidity in one of the pools and also staked to accrue the share of gas fees on the Abracadabra platform. The token has a total supply of 210 billion, with 105 billion currently in circulation.
After making an investment in the Spell Token, users have voting rights and a say in how the project is run. You can influence decisions in direct proportion to how much SPELL you hold. Investors receive 75% of the trading charge, with the remaining 25% going to other uses.
Additionally, Abracadabra provides users with yield farming possibilities. By acting as liquidity providers, users can farm SPELL tokens and improve the liquidity of specific cryptocurrency pairs, such as ETH-SPELL and MIM-3CRV. Additionally, users can open leveraged farming positions by using borrowed MIM.
What problem does the Spell Token solve?
As stated, SPELL is the native token of the Abracadabra ecosystem. Hence, it plays an important role in the functionality of the project. Here are the major two:
A reward token
SPELL's primary purpose in the ecosystem is to serve as the reward token for Abracadabra.money users. The token serves as an incentive to help ensure user loyalty and support. This, in turn, aids the growth and price stability of the platform.
A lender token
Users can farm SPELL on the platform via staking, yield farming, depositing collateral, and borrowing Magic Internet Money (MIM). All of this enables higher liquidity for specific cryptocurrency pairs, including ETH/SPELL and MIM/3CRV.
How to buy Spell Token
There are many crypto exchanges that trade in SPELL. Prominent among them are Coinbase, Binance, FTX, OKX, and Bybit.
In a few minutes, you can acquire as much SPELL as you desire. Just follow these simple steps.
Do your research: Buying the Spell Token is easy, but you've to compare which exchange offers the best in terms of low fees and around-the-clock support.
Open an account: Once you have been able to figure out which crypto exchange to use, you can then create an account with the exchange. This will require you to verify your email address and other necessary KYC requirements.
Make a deposit: Once your account is created and verified, you can deposit your local fiat currency as accepted by the crypto exchange.
Buy SPELL: With your deposit, you can now exchange your funds for SPELL.
What do you need to buy SPELL?
Generally, you only need your email, phone number, and other KYC requirements to buy cryptocurrencies on crypto exchanges. The documents needed may include proof of address and proof of identity documents to verify you on those exchanges.
After you've been verified, you can buy cryptocurrencies like SPELL. However, it's advisable that you activate two-factor authentication to protect your digital assets from cyberattacks.
To buy or not to buy?
Since the general crypto market plunged into the crypto winter, DeFi tokens have suffered significant losses. The price momentum that the Spell Token gathered over the last year has almost fizzled out.
The utility that SPELL offers within the Abracadabra.money ecosystem is a key driver of the token's growth. However, negative market conditions have turned the token towards a bearish trajectory, pushing the price lower.
However, future growth is imminent. New technological solutions, a more bullish market, and more utility are some factors that may shape the future of the token. To reap future benefits, investors should consider investing in Spell Token. Please do your own research before investing.
Author: Ibrahim Anifowoshe
Ibrahim is a writer with extensive experience writing about the crypto industry. He has reported widely and written educational content on the space.