Decentralized exchanges are the bedrock of decentralized finance. This exchange type gives peers the ability to bypass central bodies by transacting with one another. With this, traders enjoy a system not controlled by a broker or an intermediary, thereby achieving true decentralization. However, Thorchain is different from most exchanges because it enables crypto trading across different blockchains. Cross-chain functionality is a feature that helps traders leverage different chains. There are also other DEXs in the industry, such as Uniswap and SushiSwap. While these exchanges don’t support cross-chain functionality, they help users access many financial services. In this article, we will be looking into Thorchain crypto and the exciting features it has to offer traders in the market.
What Is Thorchain crypto?
Thorchain is a decentralized exchange that allows trading across multiple chains. For instance, it will enable traders to trade across more than one blockchain. While the DeFi industry recently gained immense attention, users have long spoken on the need to build an ecosystem where financial services can be easily accessible. This prevents time wastage, a common occurrence in the traditional banking system. It is safe to mention that although Thorchain is a relatively new exchange, its use case is something to look out for, especially as the digital asset space embraces cross-chain trades. Additionally, Thorchain is also one of the firsts to enable trading cross chains without pegged tokens.
What Is DeFi?
Decentralized finance is a relatively new concept. This is a medium whereby individuals access financial services through blockchain technology. Transactions in the DeFi sector are very different from that of the centralized sector. Users carry out most of their transactions through smart contracts. Through DeFi, users can access loans, save, and trade, which is similar to the centralized financial system.
What Are Decentralized Exchanges DEX?
2021 was the year for decentralized finance adoption. Traders and investors shifted focus from cryptocurrencies to access financial services through DeFi. By Q1 of 2021, DEXs could boast over $217 billion in cash flow through the industry. This, of course, gave it some needed publicity. A significant feature that sets centralized exchanges from decentralized exchanges is that the latter allows users to trade with cryptocurrencies alone. CEXs, for instance, enable fiat currency to cryptocurrency, thanks to the exchange’s involvement in transaction settlement.
If you are looking to explore the asset industry, you may embrace DEXs. Decentralized exchanges have a vast collection of digital tokens long before CEXs support some assets. With this, savvy investors can buy good assets at an affordable price. However, investors should beware of numerous scam projects in the space. One of the most pronounced advantages of decentralized exchanges is that they are open-source yet anonymous. If you enjoy anonymity and want to capitalize on it, you would like this exchange type. For most centralized exchanges, users have to give up personal data to abide by know-your-customer regulations in numerous countries.
What Is Cross-chain Interoperability And Why Is It Necessary?
Thorchain claims to bridge the gap between blockchain. Previously, cross-chain interoperability was a feature that many networks lacked. Still, new generation chains like Thorchain want to change the narrative, giving users the ability to benefit from different blockchains. Presently, blockchains work independently, making it difficult for developers to leverage the full potential of this technology. This makes it essential to build support for cross-chain interoperability, allowing experts to capitalize on this new feature.
While there is still a lot to improve blockchain technology, cross-chain interoperability requires many networks to bring all networks together. When there is cross-chain interoperability, networks will communicate with each other, beneficial to the community. It is safe to mention that this technology will reduce many problems in the community while allowing investors and users to leverage the advantages of every chain. While Thorchain needs some development, it no doubt has potential.
Interoperability is also necessary to improve decentralized finance, giving users access to a seamless transition. For DeFi to compete with traditional financial institutions, it needs to develop cross-chain interoperability. This will provide access to cross-chain liquidity, thereby improving this growing industry.
Why Is Thorchain Different?
Thorchain, a project initially launched on the Cosmos network, provides liquidity without utilizing pegged tokens. Besides assisting with liquidity, it reduces slippage to minimize financial losses. Users can leverage this project to trade across BSC, Ethereum, and even Bitcoin. In a way, this creates an avenue for developers to deliver projects with cross-chain interoperability.
Why Is Thorchain Price up recently?
Since the beginning of the year, the crypto market has faced continuous losses, yet this doesn’t stop assets like Thorchain from rallying. While the industry is still unstable, this project hit new highs thanks to positive cryptocurrency news. RUNE, the project’s native token, has jumped by over 70% because of some bullish news about the project. The project’s developers assured that the project might face a series of technical developments. There are two primary reasons for the price growth: the project’s integration with Terra and the mainnet’s launch.
Terra is a project that gives users exposure to fiat currencies. It pegs the stablecoins to real-world currencies, enabling users to leverage this advantage. Unlike other projects in the digital asset space, Terra focuses on stablecoins. Stablecoins are different from most cryptocurrencies because of their price stability. Many stablecoins are also pegged to real-world assets, usually the dollar.
Thorchain’s Integration With Terra
Thorchain recently integrated with Terra, giving users various options when trading. Since LUNA is now on Thorchain, users can have more excellent trading options. The project also supports six types of wallets, coupled with several blockchains. Because Thorchain is based on Cosmo, the former can also support projects in the network. Some see this project as an avenue to scale different blockchains. Today, blockchains are yet to find a solution, ensuring scalability. Without this, the blockchain may suffer from exorbitant gas fees and slow transaction execution.
The project’s mainnet launch is another news that is likely to drive up asset prices. The community has awaited the mainnet’s launch for a while, and now it will finally happen thanks to developmental changes. It’s safe to mention that the community had planned to launch the mainnet last year but faced some difficulties. Thankfully, this change would likely help Thorchain as a community while improving some technical challenges.
How To Buy Thorchain(RUNE) On Binance
While many exchanges support Thorchain, the most popular ones are Binance and SushiSwap. To make the purchase more accessible, Binance will be used for this step-by-step guideline.
Create Your Account
The first thing to do is create a Binance account if you don’t have an account. While creating your Binance account, the exchange would require you to include some personal details and suggest other ways to secure the account better.
The next step is to credit your account with fiat. Depending on the region, you can credit your account by using a series of payment options, such as a bank card, SWIFT, or bank transfer.
You need to buy USDT with your fiat currency. This, you can do by clicking on “trade” after selecting USDT. When you buy your asset, you need to convert it to your preferred crypto. Clicking on “convert” would help you change the stablecoin to RUNE. Here, you need to select the right amount of USDT to get your preferred number of RUNE. After a successful purchase, you can now view your asset.
Knowing the next big digital asset in the market is no small feat. We have seen assets like Bitcoin and Ethereum stake their claim for the top. However, traders would continue to back projects like Thorchain, which has a significant use case. However, it is paramount to research tokens before traders buy them. It will help if you diversify your portfolio to help you hedge against losses in the crypto market.
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