Chia coin is one of the only cryptocurrencies that are not mined. Instead, they are created and distributed similarly to their holders as shares.
When you buy chia coins on an exchange, you become an owner of the project instead of being a mere buyer of cryptocurrency. Of course, this brings with it some perks and certain risks. Below are three things you should be aware of before buying chia coins.
Chia coin is a project meant to transmit information, in this case, data. The way they will do this is by creating a special kind of cryptocurrency that’s made up of information itself.
This makes the cryptocurrency essentially a chain of data, which you can think of like the data itself. Each block in the blockchain contains metadata, image, and text (i.e., how much content it has).
The Chia network presents a sustainable solution for cryptocurrency enthusiasts seeking an eco-friendly alternative to popular coins like Bitcoin and Ethereum, which have received criticism for their energy-intensive mining processes.
This review delves into the emerging Chia crypto and its rising popularity, detailing how it achieves its environmentally conscious approach. Additionally, we guide Chia trading, covering recommended exchanges and farming strategies.
What Is Chia?
Chia is a cryptocurrency geared toward transmitting data. It is not a network or an open-source project, though the developers have said they will release their code to the community soon.
The intention behind an ecological approach lies behind its very name: “The chia” represents “the collective intelligence of the entire human race, as opposed to individual intelligence. Chia was created to combat the environmental shortcomings of conventional Proof of Stake (PoS) and Proof of Work (PoW) cryptocurrencies, like Bitcoin.
PoW coins operate by having miners compete against each other, resulting in substantial energy consumption that harms the planet. A recent study revealed that Bitcoin’s yearly energy usage surpasses the combined output of countries like Sweden and Argentina.
Chia’s network utilizes a Proof of Space mechanism, which utilizes storage capacity instead of computing power, resulting in a more environmentally friendly method of verifying transactions.
Unlike traditional mining, Chia implements farming, where individuals with available storage space, called farming plots, contribute to the network.
Farming in Chia requires less technical expertise than mining and only requires sufficient storage capacity and software provided by the XCH network. The larger a farmer’s storage capacity on the network, the greater their chances of winning a block. After obtaining sufficient storage, users can use a farming rig or pool, such as Raspberry Pi, to plot the coin.
How does chia coin work?
Chia is a cryptocurrency. That means it can be used as a form of payment, like Bitcoin, Litecoin, or Ethereum. However, unlike these coins, designed to be spent and exchanged in transactions with merchants and vendors, Chia enabled secure data management.
As such, it can be considered a digital asset management coin. Chia coin operates on a decentralized blockchain network and employs a Proof of Space and Time consensus mechanism. This mechanism verifies transactions through available storage space instead of energy-intensive computing power, which traditional Proof of Work coins use.
To contribute to the Chia network, users can participate in “farming” by allocating their available hard drive space as “plots.” These plots provide space for Chia’s cryptographic calculations, contributing to the network’s overall processing power. The more space allocated, the greater the chances of winning a block, which rewards the user with new Chia coins.
Chia also incorporates a smart contract system, enabling the creation and execution of programmable contracts without needing third-party intermediaries. This feature enables users to engage in various use cases, from exchanging assets to decentralized finance (DeFi) applications.
Chia’s Proof of Space and Time consensus mechanism and smart contract capabilities provide a more energy-efficient and versatile alternative to traditional cryptocurrencies.
Step By Step Guide To Buy Chia Coin
1) Choose a Chia Coin exchange:
The first step is to choose a reputable exchange that supports Chia Coin trading, such as Binance or Huobi. Create an account and complete the necessary verification process. Exchanges like Binance offer a variety of coins, so you can diversify your holdings while minimizing your risk.
2) Register with the exchange.
Once you register, you must create a new account by providing a username and password. This will also give you an address where your coins will be sent. You must choose a secure password as this is how the exchange will send your coins after purchase to your specified address.
3) Enable Two-Factor Authentication:
Now that you have created an account, it’s time to secure your funds by enabling two-factor authentication (2FA). 2FA ensures that funds cannot be stolen even if a hacker gains access to an account. Many exchanges support Google Authenticator and other popular solutions for 2FA.
4) Deposit funds:
Once your account is set up, you can deposit by heading to the “Deposit/Withdraw” page. Make sure you use Bitcoin or Ethereum as your base currency when depositing, as this will allow you to purchase CHIA at a lower rate.
After verification, you will need to deposit funds into your exchange account. Most exchanges support deposits in various cryptocurrencies, so choose a suitable currency and follow the instructions to deposit funds.
5) Choose your deposit currency:
Once funds have been deposited, you must choose a trading pair for your currency. You can buy CHIA by clicking the “Buy/Sell” button and choosing “CHIA/BTC.”
You will then see a new screen with your pairs available. The most popular trade pair between Bitcoin and Ethereum is BTC to ETH. XCH can only be acquired by exchanging cryptocurrencies such as Tether and Bitcoin. Purchasing XCH using traditional fiat currencies such as USD or EUR is not feasible.
6) Navigate to Chia Coin trading:
Once your account is funded, navigate to the Chia Coin trading section on the exchange. Select the Chia Coin trading pair that matches your deposited funds. After selecting your trade pair, you will see CHIA’s buying and selling prices. In the bottom left corner of the page, you will also find an “Order Book,” which contains all buy and sell orders for XCH.
7) Place your order:
It’s now time to place an order to buy XCH at a price that works for you. Enter the amount of CHIA you wish to purchase or sell, then click “Buy XCH” and confirm your order by hitting “Confirm Buy.”
After selecting the Chia Coin trading pair, choose whether to buy Chia Coin at the current market price or place a limit order with your desired purchase price. Enter the amount of Chia Coin you want to buy and confirm the order.
8) Withdraw your Chia Coin:
After the order is filled, the Chia Coins will be credited to your exchange wallet. You can keep your coins in the exchange wallet or withdraw them to a personal wallet for safekeeping.
9) Storage for your Chia Coin:
Once your order is filled, and you want to keep your Chia Coins, it is recommended that you store them in a cold storage wallet. A cold wallet is a hardware or paper wallet that can be backed up and stored safely offline. Before storing your XCH in a cold storage wallet, it’s important to check its security features to ensure that private keys are not stored locally.
Trading Strategies for Chia Coin
1) Farming:
You can participate in the Chia network by contributing hard drive space as “plots” to the network. Plots are used to store XCH, which is the fuel that supports the consensus mechanism on the blockchain.
The more space allocated, the more likely you will win a block, rewarded with new CHIA coins. Individuals possessing significant storage capacity on their computers and proficiency in cryptocurrency may consider farming Chia to generate income.
By farming XCH, traders can acquire the cryptocurrency at a lower cost and sell it on exchanges for profit. To gauge potential earnings from farming, traders can use online coin calculators.
2) Arbitrage:
Since XCH can be traded on multiple exchanges, it is possible to conduct arbitrage based on price differences between participants. Arbitrage is a profitable trading strategy many crypto traders employ that involves simultaneously buying and selling an asset to profit from price differences.
To calculate whether or not arbitrage opportunities are available with Chia Coin in value, traders can use online coin calculators. The advantage of this strategy is that traders do not have to worry about the time needed to transfer funds between exchanges while profiting from price differences.
3) Day Trading:
This simple form of trading involves buying and selling an asset within the same day for a profit. Day trading with Chia Coin is feasible on exchanges that can place limited orders. Chia’s volatile price fluctuations make it an attractive asset for day traders looking to generate profits from intraday movements. However, given the swift price fluctuations of cryptocurrencies, it is essential to implement risk management techniques such as stopping losses and price alerts from minimizing potential losses.
4) News Trading:
News traders monitor and analyze news events before executing trades based on developing trends. Since Chia Coin is an emerging cryptocurrency that has gained popularity in recent months, it is important to ensure that news events remain positive.
News traders can also use social media platforms to gauge public excitement or concern. Cryptocurrencies are often tied to new stories, and Chia is no exception.
Before its release, Chia was forecasted for rapid success by numerous market experts. Despite XTC not meeting expectations thus far, traders can use news-driven market shifts to develop a strategy that responds to current events.
5) Technical analysis:
Technical analysis is a trading strategy based on an asset’s price history to forecast future price movements. There are two main approaches to performing technical analysis: fundamental and technical.
Fundamental analysis refers to analyzing an asset’s past performance and predicting future price movements by looking at economic indicators, commodity prices, and financial metrics.
Technical analysis involves the study of past price patterns and the use of a variety of trading techniques to determine current trends in price. By looking at the behavior of a cryptocurrency’s exchange rate over time, traders should be able to predict future price movements. Crypto traders can use technical tools such as trading bots or combinations of technical indicators to keep track of Chia Coin’s price changes.
6) Position Trading:
Position traders typically take a long position by buying an asset or taking a short one. In general, long positions are favored by investors that expect bullish movements, while short positions are adopted by traders expecting bearish movements.
Given Chia Coin’s current price volatility, the cryptocurrency can be used for short- and long-term trades. The cryptocurrency market has experienced significant growth in recent years, with new coins being introduced daily.
Predicting the success of individual coins can be challenging, as evidenced by the unexpected rise of coins such as Dogecoin, which started as a joke but now has a market cap of over $60 billion. If Chia’s sustainable approach could propel it toward growth, holding the coin for an extended period is worthwhile.
Best Exchanges to Buy Chia Coin
1) Uphold:
Uphold is a reputable and highly innovative trading platform that can fulfill your trading requirements for various cryptocurrencies, including Chia Network (XCH). Apart from its user-friendly interface and innovative features, Uphold has gained industry-wide recognition for its reliability.
The platform offers an intuitive desktop and mobile trading experience that is highly customizable. You can tailor the trading view to include the assets you trade the most, and the interface has a sleek and modern feel on both desktop and mobile devices. It is a popular and ideal choice, particularly for novice traders.
In addition to its aesthetic appeal, the Uphold trading platform provides a hassle-free trading experience. You can easily place trades with just a few clicks, directly from your deposit method, without waiting for funds to clear your account. This one-step ordering is one of Uphold’s many innovations to enhance the platform’s usability. Moreover, they have recently incorporated the ability to execute limit orders.
2) KuCoin:
KuCoin is another highly reputable platform for cryptocurrency trading. Founded in 2017, the platform is based mostly on the BNB token (Binance Coin), the largest digital asset traded at KuCoin. The KuCoin team aims to provide distinctive features that appeal to users who prefer convenience over everything else.
KuCoin focuses on liquidity and user experience first and foremost, emphasizing security and ease of use that has been appealing to traders since the platform’s inception. KuCoin is a reputable and cost-effective exchange in the industry, providing competitive fees and trading costs.
The exchange has rapidly expanded since its inception, offering only cryptocurrency to cryptocurrency trading. It now provides various services, including the ability to purchase with credit or debit cards and peer-to-peer exchange capability.
KuCoin allows traders to buy and sell Chia Network (XCH) cryptocurrency and over 300 other popular tokens. Moreover, it is frequently the first platform to introduce trading opportunities for newly released tokens.
3) Huobi Global:
Huobi Global (also known as Huobi Pro) was established in 2013. As of December 2018, Huobi is one of the world’s largest digital currency exchanges. It operates the Huobi Pro exchange, with over 100 million registered users from over 190 countries and regions worldwide.
The platform offers its traders a comprehensive selection of blockchain assets and options for beginners and experienced traders. Huobi Global is a digital asset exchange founded in 2013 and has grown to become one of the largest in the world, with a trading volume of over US $1 trillion.
Although it no longer accounts for half of the world’s digital asset transactions, it still serves more than 5 million users across more than 130 countries worldwide.
However, it should be noted that Huobi Global does not currently accept United States or Canadian residents. As one of the top exchanges, Huobi Global provides trading opportunities for Chia Network (XCH) and various other cryptocurrencies.
4) Gate.io:
Gate.io is a professional cryptocurrency exchange that was established in 2014 and conformed to the standards of Huobi and Binance. It is based in the United States and provides users with safe, secure, and reliable trading through its platform. Moreover, it offers over 100 trading pairs between cryptocurrencies and fiat currencies.
The Gate.io team is further developing its platform based on customer insights to deliver advanced trading features. They have a strong reputation for being one of the best exchanges in the industry, especially for new traders.
Gate.io, established in 2013, has developed into a reputable trading platform that provides a user-friendly interface for beginners while offering advanced charts for various skill levels, including technical traders.
Although not the most popular exchange, it offers various altcoins, including Chia Network (XCH), and is frequently the first exchange to list new tokens. Additionally, Gate.io maintains a firm stance against any market manipulation.
Conclusion
Chia Network (XCH) has experienced great success over the last month and a half. The coin was launched in December 2017. This is evident in the climb of the highest price to date and through its social media presence via Twitter, Reddit, and Discord.
The coin has a relatively simple and clean design for an altcoin. In this case, simplicity can translate to the simplicity of use and ease of understanding the technology behind the coin.
The Chia Network (XCH) website is beautiful and contains much information about the network. The site offers a basic explanation of how the Chia Network (XCH) works with proof-of-work consensus. Also, it is ideal for those who want more details on how the blockchain works.
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