Indexing Protocol The Graph has been around long enough to draw attention not only from developers, who need blockchain data access regularly, but also from investors. If you see the protocol’s native token GRT as an investment opportunity or simply want to learn more about it, this guide will show you how to buy The Graph (GRT) and arm you with more knowledge about the project.
In essence, The Graph is an indexing protocol for querying data. In addition to being designed for networks like Ethereum and IPFS (interplanetary file systems), The Graph powers many applications in both DeFi and the broader Web3 ecosystem.
It also has open APIs (application programming interfaces) called subgraphs that are accessible to anyone wishing to build and publish one. Then applications can query those APIs using GraphQL query language to retrieve blockchain data.
Here’s a quick Pros and Cons list of The Graph before we jump into the main review.
- Querying networks, such as The Graph, saves developers resources.
- They also save time.
- Provides information bridge between blockchain data and decentralized applications.
- Growth potential.
- Available on all major exchanges
- Not a fully developed network.
- Includes a small number of platforms.
- Typically limited number of pairs to trade on exchanges.
Now let’s address the elephant in the room and discuss where and how to buy The Graph GRT tokens. We will also look at the project’s features and what makes it stand out from the sea of cryptocurrencies.
NOTE: This review is in no way investment advice. Thus, keep in mind that it is crucial to do your own research before making a financial decision.
How to Buy The Graph GRT in 4 Quick Steps
As of publication, The Graph Network is ranked #58 among cryptocurrencies by market cap ($1.6 billion as of Q2 2022). It is available on many cryptocurrency exchanges, both Centralized (CEX) and Decentralized (DEX). However, you shouldn’t pick the first exchange that pops your way.
There’s a difference between CEXs and DEXs in the listing process, regulations, and trading options. So it is advisable to choose your trading platform carefully.
Step #1: Choose a Trading Platform
As mentioned, there are two main types of crypto exchanges: CEXs and DEXs. The significant difference between the two is the way they conduct their transactions. A centralized exchange, like Binance or Coinbase, stands between the sender and the recipient as a “middle man” that moves the transaction along. On the other hand, a DEX like Uniswap or PancakeSwap, does not require a middle man before transactions can be carried out.
CEX vs. DEX
The presence of middle men makes CEXs more susceptible to data hacks and malware. On the flip side, a CEX is more likely to choose its listings thoroughly and reduce the risk of exposure to rug pull or scam projects.
Additionally, CEXs are more often regulated by governmental agencies, such as the Security and Exchange Commission (SEC) in the U.S. Some traders take the regulation as an advantage, as they perceive it to reduce their risks. Others view the crypto market as a “free trade” space and take governmental regulations as an intrusion of privacy and personal choice.
DEXs, on the other hand, give traders all the freedom. And, unlike CEXs, the transaction process does not require a middle man. So, the platform itself does not hold any funds before, during, or after the transaction. The process is peer-to-peer, which reduces the cyberattack risks.
Which To Choose
NOTE: To reduce the risks of a culprit getting hold of your crypto funds, NEVER share your private key details with a third person and protect your digital currency with a strong password.
For the purposes of this Graph review, we’ll choose the Binance crypto exchange to illustrate the next steps required for GRT purchase. However, you can pick any one of the reputable exchanges to conduct your transactions and buy The Graph Network token.
Additionally, we’ll make the necessary references along the way if the steps for Binance exchange differ from those on other platforms.
Step #2: Registration On a Trading Platform
Crypto trading can be confusing for beginners, especially if you don’t already have a crypto wallet. So, the first step toward purchasing any crypto is registration.
Binance registration is easy enough. All you need is a valid phone number or an email. The platform requires users to go through KYC (know your customer) procedure, but it is not essential for initial trading.
NOTE: Many exchanges don’t even require registration if you have a running crypto wallet. Just link your existing wallet to the platform, and you’re good to go without submitting any personal details.
Step #3: Deposit Funds
Binance lets users deposit funds in several ways. Again, if you have a wallet already, you can buy The Graph with other cryptos, such as Bitcoin (BTC) or the Ethereum token Ether (ETH). However, if you don’t own any, you can still choose to deposit funds in fiat currency, then exchange them for crypto assets.
Now, depositing fiat currencies can be achieved through direct bank wire, i.e., from your bank account straight onto the platform. However, you can also choose to tie your Binance account to your debit card or credit card.
In this case, it is advisable to take an extra step and purchase BTC first, as GRT/fiat pairs are not always available. This isn’t unusual because not all crypto coins have fiat pairs. So once you’ve bought the BTC, you can then go ahead to exchange it for GRT tokens. Again, we know this might be a bit confusing to new traders, but you’ll get the hang of it quickly enough.
NOTE: Always check and recheck the amount you want to deposit, as the transactions are often non-reversible.
This Will Help If You’re a Beginner
Here are a couple of additional tips if you’re a beginner.
Tip #1: Depositing BTC can take a little longer than depositing ETH and could come with higher fees. While low trading fees are never a guarantee, they depend greatly on the platform you choose and the digital asset you purchase.
Tip #2: Start with a smaller amount for your first deposit to be on the safe side. Once the tiny amount reaches your account, and you have made sure you’re doing it right, proceed to the amount you would like to trade-in for GRT.
Tip #3: Before trading, make sure you check the current price of the token. The crypto market is volatile, and The Graph price fluctuates along with the rest of the crypto assets. Also, dive into trading strategies to make sure you are aware of all risks and rewards.
Voila! Now you own a cryptocurrency wallet on Binance and are ready to hold GRT.
Step #4: Acquire The Graph Token
Now that you hold one of the major cryptos on your brand new wallet, it will be much easier to buy The Graph Network token.
Once you are ready to trade, check your balance. To do that, go to Funds > Balances in the navigation bar at the top of the website. You also have an option to customize what you see in that window. For example, if you would only like to see the coins with a balance of over 0.001 BTC, click on Hide small assets.
Now that you have checked your assets, proceed to place an order for Graph tokens. For this step, go to Exchange > Basic. Now, we will go ahead wih the rest of the transactions, assuming you have BTC to trade, but there’s no difference in the process itself.
Select BTC in the top right corner, and search for GRT to order a trade. The GRT/BTC trading pair should appear.
Congratulations! You’re now a proud owner of GRT!
NOTE: Binance app is accessible on your mobile device as well. However, to buy crypto, DeFi coins in general, or GRT in particular, you can research more networks and the broad cryptocurrency market to pick the asset you need.
Also, there are ways to gain exposure to a cryptocurrency market without buying assets through exchanges. For example, you can choose to have a Graph wallet on broker platforms, such as Etoro.
What to Do With Your Graph Tokens
Once you purchase Graph tokens, you have several options. Store, stake, keep, or sell. Any of the options could be beneficial in certain market conditions; thus, each deserves careful consideration.
If you believe your Graph coins constitute a profitable store of value and could spike in price soon, store your GRT. You always have the option to keep your newly purchased Graph right on the trading platform. However, many traders choose the option to store their digital assets away from centralized exchanges. For example, a Trust wallet is a valid option as it would store your crypto safely enough. But some traders who plan to hold for long periods prefer a hardware wallet to a Trust wallet.
A hardware wallet, also known as cold storage, is just what it sounds like. It is a physical device, much like a classic data storage. It is hack-proof and provides security and utility when interacting with blockchains.
Moreover, hardware wallets give traders an extra layer of protection against phishing sites, cyber-attacks, and malware. A hardware wallet can work with multiple blockchains simultaneously, allowing investors to manage different tokens on the same device. What’s more, all of them can be backed up easily with a single recovery phrase.
Stake Your Graph Network Tokens
While holding on to your Graph coins is a valid option, you can easily earn rewards by making them work for you instead of storing them.
Staking is similar to holding a savings account. You can validate transactions using your tokens and temporarily lock them on the Graph, earning rewards for participating in the consensus mechanism. However, the GRT price is volatile, and staking could be risky. So watch the changing price and the market cap on various crypto portfolio trackers such as CoinStats, CoinMarketCap, CoinGecko, or Messari. Also count your profits and losses with a crypto profit calculator by CoinStats.
Sell Or Exchange The Graph Network Coins
Naturally, you can sell The Graph coins when you see fit. Moreover, as you can’t directly spend your Graph to purchase goods or services, the only option if you no longer wish to use your GRT is to sell it.
Now that you have plenty of options to choose from, we are confident that your newly purchased Graph will serve you well. Thus, it is the perfect time to discuss the digital asset itself and its history.
What Is The Graph And How It Works
The Graph is a decentralized network that supports indexing data, and querying data from blockchains. In addition, the protocol makes it possible to query data that is difficult to query directly.
For example, projects with complex smart contracts, such as decentralized exchanges like Uniswap, or NFT initiatives like the Bored Ape collections, store their data on the Ethereum blockchain. Thus, unearthing any data except immediate basic info becomes a difficult task. The Graph claims to make it simple.
“If we wanted to query for apes that are owned by a certain address, and filter by one of its characteristics, we would not be able to get that information by interacting directly with the contract itself,” specifies the protocol. It concludes that “Indexing blockchain data is really, really hard.”
The Graph solves this with a decentralized protocol that indexes and enables the performant and efficient querying of blockchain data. These APIs, or “subgraphs,” can then be queried with a standard GraphQL API. Today, there is a hosted service and a decentralized protocol with the same capabilities. The open-source implementation of Graph Node backs both.
Navigating the crypto market can prove to be an overwhelming task. Hopefully, this Graph review helped you get a clearer idea of what The Graph and its GRT token are and where to find them. Once you buy The Graph, you are at liberty to store it in a Trust wallet or a hardware wallet, stake it, or just exchange it for other cryptos or fiat currency.