Kusama is the “canary network” for Polkadot, one of the most exciting blockchain projects in development. Before the launch of Polkadot, the team wants to make sure everything will execute properly. This is where Kusama comes in. As a canary network, Kusama is somewhat of a beta version of polkadot with real money flowing through it. Eventually, Polkadot will launch and merge forces with Kusama.
Not only is the technology extremely convenient and scalable, the token went to the moon in 2021. For investors and developers alike, the project is very exciting for the crypto community.
What is Kusama (KSM)?
Kusama is a blockchain platform that allows developers to create scalable, interoperable projects. It runs on Substrate, which is a building kit developed by Parity Technologies. It is very similar to Polkadot (DOT) in that it allows you to create projects across multiple chains on a proof-of-stake system. Those connected to the network can verify transactions to receive freshly-minted tokens. Transactions are sent through the chain to be verified.
KSM is the network’s governance token, allowing users to vote on new protocols and the future of the technology. The amount of votes is based on the amount of tokens owned. However, it offers certain features not yet available on Polkadot, such as allowing the voting process to be much faster.
Brief History of Kusama (KSM)
Kusama was created in 2016 by the same founders of Polkadot: Ethereum co-founder Gavin Wood, Peter Czaban and Robert Habermeier. Tokens were initially given to holders of Polkadot as a reward for holding the token. Holders were given an equal amount of KSM as DOT they had at the time. It was initially listed for around $1.70, but in May 2021, it reached an all-time high of $560. KSM soared past the moon, reaching heights unheard of in any form of investing. It is currently hovering around $350.
How to Buy Kusama (KSM)
Now that you understand the basics of Kusama’s platform, you may be interested in purchasing the token. Fortunately, doing so is fairly easy and only requires a few short steps.
- Open an online account.
The first step in purchasing KSM is to open an account on a crypto exchange. This simple step usually requires only an email or phone number. Because Kusama is a fairly new technology, not many centralized exchanges or wallets support the token. However, it is offered on a few exchanges, such as Crypto.com and Huobi Global. If the hype surrounding the project increases, you can expect it to be listed on more exchanges.
- Buy a wallet (optional).
Wallets differ from exchanges in that they are a much more secure way to hold funds. You have direct custody of your funds, instead of an exchange holding onto them for you. This allows you to have much more control over your funds.
- Make your purchase.
On Crypto.com’s DeFi wallet feature, you use the search feature to locate USDT or other supported convertible coins. When you have located the token and have a balance, you click the “Swap” button and enter the amount of KSM you would like to purchase. After this, KSM is stored on your Crypto.com DeFi wallet. You can also purchase it directly from Crypto.com. Navigate to the KSM token and select “buy.” Then you can use a bank or credit card transfer to make the purchase. This process is similar if you choose to use Huobi Global instead of Crypto.com. On Huobi Global, you navigate to the KSM/USDT or other currency pair. From there, you can select the amount to swap. You can also send it to a hardware wallet, such as Ledger, if you wish.
Best hardware wallet for Kusama: Ledger
Ledger is a hardware wallet that is extremely easy to use and supports the sending and receiving of most tokens on the Ethereum chain, allowing for a large amount of choice when choosing tokens. Once you have purchased a Ledger hardware wallet, you simply download its software onto your computer and create an account. You’ll be assigned a wallet address (typically a long string of letters and numbers), and then you can send and receive tokens through the wallet. Hardware wallets offer an extra level of security as opposed to software wallets, but they cost money while software wallets are typically free.
Best software wallet for Kusama: Crypto.com
Crypto.com DeFi wallet offers the KSM token and is easy to use. Make sure you are using the DeFi wallet app, as it is not available on the normal exchange. Opening an account is simple and quick. All you need is an email or phone number and a funding source. You can also send funds from another exchange like Coinbase (NASDAQ: COIN) to your Crypto.com DeFi wallet.
To do this, you locate the Ethereum token of your choice on your Coinbase account and hit the “Send” option. From there, you enter the Ethereum wallet address associated with your Crypto.com account. Hit send, and the funds should be in your Crypto.com account within a few minutes. After you have the funds in your exchange account, you’re well on your way to purchasing KSM.
Trade, Sell or Convert your Kusama (KSM)
To sell or convert your KSM, you navigate back to the token’s profile and select the “Trade” or “Convert” option. On Crypto.com, you can convert the token to Tether (USDT) or Crypto.com Coin (CRO.) The full list of convertible currencies on most exchanges can be found on coinmarketcap.com.
While you cannot directly sell your KSM tokens for fiat (USD) currency, you can convert them to a stablecoin, such as USDT. You can then sell your stable coin for fiat (USD) and deposit it back into a bank account. Selling a cryptocurrency usually involves fees, so storing it in a wallet may be a better option for some.
Keep an eye out for new projects on the Kusama chain. These could involve social media or websites. News of these projects could have a profound impact on the price.
Current Crypto Prices
In late September 2021, China reiterated that they are banning all cryptocurrency transactions, leading to a market frenzy. Altcoins surged, interest rates fluctuated and major currencies saw an increase in volatility. This event forced miners and investors to experiment with new forms of decentralization, moving away from China. Bitcoin mining was largely centered in China, but now miners are moving around the globe. This can arguably lead to a higher security for Bitcoin, as its network is much more spread out. Indeed, the ban is changing the future of cryptocurrency as a whole.
While some say crypto may be entering a bear market, others view the drop as a minor setback. Either way, the increased volatility is defining the current market. Volatility provides opportunities to profit but can also lead to severe losses. Make trades with a calculated approach to mitigate risk.
Is Kusama a Good Investment?
Kusama is a unique asset that has quickly gained traction in the crypto sphere. It uses revolutionary technology to further decentralize the blockchain and allows you to create new chains. While the value has dramatically increased over the course of 2021, some still see more gains on the horizon. Future projects and uses of Kusama will ultimately determine the price.
Kusama is a strong force in the crypto world and has huge potential.
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