- Stacks might be the most profitable investment of the following ten years if Ethereum’s performance indicates the potential of blockchain smart contracts.
Stacks (STX) enthuse Bitcoin maximalists and for a good reason. By adding smart contract capability to the Bitcoin blockchain, Stacks claims to avoid altering or cluttering the Bitcoin mainnet.
On Ethereum, the mainnet is where smart contracts are developed, which clogs the network and raises costs. Scalable DeFi might be solved by creating these smart contracts on a second layer like Stacks.
The potential for DeFi on Bitcoin is enormous, and Stacks’ smart contracts may provide the necessary technical foundation.
Below, you can find out more about stacks: how to buy stacks, where you buy them, what you need, and more.
What is Stacks?
With the help of a cutting-edge consensus method called Proof of Transaction, the Layer 1 blockchain Stack leverages the security of the Bitcoin blockchain (PoX). In essence, the Bitcoin blockchain serves as a settlement layer, while the Stacks blockchain serves as a computing layer.
The native currency of the Stacks blockchain is STX. Because it has both miners and stakers or at least a subset of both, the Stacks blockchain is unique.
You have two possibilities in the Stacks ecosystem to get an interest in your digital assets:
Mining: To take advantage of Bitcoin’s proof of work (PoW) security, Stacks’ miners integrate BTC into the ecosystem. By adding Bitcoin to the chain, you have the opportunity to participate in mining and receive the Stacks block reward. Stackers will accept this Bitcoin as payment for reaching consensus.
Stacking: Similar to most proof-of-stake (PoS) blockchains, stacking enables holders to provide security and earn interest. Unlike most PoS chains, STX rewards its stakers with Bitcoin.
A brief history of Stacks
In 2013, Muneeb Ali and Ryan Shea established Stacks at Princeton under “Blockstacks.” Blockstacks obtained seed money from Y Combinator in 2014; in 2016, it raised $4 million in Series A funding. Blockstacks raised $50 million through a private token sale a year later, in 2017.
2018 saw the debut of Stacks’ testnet and integration with the decentralized storage platform Gaia. The Stacks blockchain became operational later that year.
Is Stacks a good investment?
Stacks claims to make it possible for Bitcoin to use decentralised financing (DeFi). The network may experience exponential growth in the upcoming years if they are even somewhat successful in reaching its goal. Stacks might be the most profitable investment of the following ten years if Ethereum’s performance indicates the potential of blockchain smart contracts.
Replacing Ethereum’s steadfast community and relatively developed DeFi ecosystem will be challenging. Stacks is a high-risk investment; only use funds you can afford to lose.
How to buy Stacks?
Compare cryptocurrency exchanges: Purchasing Stacks via a cryptocurrency exchange is the simplest option. By learning how to buy Stacks crypto or comparing the cryptocurrency exchanges, you can select one with the qualities you want, such as affordable costs, convenience of use, or round-the-clock customer service.
Create an account: To sign up for an account on an exchange, you must verify your identity and email address. A phone and some photo identification should be ready.
Set up a deposit: You can deposit using the payment option that best suits you after your identity has been verified; bank transfers, credit cards, debit cards, and bank transfers (sepa) are all often accepted.
Buy Stacks: Stacks are now available in return for your money. It can be done on more user-friendly exchanges by simply entering the necessary purchase amount and pressing the buy button. You can now withdraw your Stacks to your wallet if you’d like.
Where to buy?
By comparing deposit options, supported fiat currencies, and trading costs, locate an exchange where you can buy, sell, and trade STX.
Here are some of the places or stacks apps to consider if you want to buy Stacks:
Okcoin
· Custodial
· Protocol APY
· 50 STX minimum
· No fees
Binance
· Custodial
· Protocol APY
· 1 STX minimum
· No fees
Coinlist
· Custodial
· Protocol APY minus fee
· 15% fee
Xverse Pool
· Non-custodial
· BTC
· 100 STX min
· No fee
Friedger’s Pool
· Non-custodial
· Pays in STX
· No fee
Planbetter
· Pays in BTC
· 200 STX minimum
· 5% fee
InfStones
· Non-custodial
· 100,000 STX minimum
· Enterprise & Whitelabel
Hiro Wallet for desktop
· Non-custodial
· Distribute direct protocol APY
· No fee
How to find the best places to buy?
While discovering where to buy Stacks crypto and understanding these exchanges provide similar services, there are some important differences, including fees, the variety of accessible cryptocurrencies, and payment options. You can compare the features of well-known cryptocurrency exchanges to get the one that’s best for you by being aware of their differences.
You may also want to consider factors like customer service, user feedback, usability, and whether or not the exchange is registered with a local authority.
What are the documents needed?
Any cryptocurrency exchange requires an email address to create an account. Since some exchanges might also need your phone number and photo ID, it’s a good idea to have them available.
Before you can deposit money and begin trading Stacks, many cryptocurrency exchanges will need you to provide proof of your identity.
- A camera or smartphone, as well as a photo ID, are often required for the Know Your Customer (KYC) process. You might also be asked to include a copy of a recent utility bill or bank account to prove your address.
- Some exchanges permit deposits and trading of cryptocurrencies without the need for KYC, but they forbid the withdrawal of local currency from bank accounts. So, you must finish KYC if you want to purchase STX with local money.
- Once you have verified your identity, it is a good idea to employ 2-factor authentication (2FA) before banking any money. This will help to keep your money safe and increase the security of your account.
Payment methods?
After opening an account, you must deposit money to purchase STX. You can deposit local cash using a bank account or credit card, or you can transfer Bitcoin from one exchange or stacks wallet to another. For STX purchases, the following exchanges accept the following well-liked deposit options:
Bank Transfer: Although you should double-check with the exchange you choose, transfers from local bank accounts are typically free.
Credit or Debit Card: Linking a credit or debit card to your account is another useful option to top it off, but keep in mind that there will normally be an extra charge. However, there are advantages to utilizing a card to make one-time purchases or schedule recurring expenditures. Xverse pool, for example, allows people to buy Stacks using a credit card with Moonpay or Binance, or Transak.
Cryptocurrency: Typically, you can buy STX by exchanging it for another cryptocurrency, such as Bitcoin or a stablecoin. However, as this differs between exchanges, you’ll need to look up STX on the open market to find out what cryptocurrencies it can be exchanged for.
The easiest way to buy
While setting an “immediate buy” order to acquire STX at a set stack price is the simplest way to do so, not all cryptocurrency exchanges have this facility.
As an alternative, you can do a trade on the spot market, where you can choose the price. The most common way to purchase cryptocurrencies is using this approach. Although the immediate buy feature is typically more expensive than using the spot market, it is easy to use.
Should you invest in Stacks?
You alone can answer this. Do your research first, keep in mind that prices can go up as well as down, and never risk more money than you can afford to lose.
Xverse, the most advanced web3 Bitcoin wallet, allows users to purchase STX via Moonpay directly in your Xverse wallet home screen. So, if you are looking for a simple option to pool your Stacks, you can now do so through the Xverse wallet. This is available to download on Android and iOS.
- Pauline Cruz is a passionate writer with a diverse skill set in technology and business.