Today, Coin98 will show you how to:
- Purchase and store ICP.
- Transfer funds to the Dfinity blockchain by transferring ICP coins from an exchange (CEX) or using a cross-chain bridge.
- Seek Investment Opportunities on Dfinity
Let's jump right into the Dfinity Blockchain!
About Dfinity (ICP)
Dfinity (ICP)is a blockchain that has launched a public network and provides a limitless environment for smart contracts that run at web speed, serve web, scale, and reduce compute costs. On ICP, everything can be built from DeFi, to mass market tokenized social media services that run on-chain, or extend Ethereum dapps.
The Internet Computer is self-governing and can grow its capacity as required. It combines special node machines run en masse by independent data centers all around the world. Like all blockchains, it is unstoppable, and the code it hosts is tamperproof.
Similar to other blockchains, to participate in DeFi on Dfinity, you also need the native token of the corresponding chain for a fee, also known as "gas fee" (the fee you need to pay to the network).
The gas fee gwei level on the Dfinity is currently around 0.0003 ICP/transaction. So, to make transactions, only 1 ICP ($7.22) can go a long way.
Step 1: Prepare tokens
Since the majority of CEXs currently support ICP, you have complete freedom to choose where to make your ICP purchase(s). The most popular Dfinity-supported exchanges include Binance, Gate.io, KuCoin, and OKEX.
In the following section, I'll go into details about which exchange you should use to purchase ICP.
Step 2: Prepare your ICP wallet to store tokens
It is necessary to have a non-custodial wallet after you buy tokens on CEX to store tokens and interact with DeFi. At this time, there are a number of wallets that can store ICP coins such as Plug Wallet, Stoic, and Earth Wallet.
Following these simple steps, you can store ICP and other Dfinity tokens. We take Plug Wallet as an example.
- Step 1: Go to the Plug Wallet website and download the app.
- Step 2: Create Wallet then select “Deposit” to receive ICP.
- Step 3: Copy the wallet address or scan the QR code address and send your assets to this address
Step 3: Transfer tokens from other Blockchains to the Dfinity Blockchain
After buying ICP and having a Dfinity wallet (Dfinity), you can participate in events or skin in the game in the Dfinity Ecosystem, such as joining lending, yield farming or staking activities on this chain.
Typically, there are two methods for transferring tokens to the Dfinity Blockchain.
- Option 1: Buy ICP Coins from CEXs and transfer them to a Dfinity-supported wallet.
- Option 2: Convert tokens from other blockchains to the Dfinity blockchain using the Cross-chain Bridge, then trade on DEXs.
To make it easier for you to visualize, I'll walk you through the process for the two methods listed above.
Option 1: Buy tokens on CEXs & withdraw to a Dfinity Wallet
Transfer and withdrawal fees will vary depending on the exchange. If you want to transfer your assets, you should pick the CEX that is most convenient for you to use. I'll recommend a few popular exchanges here, such as Binance, KuCoin, Huobi, Gate, etc.
To begin with, you'll need USDT or USDC stablecoins in order to purchase. US dollars (USD) or other currencies in your country can be used to buy USDT if you don't have any stablecoin yet.
Step 1: Login to the Binance Mobile App. I recommend reading this “How to use Binance'' article.
Step 2: Choose “P2P Trading” in your Binance Homepage.
Step 3: In this step, you will see:
- Number 2 indicates which fiat currency you’re using to buy USDT.
- Number 3 indicates which token you want to buy (e.g. USDT, BTC, BUSD, etc.).
- Number 4 displays a list of sellers who will sell you USDT in exchange for your fiat currency.
After you've decided on your preferred sellers, simply follow Binance's instructions to complete the transaction (Remember to read the instructions carefully).
Now that you already have USDT, you can purchase ICP directly from any exchange, such as Binance, Kucoin, Gate, etc. and transfer the tokens to the Coin98 Wallet by doing as follows:
- Step 1: On Binance exchange, use USDT to purchase ICP.
- Step 2: Transfer ICP to the Dfinity wallet by typing in your wallet address.
Option 2: Use Cross-chain Bridges to transfer tokens to Dfinity
As Dfinity is also a well-known blockchain, many bridges on the market currently support asset transfers to and from the Dfinity blockchain. You are free to select any bridge below that makes you feel at ease. I'll suggest a few bridges here:
1. Slash Protocol
Slash Protocol is a DeFi Station using the AMM mechanism to provide liquidity for LPs with no fee charged.
Users can use the protocol’s functions such as Swap, Cross-chain bridge, Yields, Lending & Borrowing…
2. Liquid ICP
Liquid ICP is the first s-Bridge serving as a bridge to expand liquidity between the Dfinity blockchain and EVM. Besides, Liquid ICP also has many other platform services such as guarantee for ICP Holder, Lending, and Borrowing then receives 2x rewards back.
Step 5: Transfer Dfinity tokens (Dfinity) from the supported wallet
To transfer tokens from a decentralized wallet to another, follow these simple steps. I'll show you how to transfer ICP from your mobile wallet.
- Step 1: Click the Dfinity wallet.
- Step 2: Choose "Send".
- Step 3: Enter the To address/ID then click “Continue”.
Note: The gas fee for each transaction is paid with ICP, approximately 0.0003 ICP.
Skin in the game with Dfinity blockchain
Currently, the crypto market shows signs of stability which means that every ecosystem has a long time to build up its infrastructure as well as attracting more and more users. The Dfinity ecosystem is expected to have a blooming year in 2022 as it has been built for such a long time.
The crypto market is currently showing signs of stability, which indicates that each ecosystem has a long time to develop its infrastructure and attract new users. The Dfinity ecosystem is expected to bloom in 2022 since it has been in place for so long.
Keeping an eye on this ecosystem will give you many opportunities to skin in Dfinity, as you will be updated with the most recent significant changes in each network.
Lending is a money market that allows you to deposit your assets in order to receive interest. The most prominent lending protocol on Dfinity is Sailfish.
Sailfish is a Dfinity-based project with decentralized trading, lending and borrowing, and a cross-chain bridge as main features. Sailfish also provides a number of advantages, such as the ability to upgrade canisters (Smart Contracts), provide decentralized PaaS solutions, and so on. The project has yet to create a token and is currently a stub.
A launchpad is a cryptocurrency platform which assists investors in seeking projects that are still in the early phases of development (pre-market offering), when the potential for the best return on investment is greatest.
Crypto launchpad programs make it easier for even new investors to get involved by simplifying offers and providing an inbuilt trust factor for many investors.
If you're interested in learning more about the Dfinity blockchain and the investment opportunities it offers, I recommend checking out this article. Hopefully, this will be beneficial to you!