Want to know how to buy Stacks? You can Buy STX on Crypto.com.
Stacks has Bitcoin maximalists excited, and for good reason. Stacks promises to enable smart contract functionality to the Bitcoin blockchain without changing or clogging the Bitcoin mainnet.
DeFi on Bitcoin would be huge, and Stacks’ smart contracts might be the technology needed to make it happen.
What is Stacks?
Stacks is a Layer 1 blockchain that leverages the security of the Bitcoin blockchain using a novel consensus mechanism called Proof of Transaction (PoX). Essentially, the Stacks blockchain acts as a computation layer while using Bitcoin’s blockchain as a settlement layer.
STX is the native asset of the Stacks blockchain. The Stacks blockchain is unique — it has both miners and stakers, or at least a version of both.
In the Stacks ecosystem, you have 2 choices to earn interest on your money:
Mining: Stacks’ miners incorporate BTC into the ecosystem for the purpose of leveraging Bitcoin’s proof of work (PoW) security. You can commit Bitcoin to the chain for the chance to earn the Stacks block reward, known as mining. This Bitcoin will be given to the stackers as a reward for achieving consensus.
Stacking: You can stake STX and earn BTC provided by miners, known as “stacking.” Similar to most proof of stake (PoS) blockchains, stacking allows holders to provide security and earn interest. Unlike most PoS chains, STX stakers earn BTC as a reward.
Brief History of Stacks
Stacks was founded as “Blockstacks” at Princeton in 2013 by Muneeb Ali and Ryan Shea. Blockstacks received seed funding from Y Combinator in 2014, and completed a $4 million Series A capital raise in 2016. A year later in 2017, Blockstacks raised $50 million via a private token sale.
In 2018, Stacks launched its testnet and integrated with Gaia, the decentralized storage platform, for data management. Later that year, the Stacks blockchain went live.
How to Buy Stacks (STX).
Stacks 2019 public token sale was the first ever ICO commissioned by the SEC. STX became officially recognized as a security and therefore unable to be traded on U.S.-based cryptocurrency exchanges. However, Stacks (STX) is currently available to U.S. customers on Crypto.com and KuCoin.
securely through KuCoin’s
website
Experimenting Investors
KuCoin is an exchange that appeals to traders and investors of all levels of experience and risk appetite. The platform has a simple interface that allows users to navigate through the various features of the platform on desktop, Android and iOS. KuCoin helps users gradually learn how to use the different instruments by offering beginner settings and gamified applications like Futures Brawl. Overall, it’s a strong platform for anyone looking to explore the variety of trading products that aren’t offered by other exchanges.
Best For
- Beginners and experienced traders
- Investors seeking a wide selection of tokens, including newer, smaller projects
- Investors experimenting with tools like trading bots, lending and futures trading
- Competitive trading and withdrawal fee structure
- Over 770+ trading pairs available
- No KYC required to begin trading but needed for credit or debit card use
- Engaging features like lending, customizable trading bots, futures and margin trading
- Ample security features like 2-factor authentication (2FA) and email notifications
- Because of the high level of functionality, new users may experience some difficulty interacting with certain features, but this can be avoided through proper research
Crypto.com strives to make cryptocurrency a part of everyday life by offering a full suite of services for crypto users. The company offers a Crypto.com App, Exchange, Visa Card, DeFi swap, DeFi Wallet, DeFi Earn, Crypto.com Price, staking, crypto lending, and many other services. What really sets them apart, however, is the combination of super low fees and incredibly generous rewards programs for their users.
Best For
- Traders who want access to a secure, low-cost cryptocurrency exchange
- Passive investors who want to earn interest on their balance without frequent trading
- Mobile investors who prefer to handle all their crypto needs via their phone or tablet
- Low fees
- High security
- One-stop shop for all your crypto needs (wallet, trading, spending, and more)
- Lots of ways to earn interest, rewards, and rebates
- Low privacy
- Customer service response time could be improved
- Open an online account.
Opening a crypto account is the first step to acquiring STX tokens. As a U.S. resident, you’ll have to comply with SEC know your customer (KYC) regulations. For tax purposes, you’ll need to supply the exchange with your Social Security number, address and a photo of your driver’s license. Once you’ve compiled these resources, you’re ready to make your account.
- Buy a crypto wallet (optional).
Cryptocurrency is great because it allows people all across the world to take custody of their assets and protect their value from the whims of governments and central banks.
While most crypto exchanges are happy to take custody of your assets for you, best practice is purchasing your own cryptocurrency wallet. A cold storage wallet should be used for large amounts of money, while hot wallets work great for smaller amounts dedicated to trading or earning interest.
Stacks STX is the native asset to the Stacks blockchain and it’ll require a special wallet for the time being.Until mainstream wallets like the Ledger Nano X and Coinbase Wallet add support for STX, your best bet is Stacks Wallet. The Stacks Wallet is made by Stacks and is quite intuitive. There’s a downloadable desktop application and a browser extension version.
- Make your purchase.
Now that you have an exchange account and a safe place to store your assets, you’re ready to make your purchase. Connect a bank account to your exchange, transfer some USD and purchase STX!
Investing Tip:
The price of STX has been incredibly volatile in the summer of 2021, and timing crypto investments is notoriously difficult. To lower your risk, consider using an accumulation strategy known as dollar cost averaging (DCA). Instead of investing your entire piggy bank at once, you can enable recurring purchases to protect yourself from short-term volatility.
Trade, Sell or Convert your Stacks
If you want to exit your STX position, you can follow the purchasing process in reverse order. First, transfer your STX from your wallet back to your exchange wallet, then place a sell order. Now that you’re back in USD, you can transfer your funds back to your bank account.
Current Crypto Prices
The cryptocurrency market has been all over the place in 2021. After a solid bull run through in the first half of the year, Bitcoin crashed in May following Elon Musk’s announcement that Tesla would no longer be accepting BTC for their vehicles.
Since then, the market has been in an accumulation phase, and now could be a great time to get in. Most experts believe we are only halfway though the market cycle, so there could be more upside on the horizon.
For a more in depth analysis of the current market cycle, see Will Bitcoin Go Back Up?
Is Stacks a Good Investment?
Stacks promises to enable decentralized finance (DeFi) on Bitcoin. If they’re at all successful in achieving their goal, the network could grow exponentially in the coming years. If Ethereum’s success is any indication of the potential of blockchain smart contracts, then Stacks could be the most lucrative investment of the next decade.
That being said, Ethereum’s comparatively mature DeFi ecosystem and loyal community will be hard to displace. Stacks is a high-risk investment, so only invest money you’re okay with losing.
Benzinga crafted a specific methodology to rank cryptocurrency exchanges and tools. We prioritized platforms based on offerings, pricing and promotions, customer service, mobile app, user experience and benefits, and security. To see a comprehensive breakdown of our methodology, please visit see our Cryptocurrency Methodology page.
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