Cryptocurrencies and blockchains have great potential for reshaping the world of traditional finance into one of Decentralized Finance (“DeFi,” for short). But if cryptocurrencies want to become real options for day-to-day transactions, they first have to overcome some obstacles. One of these major obstacles is scalability. Most crypto users have experienced slow network speeds and high fees from time to time.
The bitcoin blockchain is estimated to be able to handle about six transactions per second. Traditional global payment processors like PayPal or Visa can handle a couple of thousand transactions per second, so a lot of blockchains are lagging far behind and have no real way to catch up. Enter Elrond. A blockchain built specifically to solve the scalability issue and, according to them, is already capable of processing a few hundred thousand transactions per second, making payments almost instantaneous. Currently powering this blockchain is the eGold cryptocurrency, generally called “Elrond.”
This isn’t technically true, but we’ll get to that later. If you’ve heard of this project (it’s been getting a fair amount of attention recently) and want to find out how to buy Elrond, read on for a complete step-by-step guide.
Where to Buy Elrond (EGLD) – Top 5 Exchanges
When you want to buy a hammer, you go to a hardware store. When you want to buy cryptocurrencies, you go to a crypto exchange (at least for now… there are projects looking to do away with the need for exchanges themselves). But there are hundreds of exchanges in the crypto space; some large, some small, some trustworthy, others less so. To complicate things further, there are thousands of cryptocurrencies and no exchange lists for every single token. Plus, Elrond is still a relatively small token, and not many exchanges trade in it. So we really need to find out where to go before we can even get started on showing you how to buy Elrond.
To figure out where to go, first, we head on to www.coinmarketcap.com and type “Elrond,” or its ticker symbol “EGLD” in the search box at the top right. We’ll see just one result here, so go ahead and click on it.
This is coinmarketcap’s landing page for the Elrond token, where you can see its current price, a price chart, and other interesting information. Notice the warning about two different Elrond tokens: ERD and EGLD. We’ll talk a bit more about this later, but for now, be aware that ERD is an older token that has been replaced with the newer EGLD (which, BTW, stands for “electronic gold”). Interesting as it may be, what we want to know right now is where we can buy some, so click on the “Market” button.
What you see here is a list of EGLD trading pairs, sorted from highest to lowest trading volume. Each entry also specifies on which exchange we can find each pair. Since some exchanges offer more than one trading pair with any particular cryptocurrency, some exchanges appear more than once. We can immediately see that Binance has, by far, the highest EGLD trading volume, as it’s taken the top four spots. Let's take a quick look at the top five exchanges:
|Binance||Rating: 5 |
|Crypto.com||Rating: 5 |
|Bitfinex||Rating: 5 |
|Bithumb Global||Rating: 5 |
Step-by-Step Guide on How to Buy Elrond
We’ve seen the top five exchanges for EGLD and their trading pairs. Choosing between them may well depend on fine details. The most commonly traded token with Elrond is the USDT stablecoin, but there are different ways to fund your account across exchanges. Binance.US and Birfinex have trading pairs with the US Dollar, and there are very few fiat options available, and that might be important to you. In most cases, you need to buy Elrond with crypto tokens you already own. We’ll use an example to show you how to buy Elrond with USDT on Binance. Let’s assume you want to buy 200 USDT worth of EGLD.
Step 1: Create an Account on Binance
This first step is only for those who don’t yet have a Binance account. If you do have one, skip to step two.
Browse over to www.binance.com and click on the yellow “Register” button near the top right.
You can create your account either with the traditional email method or the newer mobile number method. Let’s take the traditional route. Fill in your e-mail address, password (remember to make it a then click on “Create account” and follow all the steps until your account is active and verified. Now would also be a great time to set up Two-factor authentication (2FA). You should always go for that extra bit of security.
Step 2: Deposit your Funds
Now that you have a Binance account already and waiting, the next step is getting some USDT in there. For that, you will transfer USDT tokens from your personal wallet (where they should be if you’re holding them) to your Binance USDT wallet.
After logging into your Binance account, click on the “Wallet” button on the top ribbon and then select “Fiat and Spot” from the drop-down menu.
This is the main page for your spot wallets. The main thing you can see here is how much all the tokens in your Binance account are worth. In other words, your general balance on Binance. Since we’re going to fund your account, click on the “Deposit” button along the top.
We’ll be depositing USDT in this guide, so click on the “Crypto” tab.
This page has a drop-down menu where you select the cryptocurrency you want to deposit. Click on it and select USDT. Your USDT wallet address will appear on the right side, just under a QR code. You can copy your wallet address to the clipboard or scan the QR. Either method works just as well.
Now open your personal wallet and transfer your USDT to the address you just got above. In a few minutes, after all the network confirmations have been completed, your USDT will be in Binance, ready for you to buy your EGLD.
Step 3: Buying Elrond
What we’ve done so far is transfer funds between two of your accounts. It’s kind of like moving money between accounts you have at two different banks. We have yet to make a purchase, but the time for that has now come. It’s time to buy your Elrond. Purchases happen on the cryptocurrency market, so that’s where you need to go. Click on “Markets” in the top ribbon.
If you want to see all the trading pairs with Elrond on Binance, click on the “All” tab and type “EGLD” in the search box on the right.
Remember that we’re buying 200 USDT worth of Elrond, so click on the EGLD/USDT trading pair. If this is your first time trading on Binance, a pop-up will appear, offering you the choice of using either the advanced or the classic trading interface. Classic will do just fine. Binance will remember your choice for future trades.
This is the market page for the EGLD/USDT trading pair. Don’t feel intimidated by the ton of numbers all over the top part of this page. You won’t be needing this information if what you’re making is a simple purchase. What you really need is at the bottom, so scroll down.
The right-hand column of buttons is for selling any Elrond you own for USDT, which is the opposite of what we want to do now. We’ll focus our attention on the left-hand column. In the “Total” box, type in how much USDT you want to spend. In this example, 200 USDT. After typing “200” in the “Total” box, we can see here that we'll get 1.575 EGLD tokens. After everything is filled in, click on the green “Buy EGLD” button to complete the process. In a few minutes, your Elrond tokens will be in your Binance wallet.
You've just bought a little over 1.5 Elrond tokens. It isn’t a complicated a process as some people believe. We’re sure you’ll master it with one or two purchases.
Best Wallets to Hold Elrond (EGLD)
The EGLD you just bought is still in your exchange wallet. You can keep them there for now if you want to make quick, day-to-day trades. But if you’re buying as an investment and planning to hold Elrond for the long-term, you should transfer them to a personal wallet as soon as possible.
Here are some of the best EGLD wallets:
|Maiar Wallet||Rating: 5 |
|Elrond Web Wallet||Rating: 5 |
|Ledger Nano S||Rating: 5 |
|Trust Wallet||Rating: 5 |
|Frontier Mobile Wallet||Rating: 5 |
Although hardware wallets offer the highest level of security and are the best choice for heavy investors and/or long-term holders, software wallets are secure enough for day-to-day trades or payments. Maiar stands out among the software wallets. First of all, you’ve just got to love the Middle-Earth theme they have going along with Elrond. But mostly, it’s just a good wallet, secure, very easy to set up and use, and even provides you with its own way of buying EGLD with over 150 fiat currencies. If you’re going to invest in this cryptocurrency and are considering using it for day-to-day payments, be sure to give Maiar a look.
More Information About Elrond [FAQs]
What is Elrond?
Cryptocurrencies need to overcome some obstacles if they are ever to function alongside or in replacement of fiat currencies for day-to-day transactions. Some of these obstacles are related to the fact that a lot of people still don't understand or trust them, but other obstacles are technical. One major technical process is speed. Early blockchains like Bitcoin or Ethereum weren't designed to handle thousands of transactions per second and just haven't been able to scale up as the number of users increases. During times of heavy traffic, transactions can take hours, and fees can go way up. The Elrond blockchain was created to provide a solution to this problem. They claim to be able to currently handle over 200,000 transactions per second, more than even big payment processors like PayPal or Visa. And the blockchain’s capacity is designed to be scalable, meaning that it will go even higher as the blockchain grows.
How Does Elrond Improve Transaction Speeds?
Usually, all nodes on a blockchain process and validate all the events and transactions, and each node holds a full record of the entire blockchain. So each node has to validate each and every transaction, execute all smart contracts, run every dApp, etc. This is exactly what makes blockchains both decentralized (there is no single master node controlling everything) and very secure (a hack would need to affect every node in the blockchain at exactly the same time, and that’s basically impossible). Some people are developing solutions for transaction speeds for the early blockchains, but these solutions are usually centralized.
Elrond improves the existing blockchain's capacity by introducing a process called sharding, which means that not all nodes handle every task. For example, some nodes only execute smart contracts, while different nodes handle payments, and yet others run dApps. And other, special nodes exist to guarantee that everything is running properly and integrate everything into the Elrond blockchain. As more nodes are added to the system, there are more machines available to receive network shards, meaning the overall capacity increases.
Why are There two Different Elrond Tokens?
When Elrond was first proposed and was in development, they were using the Elrond token (ERD ticker symbol). Early investors could buy ERD before the actual blockchain was even launched and so help fund and support development. ERD value went up as development progressed. The Elrond blockchain was launched in July 2020. In September 2020, after the blockchain was fully operating, the team decided to switch the old Elrond token to a new coin called e-Gold (EGLD) running on their own blockchain. ERD was converted to EGLD at a ratio of 1,000 to 1. So if you owned 20,000 ERD, those were exchanged for 20 EGLD. This is the token currently available for trading or holding. So, even though most people still refer to both the blockchain and the token as “Elrond,” that name should be used only for the blockchain, and the token should be called e-Gold.
Is Elrond a Good Investment?
Elrond’s, or rather e-Gold’s price at the moment of writing, is just over 126 USD. Although it is about 37% lower than the all-time high it reached just under two weeks ago, it is still worth 385% more than its value on January 1st. When considering whether or not to invest in a blockchain-related token, project, or service, we have to consider what it’s bringing to the table. In this case, Elrond is offering to make blockchain transactions at least just as fast and reliable as those of traditional payment processors, but without sacrificing the security and low transaction costs that blockchains have to offer. And we have to admit that it sounds pretty good. Elrond has also made some smart partnerships with some big names like Binance Labs, Maven 11, Electric Capital, and Woodstock. A lot of experts agree that Elrond is going places and can be considered a good short- and long-term investment.
If you've been trading or using cryptocurrencies for at least a few months, you've probably already experienced blockchain lag; those frustrating times when transactions seem to take forever and the transaction fee can actually be higher than the amount you're transferring. At times like those, users end up wanting the speed of traditional payment processors but without sacrificing the benefits of blockchain technology. This is just what Elrond claims it can do. If you're convinced of their potential and want to invest, we've shown you how to buy Elrond. Now you have to go ahead and make your purchase. But we'd like to hear your thoughts. Have you experienced blockchain lag? What do you think of Elrond's solution? Do you believe they can really deliver the best of both worlds? Let us know in the comments.