Binance Smart Chain (BSC) has attracted many cryptocurrency investors with its low fees and its speedy transactions. Binance achieves this through proof-of-stake consensus, something that won’t be on Ethereum until ETH2. Ethereum transaction fees have gotten extremely expensive, pricing out many retail investors from using the network.
Many new tokens have gained traction on Binance Smart Chain, like PancakeSwap and SafeMoon. New tokens are made every day, presenting an opportunity for investors to get in early to new cryptocurrencies on BSC.
HODL token is similar to SafeMoon, but it provides extra benefits to token holders. Read more to find out how to set up your cryptocurrency wallet to buy HODL and other cryptos on Binance Smart Chain.
HODL is a new DeFi token on the Binance Smart Chain. It’s named after the infamous cryptocurrency term “HODL” which comes from an early Bitcoin forum post. Explaining the benefits of holding cryptocurrency back in 2013, the blogger misspelt “hold” when urging investors to never sell their cryptocurrency. Since then, HODL has become a term used by many crypto investors.
The token, HODL, categorizes itself as a yield farming and liquidity generation token. Yield farming is a term used to describe earning extra cryptocurrency through interest, which HODL token does through taxing those who sell their tokens. It’s also a liquidity generation token, as a portion of investors’ tokens are sent to the PancakeSwap liquidity pool upon sale of their tokens.
Though terms like liquidity generation and yield farming may entice some cryptocurrency investors to buy into HODL, these tokenomics closely resemble the economics of a pyramid scheme. The platform incentivizes investors to hold their tokens; the longer an investor holds their tokens, the more rewards they receive.
In a similar fashion to SafeMoon, when an investor sells their HODL tokens, they will be taxed 10% of their holdings. 4% of this tax is sent to the PancakeSwap liquidity pool; another 4% is redistributed to token holders in Binance Coin (BNB). The last 2% is redistributed to HODL token holders as additional rewards.
Whereas you’ll only earn SafeMoon tokens through SafeMoon’s tokenomics, you can also earn BNB with HODL tokens. Since BNB is less volatile than these other tokens, most investors would prefer to be paid in BNB than HODL tokens.
Released on May 12, 2021, HODL token is a very new cryptocurrency. While getting in early to a cryptocurrency can provide great returns, investing in new projects is significantly more risky than buying more established cryptocurrencies like Bitcoin or Ethereum.
Other than the token itself, there isn’t much that the HODL platform offers. In the future, HODL plans to incorporate non-fungible tokens (NFTs) and gamification to its platform. While these features may add value to HODL, they won’t be added into HODL token’s platform until the end of the year.
As of May 27, 1 million HODL tokens are worth about 4 cents. Just 2 days ago, a million HODL tokens were only worth 1 cent, appreciating over 300% in this short timespan. With a market capitalization of just $30 million, there may be room for significant growth for the DeFi token.
A VPN lets you securely access the internet in an untraceable way. If you’re a cryptocurrency trader, you may want to remain anonymous or mask your home’s IP address. For trading in particular, ExpressVPN is the best option on the market.
Not only can it automatically connect before you access the internet, but it offers lightning fast speeds; something that’s needed to trade in the volatile cryptocurrency markets.
Since PancakeSwap operates on Binance Smart Chain, you’ll need BNB tokens to use the decentralized exchange (DEX). To buy BNB, you’ll need a Binance account. If your IP address is located in the U.S, you’ll need to use Binance.us and get approved for an account.
To get approved for an account, you need to verify your identity on Binance. To do so, be prepared to share your Social Security number, Driver’s license and home address with Binance.
Once approved, you’ll need to buy however much BNB you want to invest in HODL token. PancakeSwap uses BNB as its currency pair, so you’ll have to purchase HODL with Binance Coin.
After purchasing BNB, you’ll need to send your funds to a cryptocurrency wallet that’s compatible with PancakeSwap. The best wallets to use with PancakeSwap are Trust Wallet and MetaMask. MetaMask is the easiest wallet to use, as it has a Google Chrome extension that’s interoperable with decentralized exchanges.
MetaMask will default to Ethereum’s network. To connect to Binance Smart Chain, you need to click the dropdown next to “Ethereum Mainnet” at the top of your wallet and choose “custom RPC.” Then, you’ll be prompted to enter some information; enter the information below to connect your wallet to BSC.
Once this information is entered in your metamask, you should see the BNB token as the default cryptocurrency for your wallet. You can then send your BNB tokens to MetaMask using your BNB cryptocurrency address –– make sure to choose the Binace Smart Chain network when you send your BNB to MetaMask.
Luckily, using PancakeSwap is much easier than setting up your cryptocurrency wallet to work with Binance Smart Chain. When you visit PancakeSwap’s website, you’ll be prompted to connect your wallet. Once connected, you can search for HODL token and swap your BNB for HODL.
Before the transaction is executed, you’ll need to approve the transaction through your crypto wallet. You’ll be prompted to do so, and once executed your HODL tokens will arrive in your wallet within a few seconds.
If you want to get into altcoins without selling your cryptocurrency positions, BlockFi may be the solution for you. BlockFi let’s investors take out crypto-collateralized loans, allowing you to leverage your investments to buy more cryptocurrency. So long as you repay the loan, the cryptocurrency you put up as collateral will remain yours.
If you’re less risk-tolerant, BlockFi has interest bearing accounts that let you earn extra cryptocurrency on your investments. Simply add your crypto to BlockFi and you’ll begin earning 5% to 10% annual interest, paid in the cryptocurrency you hold on the platform.
From a fundamental perspective, HODL token isn’t a very strong investment. However, the token is extremely new, and it plans on adding features to its platform in the coming months. If investors continue to adopt PancakeSwap as their DEX of choice, HODL token may continue to appreciate in value.
Gemini builds crypto products to help you buy, sell, and store your bitcoin and cryptocurrency. You can buy bitcoin and crypto instantly and access all the tools you need to understand the crypto market and start investing, all through one clear, attractive interface. Gemini Crypto Platform offers excellent account management options. You can manage your account at a glance, view your account balance 24-hour changes and percent changes. Get started with Gemini now.