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What is Toncoin (TON), and how to buy it?

News Feed - 2024-06-22 07:06:05

Dilip Kumar PatairyaJun 22, 2024What is Toncoin (TON), and how to buy it?Toincoin is a cryptocurrency that uses advanced blockchain technology to ensure efficiency and anonymity while enabling quick, safe transactions.1992 Total views4 Total sharesListen to article 0:00How toOwn this piece of crypto historyCollect this article as NFTJoin us on social networksToncoin (TON) is the native coin of The Open Network, a layer-1 blockchain known for its ability to scale and process transactions rapidly. Originally developed by the team behind the Telegram messaging app, TON is now managed by the TON Foundation.


Powering The Open Network ecosystem, Toncoin is used to pay transaction fees, for staking to secure the network, and to participate in the network’s governance. Within the network, it facilitates a broad range of decentralized applications (DApps) and services, including decentralized finance (DeFi), nonfungible tokens (NFTs) and more. With a strong community and extensive roadmap, TON is working to position itself as a promising player in the evolving blockchain landscape.


This article explains what TON is, its use cases, and how to buy Toncoin (TON) via centralized exchanges (CEXs), decentralized exchanges (DEXs) and Telegram bots.Origin of TON and components of The Open Network


In 2018, the Durov brothers, Nickolai and Pavel, envisaged a scalable blockchain to support the massive user base of Telegram and launched the Telegram Open Network (TON). However, due to regulatory challenges posed by the United States Securities and Exchange Commission (SEC), which viewed Toncoin as a security, Telegram abandoned the project in 2020. The TON community took over the project’s development, rebranding it as The Open Network with its native token, Toncoin.


Notwithstanding the initial setback, TON has grown, driven by its community and the potential of its underlying technology. It has evolved into an umbrella project that includes TON payments, TON DNS, TON storage, TON proxy and TON space:Use cases of Toncoin


Toncoin serves a range of functions inside The Open Network ecosystem, as explained below.Payment method


Peer-to-peer (P2P) transactions using TON allows for quick and safe payments between users without the involvement of intermediaries.Execute transactions


For processing transactions on the TON chain, a user needs to pay a transaction fee, which is used to reward validators for validating transactions.Staking


Users can participate in network security by staking their TON tokens. The project rewards stakers with TON tokens for their contributions.Powering smart contracts


The Open Network utilizes its native cryptocurrency, TON, as a utility token to facilitate various functions within the network, including powering the operation of DApps built on the TON blockchain, which often leverage smart contracts for their core functionalityGovernance


Holders of TON tokens can participate in The Open Network’s governance by voting on proposals affecting the platform’s development and future direction.Incentives


Developers and users can earn Toncoin by participating in different TON ecosystem activities, such as contributing to projects, producing content or rendering services.How to buy TON


Here is an overview of how one can buy TON through different mediums in simple steps:Using centralized exchanges


Purchasing TON through a CEX is a straightforward process. As of June 2024, TON isn’t supported on other prominent exchanges such as Coinbase, Binance and Kraken. Here is a step-by-step guide on how to buy Toncoin using an example of Gate.io:


Step 1: Choosing a cryptocurrency exchange


When buying TON, the first step is to select a reputable centralized exchange that supports Toncoin. Users should consider features such as security measures, user experience, fees and regulatory compliance.


Step 2: Create an account


The next step is to create an account on the exchange chosen. Users can usually sign up by providing their email address as a user ID and creating a password. Centralized exchanges require identity verification to comply with Know Your Customer (KYC) regulations.


Step 3: Deposit funds


Users can deposit funds into their exchange wallet once the account is set up and verified. They can deposit fiat currency, such as U.S. dollars or euros, by linking their bank account or using a credit or debit card. Alternatively, they can deposit another cryptocurrency, like Bitcoin (BTC) or Ether (ETH) and swap it for TON.


Step 4: Buy TON


One can buy TON via the “Buy Crypto” tab on Gate.io. The exchange allows users to purchase a cryptocurrency via debit or credit card or Gate.io crypto debit card. In the “Buy” tab, users must enter the amount they wish to spend on the cryptocurrency and finalize the purchase.


Withdrawal to a secure wallet


Users might want to withdraw TON from the exchange to a secure wallet to protect their digital asset. After selecting a cryptocurrency cold wallet that supports TON or a software wallet like Trust Wallet, withdraw TON from the exchange and transfer it to the personal wallet.Using decentralized exchanges


DEXs provide the users with complete control over their assets. If a user wants to purchase TON using DEXs, they can select a DEX native to Toncoin, such as STON.fi. Alternatively, they can choose a popular DEX supporting TON and buy it with fiat currency or swap it against some other cryptocurrency.


To buy TON on a DEX, users can follow the steps below. Please note that the process assumes that a buyer already has a compatible wallet like MetaMask set up and funded with cryptocurrency that can be used to trade for TON (usually BNB or another token on the BNB Smart Chain).


Step 1: Connect your wallet to PancakeSwapNavigate to the official PancakeSwap website.Click on the “Connect” button, which is usually found at the top right of the homepage.Choose your wallet provider (e.g., Trust Wallet) from the list and follow the prompts to connect. Users may need to approve the connection from their wallet app.


Step 2: Add TON to the walletUsers must manually add TON to the wallet if it is not already visible.The option to add a custom token is in the tokens section.


Step 3: Swap for TONGo to “Trade” on the sidebar and select “Exchange” or “Swap.”Choose the input currency and select TON as the output currency.Enter the amount, set the slippage tolerance and confirm the swap.Approve the transaction and wait for confirmation.


Step 4: Receive TON tokensWhen a user confirms the transaction, the TON tokens appear in the wallet.How to buy TON using various trading methods


Users can buy TON using various trading methods, such as spot trading, peer-to-peer (P2P) transactions and token swapping on platforms like Gate.io.


Spot trading


When buying TON via spot trading, one has to select the trading pair that includes TON. As of June 2024, Gate.io offers TON/USDT, TON/ETH and TON/TRY. Users can choose a market order, which executes immediately and buys TON at the current market price, or a limit order, which allows them to set a specific price at which they want to buy TON. The limit order is executed only after reaching the specified price. Once the purchase is complete, TON will arrive in the buyer’s exchange wallet.


P2P transaction


To make a P2P transaction on a cryptocurrency exchange, the buyer and seller need to register themselves on the exchange and complete the KYC checks. The sender posts the crypto for sale along with the asking price and forms of payment they accept. The exchange keeps the cryptocurrency in an escrow account until the payment is verified. Once the buyer agrees to the offer, they pay the seller. Once payment is confirmed, the crypto is released to the buyer, concluding the transaction.


Swapping


Swapping on a cryptocurrency exchange entails directly exchanging one coin for another. The user chooses which two cryptocurrencies they want to swap first. They then indicate the amount of crypto they want to be exchanged. The platform determines the conversion rate and any related costs. Once the user confirms the transaction, the exchange processes the swap, changing the designated quantity of the original cryptocurrency to the desired coin. TON is then added to the buyer’s wallet.Using Telegram and bots


Buying TON using the Telegram wallet involves a simple process, thanks to the integration of the “@wallet” bot within the Telegram app. Here is a step-by-step guide on how to purchase TON using this feature:


Step 1: Set up the wallet


Telegram’s wallet is a third-party mini-app that enables users to buy crypto such as Tether (USDT) and TON. To install the wallet, open the Telegram app and search for the @wallet bot, which facilitates the buying, selling and transferring of cryptocurrencies within Telegram.


Start a chat with the @wallet bot and follow the prompts to set it up. This might include agreeing to terms of service and setting up security features.


Step 2: Add funds


To buy TON, a user must have funds in their Telegram wallet. The @wallet bot supports adding funds via various payment methods, including credit or debit cards and crypto transfers. Follow the instructions provided by the @wallet bot to add funds.


Step 3: Purchase TON


Once the wallet is funded, users can purchase TON. In the @wallet chat, type “Buy Toncoin” or use the menu options to navigate to the buy section. Users must enter the amount of TON they wish to purchase. The bot will show the user the current exchange rate and the total cost for the transaction.


Confirm the purchase by following the bot’s prompts. This usually involves confirming the transaction amount and method of payment.


Step 4: Confirm and store TON


Once the transaction is confirmed, TON is credited to the Telegram wallet. The user can view the balance and transaction history within the @wallet chat.


The user can enhance the security of the Telegram wallet by enabling any additional security features offered by the @wallet bot, such as two-factor authentication.Is TON a good investment?


Deciding whether TON is a good investment involves evaluating several factors, including the robust technology underlying TON, its potential for high transaction throughput and the active user community on Telegram. Its emphasis on decentralization and anonymity also fits well with most crypto users’ preferences.


Regarding the risks, investors face issues common to the cryptocurrency sector, such as market volatility and regulatory concerns. Moreover, the project is at a relatively early stage. Ongoing development of TON will be critical to its success.


Considering the regulatory challenges Toncoin faces with the SEC is important due to its links with Telegram’s unsuccessful crypto project, Gram. These issues could potentially impact the stakeholders who invest in and trust the coin.


Before making any investment decisions about TON, investors should conduct thorough research, considering both the technological promise and associated risks.# Blockchain# Altcoin# Transactions# Telegram# TON# How toAdd reaction