How Does Kyber Network Work?
Founded by Loi Luu, Victor Tran, and Yaron Velner in 2017, Kyber Network is a decentralized, blockchain-based protocol that is currently headquartered in Singapore. It is built on an Ethereum blockchain and promotes the exchange of tokens without involving any financial intermediary. Kyber is also a liquidity provider for Decentralized Finance (DeFi) applications.
Kyber Network has its own utility token called the Kyber Network Crystal (KNC). KNC token connects various stakeholders to the Kyber ecosystem. These stakeholders help in governing the platform and earn Ethereum as rewards.
Connecting Your Kyber Network Account To ZenLedger
- To import your transactions, log in to Kyber and copy your receiving address.
- Paste the receiving address you copied from Kyber into the wallet address field in ZenLedger.
- Select the proper coin from the dropdown list.
- Select if the wallet is based in the USA or not.
- Then hit add a coin.
How To Generate Kyber Network Crypto Tax Forms?
After you’ve connected your Kyber account, completed your import, and confirmed that your transaction information and tax liabilities are correct, simply click to download your forms!
How To Buy Kyber Network Coin (KNC)?
Let’s get started with how to buy Kyber Network Coins (KNC) using three simple steps.
1. Create An Account
Firstly, open an account with a crypto brokerage that supports KNC. You'll have to provide your legal name, address, email, phone number, photo ID, and Social Security number for verification. Once the verification is done, you can link your bank account and start investing.
The exchanges that support KNC are Binance, Coinbase Pro, Houbi, and Kraken. If you want to buy Ethereum using a credit card, you can use Kyber Swap. You'll have to then exchange your Ethereum on Kyber Network for KNC.
2. Add Your Wallet
Once the KNC is bought, it is crucial to store your tokens safely. You can store your cryptocurrency on the exchange you're buying it from or use wallets for the purpose. The former isn't recommended as it lacks security measures. You can choose from a wide range of software wallets and hardware wallets to keep your crypto safe.
If you're looking for free and easily available options you can opt for software wallets like Argent and Metamask. But if you want your crypto to be under a high level of security, a hardware wallet is the way to go. Hardware wallets are physical encrypted devices that store your crypto offline.
3. Start Purchasing
Once your account and wallets are ready, it's time to start making purchases. If you're not fond of taking risks on KNC, you must average your buy-in price. This simply means, purchasing different amounts of KNC at different times to reduce the risk of short-term price variations.
You have an option to place your order as a market order or a limit order. If you place a market order, you must buy the token at the asset's current market price.
How Does The Kyber Network Work?
There is a set of smart contracts that can be executed on any blockchain capable of smart contracts. Kyber Network's protocol comprises various reserves, token holders, market makers, and decentralized exchanges that are aggregated into a single liquidity pool. Kyber Network allows everyone to be liquidity providers.
Kyber Network has three primary users:
- Decentralized apps
- Kyber Network
Kyber Network enables them to swap tokens instantly without any third-party interference.
The Bottom Line: Why Choose Kyber Network?
There are various unique features that set Kyber Network apart from the rest. Let's look at some of those features:
- Allows instant swapping without third party interference
- The developers' oriented interface allows easy integration with apps and blockchain-based protocols
- Kyber Network protocol is fully transparent and verifiable
- Wide range of fund pools providing liquidity
- Easily integrates with other DEX