Want to jump straight to the answer? You can buy KLAY on Binance!
Klaytn’s main goal is to bring blockchain adoption to the masses. The project is far from accomplishing this lofty goal, but its commitment holds strong. While its network has seen more user adoption this year, its platform has far lower adoption rates than its main competitor, Ethereum (ETH).
What is Klaytn?
Klaytn operates on its own blockchain, and instead of using proof of work or proof of stake consensus, it uses a process called Practical Byzantine Fault Tolerance (PBFT). This system allows nodes to share information with each other to process transactions in a matter of seconds.
While this technology may seem superior to the more costly, slower transactions on Ethereum, Klaytn sacrifices a level of decentralization. Decentralization is arguably the most critical factor in determining a blockchain’s security, so some investors may be deterred from Klaytn.
While Klaytn has around 50 validator nodes, Ethereum has over 10,000 independent nodes securing its blockchain. To make Klaytn more decentralized, the protocol hosts different types of nodes (public and private) that verify transactions together.
Klaytn uses the Ethereum token standard on its blockchain. This means that the same types of fungible (ERC20) and non-fungible tokens (ERC721) on Ethereum are on Klaytn’s network. Since Klaytn supports smart contracts, the platform has decentralized exchanges (DEXs) and other programs built on its blockchain.
Brief History of Klaytn
Ground X is the company behind Klaytn’s blockchain. Jaesun Han is the CEO of GroundX, and he has a long history in distributed computing technology. The platform has several partnerships with established companies that run validator nodes, which helps the trustworthiness of the mere 50 validators on its blockchain.
Klaytn began trading in early 2020 for around 10 cents per token. The cryptocurrency had its 1st significant price increase in August 2020 during the emergence of DeFi programs.
In March 2020, Klaytn reached its peak alongside the rest of the cryptocurrency market. The token traded for over $4 per token, reaching a market capitalization of about $5 billion. Klaytn has been hit hard in the recent crypto correction, dropping to less than $1 per token — a 75% decrease from its all-time highs.
How To Buy Klaytn
- Open an online account.
In order to buy Klaytn, you’ll need to make an account with a cryptocurrency exchange that supports the token. Binance, the largest crypto exchange in the world, supports Klaytn, and it’s the best place to buy the token.
To make a Binance account, you submit customary know-your-consumer (KYC) information for tax purposes; your information will be held safe through Binance. If you’re located in the U.S., it may take a few days for you to be approved for trading.
- Buy a wallet (optional).
No matter which cryptocurrency you invest in, it’s a good idea to store your assets in a dedicated cryptocurrency wallet. Exchanges are large targets for hackers, as these platforms hold custody of all investors’ funds. The 2 main types of crypto wallets are software and hardware wallets, both of which are more secure than storing crypto on an exchange.
- Make your purchase.
Once approved for trading on Binance, you’ll be ready to make your purchase. Binance lets you purchase Klaytn as a market or limit buy order. Market orders will purchase Klaytn at its market price, usually instantly. Limit orders only execute if Klaytn drops to the price which you specify. If the price of Klaytn doesn’t drop to the price you set, then your order will not be executed.
Benzinga’s Crypto Wallet Picks for Klaytn
Best Hardware Wallet: D’CENT
Since Klaytn uses its own proprietary blockchain, you can’t store your Klaytn tokens on most hardware wallets. The company actually makes its own hardware wallet, which you can buy on Amazon. Compared to other hardware wallets, it’s inexpensive at just $15. However, you’ll only be able to store Klaytn and Klaytn-based tokens on the wallet.
Hardware wallets are the most secure way to store crypto. Since hardware wallets are physical devices that store your funds offline, it’s impossible for online hackers to access your crypto.
Best Software Wallet: TokenPocket
TokenPocket is a software wallet, meaning your crypto will be stored on a computer program with TokenPocket. The crypto wallet supports multiple cryptos, including Bitcoin (BTC), Ethereum, Klaytn and Binance Coin (BNB).
Plus, the wallet can connect to DeFi programs, giving you the ability to transfer tokens, earn interest and even provide liquidity to DEXs from your TokenPocket wallet. The wallet is free to use, and it’s a great alternative to using a hardware wallet.
Klaytn’s Competition:
Klaytn’s largest competitor is Ethereum, but some others are Binance Smart Chain and Solana. If you believe that users will be incentivized to use Klaytn over Ethereum in the future, then the token may be a great addition to your portfolio.
Trade, Sell or Convert your KLAY
When you want to sell or convert your KLAY, simply send your tokens back to Binance. Since Binance offers multiple trading pairs for Klaytn, you can sell your tokens for BTC, BNB or fiat-pegged stablecoins.
Binance is the largest cryptocurrency exchange in the world by trading volume. In fact, it tops the ranks of cryptocurrency exchanges maintained by CoinMarketCap, which are ranked based on 24-hour trading volumes, exchange score and average liquidity. Binance triumphs over exchanges like Huobi Global and Coinbase, which follow closely in 2nd and 3rd places, respectively.
Previously based in Malta, the Binance Group is now based in the Cayman Islands. Binance has several locations and entities registered across the globe. In the United States, it’s known as Binance.US. The exchange in the U.S. uses the same cutting-edge technology and trading services as its global counterparts with the difference being U.S. regulatory compliance. It is operated by San Francisco-based BAM Trading Services.
Binance.US ranks 9th on CoinMarketCap’s list of the top 10 exchanges based on metrics like 24-hour trading volume, exchange score and average liquidity. Binance could be a good platform for you to invest in cryptocurrencies if you are a U.S.-based trader who trades frequently, doesn’t intend to pay high trading fees and needs access to a large number of cryptocurrencies.
Best For
- US Citizens
- Frequent day traders
- Users interested in Binance Smart Chain (BSC) and Binance Coin (BNB)
- Low trading fees
- Easy-to-use platform
- Wide selection of altcoins — it offers 51 cryptocurrencies apart from Bitcoin (BTC)
- Good customer service
- High liquidity because of large trading volumes
- Only residents of 43 states in the U.S. can trade on Binance.US. You cannot trade on this platform in New York, Connecticut, Hawaii, Texas, Vermont, Idaho and Louisiana
- Despite the wide selection of altcoins, the number of tokens offered on the U.S. platform is not comparable to the hundreds of choices available on the Binance global platform
- There is no option for telephonic customer support
Current Crypto Prices
The cryptocurrency market has seen a sharp correction since its peak earlier this year. While new investors have been selling their positions at a loss, on chain analytics suggest that long-term holders aren’t selling just yet. Many investors think this recent correction resembles the correction in the 2015 crypto bull market. However, only time will tell whether we’re in a full-fledged bear market or simply correcting after a sharp run up.
So, Is Klaytn a Good Investment?
Since Klaytn is a relatively small market capitalization altcoin, it’s regarded as higher risk than blue chip cryptocurrencies like BTC and Ethereum. This being said, it’s shown early investors around 1,000% returns, even after factoring in the significant dip in price that Klaytn has seen in recent weeks.
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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