How to buy Magic Internet Money (MIM) • Benzinga
Want to jump straight to the answer? You can buy MIM on Gemini.
Perhaps one of the most important uses of crypto is in borrowing and lending. Users can borrow cryptos at low rates without having to go through a lengthy verification process. However, the current decentralized financing (DeFi) system has some flaws that may prevent it from being widely used. Magic Internet Money (MIM) hopes to change that. By combining the best aspects of several loan mechanisms, he hopes to change the lending industry for good.
What is Magic Internet Money?
Magic Internet Money is a soft peg stablecoin linked to the US dollar. This means that the price will stay close to $ 1, but can fluctuate by a few tenths of a dime. This happens because the asset is backed by interest bearing tokens through the blockchain instead of USD.
Magic Internet Money is issued whenever a user deposits collateral into the Abracadabra.money token project. This project is essentially a loan service. However, it integrates several parts of traditional crypto lending programs to create a powerful new project.
There are two main types of lending platforms. Dai (DAI) allows users to deposit crypto and recover liquid asset. For example, a user can deposit Ether (ETH) and receive DAI as a reward. The other loan mechanism involves illiquid tokens. An example of this is SushiSwap (SUSHI). Users can deposit SUSHI and collect xSUSHI. The xSUSHI accumulates interest, but cannot be redeemed. This is basically a deposit receipt and allows users to recoup their initial investment.
MIM combines these two mechanisms. It allows users to deposit illiquid assets, such as xSUSHI, and receive MIM in return. This allows users to take their illiquid assets and make them liquid. With this extra liquidity, users can basically get their money’s worth. They can guarantee an illiquid asset in exchange for the MIM. Before, these illiquid assets were useless until they were redeemed. MIM changed that by allowing users to take advantage of their previously unusable tokens.
Every time someone removes MIM, new tokens are created. For this reason, there is no maximum limit on the token supply. The token is also an ERC-20, which means it’s based on the Ethereum blockchain and inherits a handful of properties from Ethereum, such as its security and decentralization.
Although the price of MIM does fluctuate, it rarely drops below $ 0.97 or above $ 1.03. This is because when the price is less than $ 1, users are encouraged to repay the loans at a discount, while they are encouraged to take out loans when the price is greater than $ 1 to receive a premium.
Brief History of Magic Internet Money
MIM was officially released in September by its anonymous founder nicknamed Squirrel. His goal for the project was to create an extremely decentralized and easy-to-use asset that would allow users to access the area of decentralized finance.
MIM is currently trading at just under $ 1, with a market cap of almost $ 2 billion.
How to buy magic money on the Internet
Now that you understand the basics of MIM, you might be interested in purchasing the token. Fortunately, this is quite easy and only requires a few short steps.
- Open an account online.
The first step to purchasing MIM is to open an account on a supported trading platform. While there are several that support MIM trading, Gemini stands out with its ease of use, security, and low fees.
To open an account on Gemini, go to its website or mobile app and create a free account using an email. Afterwards, you may need to provide some basic documents before you can fund your account and start trading.
- Buy a wallet (optional).
While storing your MIM on Gemini might be the easiest option, it might not be the safest. Crypto wallets are physical devices or software that allow users to store their crypto separately from any single entity. This gives users full custody of their tokens and can be much more secure than storing them on an exchange.
- Make your purchase.
Now that you have funded an account on Gemini, you are ready to buy MIM. To do this, navigate to the MIM page using the search function. Use the exchange function and select buy. From there, enter the amount of MIM you want to buy, complete the trade, and your MIM will be in your wallet.
MIM token cryptocurrency wallets
Best Hardware Wallet: Ledger
Hardware wallets are physical devices that store the private keys needed to send crypto. Without the physical device present, the wallet is locked. This is often considered the safest way to store crypto.
Ledger is a hardware wallet brand that supports MIM and all other ERC-20 tokens. It offers Nano S and Nano X models. The Nano S only has the necessary safety features. The Nano X is much easier to use, with a larger screen and Bluetooth connectivity.
Best Software Wallet: MetaMask
Software wallets store private keys online on servers. While not as secure as hardware wallets, it still gives users full custody of their funds. They can also be much easier to use.
MetaMask is one of the most popular software wallets. It is extremely easy to use, as it is a Chrome extension and accessible through most websites. You also need various security measures, such as cold storage and two-factor authentication to protect your crypto.
Bonus section: Keep an eye on the number of tokens supported by MIM. This can increase the use of the token and attract new users.
Trade, sell or convert your magic internet money
To convert your MIM to another token, return to your position in your wallet. Use the swap feature and locate the token you want to swap. Enter the MIM amount and execute the transaction. From there the new token can be found in your wallet.
To sell the token, use the sell function. Enter the amount you want to sell and complete the trade. From there, you’ll have fiat currency that you can use to purchase new tokens or withdraw to your bank account.
Current crypto prices
The fourth quarter of 2021 brought intense volatility for the crypto markets. Major coins hit all-time highs only to drop the following week. As things started to calm down towards the end of 2021, many see the start of 2022 as a turning point for crypto.
Is Magic Internet Money a Good Investment?
If you are hoping to invest in MIM for a profit then you should look elsewhere. The token will remain relatively stagnant, hovering around $ 1. However, if you are looking for a secure way to enter the crypto market, MIM may be a great choice. It allows users to own crypto and not have to worry so much about extreme price swings. If you are looking for stability, MIM may be for you.
Benzinga has developed a specific methodology for classifying cryptocurrency exchanges and tools. We prioritized platforms based on offers, prices and promotions, customer service, mobile app, user experience and benefits, and security. To see a full breakdown of our methodology, please visit our Cryptocurrency Methodology page.