A Beginner's Guide To Investing In Ohm Crypto

Olympus (OHM) is a decentralised finance (DeFi) protocol and treasury-backed token on the Ethereum network. It is a community-run protocol, also known as a decentralised autonomous organisation (DAO), which is led by its users. OHM is an ERC-20 token that aims to build a community-owned decentralised financial infrastructure with the hopes of becoming a stable cryptocurrency.

OHM is backed by but not pegged to a certain price. This means that the price does not exactly reflect the dollar; instead, the treasury value helps back the price of OHM, at least to a degree. This structure allows the price of OHM to float rather than be pegged to exactly $1.

To buy OHM, you will need to have either Bitcoin (BTC) or Ethereum (ETH) for trading purposes. You can then use a decentralised exchange (DEX) such as Uniswap or Pancakeswap to acquire OHM.

How to buy OHM using a credit/debit card

OHM is the token of the Olympus protocol, a decentralised finance protocol aiming to be the first algorithmic reserve currency that is not pegged to fiat money. To buy OHM, you will need to use a decentralised exchange (DEX) like PancakeSwap.

Step 1: Download Trust Wallet

Trust Wallet is a mobile app available on both the Apple Store and Google Play Store. It is one of the best options for trading with a decentralised exchange and is supported by Binance, assuring you of its security. After downloading and installing the app, set it up and choose a memorable passcode. You will also be given a 12-word seed phrase to retrieve your wallet and digital assets if you lose your PIN. Be sure to write it down and keep it safe.

Step 2: Deposit Cryptocurrency Tokens in Your Trust Wallet

Before you can trade, you will need to deposit some cryptocurrency tokens into your Trust Wallet. You can do this by either transferring cryptocurrency from another wallet or buying cryptocurrency with your credit or debit card.

Transfer Cryptocurrency From Another Wallet

• Locate the 'Receive' option in your Trust Wallet and choose the cryptocurrency you will be sending.
• Copy the unique wallet address provided.
• In the 'Send' tab of your other cryptocurrency wallet, paste the wallet address and choose the cryptocurrency and quantity you intend to transfer.
• Complete the transaction, and your cryptocurrency tokens will appear in your Trust Wallet shortly.

Buy Cryptocurrency With Your Credit or Debit Card

• Verify your identity by providing an image of yourself holding a legal identification card, such as a driver's license or passport. You will also need to complete the Know Your Customer (KYC) process.
• In the 'Buy' tab of your Trust Wallet, choose from the available cryptocurrency tokens you can buy with your card.
• Choose the quantity you want to purchase and input your card details to complete the transaction.
• The tokens will appear in your wallet within seconds.

Step 3: Connect to PancakeSwap

• Locate the 'DApps' icon at the bottom of your screen in the Trust Wallet app and select PancakeSwap from the available options.
• Click 'Connect' to link your Trust Wallet to PancakeSwap.

Step 4: Buy OHM

• In the PancakeSwap app, locate the 'From' tab and select the coin you want to replace with OHM.
• On the 'To' tab, select OHM and the number of tokens you want.
• Click 'Swap' to complete the transaction.

Your OHM tokens will be available in your Trust Wallet within seconds.

Please note that digital assets are highly speculative and volatile, so always consider the risks involved when buying cryptocurrencies.

How to buy OHM using a hardware wallet

To buy OHM using a hardware wallet, you will need to follow a few steps. Firstly, you will need to open an online account on a centralized trading platform such as Coinbase Global Inc., eToro, Gemini, or Webull. These platforms offer a combination of strong security, low fees, and user-friendly interfaces. After registering and verifying your account, you can purchase Ethereum (ETH) with your credit or debit card, or by transferring funds from your bank account.

Once you have acquired ETH on the centralized exchange, you can send it to your hardware wallet. To do this, locate the wallet address for ETH on your hardware wallet, which will be a list of 64 letters and numbers. Enter this address into the exchange and transfer the ETH to your wallet.

The next step is to connect your hardware wallet to a decentralized exchange (DEX) such as Uniswap or SushiSwap. On the DEX, you will be able to swap your ETH for OHM. Select the ETH/OHM pair, enter the amount of ETH you want to exchange, and execute the trade. Your newly acquired OHM tokens will then be sent to your hardware wallet.

It is important to note that OHM is an ERC-20 token on the Ethereum network, so it can be stored using any ETH-compatible wallet. Examples of recommended hardware wallets include the Ledger Nano S, Ledger Nano X, Trezor One, and Trezor Model T. These hardware wallets provide an extra layer of security for your crypto assets, as they are not always connected to the internet and are typically protected by a secure PIN or passphrase.

How to sell OHM

To sell OHM, you can either use a decentralised exchange (DEX) or a third-party trading platform.

Using a DEX

If you have been storing your OHM tokens in a wallet such as Trust Wallet, you can connect it to a DEX like Pancakeswap or Uniswap (v3) and swap your OHM tokens for a different cryptocurrency.

Using a third-party trading platform

If you are storing your OHM tokens in a wallet such as Trust Wallet, which is supported by Binance, you can sell your tokens on the Binance platform. However, you must complete the Know Your Customer (KYC) process if you haven't already.

How to stake OHM

To stake OHM, you must first own some. It's important to note that OHM is on the Ethereum network, so be prepared to pay $200+ in Ethereum gas fees. You will also need a WalletConnect Wallet, such as MetaMask or a Trezor Hardware Wallet.

Once you have a wallet, you can buy OHM. To do this, you must first buy ETH and DAI, which can then be exchanged for OHM tokens on a decentralised exchange like Uniswap or SushiSwap.

After you have purchased your OHM tokens, you can begin the staking process. Visit the Olympus DAO staking page on your browser or download the Olympus DAO app and go to the "stake" page. Here, you will be able to "connect your wallet" by either using your MetaMask wallet extension address or scanning your wallet address QR code. After this, click "Approve".

Your first time staking OHM will attract a fee, but subsequent staking is free. Proceed to stake your OHM by clicking "stake OHM". Your OHM is sent to the staking contract, and you will receive staked OHM (sOHM).

According to Olympus DAO, the price of OHM is likely to reduce over time, but due to the high APY, investors will still make a profit.

How to borrow against OHM

Fuse is a tool that lets you borrow and lend against your crypto-assets. For example, if you have 1000 OHM, and OHM is worth $1000, your overall OHM position is worth $1 million. If it's staked, it will constantly grow into more OHM. Fuse allows you to borrow against this OHM position or any portion of it.

You can borrow USD (through FRAX, DAI, or USDC, all pegged to $1) or ETH (though the pool composition can change at the Olympus policy team's discretion). For example, if you have $1 million but want to buy a car without selling your OHM, you can borrow $100,000 against your staked OHM (sOHM) deposited into Fuse. You can do whatever you like with this $100,000, but the $1 million in sOHM will not be accessible until the loan plus interest has been repaid. You can pay back the loan at any time, as long as it is repaid in USDC.

There are a few things to be cautious of when borrowing:

• Interest payments: when you borrow any asset, you constantly pay a dynamic amount of interest based on supply and demand. The APR displayed in the Fuse pool dashboard should show the interest rate at any given time.
• Liquidations: A liquidation occurs when the amount you have borrowed falls below your borrow limit. If I deposited $1 million and OHM's CF (collateral factor, which determines how much you can borrow) is 33%, then the maximum I can borrow is $333,333. If the amount I borrowed exceeds this limit, my loan will be liquidated. Liquidation can be caused by the collateral falling in value or the borrowed asset rising in value.

Frequently asked questions