Understanding REEF Crypto, Its Features, Price and How to Buy
In the world of cryptocurrencies, there has always been a push towards decentralisation. To achieve true decentralisation, new DeFi (Decentralised Finance) projects like Reef Finance (REEF) and its native cryptocurrency, REEF crypto, are further democratising finance. The REEF crypto and its parent blockchain feature smart liquidity aggregation, cross-chain trading, a yield engine and highly advanced EVM compatibility.
Interested to learn about this blockchain and its unique features? Give this detailed post to understand REEF crypto in simple words.
What Is Reef Finance (REEF)?
Reef Finance (REEF) is a blockchain-based platform built on Polkadot. Its name is an acronym made up of these words – Reliable Extensible Efficient First Layer Blockchain. According to some crypto experts, it is the world’s first cross-chain platform where people can trade all sorts of DeFi products and services.
Its uniqueness is that it allows traders to transfer tokens between different blockchains, whether they are centralised or decentralised. Moreover, this platform offers the Reef Yield Engine, which allows users to take part in smart borrowing, mining, lending, staking and other activities.
The Reef platform was launched by Denko Mancheski in 2019, who aimed to lower the entry barrier for new and inexperienced investors wanting to invest in different cryptos. Mancheski had a strong background in cryptocurrencies, being employed as the Chief Technology Officer at Adel, a crypto incubator company.
Reef entered the market in the last quarter of 2020 and soon witnessed rapid growth in terms of users, partners and developers. The launch date of REEF coin was December 30 2021. Today, this network continues to develop and enter into partnerships with other prominent DeFi projects.
What is Reef Blockchain?
Reef Chain is a Layer 1 blockchain that was developed by Reef Finance on the Polkadot platform. It was initially built only as a DeFi platform supporting cross-chain transactions, but today, it is a fully functioning blockchain. Reef blockchain is interoperable with Polkadot parachains and is, thus, a part of the Web 3.0 network.
Moreover, the Reef ecosystem is compatible with the Ethereum Virtual Machine (EVM), which makes it possible for developers to host their Ethereum-based DApps (Decentralised Apps) on this blockchain. In short, Reef Chain offers a single ecosystem that investors, traders and developers use for its simplicity.
The REEF crypto is the native cryptocurrency of Reef Chain and functions both as a governance token and a utility token. As a governance token, it allows holders to stake their coins to become validators. As a utility token, it can be used to pay fees for transactions, data storage and other activities.
Also Read: Ripple Crypto 101: A Beginner’s Guide To Ripple Cryptocurrency
How Does Reef Finance Work?
Reef platform’s main objective is to solve investor confusion by offering a one-stop shop where users can access multiple DeFi networks and save time on research. Using it, one can access DeFi platforms like Aave, Binance Smart Chain, Compound, Plasma, Moonchain, Synthetix and Uniswap.
The Reef Chain uses the NPoS (Nominated Proof of Stake) consensus mechanism, a well-known form of security validation. In a PoS system, validators are chosen to verify transactions, unlike PoW (Proof of Work) consensus systems which use miners. When a block of transaction data gets added, validation is done by a node which has the largest stake.
In an NPoS system, these nodes can either be nominators or validators. These nominators are responsible for selecting validators whose job is to authenticate transactions.
Salient Features of the Reef Ecosystem
These are some of the important features of the Reef system:
- Interoperability: A major concern of developers in the DeFi sector is their lack of interoperability. The Reef ecosystem addresses this problem by integrating every best aspect of the major blockchains.
- Transaction fees: Reef offers a low-cost fee structure compared to other blockchains. In addition, it avoids congestion pricing for its fee hiking structure due to its high scalability. Users can pay this transaction fee using the REEF crypto.
- Energy consumption: Unlike coins like Bitcoin and Ethereum, which are notorious for resulting in sky-high electricity bills, Reef’s PoS system hardly consumes much power. Thus, this coin does not have the sustainability issue of older crypto coins.
- EVM compatibility: The Reef Chain uses the same programming language (Solidity) as EVM and other networks for smart contracts. Due to its high compatibility, developers will have no trouble importing their DApps to Reef.
- Limited circulation: Like Bitcoin, there are a limited number of Reef cryptocurrencies in circulation. Its finite supply means that no new tokens can be minted once its total supply is exhausted. This minimises inflation and devaluation of this coin.
What are the Uses of the Reef Finance?
You can use the Reef network for operating DApps, liquidity mining, trading, investing, staking, getting yield rewards, etc. This platform also gives you easy access to a host of DeFi services and products from multiple blockchains. Furthermore, users can easily find the best yield rates through an automated process.
The native REEF crypto can be used to take part in the network’s governance mechanism or to pay transaction fees. Reef also allows liquidity bridges between Ethereum and BNB Chain via ERC-20 and BEP-20 tokens, respectively.
A unique use case for the REEF cryptocurrency is its ease of use of DApps using this platform. DApps provide transactional services for DeFi and use tokens for such transactions. However, such transactions may be too technical for the average person. This is where the Reef network becomes crucial as it facilitates transferring of value between centralised and decentralised exchanges.
How to Buy Reef Crypto?
Since its launch in 2020 on the Binance platform, the Reef token has been listed on a number of major cryptocurrency exchanges. You can take a look at the transaction fees, customer support, ease of use and registration with the country’s regulator to see which exchange will be the best for the purchase.
The following exchanges offer the REEF crypto for investors:
- Binance: This is one of the most popular exchanges for investors outside the USA.
- WazirX: A part of the Binance Group, it is the largest cryptocurrency exchange in India.
- KuCoin: This exchange offers over 300 cryptocurrencies and usually accepts most new coins.
To buy cryptocurrencies from one of these exchanges, you can follow these steps:
Step 1: Create an account on the exchange platform using your email address. Many platforms may also ask for identity proof and a phone number for verification.
Step 2: After successful verification, search “Reef crypto” in the search bar. After getting redirected, click on “Buy”.
Step 3: Enter the number of Reef crypto tokens that you wish to purchase. After confirmation of payment, the crypto tokens will be transferred to your custodial wallet.
Reef Coin Price Prediction
The intrinsic value of the Reef token is derived from the platform’s technical capacity, usage and popularity of the project. With the rise of the DeFi sector and the increase in investors in the Reef ecosystem, the intrinsic value of this cryptocurrency may rise as a consequence.
The price of REEF crypto is constantly changing, and it is often subject to radical market changes. This is likely due to the fact that the market value of cryptocurrency projects often does not accurately coincide with their intrinsic value and is often overbought or underbought.
Points to Remember Before Buying Reef Crypto
Before you decide to invest in any cryptocurrency, here are some of the important things you should consider:
- It is a good idea to check the cryptocurrency’s website to see if it’s up to date, free of errors and contains all the relevant information.
- The best way to understand a crypto project is to look at its white paper. This document will tell you about the use cases, scalability, growth possibilities and tokenomics of the coin.
- Make sure to assess the risk of investing and invest only what you can afford to lose.
- To gain insight into the investors’ sentiments about a cryptocurrency, you should check the posts and users’ comments on social media platforms.
- You should also evaluate the coin’s fundamental metrics like market cap, trading volume and supply metrics before investing.
Also Read: What Are Altcoins And How To Invest In Them?
Final Word
The REEF crypto is the native token of Reef Finance and can be used for paying for various services on the platform. It draws its value from the unique use cases of the platform. The Reef’s main feature is its cross-chain functionality, through which one can trade digital assets and transfer data across blockchains and use DApps. Though this cryptocurrency offers a unique value, it is a good idea for investors to do due diligence and check the particulars of this investment before putting their money in it.
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FAQs on REEF Crypto
Ans: There are two types of wallets that you can use – hardware wallets and software wallets. The former is more secure as it uses an offline device, while the latter is online, free and easy to use.
Ans: Validators and nominators need to stake Reef to participate in the validation process. Nominators can earn more Reef if they pick good candidates and can get a share of the validator’s rewards. Validators get fixed rewards from the coin’s yearly inflation pool.
Ans: Unlike coins with traditional PoW consensus mechanisms, Reef relies on a governance model that has high scalability and upgradability. Its community governance system is popular among users and useful as it covers a wide variety of proposals.
Ans: ReefSwap is Reef Finance’s service for swapping Reef tokens. This decentralised exchange (DEX) uses the Uniswap V2 model, and users can access it through its web extension.
Ans: Reef bonds allow users to stake a single type of token to farm another token over a certain period. For example, the Reef-Litentry Bond allows you to lock-up Litentry (Lit) tokens to get Reef tokens.
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Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.
Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
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