A Beginner´s Guide to Buying, Selling, Using, and Mining Swarm City:
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Bitcoin and blockchain technology have begun to make themselves household names, with hundreds of thousands of blockchain transactions processed each day. It’s no wonder that large corporations like MasterCard and IBM are beginning to implement the technology in their businesses.
For individuals and corporations alike, blockchains are an excellent way to store, share, and process data, especially without a centralized mediator involved. In fact, this is one of the hallmarks of blockchains and cryptocurrencies in general. In addition, their adaptability has made them a popular investment option as well as a perfect medium of exchange.
Some coins, like Swarm City (SWT) are the happy balance of both. SWT coins can be purchased and used as an investment vehicle, or they can be utilized on Swarm City’s blockchain based decentralized app (dapp). But what exactly is Swarm City?
Above all else, Swarm City is a blockchain token. A blockchain is a decentralized ledger (or database) that stores a history of all transactions that occur on a given platform. By nature, the Swarm City platform keeps a record of each and every transaction that transpires. Because the blockchain is decentralized, it operates apart from central authority. Blockchains are operated by their participants, so any user can audit the blockchain and verify its transactions. The Swarm City platforms runs on the Ethereum blockchain.
Since Swarm City coins are relatively new, all further research must be conducted online. Sites like Swarm City’s Reddit page are an excellent resource. The page contains all kinds of discussions, definitions, and news updates. Interested parties should start here to gain a deeper understanding of the blockchain and its functions.
SWT coins cannot be purchased directly with any fiat currencies. Rather, users must follow a simple conversion process to buy SWT. The first step is to create a cryptocurrency wallet — a digital account that stores crypto coins — and register an account with a compatible exchange. Next, users must fund the account with cash or with a credit card, and then purchase Bitcoin or Ethereum with the funds they’ve registered.
Once Bitcoin or Ethereum have been purchased, the next step is to exchange the coins for SWT. The process as a whole is very easy to complete, and the extra step of converting a fiat currency to Bitcoin or Ethereum can be done quickly.
In order to cash out of a SWT position, users must follow the reverse outline of the steps above. First, they must convert their SWT into Bitcoin or Ethereum. Once the conversion has taken place, they must sell their Bitcoin or Ethereum to receive the fiat currency of their choosing, usually the one that originally funded the account. Once the money has been transferred to a user’s bank account, he or she can then withdraw the money from an ATM in cash.
SWT coins can be used in one of two ways. The first option is to buy SWT and utilize it as an investment vehicle. In this case, it can be traded — much like one would trade gold, stocks, or bonds — or it can be held in anticipation of future price appreciation. Whatever strategy one chooses to follow, the goal is to profit by buying low and selling high.
Additionally, SWT coins have different investments risks than traditional asset classes. Because SWT coins are a cryptocurrency that operates independently of a central bank or central government, SWT coins are not influenced by the same interest rate and exchange rate risks that befall traditional investments. To be sure, SWT carries its own risks, but SWT tokens can be used to diversify a portfolio alongside other asset classes (though diversification doesn’t guarantee against a loss of the original investment).
Second, SWT coins are the token for Swarm City’s decentralized app (dapp). The Swarm City dapp, which allows users to connect directly in a peer-to-peer sharing marketplace, is an excellent alternative to traditional sharing platforms like Uber or AirBnB. It functions as a decentralized ecommerce platform where participants can use SWT tokens to purchase goods and services from other network users.
By using SWT tokens, users can purchase rideshare services or housing services by simply sending out a hashtag request on the platform. By using the device’s geolocation, the platform will add the user to a list of service seekers. From there, another user can respond and meet the request. Because the platform runs on the Ethereum blockchain, Swarm City coins are compatible with the Ethereum blockchain.
To keep users safe, each participant has a reputation and a transparent identity. Before executing a deal and initiating a service request, clients can read up on service providers and evaluate the provider’s past performance and interactions. Another bonus feature is the lack of transaction fees. The decentralized platform gives users to option to connect directly, eliminating the third party mediator. No centralized corporations like Uber or AirBnb take a cut of the payment.
Cryptocurrency miners are tasked with verifying a group of transactions, called a block, and adding it to other blocks to create a blockchain. In order to mine a block, miners must solve a set of complex problems. Once the block has been solved, it is added to the blockchain. The miner or group of miners (called a mining pool) that solves the block is rewarded in crypto coins, typically of the blockchain that they have just mined.
Miners can mine solo or in mining pools. Mining solo yields a higher profitability percentage because the reward isn’t split between parties. However, this is often at the cost of higher processing power. When mining in pools, the computing output is usually greater, but the profitability is typically lower because the reward is split between multiple miners.
Swarm City coins cannot be mined.
Swarm City coins cannot be mined, and therefore the coin’s market cap will ebb and flow based on its price changes. With just over 7.7 million coins in circulation, users will need to purchase SWT and wait for price increases to increase the profitability of their investment.
Swarm City’s price chart demonstrates its potential as an investable asset. However, as its popularity grows and as more users discover the capabilities of its peer to peer sharing platform, the Swarm City team will need to find a way to scale its platform to allow more transactions to happen each day. This is by no means an isolated problem — all blockchain based platforms need to find a solution, and Swarm City is no exception. If and when Swarm City developers are able to scale the platform, it will undoubtedly be a big boon for business.
Swarm City coins are an excellent cryptocurrency for those that want both investment and utilitarian value. Like its peers, Bitcoin and Ethereum, people can trade SWT and try to make a profit. However, SWT coins also function as tokens on the Swarm City platform, adding a practical, everyday use for the newly minted coin.