Owning KGO tokens can be intimidating for newcomers. Before you get started, it is essential to understand a few key terms that govern the KGO ecosystem. Here's a beginner's guide to 10 fundamentals to owning KGO tokens, to dispel any doubts you may have and ensure you start off the KGO experience on the right footing.
A token is a digital currency that is built on an existing blockchain, thus benefiting from its technology, rather than having its own blockchain.
As such tokens differ from coins , which are digital currencies that have a stand alone independent blockchain (e.g. Bitcoin, Ethereum, Binance Smart Chain).
BEP-20 Network (Binance Smart Chain)
The KGO token is built on the blockchain called BEP-20 Network or Binance Smart Chain (BSC), and thus benefits from its technology.
As a result, every KGO token sent should be sent through the BEP-20 network, and to an address that supports the BEP-20 network. KGO tokens sent using a different network or sent to an invalid address could result in their permanent loss.
Transaction Fees (Gas Price)
When sending KGO tokens from one address to another across the BEP-20 network, a small fee is imposed on the transaction. The transaction fee is awarded to a validator, upon the successful validation of the transaction.
Because the KGO token is built on the BEP-20 Network, the fee must be paid in the native digital currency of that network: the Smart Chain BNB token. Thus, it is always a good idea to have a little stack of Smart Chain BNB in your wallet if you want to send some KGO tokens.
The transaction fee you have to pay to send KGO tokens is paid in small units of BNB specified as Gwei (1 Gwei = 0.000000001 BNB). As of June 2021, the average fee on the BEP-20 network is around 13 Gwei (see BscScan for a daily average price of gas fees).
As you seek to purchase your first KGO tokens, you will most likely use fiat money. Fiat is a government-issued currency. For example: US Dollars (USD), Euros (EUR),Yuan (CNY), and Yen (JPY).
Exchange and DEX
To buy (or trade) KGO tokens, you will need to send your fiat money to an exchange: a place to trade cryptocurrency.
Centralized exchanges, operated by companies like Binance and Kucoin, function as intermediaries to facilitate trades and store tokens securely. Like banks today, centralized exchanges maintain customer accounts, facilitate transactions, and provide a variety of services to help users.
In contrast, decentralized exchanges (also known as DEX) operate without that central authority, which implies trading cryptocurrency without intermediaries directly through the blockchain. Although DEXs do not have access to customer’s assets and information, users are deprived of a great number of opportunities and services that are normally provided on centralized exchanges, as these features cannot be implemented on DEXs due to technical issues related to decentralization.
Visit CoinMarketCap to see the list of exchanges that support KGO tokens.
Once you have your first KGO tokens, you may want to secure them out of the exchanges you used to purchase them. Like the physical thing you carry your cash and cards in, a wallet in the crypto world is a place where you store digital currency.
The wallet can be online, offline, or on a physical device:
A HotWallet (also known as Hard Storage) is a wallet that is directly connected to the internet at all times, such as those held on centralized exchanges. They are considered to have lower security than cold wallets or hardware wallets.
A ColdWallet (also known as Cold Storage) is an offline wallet that is never connected to the web. They offer protection to your cryptocurrencies from getting hacked online.
Finally, a Hardware Wallet is a physical device that can be connected to the internet and interact with online exchanges but can also be used as cold storage.
If you are still looking to get the best wallet to store your KGO tokens, here are our top 3 choices:
TrustWallet : the best cryptocurrency wallet to store your favorite BEP2, BEP-20, ERC-20 and ERC-721 tokens.
MetaMask : available as a browser extension and as a mobile app, MetaMask equips you with a key vault, secure login, token wallet, and token exchange.
Binance Chain Wallet :also available asa browser extension and a mobile app, it provides a great crypto wallet option for Binance Chain, Binance Smart Chain and Ethereum.
Address (Wallet Address or Public Key)
To send or receive KGO tokens on any wallet, you will need to enter an address.Like a bank account number, a public key is what you use to deposit your crypto holdings.
This address or public key is an alphanumeric character string, which can also be represented as a scannable QR code.
For sending or receiving KGO tokens, remember that they should be sent through theBEP-20 network, and as a result, the address is composed by the prefix “0x”.
An example of a BEP-20 network address to use for receiving KGO tokens is: 0xb794f5ea0ba39494ce839613fffba74279579268.
Two-Factor Authentication (2FA)
Once you have received your KGO tokens in your wallet, you still need to secure your login and protect yourself from password breaches.
Two-factor authentication (known as 2FA) is one of the most effective defenses available when it comes to account protection. It strengthens login security by requiring a second piece of information, that is, a second factor beyond your password. The second piece of information can either be a temporary code delivered by a device in your possession, such as your phone, or it can also be something on your body, such as a fingerprint.
If you are looking for great 2FA apps to secure your wallet or exchange logins, here are two great picks:
Authy : an easy to use, feature-rich and open source app which supports multi-device sync.
Google Authenticator : a widely adopted standard across major websites available on Play Store and App store.
Maybe having all your KGO tokens waiting in your wallet is not something you would like to do, and you would prefer generating passive income with them.
Generally speaking, staking is the process by which users lock their coins away to receive a reward or return on investment. The duration of the staking period as well as the reward percentage (known as APY, Annual Percentage Yield) depends on the contract proposed by the platform offering the staking service.
Locking away your coins for a predetermined period of time means your tokens will be left to deal with the market volatility (meaning you could miss out on a price increase or decrease due to your tokens being inaccessible for a certain period of time).
Farming (Yield Farming)
Yield farming is another way of generating passive income with your crypto. To put it simply, farming means adding liquidity to a decentralized exchange and earning rewards in the form of interest for doing so.
Think of this process as holding f in a savings account. The money held on your savings account is used by the bank in its general liquidity pool. The bank then use that pool for lending and providing money to customers. Farming is basically the same, only you are the one contributing to a lending exchange platform by putting your crypto in one of their pools.
Yield farmers contribute their assets for as long as they want and earn fees daily.The more you lend, the higher the rewards are.
Read the previous article: The KGO token in a few words