Your 101 guide on what you need to know to buy and sell Entropy tokens in Australia.
The Hut34 Project is building the world’s first open distributed interbot network. Developed on the Ethereum blockchain, the network is designed to allow the exchange and monetisation of data, information and services.
The ERC20-compliant Entropy Token (ENTRP) is the network’s native currency and is used to transact within the Hut34 ecosystem. If you’re thinking of buying ENTRP or simply want to find out more about this unique project, read on.
Where to buy ENTRP
ENTRP tokens can be purchased through the following platforms:
- Radar Relay
- Token Store
- Fork Delta
- 0x Protocol
A step-by-step guide to buying ENTRP
If you want to buy Entropy Tokens, here’s a basic rundown of what you need to do.
Step 1. Register with a cryptocurrency exchange that allows you to buy ENTRP
At the time of writing, ENTRP is only available on a handful of exchanges, so you’ll need to search for a platform that lists this cryptocurrency in one or more pairings. Once you’ve found a suitable website, you can register for an account by providing your email address and creating a password.
Depending on the platform you choose, you may also need to provide your personal information and proof of ID to satisfy Know Your Customer (KYC) requirements. Don’t forget to also set up two-factor authentication on your account to provide an extra layer of security for your cryptocurrency funds.
Step 2. Deposit funds into your account
Most exchanges only accept cryptocurrency deposits, not fiat currency, so you’ll need to deposit a coin or token that’s listed in a currency pairing with ENTRP, such as Ether (ETH). If you don’t have any ETH tokens, take a look at our how to buy ETH guide.
To deposit ETH with an exchange, log into your account and copy the relevant wallet address. You’ll then be able to transfer your tokens to that address.
Step 3. Buy ENTRP
The final part of the process is to click through to the “Exchange” or “Markets” section on your chosen trading platform. You can then search for your desired pairing, such as ENTRP/ETH, and click on “Buy ENTRP”.
Next, enter the details of your transaction, such as the amount of ENTRP you want to buy or the amount of ETH you want to send. Remember to review all transaction details, including any fees that apply, before completing the purchase.
How to sell ENTRP
The process for selling ENTRP is quite similar to that outlined in Step 3 above. Of course, you’ll need to look for the “Sell ENTRP” link before entering your transaction details, and it’s worth remembering that you may not be able to transfer ENTRP tokens directly to the currency you want to acquire.
Which wallets can I use to hold ENTRP?
The Entropy Token is an ERC20 token on the Ethereum network. As a result, you can store your ENTRP in any ERC20-compatible wallet. Some options you might like to consider include:
- Ledger Nano S (hardware wallet)
- TREZOR (hardware wallet)
- MyEtherWallet (web wallet)
- MetaMask(web wallet)
If you are planning on trading your ENTRP tokens, you may want to consider storing them in your exchange wallet. However, due to the security risks associated with exchanges, this option isn’t recommended for long-term storage.
How Hut34 and ENTRP work
Hut34 gets its name from Allied efforts to crack the German Enigma code in World War 2, when the teams of codebreakers at Bletchley Park worked in a series of numbered huts. While other huts conducted critical work decrypting German messages, Huts 3 and 4 were tasked with translating, interpreting and distributing the messages deciphered in other huts.
Which brings us to this ambitious Australian cryptocurrency project, being developed with the goal of creating a “shared global superintelligence”. Hut34 is building an open, distributed network that will allow AI, bots, IoT devices and other digital services to connect, interact with each other, and monetise the information and services they offer.
The end result? Hut34 hopes to overcome a few key problems facing AI-powered bots – they’re limited in the breadth of their knowledge and expertise, data is largely fragmented, and many independent bot creators struggle to distribute and earn money from their content.
The Hut34 network aims to allow:
- AI, chatbots and other digital services to connect to the network.
- Unresolved queries received from bots to be routed to the network.
- Intelligent ranking so that user queries can be successfully resolved or answered by other connected bots.
- Bot creators and data providers to be rewarded for their contribution to the network.
What to consider if buying ENTRP
Cryptocurrencies are not only notoriously volatile, they are also highly complicated assets. Buying any crypto coin or token is a speculative move, so make sure you carefully consider a wide range of factors before you purchase.
If you’re thinking of buying ENTRP, take the following factors into account:
- Supply. A fixed total supply of 100 million ENTRP tokens will be created. These tokens will be the unit of exchange used to reward and charge Hut34 network users. A maximum of 30% of the total supply of ENTRP tokens were to be sold during the 2017 token sale, with 50% to be retained by the Entropy Foundation (an Australian company established to facilitate and implement the Hut34 Project). The remaining 20% will be allocated to Entropy Foundation team members and advisors, subject to a two-year vesting schedule with a six-month cliff.
- The team. It’s also a good idea to consider the team behind a project to get a better idea of its potential for future growth. Hut34 is led by system architect Tim McNamara and blockchain technology specialist Peter Godbolt.
- Market. Next, consider the market the Hut34 Project is aiming to tap into. A few key points are included in Hut34’s one-page summary of its project – for example, Accenture reporting that the chatbot market is forecast to be worth US$1.86 billion by 2020 and US$5.6 billion by 2027.
- White paper. If you want to learn more about the technology behind the project and its potential real-world uses, check out the Hut34 white paper.
- Still in development. It’s worth pointing out that while the proof-of-concept Hut34 platform is live and operational for selected users, it’s not yet a finished product. It remains to be seen whether or not it will be able to deliver on its potential.
By taking these and a range of other factors into account, you should be able to form a clearer picture of whether or not now is a good time to buy Entropy tokens.
At the time of writing, the author holds IOTA and XLM.