Buy Synthetix in Australia on CoinJar

Why do investors buy ? If you are interested in and decentralised finance (DeFi), Synthetix Network Token (SNX) is an interesting project worth looking into. But what exactly is SNX, and why should someone consider adding it to their portfolio?

What Is Synthetix Network Token (SNX)?

SNX is the native token of the Synthetix protocol, a decentralised platform that enables the creation and trading of synthetic assets. But what are synthetic assets?

Think of them as digital representations of real-world assets, such as stocks, commodities, or fiat currencies. These synthetic assets mirror the price movements of their underlying counterparts without requiring direct ownership.

How Does Synthetix Work?

Synthetix is, as the name suggests, a platform built on the Ethereum network for issuing synthetic versions of real world assets – what they call ‘synths’. This includes everything from other cryptocurrencies, to fiat currencies, commodities and real world stocks such as Netflix, Apple and Tesla.

One of the few major cryptocurrency platforms founded and based in Australia, Synthetix has developed a pooled collateral system that allows every possible synth pair to trade with the same, theoretically limitless liquidity.

Users lock up their SNX tokens and receive their chosen synth tokens in return – for example, sETH, sBTC, sOIL, sGBP. SNX is also used to pay for each trade, with the proceeds being distributed to those staking their coins as collateral. These users also receive general staking rewards.

Collateralisation

SNX holders can lock their tokens as collateral to mint synthetic assets. The more SNX they stake, the greater their borrowing power. This collateralisation mechanism ensures the stability and integrity of the system.

Synthetic Assets

Users can create synthetic assets (called Synths) by staking SNX. These Synths track the value of various assets, including cryptocurrencies (e.g., sUSD, sBTC), commodities (e.g., sGold), and even stock indices (e.g., sFTSE100).

Trading

Once minted, Synths can be traded on the Synthetix exchange. Traders can speculate on price movements without needing to hold the actual assets. For example, if you believe the price of gold will rise, you can buy sGold Synths.

Why Consider SNX?

Diversification

SNX allows investors to diversify their portfolios beyond traditional cryptocurrencies. By holding Synths pegged to different assets, users gain exposure to various markets without the complexities of direct ownership.

Yield Farming

Staking SNX in the Synthetix ecosystem earns rewards in the form of SNX inflationary rewards and Synth exchange fees. Yield farmers can maximise their returns by participating in liquidity pools.

Hedging

Synths provide an excellent hedging tool. If you’re worried about a market downturn, you can mint synthetic stablecoins (like sUSD) to protect your portfolio.

Conclusion: Synthetix Network Token (SNX)

In summary, Synthetix Network Token (SNX) unlocks a world of synthetic assets, offering diversification, privacy, and yield opportunities. As DeFi continues to grow, SNX remains a fascinating project worth exploring.

#How to buy Synthetix (SNX)

To buy Synthetix (SNX) on CoinJar, follow these simple steps:

Sign up to CoinJar: Download the CoinJar app on iOS or Android. Create an account and verify your ID. This process usually takes just a couple of minutes.

Deposit Funds: Transfer funds from your bank account.

Buy Your First Crypto: Once your account is funded, you can buy SNX along with almost 50 other cryptocurrencies using cash or credit card.