KAVA cryptocurrency: How it works and where to buy it – finder.com.au

KAVA is the native token of Kava.

Kava is a DeFi lending platform designed to allow users to earn high returns on its cryptocurrency by lending it out and using it as collateral for stablecoin loans. Kava's native stablecoin is USDX.

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade.

What is DeFi and why is it a trend to watch in 2020?

Kava's purpose is to allow people to lock up cryptocurrency as collateral, similar to other Ethereum-based DeFi projects. One of its key differentiators, however, is that it leverages the interoperability features of the Cosmos network to allow a wide range of cryptocurrencies to be more easily used as collateral.

In a nutshell, the cryptocurrency deposited into Kava collectively becomes the collateral for USDX stablecoins, which are pegged to US$1. The network is over-collateralised, giving people assurance that the USDX stablecoin can always be safely redeemed for $1 of value.

There are two basic things a user can do with Kava:

These can be combined, though, and can interact with other DeFi projects to be greater than the sum of their parts. For example, someone could take on a leveraged position by taking out a USDX loan and then using that to buy even more cryptocurrency.

The KAVA token serves three purposes:

Here's a step-by-step guide for one way of buying KAVA. Note that there might be other options available, so you may want to compare cryptocurrency exchanges to find the one that's right for you.

BPAY,Cash,POLi,PayID

AUD

CoinSpot is an Australian-based exchange that allows you to easily buy, sell or trade more than 100 cryptocurrencies.

Credit card,Cryptocurrency,Debit card,Bank transfer (via third party)

USD, AUD, GBP, CAD, EUR, CNY, RUB, TRY, NGN, UAH & 23+ more

US residents: As of September 2019, US-based users can only trade USD on the American dollar onramp of Binance, Binance.US.UK residents: In addition to normal crypto trading services, Binance offers margin lending. As this is a regulated activity which they are not authorised to offer in the UK, we advise you not to use this service. If you're interested in margin trading, see authorised providers.

Bank transfer,POLi,Osko,PayID

AUD

Buy and sell a wide range of cryptocurrencies at competitive rates on this Australian exchange.

Disclaimer: Cryptocurrencies are speculative, complex and involve significant risks they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

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KAVA cryptocurrency: How it works and where to buy it - finder.com.au