What is Toncoin (TON), and how to buy it?
Toncoin (TON) is the first generation coin of the Open Network, known for its ability to rapidly scale and process Layer-1 blockchain transactions. Originally developed by the team behind the Telegram messaging app, Ton is now managed by the Ton Foundation.
Enhancing the Open Network ecosystem, Toncoin is used to pay transaction fees, secure the network, and participate in network management. Within the network, it facilitates a wide range of decentralized applications (DApps) and services, including decentralized finance (DeFi), non-fungible tokens (NFTs), and more. With a strong community and an extensive roadmap, Ton is working to position itself as a promising player in the evolving blockchain landscape.
This article explains what TON is, its use cases and how to buy TONCOIN (TON) on Central Exchanges (CEXs), Decentralized Exchanges (DEXs) and Telegram bots.
Origin of tone and elements of open network
In the year In 2018, Durov brothers Nikolai and Pavel envisioned a scalable blockchain to support Telegram's massive user base and launched the Telegram Open Network (TON). However, Telegram abandoned the project in 2020 due to regulatory issues created by the United States Securities and Exchange Commission (SEC), which views Toncoin as a security. Native token, Toncoin.
Despite the initial hurdle, Ton has grown, fueled by the community and the potential of its underlying technology. It has evolved into an umbrella project that includes Ton Payments, Ton DNS, Ton Storage, Ton Proxy and Ton Space.
Use Toncoin cases
Toncoin serves various functions in the Open Network ecosystem as described below.
Method of payment
Peer-to-peer (P2P) transactions using Ton allow fast and secure payments without intermediary involvement between users.
Execute transactions
To process transactions on the Ton chain, a user must pay a transaction fee, which is used to reward validators for approving transactions.
Pinching
Users can participate in network security by depositing their Ton Tokens. The project rewards stakeholders with TON tokens for their contributions.
Development of smart contracts
The open network uses the native cryptocurrency Ton as a utility token to facilitate various functions in the network, including powering DApps built on Ton, which often use smart contracts for their core functionality.
Management
Token token holders can participate in Open Network governance by voting on proposals that affect the development and future direction of the platform.
incentives
Developers and users can earn Toncoins through various activities in the Ton ecosystem, such as contributing to projects, producing content or providing services.
How to buy a ton
Here's an overview of how one can buy tons of different media in simple steps.
Use of central exchanges
Buying tons with CX is a straightforward process. As of June 2024, Ton will no longer be supported on popular exchanges such as Coinbase, Binance, and Kraken. Here is a step-by-step guide on how to buy Toncoin using the Gate.io example:
Step 1: Choose a cryptocurrency exchange
The first step when buying Toncoin is to choose a reputable central exchange that supports Toncoin. Users should consider features such as security measures, user experience, fees and regulatory compliance.
Step 2: Create an account
The next step is to create an account on the selected exchange. Users can usually register by providing their email address as a user ID and creating a password. Centralized exchanges require identity verification to comply with Know Your Customer (KYC) norms.
Step 3: Deposit
Once the account is set up and verified, users can deposit funds into their currency wallet. They can deposit fiat currencies like US dollars or euros by linking their bank accounts or using a credit or debit card. Alternatively, you can reserve another currency such as Bitcoin (BTC) or Ether (ETH) and exchange for tons.
Step 4: Buy tons
One can buy tons through the “Buy Crypto” tab on Gate.io. The exchange allows users to buy cryptocurrency with a debit or credit card or with a Gate.io crypto debit card. In the “Buy” tab, users must enter the amount they want to spend on cryptocurrency and complete the purchase.
Withdraw to a secure wallet
Users may want to switch from exchanging tons to secure wallets to protect their digital assets. After choosing a cryptocurrency wallet that supports TONS or a software wallet like TrustWallet, transfer TONS from the currency to a personal wallet.
Use of decentralized exchanges
DEXs give users complete control over their assets. If a user wants to buy Ton using DEXs, they can choose a DEX native to Toncoin, such as STON.fi. Alternatively, you can choose a ton that supports a popular DEX and buy it with fiat currency or exchange it with another cryptocurrency.
Users can follow the steps below to buy Tons on DEX. Please note that the process assumes that a buyer has a compatible wallet backed by a currency (usually BNB or another token on the BNB Smart Chain) set up like MetaMask and used to trade in tons.
Step 1: Link your wallet to PancakeSwap.
Go to the official PancakeSwap website. Click the “Connect” button at the top right of the home page. Select your wallet provider (eg TrustWallet) from the list and follow the prompts to connect. Users may need to approve the connection from their wallet app.
Step 2: Add the ton to the bag
Users should add a ton to the wallet if it isn't already visible. The option to add a custom token is in the Tokens section.
Step 3: Exchange for tones
Go to “Trade” on the sidebar and select “Exchange” or “Swap”. Select an input currency and choose tons as the output currency. Enter the size, set the slip tolerance and confirm the swap. Approve the transaction and wait for confirmation.
Step 4: Receive Ton Token
Ton Tokens will appear in the wallet when a user confirms the transaction.
How to buy tons using different marketing methods
Users can purchase tons using a variety of transaction methods, such as spot transactions, peer-to-peer (P2P) transactions, and token exchanges on platforms such as Gate.io.
Location marketing
When buying tons through spot trading, one should choose a trading pair that includes tons. As of June 2024, Gate.io will offer Tons/USDT, Tons/ETH and Tons/Try. Users can choose a market order, which executes immediately and buys tons at the current market price, or a limit order, which allows them to set a specific price at which they want to buy tons. The limit order is executed only after reaching the specified price. Once the purchase is complete, the ton will be delivered in the buyer's exchange bag.
P2P trading
To make a P2P transaction on a cryptocurrency exchange, the buyer and seller must register themselves on the exchange and complete KYC checks. The sender will post the crypto they are selling along with the payment price and payment types they accept. The exchange keeps the cryptocurrency in an escrow account until the payment is confirmed. Once the buyer agrees to the offer, they pay the seller. After the payment is confirmed, the cryptocurrency is released to the buyer, completing the transaction.
Exchange
A cryptocurrency exchange involves the direct conversion of one coin into another. The user first selects which two cryptocurrencies to exchange. Then you indicate the amount of crypto you want to exchange. The platform determines the conversion rate and any associated costs. Once the user confirms the transaction, the exchange processes the swap, converting the original amount of cryptocurrency into the desired coin. Then the ton is added to the buyer's bag.
Using Telegram and bots
Buying tons using Telegram Wallet involves a simple process, thanks to the integration of the “@wallet” bot in the Telegram app. Here's a step-by-step guide on how to buy tons using this feature:
Step 1: Prepare the wallet
Telegram Wallet is a third-party mini-app that allows users to buy cryptocurrencies such as Tether (USDT) and TONE. To install the wallet, open the Telegram app and search for @wallet bot, which facilitates buying, selling and transferring cryptocurrencies in Telegram.
Start a conversation with the @wallet bot and follow the prompts to set it up. This may include agreeing to terms of service and setting security features.
Step 2: Add funds
To buy tons, the user must have funds in the Telegram wallet. The @wallet bot supports adding funds via a variety of payment methods, including credit or debit cards and crypto transfers. Follow the instructions provided by @wallet bot to add funds.
Step 3: Buy tons
Once the wallet is funded, users can make tons of purchases. Type “Buy Toncoin” in the @wallet chat or use the menu options to go to the buy section. Users must enter the tonnage they wish to purchase. The bot will show the user the current exchange rate and the total cost of the transaction.
Confirm the purchase by following the bot prompts. This usually involves verifying the transaction amount and payment method.
Step 4: Check and store the ton
Once the transaction is confirmed, the ton will be credited to the Telegram wallet. User can view account and transaction history in @wallet chat.
The user can improve the security of the Telegram wallet by enabling additional security features provided by @wallet bot, such as two-factor authentication.
Is Ton a good investment?
Determining whether Ton is a good investment involves evaluating a number of factors, including the strong technology underlying Ton, the high traffic flow, and the active user community on Telegram. Its emphasis on decentralization and anonymity aligns well with the preferences of most crypto users.
Regarding the risks, investors will face issues common to the cryptocurrency sector, such as market volatility and regulatory risks. Moreover, the project is at a relatively early stage. The continued growth of the ton will be critical to its success.
Toncoin is important given its regulatory challenges with the SEC due to its ties to Telegram's failed crypto project, Gram. These issues can affect stakeholders who invest and trust in the coin.
Before making any investment decision about TON, investors should conduct thorough research considering the technology's prospects and associated risks.
