Augur, the investor prediction market
Generally speaking, investing in cryptocurrencies is like betting. Augur understands this and offers to bet on something other than virtual currency on his platform. The network is an event prediction market of any kind. In the near future, the platform will be more than a simple speculation tool, because it will accompany the daily life of its users.
Presentation of cryptocurrency
Augur is a fairly old cryptocurrency, as it is 3 years old today. The Augur price is of 8.92 €, which makes virtual currency a large-scale cryptocurrency, here is its story.
What is Augur?
Augur is a totally open source and decentralized prediction market. It is from the Ethereum blockchain. The Augur project aims to take advantage of the main functionalities of the blockchain to better exploit the principle of Crowd Wisdom (or collective intelligence).
Also, the platform tries to accurately predict an event. Everyone is invited to place a bet on the subject of their choice, without having the approval of an organization. Everyone is also allowed to participate in the bet. Please note that participation involves a minimum fee.
The objectives of Augur
The platform wants to revolutionize the prediction markets by proposing a change in the way of verifying the “truth”. The principle is to make precise predictions by a massive number of participants and not by a minority of experts. Augur is the first major decentralized application from the Ethereum platform to offer this kind of service.
Decentralization particularly benefits the platform, because it avoids the risks of censorship by governments. The latter in fact qualify the prediction markets as gambling. The decentralized nature of the platform guarantees total transparency and authenticity in the declarations of the results of events.
Predictions, what interest?
Thanks to the platform, everyone can organize an event focused on a theme and thus buy actions for the results of the event. It allows the use of Ether and Bitcoin to make the bet. The algorithm uses crowdsourcing information and reveals the best forecasts.
After the announcement of the results, the funds relating to the correct result actions are paid to the winners. Beyond a simple prediction market, Augur presents itself as a useful platform on a daily basis. Its co-founder Joey Krug believes that it can be used to protect farmers from the climatic cycles. He even offers this instrument as a means to diagnose patients.
The Augur network
Augure’s decentralized network works on Ethereum’s blockchain to create prediction markets. Users can open a predictive market by betting tokens. The creator of the event is then rewarded in case his prediction proves to be correct. The result is announced in the form of a rate.
The betting platforms inspired the founders to create this network. The latter stands out from other prediction markets by its ability to record a larger number of participants and predictions. The platform does not need the validation of any central body to create the event.
How does cryptocurrency work?
Augure is based on two main actions: the creation of markets and trading in shared actions. Let’s get into the thick of it.
The creation of markets
To create a market on the platform, you need to spend a small amount of Ethereum. In the creation process, the user establishes the costs of the lessee and the creator. The costs of the lessee are between 1 to 12.5%, while the costs of the creator must not exceed half of the costs of the lessee.
The creator of the market receives the betting costs from other users. The creators’ fees are raised from the awards of the winning merchants. Creators are advised to set rules that are both affordable and high enough to encourage users to participate in the bet and to offset the initial expense of ETH.
Shared share trading
It is also possible to buy and trade shares on the platform. These stocks to buy represent the probability that the event will actually occur on the market. For example, if a user estimates that Bitcoin Cash will reach $ 6,000 in 2018, they are betting on the event.
If the user is convinced of the price of Bitcoin Cash, he offers to buy 50 shares at the rate of 0.6 ETH per share. Actions range from 0 to 1 ETH. The amount of the bet bet increases if the user is convinced that the event is imminent.
The pros and cons of this cryptocurrency
REP constitutes the platform tokens. The Augur course is now around 15 euros, so an investment can be profitable. Despite this advantage, cryptocurrency has certain disadvantages.
The team behind the platform enjoys considerable notoriety. It is highly respected in the cryptocurrency market. Augur is a large-scale project that has already proven itself. The decentralized application is already available in alpha and beta versions.
The platform’s operating mode remains complex, which hinders users from investing or creating an event. The latter must advance the predictive market pool when creating the event.
How to buy this cryptocurrency?
The Augur price turn around the 8.92 €. If you are still hesitant to get started, now is the time to take the plunge and invest in this virtual currency. To do this, here are the different steps.
Several exchanges are available to buy Augur cryptocurrency, but Binace and Kraken are the best choices. The first method is to buy REP tokens for euros directly on the Kraken platform.
The other option is to buy ETH or BTC on Coinbase in order to transfer them to Binance. You can then finalize your purchase of REP tokens by an exchange against ETH. Coinbase is the most famous platform for making cryptocurrency purchases.
It is recommended to store your REP tokens in an offline and cold storage platform. For security reasons, remember to erase all the backups of your private key in your office, in your Google Drive and in your email.
Among the various cryptocurrency storage solutions, the Ledger Nano S remains the most secure option; it is a hardware wallet that supports all ERC-20 tokens like REP.