How To Buy Yearn Finance - Beginner's Guide

Buying Yearn Finance in 2021: A Step-by-Step Guide

Last Updated July 23rd 2021
23 Min Read

Are you interested in buying Yearn Finance, but not too sure where to begin? You’re not alone. The Yearn Finance digital coin is a hugely popular cryptocurrency to buy, the world over. But, for beginners, this can be quite intimidating.

Bitcoin has always been the most recognized and valuable of all cryptocurrencies. However, not many people know that there is another digital asset that was once worth more than Bitcoin. 

On May 12th, 2021 - this crypto token, Yearn.Finance (YFI), set new records by hitting a market value of $88,277.36 per coin. In fact, this price is 39% more than the all-time-high value of Bitcoin. 

Needless to say, Yearn.Finance has succeeded in garnering the attention of crypto enthusiasts from across the world. 

If you think this digital asset might be a good fit for your portfolio, then our How to Buy Yearn.Finance Guide can help you with that. We take into account the different ways you can purchase this digital coin and how you can find a trusted broker to buy Yearn.Finance today. 

Contents:

Buy Yearn.Finance in 5 Steps - Quick-Fire Guide

Before you can buy Yearn.Finance, you need to find a crypto provider that can facilitate your purchase. The best way to access Yearn.Finance is via a regulated broker such as eToro - which offers you commission-free access to this asset. 

Before we tell you how you can find a broker, let us offer you a quick-fire guide on how to buy Yearn.Finance from regulated platform eToro. 

To buy Yearn.Finance, the first step is to open an accout with a regulated exchange, depost funds, select YFI from the trading platform list, and lastly check & confirm Yearn.Finance tokens have added to your Wallet.

Step 1: Open your trading account. 

Step 2: Fund your account by entering the amount you wish to deposit.

Step 3: Find Yearn.Finance from the list of supported cryptocurrencies. 

Step 4: Type in the amount of Yearn.Finance you want to purchase. 

Step 5: Confirm your buy order to complete the commission-free purchase of Yearn.Finance. 

As you can see, buying Yearn.Finance via eToro is an extremely easy and cost-effective process. 

Not only that, but eToro also allows you to store your Yearn.Finance coins on the platform for free. 

buy yfi

How To Buy Yearn Finance - Beginner's Guide

Step 1: Choose an Online Yearn.Finance Broker or Exchange

Choosing the right crypto provider for your Yearn.Finance investments involves considering a lot of factors. If you are a beginner in the crypto investing space, you need to have a thorough understanding of what to look for to find the right platform that fits your financial goals. 

To begin with, you will have two categories of crypto providers to choose from - online brokers and exchanges. 

Although cryptocurrency exchanges are popular in the market, a majority of these function as unregulated operators. As such, your best alternative is to look for a regulator broker that can offer your digital investments more protection. 

With this in mind, let us offer a list of the many different factors you can evaluate to identify the best online broker when buying Yearn.Finance. 

Regulation

When thinking about how to buy Yearn.Finance, the most prominent question that will come to your mind is how you can do this safely. In this regard, your best bet is to find a cryptocurrency broker that is regulated by one or more financial authorities. 

Allow us to explain in a bit more detail. In the financial sector, you will come across both regulated and unregulated platforms. 

Regulated brokers are required to adhere to the stringent criteria set by their respective governing bodies. This includes submitting evidence of regular audits and verifying the identity of all registered users on its platform. 

On the other hand, unregulated brokers do not have to conform to any such rules. In other words, these platforms can operate in any manner they see fit. 

A good example of a regulated and reputable broker for buying Yearn.Finance is eToro. This platform is regulated by multiple financial authorities - namely, the FCA in the UK, CySEC in Cyprus, and ASIC in Australia. US residents are also offered protection through eToro's registration with FINRA and the SEC. 

Simply put, making Yearn.Finance purchases through eToro will offer you the protection of multiple regulatory bodies that ensure your investment capital is kept safe. 

In comparison, when you use an unregulated exchange for your Yearn.Finance purchases, the security of your investments will be solely your responsibility. 

Payment Methods

Another advantage of using a regulated broker is that you will be able to fund your purchases using fiat currency such as US dollars or euros. 

Typically, on cryptocurrency exchanges - your only option is to buy Yearn.Finance by exchanging it for another digital asset. This can be overwhelming or confusing for new investors who are only venturing into the crypto investment arena for the first time. 

At the other end of the scale, platforms such as eToro allow you to buy Yearn.Finance by paying for it through multiple fiat methods. For instance, on eToro, your payment options vary from debit/credit cards, bank transfers, or e-wallets such as PayPal or Neteller. 

By having access to such a diverse range when it comes to your deposits and withdrawals, you will be able to choose a payment method that is most convenient for you. 

In other words, when considering how to buy Yearn.Finance from an online broker, you want to make sure that it supports your preferred payment method - which will make the process of purchasing this digital token easier for you. 

Fees and Commissions

Crypto brokers generally have a similar structure when it comes to trading fees. However, how much they charge can vary widely from one to another. 

For instance, on eToro - you can gain access to Yearn.Finance and other cryptocurrencies on a completely commission-free basis. Whereas, on other crypto providers, you might end up paying a high commission on every trade you place. 

For instance, let's say that your chosen broker has a commission policy that will cost you 3.99% per trade. Meaning - if you buy $1,000 worth of Yearn.Finance, you will end up paying a fee of $39.90 to the brokerage platform. You will have to pay this commission again if you are cashing out your coins through the same provider. 

As you can see, choosing a commission-free broker like eToro for buying Yearn.Finance can be cost-effective as you do not have to worry about paying this trading cost. This can be crucial because these fees can determine how much profit you will end up keeping for yourself. 

Moreover, in terms of fees - you should also question if the broker is going to charge you for processing your deposits and withdrawals. For example, on some brokerage platforms - like Coinbase, funding your account through a debit or credit card can cost you as much as 3.99%. 

On eToro, however, you will not have to pay such an unfavorable fee to buy Yearn.Finance. In fact, if funding you’re based in the US - deposits are free. Otherwise, you will pay a small FX charge that amounts to just 0.5% of the deposit amount.  

Other Important Factors

Although the above-mentioned factors play the most critical role, your experience with a Yearn.Finance broker can also be determined by a few other minute aspects. 

Here are some of those elements you do not want to overlook when choosing a Yearn.Finance broker. 

  • User-Friendliness:  Whether you are a beginner or a professional crypto investor, the ease of navigating your brokerage platform can make the whole process of buying Yearn.Finance a lot easier for you. Make sure that it is not over complicated for you to find your way around the website and its features. 
  • Minimum Investment: A minimum investment policy is a common requirement across the majority of Yearn.Finance providers. You want to ensure that your chosen broker has a low limit so that you can get access to Yearn.Finance without risking large sums. 
  • Storage: As a digital asset, you will need a secure wallet to store your Yearn.Finance coins. As such, it might be best to choose a regulated broker that offers an in-built storage service 

In consideration of all these aspects, we should reiterate the importance of choosing a regulated crypto broker like eToro when thinking of how to buy Yearn.Finance. Not only is the platform commission-free, but it also integrates an in-built wallet for the free storage of your Yearn.Finance coins. 

buy yfi

Step 2: Come up With an Investment Plan

Before you start planning how to buy Yearn.Finance, it is crucial that you have an investment strategy in place. This will help you make the right decisions that align with your investment objectives. 

For beginners, we have put together some basic investment plans that will help you draw a clear map of how you can buy Yearn.Finance in a risk-averse manner. 

Long-Term or Short-Term

There might be many among you who are thinking of how to buy Yearn.Finance so that you can profit from this digital asset in the long term. If you find yourself in this group, it might be best to consider a 'buy and hold’ strategy. 

In simple terms, this investment plan will see you buying YFI coins and holding them for a longer period of time - think in terms of months or years. 

The goal of this method is to hold onto your Yearn.Finance coins until you find a potentially profitable opportunity. 

Let us offer a quick example:

  • Suppose that Yearn.Finance is priced at $30,000. 
  • Speculating that it is undervalued, you place a buy order worth $5,000. 
  • After a year, the value of YFI coins has risen by 50% to $45,000. 
  • Pleased that you predicted correctly, you decide to cash in your profits. 
  • On your initial investment of $5,000 - you made a profit of $2,500. 

The main advantage of this strategy is that you need not be concerned with the short-term volatility of Yearn.Finance. Instead, your focus is only on the long-term prospects - which makes it an ideal option for beginners. 

Alternatively, you can also choose to profit from the volatility of Yearn.Finance by adopting a short-term strategy. This means that you will be tracking the day-to-day price movements of Yearn.Finance, trying to find profitable opportunities. 

Since the value of YFI coins fluctuates throughout the day - you will be able to find a lot of trading opportunities. However, you will need to know how to use technical indicators and do market research in order to spot upcoming price trends. Needless to say, this can be a challenge for those who are new to the crypto space. 

This is one of the reasons why you might want to start buying Yearn.Finance with a long-term strategy in mind and wait until you gain some expertise before you trade in the short term. 

Read Also: 7 Reasons Why You Should Invest In Yearn Finance (YFI) Today

Target Yearn.Finance Price

Another way to look at your investment strategy is in terms of how much you want to profit from Yearn.Finance. 

For instance, you might have a self-assigned goal of making 20% profit on your Yearn.Finance investments. This means that the value of YFI coins has to go up 20% before you cash out. 

As you can imagine, this profit target can be any value - which will be based on your investment goals, crypto portfolio, risk tolerance, or even current financial standing. 

As we have discussed earlier, the volatile nature of Yearn.Finance indeed makes it feasible for you to target attractive profit targets. Since the start of 2021, the value of Yearn.Finance has already increased by over 40%. And this is just over a span of seven months. 

However, you should also be aware that the market can turn against you at any given point. As such, it is imperative that you risk only small amounts to reduce your exposure. 

Consider Regular Investments

Among the many investment strategies used by seasoned crypto trders, one that might be particularly suited for beginners is the 'dollar cost averaging’ method. 

  • In this method, you will first determine how much money you want to set aside for buying Yearn.Finance. Let us say $1,000. 
  • Instead of investing this whole amount at once, you will inject your money at regular intervals. 
  • For instance, you can buy Yearn.Finance on a monthly basis by making four investments of $250. Or, you might consider investing $100 per week.

The idea is to build your Yearn.Finance portfolio gradually, which will allow you to purchase YFI coins at different rates. This way, you will be able to control your investments and reduce the risk involved. 

Step 3: Open a Yearn.Finance Broker Account

After you have created your investment strategy, it is time to actually get started with buying YFI coins. 

As you can guess, the first step is to create your online trading account with your chosen broker. 

This process should only take you around 10 minutes. All you need to do is sign up with your email address, and set a username and a strong password. 

Now, if you choose a platform like eToro - you will also have to provide some personal information - such as your name and home address. 

After that, you will also need to go through a KYC process. As we discussed, this is a mandatory step for all regulated brokers. 

This only means that you will have to provide a government-issued ID that can verify your identity. You will also be required to offer proof of address - which can be done by submitting a copy of a recent utility bill or bank account statement. 

Since this step is automated, you will receive a confirmation email instantly, allowing you to buy Yearn.Finance straight away. 

buy yfi

Step 4: Deposit Some Funds

In order to complete your account setup, you should also deposit some funds. As we mentioned earlier, today, the vast majority of online brokers have numerous payment methods available. 

On eToro - this ranges from a debit card, credit card, or e-wallets like Paypal, Neteller, and Skrill. You also have a wire transfer if you prefer -  and are willing to wait for a few days for the deposit to process. 

You can choose the most convenient method for you, enter how much you want to deposit and confirm the transaction. 

Step 5: Set up a Trading Order

We now need to consider which trading orders you need to use when learning how to buy Yearn.Finance. If you are new to investments or trading, you might not have any idea of what trading orders are. 

Simply put, these are orders you place on the brokerage platform to convey whether you want to buy or sell Yearn.Finance and how you want to do it. 

Crucially, the right orders and the correct execution of them can determine your success when it comes to making crypto investments. 

Let us tell you about some of the most important orders you need to know about when buying YFI coins. 

Buy Order

Each Yearn.Finance trade you place needs to have two individual orders - one to open your position and one to close it. 

  • A buy order is used when you expect the price of Yearn.Finance to go up, and a sell order will be used to close this position. 
  • On the other hand, if you expect the price of Yearn.Finance to go down - you will open your position with a sell order and use a buy order to exit the trade. 

Once you know whether you want to open your Yearn.Finance position with a buy or sell order, it is advised that you consider the following order types. 

Limit or Market Order

Regardless of how you want to enter the market, you will need to choose between a market order or a limit order

If you are choosing a market order, then it means that you want to buy or sell Yearn.Finance at the next available price. Meaning - your broker will execute the order immediately. 

The critical problem with this order is that - between the time you place the order and the broker executes it, the price of Yearn.Finance might vary slightly due to its volatility. This is called 'slippage.' 

Although this will not have any impact on your profitability, professional traders rarely use market orders - as it means that you will not have control over the entry price. 

Alternatively, you can use a limit order if you want to enter the market on your own terms. 

This allows you to specify at what price you want to buy or sell Yearn.Finance, and the broker will execute it when the value of the digital asset has reached that level. 

Of course, there is no guarantee that your limit order price will be matched. If that's the case, the order will remain pending until you cancel it manually. 

Stake

Along with specifying your trading orders, you should also tell your broker how much money you want to risk on Yearn.Finance. This is defined as the 'stake' on your chosen brokerage platform. 

As you might guess, the higher your stake, the more profits you can potentially make. However, it is important not to forget that your stake is also directly proportional to your losses. 

Therefore, you might want to carefully consider how much money you put in when thinking about how to buy Yearn.Finance. 

If needed, you can take the approach of 'dollar-cost averaging' that we discussed earlier in this guide. 

Even though the price of Yearn.Finance at the time of writing is $32,222.13, several platforms allow you to start investing at low amounts. For instance, on eToro - you can buy Yearn.Finance at a minimum of just $25. 

Confirm Order

When you have filled in all the required fields on your trading page, you need to verify that everything you have entered is correct. 

To confirm, this includes:

  • Your trading orders - buy/sell and market/limit
  • Your stake amount

Once you are ready, you can confirm the order so that your broker can execute it. 

After the purchase has been completed, the Yearn.Finance tokens will be available for you to withdraw to your digital wallet. 

Don't Miss: Yearn Finance Price Predictions

Step 6: Storing Your Yearn.Finance Coins

The safe storage of your Yearn.Finance coins is as important as buying them. You need to make sure that you have securely stored your Yearn.Finance tokens until you are ready to cash them out. 

Now, depending on your chosen regulated crypto broker - you might have access to an in-built wallet to store your Yearn.Finance coins. This will allow you to safely secure your tokens under the protection of the platform's respective governing bodies. 

In the case of eToro, you can leave your tokens stored safely within your portfolio. Don't forget, eToro is regulated by the FCA, ASIC, and CySEC - so your investments are secure at all times. 

If you would rather prefer a private digital wallet, then you will need to do some thorough research to find the right one. 

Although this can be a safe option, this means that you will have to go through the process of withdrawing your coins and depositing them into the brokerage platform every time you want to cash out. 

Step 7: Selling Your Yearn.Finance Coins

Selling your Yearn.Finance tokens at the right time is key to maximizing your profits from this investment. 

Needless to say, it is crucial that you find a safe and convenient brokerage to sell your Yearn.Finance coins in a cost-effective manner. 

As we have mentioned throughout this guide, the best way to do that is through a regulated broker like eToro. Since this brokerage site allows you to store Yearn.Finance coins right on the platform, you will have no difficulty in selling them with ease. 

You can simply go to your eToro portfolio, find Yearn.Finance, and click on the 'sell' button to the right. The proceeds from this transaction will be immediately made available to you to withdraw upon request. 

Alternatively, if you are storing your Yearn.Finance tokens in an external digital wallet, you will first have to transfer the coins to your chosen brokerage. This can be time-consuming as well as cost you more in trading fees. 

Other Ways to Buy Yearn.Finance in 2021

When considering how to buy Yearn.Finance in a safe and secure manner, you do not always have to go through multiple steps. Instead, some online brokers also allow you to pay for your Yearn.Finance purchases through the following methods.

Buy Yearn.Finance Debit Card

Numerous modern-day brokerage sites offer the option of buying Yearn.Finance using a debit card. However, you have to be careful of whether this payment method will come at a charge on your chosen platform. 

For instance, eToro is a regulated broker denominated in US dollars. Therefore, if you are funding your account with another fiat currency, this will incur a fee of 0.5%. Otherwise, all debit card transactions on this platform are completely free. 

Buy Yearn.Finance Credit Card

Another popular alternative is to pay for Yearn.Finance using a credit card. However, the main issue is that you need to be aware of any 'cash advance fees' that might be charged by your service provider. 

Furthermore, not all credit card issuers allow cryptocurrency purchases online. 

Buy Yearn.Finance Paypal

If you didn't know this already, some crypto brokers - such as eToro, allow you to pay for cryptocurrencies using e-wallets like PayPal. 

On eToro, you will also have the option to buy Yearn.Finance using Neteller or Skrill. 

Yearn.Finance ATM

Cryptocurrency ATMs are another way for you to purchase digital assets. However, at the moment, Yearn.Finance ATMs are not available. With that said, buying cryptocurrencies via an ATM can result in high commissions anyway - with many providers charging in excess of 10%. 

Therefore, it is always best to stick with a regulated and commission-free broker like eToro when buying YFI coins. 

Check Out: Should You Buy Yearn Finance?

How to Buy Yearn.Finance 2021 - The Verdict

It has never been easier to buy Yearn.Finance from the comfort of your home. Thanks to online cryptocurrency providers, you can buy and store this digital asset safely and securely with just a few clicks. 

With that said, when considering how to buy Yearn.Finance, you should always remember to choose a regulated platform. Brokerage sites like eToro are not only safe and convenient but can also offer you commission-free access to Yearn.Finance. 

eToro – The Best Platform to Buy Yearn Finance

eToro have proven themselves trustworthy within the Crypto industry over many years – we recommend you try them out.

Virtual currencies are highly volatile. Your capital is at risk.

Read Also:

Could Yearn.Finance be a Millionaire-Maker Coin?

Why Yearn.Finance Is Going To Explode

Is It Worth Investing in Yearn Finance?

Pros and Cons of Investing in Yearn Finance

FAQs

How can I buy Yearn.Finance?

The best way to buy Yearn.Finance in the safest and most cost-effective manner is to choose a regulated and commission-free crypto broker like eToro.

How much does it cost to buy Yearn.Finance?

This will depend on your chosen broker. On eToro, you can start buying Yearn.Finance from just $25. If you want to buy a full Yearn.Finance coin - the price at the time of writing is $32,222.13.

Do I need to invest a minimum stake to buy Yearn.Finance?

This will be decided by the minimum investment policy of your online broker. Regulated brokerage platform eToro gives you the option to start buying eToro from just $25.

What is the all-time high price of Yearn.Finance coins?

On May 12th, 2021 - the price of Yearn.Finance hit an all-time high of $88,277.36 per coin.

Is it a good idea to invest in Yearn.Finance in 2021?

Since its launch in 2013, the price of Yearn.Finance tokens has increased by over 20,000% in value. However, the past performance of an asset cannot always be predictive of its future. Therefore, you need to do your own research before buying this cryptocurrency. 

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