How to Invest in Spark
Investing In Spark (FLR) : A Step-by-Step Guide
The main idea behind the Flare network is to expand the functionalities of cryptocurrencies by making them compatible with smart contracts. This ecosystem runs on its governing token - Spark (FLR), which is emerging as one of the most popular digital coins of today.
If you think this digital asset has the potential to grow in the future, then you might be eager to profit off this latest investment opportunity.
Our How to Invest in Spark Guide will introduce you to the most important aspects you need to know about buying this digital asset, storing it, and how to cash out your investment through a secure crypto broker.
How to Invest in Spark in Five Easy Steps
Are you looking for a quickfire walkthrough instead of reading this entire guide? If so, here are five steps that will tell you how to invest in Spark:
- Step 1: Find a regulated online crypto exchange that facilitates Spark investments.
- Step 2: Create your crypto investment account.
- Step 3: Locate Spark by searching for the digital token.
- Step 4: Make your Spark investment by specifying your stake amount.
- Step 5: Confirm your order to complete the purchase of Spark tokens.
For the complete beginners among you, we would suggest that you read through our entire How to Invest in Spark Guide - so that you can gain more insight into the asset and the risks involved before you proceed.
How Does Investing in Spark Process Work?
The concept of investing remains the same across all asset classes - be it stocks, commodities, or cryptocurrencies like Spark. If you have not invested in any capacity before, let us tell you what you would be doing.
In simple terms, when thinking of how to invest in Spark, you will be buying this digital asset with the expectation that it will increase in value. Once you purchase FLR, you will be storing the tokens in a secure wallet until you are ready to cash out your investment at a later date.
Let us explain this better with an example:
- Let's say that the market value of Spark is at $0.90 per coin.
- Considering this a low entry price, you make an investment of $100 into this digital asset.
- For the next three months, you decide to hold onto your FLR coins.
- In that duration, the value of Spark increases to $1.80 per token.
- This is an increase of 100% in the price of FLR coins.
At first glance, the entire process is quite simple, especially with the availability of online platforms. Every step of your Spark investment can be completed from the comfort of your home.
And if the value of this cryptocurrency increases, you stand to make attractive profits. However, cryptocurrencies like Spark are a highly volatile buy. Its value oscillates throughout the day, influenced by market conditions.
For instance, due to its close association with Ripple, any news that affects XRP could have an impact on Spark. Additionally, cryptocurrency regulations and the general perception of digital assets can also affect the price of FLR.
Crucially, the market value of Spark will come down to its supply and demand. If more investors like you are interested in buying this coin, you will see prices rising. On the contrary, if sellers outweigh buyers, you will notice a downward trend.
Ultimately, if FLR coins appreciate in value once you have made your investment, you will be able to cash out at a profit. That said, when thinking of how to invest in Spark, you should not overlook the risk factors involved.
Cryptocurrencies, in general, are incredibly speculative. And as such, it might be in your best interest to begin your Spark investment journey by only risking small amounts - especially if you are a beginner.
Reasons to Invest in Spark
Spark is still deemed to be a relatively new asset in the crypto market. However, it has been garnering steady interest from the blockchain community - especially since the turn of 2021.
That being said, before you think of how to invest in Spark, you need to analyze whether this digital asset is a good fit for your financial portfolio.
Here are a few reasons why you might want to consider Spark as an investment opportunity.
The Flare Network has a Unique Proposition
The rapid growth of interest in smart contract platforms like Ethereum for decentralized applications has necessitated the development of more scalable and interoperable protocols. This requires networks that can take on high volume without having to compromise on speed or high fees.
Many Proof-of-Stake crypto tokens available today are primarily used for governance within their networks, thus limiting their utility elsewhere. The Flare ecosystem offers a solution to this by making it possible for any network to function using smart contracts without relying on economic mechanisms like PoS or PoW.
Flare network makes way for any token to be used with smart contracts. This functionality has the potential to create a bright future for this digital asset.
Spark has Teamed with Ripple
For those unaware, Ripple (XRP) is a prominent cryptocurrency that was developed to be a global payment network. The ecosystem utilizes the XRP ledger to make it easy for users to send and receive money globally.
As good as XRP is for this purpose, the digital token has virtually no other use case due to its incompatibility with smart contracts. This is where Flare comes in.
Ripple has added the Flare Network to its XRP ecosystem, expanding its utility and bringing more support. In turn, this will add DeFi functionality to the XRP ledger.
As Ripple progresses, it is possible that the value of Spark also goes up. Alongside, if this partnership proves to be a success, you can also expect the Flare network to be integrated with other blockchain ecosystems, further driving up its price.
Spark is in Early Stages
The Flare network and the Spark token certainly seem to have a lot of potential. The development team is strong, experienced, and resourceful. Moreover, the platform is constantly working on new updates and adding features to make the ecosystem more efficient and secure.
All that being said, the coin is still a new asset, and there is very little information to base this speculation on. However, there might be investors who believe that this unpredictability gets them a good entry price into the Spark market.
If this coin is to gain more momentum in the future, you could be looking at some substantial gains. But this strategy might be best reserved for experienced cryptocurrency investors.
Aside from all these factors, your profitability from a Spark investment will also depend a lot on your strategy. How you time the market will ultimately be decisive of the returns you make from this asset.
All in all, bear in mind that there is no way to be certain whether or not Spark is a good investment. And as such, it will be best to carry out your due diligence before you put your money into this digital token.
How to Invest in Spark - Various Options Available
When thinking about how to invest in Spark - you have two different choices in front of you. You can buy FLR coins through a broker or make the purchase of this digital asset through a cryptocurrency exchange.
In this section, we will discuss the differences between these two options - and the kind of investment services they offer.
You might have already come across cryptocurrency exchanges. These are marketplaces where you can buy and sell digital assets like Spark.
Some exchanges make it really simple for you to invest in Spark by allowing you to purchase the coins with a fiat currency like USD. On the other hand, on some platforms, you will only have the option of buying FLR tokens in return for another cryptocurrency such as Bitcoin.
While many exchanges allow you to store your Spark coins within the platform or their in-built wallet, this can be a risky option. This is primarily because these sites are largely unregulated - meaning there is no financial authority that watches over them.
In other words, if there is a breach of security, it will put your entire Spark investment at risk. The alternative you have is to move your FLR coins to an external private wallet - which will add more steps to the process. For a beginner, this can mean more complications.
For all these reasons, you might find it difficult to find a Spark exchange that is friendly for novice investors. If at all you manage to find one, you might have to deal with high fees and charges.
Given these factors, you might want to consider a regulated online broker for your Spark investments.
Cryptocurrency brokers are sites that serve as an intermediary to facilitate your Spark investments. In other words, you will be instructing the platform how you want to buy and sell FLR coins, and it will execute your orders on your behalf.
Unlike cryptocurrency exchanges, you will find that most Spark brokers tend to be heavily regulated. This means more transparency, credibility, and, most importantly, safety for your funds and investments.
For example, brokers like eToro are licensed by multiple financial authorities and are known to offer beginner-friendly features to investors. Moreover, such platforms also tend to offer a large number of ways for you to transfer your funds for making Spark investments.
This includes credit/debit cards, bank account transfers, and e-wallets. You will also have the option to make deposits in US dollars, euros, and other currencies, at relatively low fees.
On eToro, you will also be able to make Spark investments without having to pay a single cent in brokerage commissions.
Perhaps, more importantly, such licensed brokers also give you the option to keep your Spark investments within the platform after making the purchase. With the benefit of regulation, this can mean more safety to your FLR coins.
While both Spark exchanges and brokers have their own merits and drawbacks, the latter category comes out ahead in terms of regulation and, ultimately, the security of your investments.
Check Out: Is It Worth Investing In Spark FLR?
How to Choose a Platform to Invest in Spark
If you have made up your mind between a Spark exchange or a broker, then it is time to find a suitable platform that can offer you precisely what you need.
However, as a beginner, this can come as a challenging decision. It is easy to be overwhelmed and swayed by the dozens of options online, especially when you are not clear about what your requirements are.
To help you make a wise choice, we will tell you about the most crucial consideration for a beginner when selecting a platform for making your Spark investment.
Licensing and Reputation
When it comes to the world of cryptocurrencies, you have to tread with utmost care to protect yourself against fraud. The best way to ensure this is to choose a Spark platform that is regulated by a respected financial authority.
As such, the first thing you need to get right with your Spark broker is its regulatory standing. You need your investment platform to be authorized and licensed by at least one governing body.
This will ensure that your trading site keeps your funds segregated and has its reports audited by financial authorities. More importantly, you will be able to receive more transparent services that clearly outline the risks associated with your Spark investments - which is crucial for beginners.
One such broker in the current market is eToro. The platform facilitates investments of thousands of assets, including cryptocurrencies like Spark.
The trading site is regulated in different jurisdictions, catering to users across the globe. This includes licenses from the FCA in the UK, CySEC in Cyprus, ASIC in Australia, and SEC in the US.
In comparison, it is highly unlikely that you will find a cryptocurrency exchange that has such an extensive level of regulation.
Fees to Invest in Spark
Fees are an inevitable part of making any investment. However, by choosing your Spark broker wisely, you will be able to decide how much this can affect your take-home profits.
In this section of our How to Invest in Spark Guide, we will walk you through the two most important types of fees you need to be aware of before signing up with a crypto broker.
When you buy or sell Spark via a broker, you will most likely be charged commissions by the platform. The amount you are liable to pay will vary, based on how much you are investing into this asset.
For instance, your broker might enable Spark investments by charging you a commission of 3%. This means that if you buy FLR coins worth $1,000, you will end up paying $30 to your trading site.
After a few months or years, when you are ready to sell your FLR coins, you will, yet again, have to pay the commission. However, at that time, it will be proportional to the value of your Spark investment.
For example, if the price of your Spark coins increases to $3,000 at the time of selling, this will raise your 3% commission to $90. As the value of your investment goes up, so will the fees you end up paying.
However, the way commissions are calculated also differs between brokers. While some platforms have lower rates for higher investment amounts, there are sites like eToro that allow you to buy and sell Spark at 0% commission.
Deposits and Withdrawals
Making deposits and withdrawals into and from your Spark investment platform often comes at a price, depending on the payment method you choose.
For instance, if you are funding your account using a debit or credit card, you might have to pay additional fees to your broker and service provider. In comparison, a bank wire transfer might incur lower changes; albeit, this will involve longer waiting periods.
On some platforms, making deposits might be free, while you might have to pay a small amount for withdrawals.
For instance, eToro does not charge you any fees to make deposits. However, you will need to pay an exchange fee that incurs if you are making transactions using a currency other than USD. This is because the platform facilitates all investments in US dollars.
Minimum Spark Investment and Payments
Before you can decide how much Spark you want to buy, you will need to consider the minimum investment amount required by your chosen broker.
For example, on eToro, you can gain access to Spark coins by investing a minimum of just $25. This allows you to lower your risk and still add this digital asset to your portfolio. Not to mention, such a low requirement comes in favour of beginners who are still learning the ropes of making cryptocurrency investments.
On the other hand, there will also be Spark providers that demand a higher minimum investment amount. As a result, it would be best to check this before you decide on your crypto broker.
Storage and Cashing Out
It is not uncommon for beginners to overlook the importance of cryptocurrency storage when considering how to invest in Spark. However, this is one factor that will require the same amount of consideration as choosing your brokerage site.
Once you invest in Spark, you have the option to store your FLR coins in an external wallet. This means you will be fully responsible for the safety of your private key (password) - without which you will be unable to access your digital assets.
Another disadvantage to this approach is that if you want to sell Spark, you will have to deal with the added step of sending your FLR coins to your brokerage site.
On the other hand, regulated brokers like eToro make this easier for you by allowing you to store your Spark tokens within the platform. In other words, you will be able to buy and sell your FLR coins from within the trading site, which is licensed by many respected financial authorities.
Read Also: 5 Best Places to Buy and Sell Cryptocurrency
How to Invest in Spark Today - Step-by-Step Walkthrough
Now that you have gone through the most important factors to consider in your Spark broker, you know exactly what to look for. To help you out even further, our team has conducted some research to find a platform that ticks off all our criteria.
Among the brokers that support Spark, eToro is one of the few that is completely regulated and beginner-friendly. The trading platform also takes pride in having a 0% fee structure that is easy to understand.
Given these factors, we will be using eToro as an example to show how you can invest in Spark effortlessly.
Step 1: Open an Account
Opening your investment account with eToro is a swift and seamless process - one that is as simple as registering on any website. You can start by providing your email address and creating a password.
In order to gain more information regarding your identity, eToro will also request you to fill in some of your basic personal information - such as your full name, contact details, residential address, and date of birth.
Additionally, you will also be presented with a series of questions that concerns your prior experience with cryptocurrency investing. This is so that eToro can get a better understanding of your risk tolerance and financial goals in order to provide you with the right kind of service.
Step 2: Provide Some ID
As we mentioned earlier, regulated brokers like eToro have to adhere to several rules and regulations - one of which is to verify the identity of every registered user.
Meaning, before you can start investing in Spark, the platform will need you to submit some personal documents as a part of the KYC process. This can be your passport, driver's license, or another government-issued ID with your photo.
There will also be a requirement to show proof of your address, which can be completed by providing a utility bill or bank account statement.
Step 3: Deposit Funds
After eToro has confirmed your identity, you will then be able to connect your account to a payment option. On this platform, you can choose to make a deposit via debit/credit card or e-wallets like PayPal - which will facilitate an instant transaction.
You will also be able to fund your account via a bank transfer; however, depending on your provider, this could involve a waiting period of 3-7 days.
Step 4: Search for Spark
On eToro, you can find Spark by simply searching for FLR. The site will then redirect you to the correct trading page.
Alternatively, you can also locate Spark under 'Trade Markets' on the eToro website.
Step 5: Complete Spark Investment
Now, you are ready to make your first Spark investment. The big question here is to decide how much money you should stake on this digital asset.
Since Spark has a low entry price at the moment, you will be able to gain considerable exposure to this token without having to risk large sums. Additionally, eToro allows you to buy FLR coins with an investment as low as $25.
After you have specified that you want to buy Spark and have entered your stake amount, you can confirm the order. eToro will then complete the purchase of FLR coins on your behalf, and the tokens will instantly be added to your portfolio.
You can leave your coins safely stored with eToro, or move them to your private crypto wallet. As this platform is regulated, you will not have to worry about the security of your investments.
Step 6: Cash Out Your Spark Investment
Once you own Spark, you can follow the market to find the right opportunity to sell your investment. When you are ready to cash out, the process is almost exactly the opposite of buying.
That is to say, ion eToro, you can find Spark in your portfolio and choose to sell your investment directly from there. The broker will carry out your order, and the proceeds will be added to your account balance - which you can withdraw to your original payment method when needed.
Those who have stored Spark tokens elsewhere - such as in a private crypto wallet, will have to transfer them to eToro to sell them. Apart from that, the process of cashing out your FLR coins remains the same.
How to Invest in Spark Today - The Bottom Line
Investing in a relatively new cryptocurrency like FLR can be risky; however, it could also be potentially lucrative. As our How to Invest in Spark Guide has explained, buying and selling this digital asset does not have to be a difficult process at all.
With the right regulated broker on your side - like eToro, beginners like you will be able to make Spark investments at 0% commission. Moreover, you will also have the convenience of being able to store your FLR coins within the platform and at no extra cost.
eToro – Best Exchange to Buy Spark (FLR)
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.
What is Spark?
Spark (FLR) is the governance token of the Flare network, which can also be used as collateral within different decentralized applications.
How to invest in Spark?
Spark can be purchased from a regulated broker at eToro from a minimum investment of just $25.
Is it a good idea to invest in Spark?
Spark is still a new digital asset, and it is therefore too early to predict where it's headed. This is why it would be best for you to risk only small amounts into this crypto token.
Where can I keep my Spark tokens?
Being a cryptocurrency, Spark needs to be stored in a secure wallet. You can also find a regulated broker like eToro, and leave your FLR coins within the platform once you make the purchase. This also makes it easier when the time eventually comes for you to sell your Spark tokens.
How can I sell my Spark investment?
On eToro, you can sell Spark by locating the asset in your portfolio and choosing to cash out directly from the platform.