What Is Curve? Should You Invest In CRV And Where To Buy It?

Last Updated February 4th 2022
20 Min Read

The decentralized finance (DeFi) scene is growing at an incredible pace. Ethereum, among other relevant blockchains in the industry, sees several projects launched every week. Most of these projects tackle critical problems in the sector, which is why it is getting better by the day. One of such projects is Curve, which is also called Curve Finance.

Curve is a relatively new cryptocurrency project, but it is growing at a remarkable rate. It is fast becoming one of the most competitive players in the DeFi space, which is why it is getting lots of attention from investors. Have you ever considered investing in Curve? Then this is one of the most important blog posts you will read in recent times.

Before investing in a cryptocurrency, it is essential that you find out some critical things about the currency. So, what is Curve? Should you invest in Curve (CRV)? And where is the best place to buy Curve (CRV)? Depending on your experience level in cryptocurrency trading, you may have other important questions. We will try to answer as many of those questions as possible.

Just as we do in many blog posts, it is time to categorically state that we will not offer investment advice here. Rather, we will discuss every important thing you need to know about Curve in order to make a sound decision about investing in the coin. It is very important, therefore, that you read every part of this post carefully. Your attention level will likely determine the quality of the decision you will make in the end.

Content

 

What Is Curve?

Curve is a decentralized exchange (DEX) and liquidity provider that caters to the needs of stablecoins traders/investors. Also called Curve Finance, the platform enables efficient stablecoin trading by providing a number of related DeFi services to users.

Curve consists of different parts that work together to make investing in stablecoins easier and more profitable. Its automated market maker (AMM) is known as Curve.fi, and it helps to manage liquidity for stablecoin traders. It also integrates liquidity pools, just like Uniswap. In fact, the platform has been referred to as the “Uniswap of Stablecoins.”

Thanks to the way it is designed, Curve ensures that stablecoin traders enjoy low fees and low slippage. This is achieved by accommodating only liquidity pools with assets that behave alike. Though liquidity providers have to make do with lower fees, Curve compensates them by integrating external DeFi protocols and providing incentives in the form of CRV tokens.

Yes, Curve has a native token, just like most other cryptocurrency projects. Commonly called Curve DAO token, this native currency is an ERC-20 token built on Ethereum with Aragon. In addition to serving as the governance token of the network, the token can seamlessly connect with smart contracts and automatically manage liquidity between stablecoins and other assets. It is the token you will have to buy to invest in Curve.

Brief History of Curve

Curve was founded by Michael Egorov, a Russian scientist. Prior to embarking on the Curve project, he had cofounded NuCypher and served as the Chief Technical Officer (CTO). He is also credited as the founder of LoanChain, a decentralized bank and loan network.

Michael Egorov introduced the concept of Curve in November 2019, through the presentation of its whitepaper. The project was previously named StableSwap, which is a clear indication that it was created to serve as the Uniswap of stablecoins.

Building a solid cryptocurrency network takes time, and Curve was launched in August 2020. The token ‘CRV’ was also launched at the same time, with the Curve decentralized autonomous organization (DAO).

Curve has seen some good days and some bad days. Though it quickly won the hearts of many, its token was not performing as much as people expected in the early days. Most investors only became interested again when a partnership with Yearn.Finance was announced in January 2021.

Read Also: Could Curve Be A Millionaire-Maker Coin?

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

What Makes Curve Unique?

As an automated market maker for stablecoins, Curve has carved a niche for itself and has been able to win the hearts of many who participate in the niche. By launching a DAO and the CRV token, the Ethereum-based protocol has earned its place in DeFi.

While the primary function of Curve is to make swapping of stablecoins and other assets seamless, it also caters to the needs of users involved in activities like yield farming and liquidity mining. It is also one of few platforms that look out for people who hold non-volatile stablecoins. It incentivizes participants by charging modest fees and returning same to liquidity providers.

More About Curve Token

As mentioned earlier, the Curve token (CRV) is an ERC-20 token on the Ethereum blockchain. It is both the utility and governance token of Curve Finance. As the governance token, it bestows ‘voting power’ on holders in the DAO. Participants in the community can vote to add new yield pools, change fee structures, and also facilitate token burning for the sake of the ecosystem.

Curve CRV also helps to facilitate the swapping of stablecoins with volatile digital assets. Currently, the network supports USDT, DAI, USDC, BUSD, TUSD, sUSD, and PAX. It also supports a handful of Bitcoin-pegged pools.

At the time of writing this piece, Curve (CRV) was trading at $3.23 per token, with a 24-hour trading volume of $268,157,081. In the previous 24-hour period, it had reached a low price of $3 and recorded a high price of $3.23. It had previously reached its all-time high price of $60.50 on August 14, 2020, before dropping significantly in a two-month interval to reach an all-time low of $0.3316 on October 25, 2020.

Curve’s market capitalization stands at $1,447,488,283, making it the #66 ranked cryptocurrency in the world. Its fully diluted market capitalization is $10,656,322,452. There are currently 448,663,005.36 CRV in circulation, which is just about 14% of the maximum supply of 3,303,030,299 CRV.

Don't Miss: Curve Price Predictions

Should You Invest In Curve?

Curve is somewhat a special token. It caters to the needs of stablecoin enthusiasts and helps to improve the DeFi market. However, that does not automatically make it a good coin. There are many things you need to consider before investing in any token. The most important one is the potentials of the token to become a lot more valuable in the future.

As shown a few paragraphs above, Curve (CRV) reached an incredible height in August 2020, only to come crashing a few days after that. Many people lost a lot of money to that sudden crash. It only started picking up after its partnership with Yearn.Finance was announced in January this year.

Curve has started gaining value again, but no one can tell if the growth will be sustained over a long period. Investing in the currency is a gamble that may reward you in the future, but the risk may be too high for some people. Obviously, Curve will favour those who trade stablecoins, but it can also be great for anyone. Since it also offers participants other ways to earn, it may be worth investing in.

Is Curve A Safe Investment?

Even before considering the growth potentials of a cryptocurrency, it is important to confirm that it is a safe investment before making any financial commitment. Of course, the market is risky, and there are some platforms that can jeopardize your experience.

Curve is a relatively safe investment. It carries a risk that is common to depositing money in smart contracts and dealing with automated market makers, which is impermanent loss. This type of loss happens to liquidity providers due to the volatile nature of trading pairs. In most instances, the loss is temporary as market factors change often.

Besides the risk of impermanent loss, Curve is a relatively safe platform for stablecoin enthusiasts. It has been audited in the past and found to be secure. That, however, does not eliminate any risks associated with the stablecoins it facilitates their transactions.

Check Out: What Might Happen If You Invest $100 In Curve (CRV) Today?

Major Reasons to Invest In Curve

There are so many cryptocurrencies out there that leaving one out of your portfolio wouldn’t make you less adventurous. You need to have concrete reasons to invest in any coins. Once you are not convinced by the reasons to invest, then it is better to look for alternative investments.

In the case of Curve, there are some reasons to ignore the experiences of some of its early investors and invest in the coin. Here are the key reasons to invest in Curve (CRV):

Curve is an important part of DeFi

As the first paragraph of this post shows, DeFi is growing at an impressive state. The emerging sector can change the future of banking and finance, and Curve will certainly benefit from its exploits. Every important DeFi platform has potentials. It is just a matter of time and how governments and economies around the world will react to the growing influence of decentralized finance.

Curve makes trading stablecoins easier and more rewarding

Curve is not just another protocol in DeFi. It is actually an important ecosystem that focuses on stablecoins, and stablecoins are important in the cryptocurrency universe. Many stablecoin holders and traders are already using Curve, and the popularity of the network will continue to grow. Being a useful network also means that the future of Curve is bright.

Curve offers a saving account for users

Curve has a proprietary savings account protocol with which it improves the experience of users through interest-bearing features. Just like a regular savings account in a local bank, this feature generates interest. The only difference is that you can only save stablecoins on it and not fiat currencies. Interest rates are high on Curve.

Curve allows users to stake stablecoins and earn rewards

In addition to offering interests to investors who are willing to keep their stablecoins in savings accounts, Curve gives users opportunities to earn from staking activities. It offers liquidity contracts that enable users to stake their stablecoins in a liquidity pool and earn rewards. This is one of the coolest ways to earn passive income in cryptocurrencies.

Community governance gives every CRV holder some level of power

Curve (CRV) is a governance token, which means every holder is considered part of the decision-making body. The community vote on proposals brought forward by community members on how the network will be run. The higher your Curve holding, the higher your voting power. Being able to influence decisions in a network means you have some level of control over your investment.

Curve CRV is relatively cheap

At the moment, Curve is selling for less than $5. Remember this is a token that had reached $60 in the past. Though it may take some time before the price will get back to such high points, it is always better to invest when coins are cheap. At the moment, you can start investing with very little capital.

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Reasons to Reconsider Investing In Curve

After considering the reasons to invest in a cryptocurrency, it is necessary to consider reasons to ignore it. As a regular trader/investor, your primary concern should be making money. If you feel there are sound reasons to believe that a token will not favour you, you reserve the right to choose alternative investments.

There are some concrete reasons to reconsider investing in Curve, at least for now. Here are the most valid reasons:

Curve focuses on a niche market

Though Curve is considered an important part of decentralized finance, it is too conservative when it comes to market reach. The protocol and its entire ecosystem focus on stablecoins. Though the market is large enough, it cannot be compared to the market for volatile altcoins. The ‘niche’ issue will continue to scare some investors who do not fancy stablecoins.

❌ Curve (CRV) is an extremely volatile asset

All cryptocurrencies are volatile, but some are far more volatile than others. Curve has shown signs of extreme volatility, and that is not a very good thing. Its volatile nature contradicts sharply with the niche it focuses on (stablecoins). Also, extreme volatility makes a coin inappropriate for inexperienced traders.

❌ Curve is relatively new and nearly collapsed after a bullish trend

Though investing in new coins can be highly rewarding in the long run, it is considered high-risk. Curve has proofed to be a high-risk investment already. At a point, it was selling for more than $60, only to crash to less than $1 in a matter of weeks. Some investors felt that was the end of the road, and many lost so much money. It is even too early to tell whether the coin can get back to where it used to be.

❌ Curve may suffer if DeFi faces serious regulation

As exciting as the DeFi sector may look now, it is still considered a risky sector. Decentralized finance offers several benefits, but most governments will not be comfortable with what they feel is a threat to their economic and monetary systems. If DeFi becomes highly regulated, platforms like Curve will be affected negatively.

Where Can You Buy Curve (CRV)?

Cryptocurrencies have become so popular that they are more readily available than stocks, commodities, and other investment vehicles that have existed long before the advent of blockchain technology. The internet is full of platforms where you can buy and sell cryptocurrencies. However, you need to be careful where you buy from as a lot can be on the line.

The commonest places to buy cryptocurrencies are exchanges. Cryptocurrency exchanges marketplaces just like regular exchanges, except for the fact that they are dedicated to cryptocurrencies only. Curve has been listed in most of the popular cryptocurrency exchanges, including Coinbase and Binance.

The second group of platforms you can buy Curve and other cryptocurrencies from are brokerages. These are regular brokerage companies that have realized that cryptocurrencies may become mainstream in the future and are progressive enough to allow people to start investing. There are a handful of brokers that have become really popular in the cryptocurrency space, including eToro and Capital.com. Most brokerages offer financial instruments other than cryptocurrencies.

The last group of platforms where you can buy Curve and other cryptocurrencies are apps that are neither official exchanges nor brokerages. Some of these are designated trading or investment platforms. Depending on a number of factors, these platforms may offer several cryptocurrencies or a few coins for a select group of investors. They may offer other services besides buying and selling digital currencies.

Best Platform To Buy Curve (CRV)

Though you have many options when it comes to where to buy Curve, it is always better to choose carefully. The different kinds of platforms we’ve discussed in the paragraphs above have their good sides and their bad sides. Some are definitely better than others, and you need to choose the one that will offer the benefits you need.

Cryptocurrency exchanges are mainly popular because they host almost all the cryptocurrencies that have been officially launched. Most cryptocurrency platforms want their tokens to be available in these top exchanges, and buyers can be sure that they have many options when they get to their favourite exchanges. Besides that, they do not offer anything special. Exchanges are also not as safe as some of them claim to be. Some have been hacked in the past and even in recent times. It is not advisable to leave digital assets on exchanges.

Apps that are neither exchanges nor brokerages are even worse than exchanges on several grounds. Some support buying and saying of a wide range of coins and other financial instruments while others support the sale of a few coins. Some, like Cash App (for Bitcoin), support only a single digital asset. While there are several genuine crypto apps, there are some that are run by scammers. You may lose money trying to buy from such platforms. You may even expose yourself to hackers when you trade on such questionable apps.

From what we have discussed, it is easy to tell that buying cryptos from reputable brokerages may be the best option for most investors/traders. There are several reputable brokers that have started focusing on cryptocurrency traders/investors. Most brokerage companies also offer traders/investors perks that make online trading easier and more rewarding. One of the best brokerages you can trust with Curve investment is eToro. It is recognized as an incredible social trading platform. It is suitable for investors/traders of all experience levels.

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

What Next After Buying Curve?

Buying Curve or any other cryptocurrency at all is just the first step towards investment. You will need to sell the coin when the market is favourable. Depending on your investment strategy, you may wait for a few hours, a few days, or a few weeks before selling. If HODLing is your game, then you may have to wait for months or even years for your holdings to appreciate. But what happens while you are waiting for the market to become favourable?

As mentioned already, you should never leave your digital assets in an exchange for a long time. Even if you buy from a reputable brokerage like eToro, it is important that you store your assets in a digital wallet.

There are many wallets that can conveniently store Curve – it is an ERC-20 token, after all. However, it is important that you choose a digital wallet carefully. Multi-token wallets are better since they allow you to keep your cryptocurrency portfolio in one place. eToro offers an easy-to-use and secure digital wallet.

Key Points To Keep In Mind

So far, we have discussed almost everything you need to know before choosing to invest in Curve (CRV). The information can also help you to make up your mind not to invest in the token at the moment. In any case, your decision should be based on the facts here.

We also understand that the information above can be difficult to assimilate. Here are some of the key points in the article that will help you make up your mind faster:

  • Curve is an important decentralized exchange (DEX) for stablecoins.
  • Curve is serving an important role in DeFi, though it is focused on one niche – stablecoins.
  • The Curve token (CRV) is an ERC-20 token based on Ethereum, and it is available on many platforms.
  • Curve is generally considered a safe investment, though it carries the standard risks associated with smart contracts and automated market makers (impermanent loss).
  • Curve offers savings accounts for users.
  • Curve offers staking opportunities for stablecoins holders.
  • Curve is an extremely volatile asset that has crashed before.
  • Curve is a relatively new cryptocurrency and is considered risky.
  • It may take too long for Curve to reach the heights it had reached before.
  • eToro is one of the best platforms to buy Curve and other cryptocurrencies.

Final Words

Investing in Curve means buying its native currency CRV with the hope that it will gain value in the future and fetch you rewards. Though there are a few other ways to earn from Curve, buying and selling the token is the normal way to invest as a cryptocurrency enthusiast. But is it really the right coin for you?

We have discussed some of the most important things you need to know about the coin and hope that the information can guide you. On a final note, we will stress that Curve may not be one of the best cryptocurrency investment options out there. The platform solves an important problem quite alright, but the token had been previously overpriced and crashed to cause so many losses. It is not suitable for inexperienced traders, and even experienced investors may avoid it.

eToro – The Best Platform To Buy Curve

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

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.