What Is The Graph? Should You Invest In GRT And Where To Buy It?

Last Updated February 3rd 2022

18 Min Read

The Graph is one of those cryptocurrencies many regular traders know little or nothing about. The name alone is strange, which is why you will be forgiven if you don’t know that it is a cryptocurrency. Yes, The Graph is a cryptocurrency and a valuable one at that. Recently, it has been attracting attention from investors, which is why we need to do a feature on it.

It is essential that you understand a cryptocurrency or any other investment vehicle properly before making a financial commitment. So, what is The Graph? Should you invest in The Graph? And where can you buy The Graph (GRT)? Getting the right answers to these questions will help you decide whether investing in The Graph is the right thing for you right now.

Currently, The Graph is not a well-known cryptocurrency. However, that doesn’t mean it is less important than any other altcoins. It is important to understand the platform and what it stands for before looking at the performance of the token. There are many factors that can influence the future of any given coin, and your understanding of such factors will help you make sound decisions most time.

While we are going to provide solid answers to the major questions in this post, we are not going to offer any investment advice. We’ll only provide you with the best accurate information that can help you make a sound decision. It is important, therefore, that you read through this post carefully to grab the information and make the right move now The Graph is yet to become too popular.

Content

What Is The Graph?
Brief History of The Graph
What Makes The Graph Special?
Should You Invest In The Graph?
Is The Graph A Safe Investment?
Major Reasons to Invest In The Graph
Reasons to Think Twice About Investing In The Graph
Where Can You Buy The Graph (GRT)?
Best Platform to Buy The Graph (GRT)
What Next After Buying The Graph
Key Points to Keep In Mind
Final Words

What Is The Graph?

The Graph is a decentralized indexing protocol for querying data for networks like Ethereum and InterPlanetary File System (IPFS). It is a global API that focuses on organizing blockchain data and making it easily accessible through GraphQL.

The Graph is regarded as an important part of DeFi, powering many applications in the sector, as well as the broader Web3 ecosystem. The Graph is similar to some blockchain search engines, except for the fact that it is a decentralized platform. While centralized companies like Etherscan can provide similar services, developers understand the importance of using decentralized platforms.

Since it was launched in 2020, The Graph has grown significantly, reaching well over seven billion queries. It allows any user to create and publish open APIs, which are called subgraphs. These subgraphs can be queried by applications, using GraphQL to retrieve important data. At the moment, The Graph supports Ethereum, IPFS, and POA. Uniswap, AAVE, and Synthetix, among other networks, have adopted The Graph.

It is important to also note that The Graph is a cryptocurrency platform with a native currency that can be traded as a digital asset. The token trades under the ticker symbol ‘GRT,’ and it is now available across a variety of platforms. The token is what you are going to buy to invest in the network and stand a chance of earning profits as the value improves over time.

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

Brief History of The Graph

The Graph was started when a team of professionals from different bodies came together to pursue a common cause. These professionals came from the Ethereum Foundation, OpenZeppelin, Decentraland, Orchid, and MuleSoft.

The leading members of this initial co-founding team include Yaniv Tal (project lead), Brandon Ramirez (research lead), and Jannis Pohlmann (tech lead). They have engineering backgrounds, and some had previously worked together in other projects in the cryptocurrency arena before embarking on the project of building The Graph.

It took the team about three years to build The Graph. The mainnet was launched on December 17^th, 2020. More than a year afterwards, the network has enjoyed wide adoption, and the token has gained value to become one of the most attractive tokens for informed investors.

What Makes The Graph Special?

Before The Graph was created, developers used to go to centralized servers and in-house databases to index and query blockchain data. Of course, this was tedious and time-consuming. It was also a risky choice since data can be compromised by some actors in centralized companies. The Graph has changed all of that. Now, applications only have to reference an API endpoint, then a subgraph can begin the process of querying data.

The decentralized nature of The Graph is one of the major reasons it is so valued. Developers understand that what it offers is reliable decentralized public infrastructure. The Graph’s native currency helps to bring economic security to the network. Since participants in the network use the token for transactions, the integrity of data being queried cannot be disputed.

The Graph token (GRT) is a work token. It is also locked up by indexers, curators, and delegators. These network actors earn rewards in GRT, depending on the work they perform and their GRT stake.

More about The Graph Token (GRT)

The Graph Token (GRT) is an ERC-20 token on the Ethereum blockchain. It was launched through a successful initial coin offering from 22^nd to 23^rdOctober 2020, raising $12,000,000 to support the project, which was already being funded by top investors like Coinbase Ventures, Multicoin, and Digital Currency Group.

The Graph’s ICO token price was $0.03 per token. The price has climbed steadily over the past months. At the time of writing this post, GRT was trading for $0.4038 per token, with a 24-hour trading volume of $79,477,760. In the last 24 hours, it had recorded a low price of $0.3975 and a high price of $0.437. Its market capitalization is $1,904,131,528, making it the #55^thranked cryptocurrency by market capitalization.

There are currently 4.72 billion GRT in circulation, which is still about 47% of the total supply of 10 billion tokens. The maximum supply is set to be 10,057,044,431 GRT.

Don't Miss: The Graph Price Predictions

Should You Invest In The Graph?

Most developers are already using The Graph, meaning they have invested in it to make their jobs easier. As a regular cryptocurrency investor, should you follow suit and invest in this GRT?

To invest in GRT, you need to buy the token now and sell it when the market is favourable. Depending on your investment strategy, you can buy and sell within a short period or you can buy and HODle until your investment appreciates significantly. But remember, no one can tell for certain how the coin will perform in the future.

There are many things you should consider before investing in any cryptocurrency. You need to be sure that the coin is safe, and then you need to consider the reasons you want to invest, as well as reasons to think twice before investing. We will guide you through that right here.

Is The Graph A Safe Investment?

The Graph has been around for less than a year, so it is difficult to tell how safe it is or to declare that The Graph is a safe investment. However, we are pretty confident that the team behind the indexing protocol and its token is knowledgeable and experienced enough to make it secure. As it stands, no issue has been raised about the safety of The Graph, and we hope things will not change for the worse in the future.

Major Reasons to Invest In The Graph

To back a relatively new cryptocurrency like The Graph GRT, you need to have concrete reasons. No matter how few your reasons are, you need to be sure that they are factual and aligned to your investment needs.

Here, we will briefly discuss some of the top reasons you may choose to trust your instinct and invest in The Graph:

1. As an indexing protocol, The Graph is important for the cryptocurrency market

Data is essential in all markets. In the cryptocurrency space, The Graph has become one of the most important protocols as far as indexing and querying of blockchains is concerned. It brings reliable decentralized public infrastructure to the market. The importance of The Graph will be appreciated more in the future, and it will certainly have a positive impact on its value going forward.

2. The Graph is an important part of the DeFi sector

Decentralized Finance (DeFi) is fast changing the way people approach the traditional banking systems. It is growing at an incredible place and every protocol/network within its scope will benefit from the boom that is yet to mature. The value of GRT will improve with the value of the entire DeFi sector.

3. The Graph is now used by several developers

One of the simplest ways to detect a cryptocurrency protocol or platform that will perform well in the future is to consider how well it is received by developers. The Graph was well-received by developers who understand the importance of having a reliable means of indexing and querying data. Wide adoption is great for the coin’s value both now and in the future.

4. The Graph has already been adopted by many networks

In addition to individual developers, some cryptocurrency platforms have started using The Graph. Some of the notable names that have started using the protocol include Uniswap, Aragon, Synthetix, Livepeer, AAVE, DAOstack, Gnosis, Balancer, among others.

5. The Graph has attracted several investors already

Another major reason to believe that The Graph has a lot to offer is the calibre of partners it has attracted. Even during network development, The Graph was able to source money from influential partners like Coinbase Ventures, CoinFund, ParaFi Capital, Tally Capital, Reciprocal Venture, DCG, Multicoin, Framework, and others. These partners back the coin because they believe in the future of the project. They all can't be wrong at the same time.

6. The Graph (GRT) has grown significantly in just about a year

When The Graph was launched, GRT was selling for about $0.03. At the moment, the token has crossed the $1 mark, and there is a good chance that it will reach $5 in the near future. Early investors have already enjoyed huge returns. Investing now improves your chances of getting huge returns in the future.

7. The Graph is still a cheap digital currency

Though the price of The Graph has appreciated significantly in the past months, it is still considered a cheap cryptocurrency. It is still possible to buy GRT for less than $0.5 per token. This implies that you can start investing with a little amount. It is also a wonderful idea to invest now that the coin is still cheap – it improves your chances of making huge profits before too many people start rushing to invest.

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

Reasons to Think Twice About Investing In The Graph

So far, The Graph has been a success story and we have primarily focused on the positive side of things. You should know, however, that there is always another side to success you should never overlook.

Of course, there are many wonderful reasons to invest in The Graph, but there are reasons you may also want to reconsider investing in the coin. Here are the most important ones:

The Graph is a new cryptocurrency with a little history

One of the easiest ways to determine the viability of a cryptocurrency as a good investment vehicle is to consider its price history. In the case of The Graph, there is hardly any historical data to reference because it is a relatively new cryptocurrency. New coins are also generally believed to be riskier than coins that have been around for a while.

The Graph is volatile

The Graph, like other cryptocurrencies, is volatile. Though volatility can work in your favour at times, it is generally believed to be detrimental for day-traders. The volatile nature of The Graph and other cryptos means that you can lose money easily while trading.

GRT may face more serious competition in the future

The Graph was designed to solve an important problem in the blockchain industry. The reality, however, is that another platform can be created to solve the same problem in a more efficient manner. The Graph may face serious competition in the future, and its performance and value will be truly tested when that happens.

Where Can You Buy The Graph (GRT)?

Though cryptocurrencies became investment vehicles barely two decades ago, they have grown more popular than several other assets. They are also easily accessible, meaning you have several places where you can buy them from. But where you decide to buy from matters a lot.

So, where can you buy The Graph (GRT)? There are three major types of platforms where you can buy cryptos, including cryptocurrency exchanges, brokerages, and apps that are neither exchanges nor brokerages.

Many cryptocurrency investors choose to buy their assets from cryptocurrency exchanges because they have come to believe that it is the safest bet for them. While buying cryptocurrencies from exchanges can be straightforward, it may not be the best decision if you are not going to be day-trading. Many exchanges have been hacked in the past, so experts don’t advise investors/traders to leave their assets on exchanges.

Brokerages are platforms run by stockbrokers who are progressive enough to allow buying and selling of cryptocurrencies on their platforms. Some full-service brokerage companies have realized that cryptocurrencies may shape the future and have started allowing investors to buy them. Brokerages are relatively safer than exchanges and regular cryptocurrency trading/investment apps.

The last group of platforms where you can buy The Graph is the group that are not officially recognized exchanges or brokerages. They are normally run by companies with cryptocurrency enthusiasts as CEOs. While many of such applications are genuine, some are not. It is better to completely avoid buying The Graph or any other cryptocurrency from such investment platforms because you can fall victim to a scam.

Best Platform to Buy The Graph (GRT)

From what we discussed in the immediate paragraphs above, you can tell that we favour buying cryptocurrencies from brokerages rather than exchanges and regular apps. This is primarily because brokerages are safe. They are run by real brokerage companies that are into all kinds of investments, including stocks, options, bonds, and more.

Now, there are several brokerages out there where you can buy The Graph from. But you want to buy from a platform that offers the best service and experience. eToro happens to be one of the best brokerages out there, as far as buying and selling cryptocurrencies is concerned. eToro is a brokerage quite aright. But it is also recognized as one of the best platforms for social trading.

eToro is committed to making buying and selling of cryptocurrencies easier for investors/traders of all experience levels. The app is easy to use, and the company offers several perks that will make your trading experience more exciting and rewarding. It is on the list of some of the best places to buy The Graph.

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

What Next After Buying The Graph

Buying The Graph is just the first step towards a meaningful investment. You will need to keep your coin for a while and sell it when the market is convenient. You alone can decide how long you want to keep your digital asset before selling. You can sell in a matter of hours, days, weeks, months, or even years.

But what happens between the time you buy a digital asset and the time you sell? You need to keep it safe, and as we’ve mentioned already, exchanges are not safe. The best thing to do when you need to keep your assets safe is to keep them in a digital wallet.

Like other products and services out there, digital wallets are not created equal. Some are better than others, and you need to find the best for your cryptos. Multi-token assets are better, especially if you have a diverse portfolio or intend to build one.

It is important to state that eToro offers a reliable digital wallet that makes trading through its platform more secure than most places. The eToro wallet is a reliable, easy-to-use, multi-token digital wallet that is well-secured to protect your digital assets from thieves and hackers.

Key Points to Keep In Mind

We’ve discussed the key things you need to know about The Graph to decide if it is the coin for you. Obviously, what we have here is a lot of information, and it can be too much to digest at once. Here are the key points that can help you reach an informed decision quicker:

The Graph is an important decentralized protocol that makes accessing blockchain data easier for all participants.
The Graph is loved by developers, and many are already using it.
The Graph has attracted the right mix of investors, which is an indication of the belief experts have in the protocol and its potentials.
The Graph (GRT) has grown significantly in a matter of months.
The Graph is still considered a cheap cryptocurrency, meaning it is easy to start buying with whatever you can afford at the moment.
The Graph is generally considered a safe investment since the team did a great job at designing the system and there has never been any security breach.
The Graph is a new coin with little or no historical price data – the implication is that it is still considered to be risky.
There are several places you can buy The Graph from, but it is safer to buy from brokerages like eToro – the number-one social trading platform that has lots of perks for users.
It is essential that you store your digital assets in a safe digital wallet, and eToro offers one that can contain your diversified cryptocurrency portfolio.

Final Words

The DeFi space and the entire cryptocurrency universe is set to experience many breakthroughs. Cryptocurrency platforms like The Graph are helping the industry to grow, and the values of their tokens will continue to rise. Investing in such tokens can be very rewarding in the future and even now.

We’ve discussed some of the most important things you need to know about The Graph in order to determine whether it is an asset you’d love to invest in. Remember that buying your assets from a secured platform like eToro is important. Remember, also, that continuing education is important if you want to master online trading and benefit massively from the bubbling cryptocurrency market.