Why is Synthetix (SNX) the Crypto of the Day?

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

When exploring how to get into trading cryptocurrencies, many newcomers are overwhelmed by the numerous different choices between different trading platforms. Most new crypto traders tend to go towards centralized exchanges like Coinbase and Binance because they are heavily advertised and fairly simple to use. But these centralized exchanges go against 1 of the core concepts of crypto: decentralization.

Decentralized protocols ensure that your coins are always yours and you will always have unrestricted access to them no matter what the market or government decides to do. The risk of using a centralized exchange might not seem like a big deal, but many exchanges have halted trading under highly volatile periods. This happened to many Binance margin traders who weren't allowed to close out of trades before losing it all in a liquidation.

What is Synthetix (SNX)?

Synthetix is 1 of the most well known solutions to easy and reliable decentralized trading. Their platform allows you to trade, stake and borrow an array of different cryptos, equities and commodities. They do this by creating synthetic assets tied to the price of the real world asset.

These synthetic assets use the same logic to create digital stablecoins like the popular United States dollar coin (USDC). Synthetix also has its own USD stable coin listed as sUSD, standing for synthetic United States dollar. sUSD balances the supply and demand of the coin to reflect the price of the underlying asset it's pegged to, in the case of sUSD the US dollar. 

On top of having a great selection of some of the most popular cryptocurrencies, the platform has synthetics for non-crypto market assets. This market includes gold, silver, oil, USD, EUR, Amazon, Netflix and Tesla, all on the blockchain.

What also gives traders an advantage on the Synthetix platform is its inverse synthetic assets. These are synthetic coins representing a short position on the asset. This functionality can be beneficial for trades during bear markets to continue profiting from downward price movements.

Synthetix (SNX) is Up 17% in 24 Hours

SNX has taken a wild ride in the past year like many of the other blockchain lending platforms. From the beginning of November 2020, it shot up an incredible 1,000% in just 4 months from $2.50 to $28.90 per coin. From there, the price has slowly fallen to the recent low of $5.60, but within the past month it has bounced back to where it currently sits at around $12.50. 

This positive movement is a hopeful sign that the asset will hold above $5.60, but generally speaking altcoins like SNX depend on bullish movement by Bitcoin to retain value.

Why is SNX Moving?

SNX has recently surpassed a significant milestone as they have over $1.3 billion of assets locked inside its platform. The pools make a return on trades to maintain that the protocol is always overcollateralized. These pools allow for more synthetic assets to be hosted on the platform, continuously growing its market. 

Synthetix has recently announced that it will be implementing Optimism on its platform, which is a layer 2 solution for Ethereum. Layer 2s drastically reduce transaction costs, making the platform more accessible to retail investors.

Where to Buy Synthetix

SNX is a very popular coin that you can buy on most exchanges like Binance, Coinbase and Uniswap. To get into the Synthetix market, go to kwenta.io, a trading platform run on the Synthetic protocol. Here you will only need to connect an Ethereum based crypto wallet like MetaMask to start trading. To stake SNX for interest, go to their platform on their website, staking.synthetix.io, which connects directly to an Ethereum based wallet.

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.