How to Buy Hop Protocol (HOP)

Want to jump straight to the answer? You can buy HOP on Uniswap and SushiSwap.

As crypto has grown exponentially in recent years, some of the top chains have struggled to keep up with the demand. Most of these projects did not expect to experience the rapid growth that they did. One of these blockchains is Ethereum. The chain did not know that it would become so popular and has struggled with scalability. As such, a few projects have attempted to make Ethereum more scalable. Hop Protocol is one of these projects, aiming to make Ethereum Layer 2 solutions more accessible.

What is Hop Protocol (HOP)?

To understand Hop Protocol, it’s good to understand what a Layer 2 solution is. Layer 2s are built on top of a blockchains mainnet, or Layer 1, and use various technologies to increase transaction throughput and decrease transaction costs. Layer 2 solutions maintain the security of the Layer 1 chain but allow for more transactions to be processed. 

Layer 2 solutions have been implemented using a variety of methods, ranging from more traditional proof of stake (PoS) to entirely new rollups, such as Optimistic Rollups. Layer 2 solutions are becoming a vital part of the Ethereum ecosystem, as they reduce costs and increase speeds for decentralized finance (DeFi) users across Ethereum. 

Hop Protocol hopes to make the transferring of assets between these Layer 2 solutions and the Ethereum mainnet more seamless. Without the Hop Protocol, transferring assets from a Layer 2 to the Ethereum mainnet can take days and be very costly. Hop uses a unique method of swapping and automated market making (AMM) to solve this issue.

When sending tokens using the Hop Protocol, new tokens called hTokens are created. These tokens are representative of your position (hETH, hDAI, etc.) and can be sent across chains for a relatively low cost. These hTokens are then swapped for the actual tokens on the desired chain and given to the sender. 

This method of swapping essentially avoids sending the tokens directly and instead relies on a proxy token to reduce costs. 

The protocol also supports the pooling and staking of tokens on several Layer 2 solutions, allowing users to earn rewards without having to transfer tokens to the mainnet. 

The HOP token is the governance token powering the chain. Holders of the token are given votes for each token they hold. They can use these votes to give their say on proposals such as which tokens can be swapped, new Layer 2s that can be added and management of the treasury funds. 

The total supply of HOP is split into the following:

• 60.5% in the treasury
• 22.45% to the team
• 8% for airdrops
• 6.25% for investors
• 2.8% for the future team

Brief History of Hop Protocol (HOP)

HOP protocol was announced in March 2021. The project went live in July 2021, and the HOP token was eventually released via an airdrop in June 2022. It released for around $0.14 and has since fallen to around $0.10. 

The project has received investment from Coinbase Ventures, as well as a host of other venture capital firms. 

How to Buy Hop Protocol (HOP).

Now that you have a basic understanding of Hop Protocol, you may be interested in buying the token. Fortunately, doing so is fairly easy. 

Step 1: Open an online account.

The first step to purchasing HOP is to open an account on a crypto trading platform. You will purchase a token on this exchange, send it to a wallet and then use the wallet on a decentralized exchange (DEX) to obtain HOP tokens. 

HOP can be swapped for a variety of tokens, but stablecoins on the Ethereum chain, such as USD Coin (USDC) and Tether (USDT) are among the best. 

Trading platforms such as Coinbase Global Inc. (NASDAQ: COIN), Gemini, Voyager and eToro support these assets and are known for their ease of use, security and low fees.

Create an account on one of these platforms using an email and password and then verify your account using some basic personal information. You can then fund your account through a bank transfer. 

Purchase the desired token, and it should appear in your portfolio. You will then have to send the tokens to a wallet. 

Step 2: Buy a wallet. 

A wallet is needed to purchase HOP. Wallets give users full discretion over their funds and give them access to a variety of DeFi applications. 

Best Hardware Wallet: Ledger

Hardware wallets are physical devices that store the private codes needed to send crypto. If the physical device is not present to confirm transactions, then crypto cannot be sent.

Ledger is a leading brand of hardware wallet known for its safety and usability. It currently offers Nano S and Nano X models. The Nano S offers basic features while the Nano X is designed for easier use with bluetooth connectivity and a larger screen. 

Best Software Wallet: MetaMask

Software wallets store private keys online. While this is not as safe, MetaMask is a software wallet that takes extra steps to ensure security of funds.

MetaMask encrypts all information on its servers. Information is accessed through a password, which can also have two-factor authentication. You can attach a hardware wallet to your MetaMask to make your trades efficient and safe.

Step 3: Make your purchase.

Navigate to your portfolio and use the send feature to send your crypto to your wallet. The address to your wallet can be found on the dashboard of your wallet and is a 64-character string of letters and numbers. 

With the tokens in your wallet, head over to a DEX, such as SushiSwap or Uniswap. Search for the pair with your token and HOP, and execute the trade. Make sure that you have a small amount of ETH available to cover gas fees. 

From there, your HOP is stored in your wallet. 

Bonus section: Keep an eye out for new governance proposals for Hop, which can make the protocol more useful and attract new users. 

Trade, Sell or Convert your Hop Protocol (HOP)

To trade your HOP, navigate back to a DEX and swap your HOP position for a different token. You can then send this new token back to a trading platform and sell it for fiat currency.

If you are looking to sell your HOP, it is important that you swap your HOP for a token that is supported on your trading platform. ETH, USDC and USDT are always a fairly safe bet for this. 

Current Hop Protocol Price

The first half of 2022 has been very poor for the crypto markets, with major tokens falling over 50% in this timeframe. The entire market is down heavily, and many call it a bear market. While no one knows where the markets will go, it is important to stay updated on prices using Benzinga’s crypto price table displaying HOP.

Is Hop Protocol (HOP) a Good Investment?

Hop Protocol is hoping to bring a unique service to both Ethereum and its Layer 2 solutions. It is very easy to use and could provide real utility to users. However, the project is new and the release of the token was less optimistic than expected. If Hop Protocol can bring in more users and make the token worth holding via governance, then there may be a strong future for the project.