Quick Guide
Here’s an overview of the preferred crypto exchanges that have Arbitrum listed. If you are already well aware of how to buy cryptocurrencies, you can simply select your preferred exchange. In case you are just getting started, you can scroll down to where we share all details about how to buy Arbitrum.
Binance
Binance is the biggest cryptocurrency exchange offering many features and advantages.
MEXC
MEXC is an industry-leading exchange that offers the lowest fees to buy and sell cryptocurrencies.
BYBIT
BYBIT is a leading crypto exchange that offers many features regarding leverage trading.
KuCoin
KuCoin is a leading exchange that offers more than 750 cryptocurrencies — more than any other.
OKX
OKX is the all-rounder that offers a good mix of tradable crypto tokens, usability, and trading fees.
Before we dive into the details about how to buy Arbitrum we want to provide you with some essentials about the Arbitrum (ARB) token. Remember, it is essential to understand the asset you’re planning to buy before you invest!
What is Arbitrum?
When we talk about Arbitrum, we have a separation between the Arbitrum network and the Arbitrum (ARB) token. Although they are closely linked, it is important to understand that there is both a network and a token.
Arbitrum Network
Arbitrum is a Layer 2 solution for Ethereum, designed to make Ethereum transactions faster and cheaper while maintaining a strong level of security. Offchain Labs developed it, a company focused on improving the scalability of the Ethereum network.
Arbitrum operates using a technology known as Optimistic Rollup. This technology allows for the execution of smart contracts off-chain, greatly increasing the potential transaction throughput and reducing the cost per transaction. Transactions are executed off the Ethereum mainnet; only the essential data is posted to the Ethereum chain.
Arbitrum’s technology works by having validators who submit the results of contract execution to the Ethereum network. Other validators can challenge incorrect submissions. If a validator submits incorrect data, they stand to lose a significant amount of money held in a bond. This system provides a strong economic incentive for validators to act honestly.
Arbitrum (ARB) Token
Arbitrum token presents itself as a promising digital asset offering potential advantages for investors who acknowledge the capabilities of Layer-2 scaling solutions. As the adoption of Web3 enters the mainstream consciousness, the requirement for networks like Arbitrum is expected to rise. This platform provides a scalable solution for launching efficient, real-world dApps.
The value of the Arbitrum token could see an upswing as the creators introduce additional functionalities and implement network enhancements that amplify the system’s capacity in the future. Such advancements might elevate Arbitrum above other Layer-2 scaling options in the market, stimulating more developer engagement on the network and propelling ARB’s value upwards.
As more dApps either transition to Arbitrum or start from ground zero, the level of on-chain activity on the network is likely to escalate, consequently pushing the ARB token’s value higher. The inclusion of novel features and network improvements that augment throughput can also play a part in bolstering the ARB price.
Use Cases of the Arbitrum Token
Participation in Decentralized Governance
Holders of the ARB token have the privilege to engage in the network’s decentralized governance by becoming part of the Arbitrum DAO. They can exercise their voting rights directly or assign them to other DAO members who voice their opinions on prospective network enhancements.
Digital Asset for Trade and Long-Term Holding
The Arbitrum cryptocurrency can be traded against various digital assets, providing an opportunity to capitalize on fluctuating market trends and volatility. ARB can be bought or sold against other cryptocurrencies or held for a prolonged period if you have faith in the long-term potential of the Arbitrum scaling solution.
Opting for a platform that ensures security, enjoys a solid reputation, and provides a user-friendly interface is crucial. Additionally, verify that the platform offers sufficient liquidity and imposes fair fees.
Arbitrum Price Chart
Analyzing the current price movement is an important step before investing. Therefore, you should pay close attention to the below chart before discovering everything about how to buy Arbitrum.
How To Buy Arbitrum — A Step-By-Step Guide
How To Buy Arbitrum — Step 1: Sign Up For An Account
The first step in buying a cryptocurrency token is to sign up for an account on a cryptocurrency exchange.
There are dozens of changes available, but it’s important to research and choose one that meets your needs in terms of security, features, and trading possibilities. Signing up is typically free of charge, and you need to provide your email address and create a password.
How To Buy Arbitrum — Step 2: Secure Your Account
After you’ve created your account, it’s crucial to secure it. This generally involves setting up two-factor authentication (2FA). 2FA requires a second form of identification beyond just your password, such as a code sent to your phone. This greatly enhances the security of your account. It’s also important to choose a strong, unique password.
Although this step is optional at some exchanges, we highly recommend it. Major exchanges like Binance, MEXC, or KuCoin won’t allow you to trade before your account is secured.
How To Buy Arbitrum — Step 3: Verify Your Account (Partially Optional)
Before you can start trading, you’ll usually need to verify your account. This process varies by exchange but typically involves submitting some form of identification like a driver’s license or passport. This is part of the Know Your Customer (KYC) regulations that exchanges must comply with.
However, there are also crypto exchanges where you don’t have to verify your account. This usually comes with some limitations in terms of payouts and features. Nevertheless, if you want to stay anonymous or just want to give it a first try, this might be the better option. We put together a list of exchanges that don’t require verification. You can check this here: 4 Best Crypto Exchanges Without KYC (2023)
How To Buy Arbitrum — Step 4: Add A Payment Method And Funds
Once your account is verified, you can add a payment method. Depending on the exchange, this could be a bank account, a debit card, or even a credit card. Some exchanges also support PayPal and other online payment services.
After adding a payment method, you can add funds to your account. Make sure to deposit enough to cover the cost of the token you want to buy and any associated fees.
How To Buy Arbitrum — Step 5: Buy Arbitrum
Finally, we made it. You are now ready to buy Arbitrum. Depending on the exchange you’ve chosen, you have to navigate to the “Market” or “Trade” area.
You can typically choose between a market order (buy at the current market price) or a limit order (buy at a specific price or better). Once your order is executed, the tokens will be added to your account and you can call yourself a proud owner of the Arbitrum token.