Synthetix (SNX) is a decentralized finance platform that allows users to create new cryptocurrencies by locking SNX coins as collateral, mimicking real-world and crypto assets like the US dollar or Bitcoin. These new assets track the value of other assets through data feeds called oracles. Users can trade these synths without relying on a specific institution and can be exposed to market fluctuations. Synthetix is one of the leading projects in the DeFi space, offering users extensive financial opportunities. In this article, you can find answers to two frequently asked questions: What is Synthetix (SNX), and how to buy Synthetix (SNX) with TRY.
What is Synthetix (SNX)?
Synthetix is a decentralized finance (DeFi) software platform that allows users to create new cryptocurrencies that mimic both real-world assets like the US dollar and other cryptocurrencies like Bitcoin. Since Synthetix operates through a collection of smart contracts on the Ethereum Blockchain, this is achieved solely through code without the need for a financial intermediary. This eliminates the need for users to trust a specific institution or person, instead relying on the code to execute as intended.
Synthetix produces these new assets through a process called collateralization. Users must purchase the platform’s native cryptocurrency SNX coin and lock it into a special contract to mint these new assets known as synths. For example, a synth reflecting the value of the US dollar is called sUSD, while a synth mimicking the price of Bitcoin is called sBTC. Synths can be created for any asset, including commodities like gold or currencies like the Euro or South Korean won. These synths track the value of other assets using special data feeds called oracles, allowing users to be exposed to market gains or losses.
To create a synth, a user needs to acquire SNX and deposit it into the Synthetix platform. In return, Synthetix mints a new synth token chosen by the user. The value of the locked SNX must remain at or above 750% of the value of the minted synth according to the platform’s rules. For example, if a user deposits SNX worth one thousand dollars, they receive sUSD worth 133 dollars. This collateralization ratio ensures the stability and backing of synthetic assets.
The value of SNX, like other cryptocurrencies, is determined by the open market. Consequently, the number of synths that can be in circulation may fluctuate with the price of SNX. If the price of SNX rises, the system releases excess SNX coins that are no longer needed to secure previously created synths. These released tokens can then be locked again to create more synths. For example, if the price of SNX doubles, a portion of the initially locked SNX can be released, allowing the user to create additional synths.
Synthetix uses price feeds called oracles to price synths and facilitates a unique trading system. When a user exchanges one synth for another, the first synth is “burned” or destroyed, and the second synth is created based on the oracle’s price feed. This peer-to-peer contract trading system allows users to trade synths at any time at the specified price without waiting for a matching order. This method offers the advantage of not requiring large order volumes or a central exchange to facilitate currency conversions.
As of August 2020, Synthetix is one of the leading DeFi projects with over 800 million dollars locked in its contracts. The platform continues to grow by adding more features and improving its infrastructure. The higher the price of SNX, the more synths can be created. This increases the platform’s liquidity and user engagement. Synthetix’s ability to create and trade decentralized assets without intermediaries positions it as a significant player in the DeFi space, offering users a wide range of financial opportunities and flexibility.
How to Buy Synthetix (SNX) with TRY?
Binance TR is the most suitable cryptocurrency exchange for investors in Turkey who want to buy Synthetix (SNX). On Binance TR, where an account can be quickly created, more than 100 cryptocurrencies, including SNX, can be bought and sold. To buy Synthetix (SNX) with TRY on Binance TR, you can follow the steps below.
How to Open an Account on Binance TR?
Opening an account on Binance TR is quite easy. For this, you need to go to trbinance.com and proceed from the “Create Account” step. In the first step of creating an account, you will be asked to enter your basic information such as email address, phone number, name-surname, date of birth, nationality, and T.C. identity number.
After entering the requested information completely and correctly, an email/sms verification will be done to confirm the information. After completing this process, you will proceed to the second step, identity verification (KYC).
How to Verify an Account on Binance TR?
Identity verification on Binance TR is one of the security procedures that must be completed before starting to trade cryptocurrencies and during account creation. This process is also necessary to protect both the user and the cryptocurrency exchange. You can perform the verification process from your phone or through the official Binance TR website. Note that you will need your mobile phone to verify your identity from the website as well.
On the Binance TR website, hover over the “Profile” option at the top right, click on “Identity Verification and Limits” from the drop-down menu, and then click on “Verify.” After this step, you will need to scan the QR code that appears with your phone’s camera and continue the process on your phone. If you cannot scan the QR code, you can click on the “Copy URL” option to have the identity verification address sent to your phone via SMS.
When you enter the address on your phone or scan the QR code, a screen like the one below will open on your phone. From here, continue by tapping on the “Identity” option.
Then a screen like the one below will appear. To continue the verification process, first select the document type that suits you.
After selecting the document type, continue by tapping on the “Upload Front” option. After taking a photo of the front side of the document according to the selected document type, tap on the “Upload Back” option and take a photo of the back side of the document and upload it. Make sure the images are clear and the information in the photos you take is easily readable when taking photos of the front and back sides of your ID card or driver’s license.
Then continue by tapping on the “Selfie” option. At this point, your phone’s front camera will open, and you will need to scan your face. After the camera opens, make sure your face fills the camera area as much as possible.
After completing all these steps correctly and completely, your identity verification process will be completed shortly.
How to Deposit TL on Binance TR?
You can easily deposit TL into your Binance TR account from all banks. You can deposit and trade TL 24/7 without interruption from your Vakıfbank, Ziraat Bankası, İş Bankası, Akbank, Fibabanka, Şekerbank, and Türkiye Finans accounts. Deposits from other banks can be made 24/7 with FAST up to 50 thousand TL. Deposits over 50 thousand TL from other banks are processed during EFT hours.
To deposit money into your Binance TR account, first go to trbinance.com, hover over the “Wallet” option at the top left of the homepage, and click on the “Deposit” option from the drop-down menu.
Then a page like the one below will open, and you can continue the deposit process by selecting your preferred bank from this page. If your preferred bank is not yet integrated with Binance TR, you should continue by clicking on the “Other Banks” option.
In this example, we will continue using Vakıfbank, but the process is the same for all other banks. When you click on the Vakıfbank option, you will see an account name and IBAN address where you can transfer money via wire transfer, EFT, or FAST to that bank. Now all you need to do is transfer the amount you want to deposit into your Binance TR account using the information displayed on the page of your preferred bank via wire transfer, EFT, or FAST.
After your bank completes the transfer process, the funds you sent will automatically be reflected in your wallet on your Binance TR account.
How to Buy SNX Coin with TL on Binance TR?
After the deposit process, you can proceed to the TL to SNX coin purchase step by clicking on the “Buy-Sell” option in the top left menu on the Binance TR website.
After clicking on this option, the following page will open. You can go to the TL to SNX purchase page by typing “SNX” in the search section on the right side of this page and clicking on the SNX/TRY option from the results.
Now the following SNX trading page will open. On this page, you need to enter the price at which you want to buy SNX in the first box marked with a red box and the number of SNX you want to buy in the second box. After entering the amount, you can complete your purchase by clicking on the “Buy SNX” button.
What is Binance TR?
Binance, the world’s largest cryptocurrency exchange by trading volume, officially launched its platform Binance TR for cryptocurrency investors in Turkey in 2020. The cryptocurrency exchange, headquartered in Istanbul, can be accessed at trbinance.com.
Binance TR leverages Binance’s technology, security measures, and liquidity provided through the Binance Cloud infrastructure to offer both fiat-to-crypto and crypto-to-crypto trading services. Users in Turkey can seamlessly deposit and withdraw Turkish lira (TRY) via direct bank channels and trade various cryptocurrencies with TRY trading pairs through Binance TR.
Users supported by Binance TR with Binance’s core functionalities gain access to market-leading spot trading liquidity, a robust matching engine, advanced security protocols, custody solutions, and risk controls.
