How to Buy Reddcoin (RDD)
Bob Singor
Monday, May 10, 2021
Updated: Monday, May 10, 2021
Read on to learn about the background of this altcoin and what makes it unique. If you are ready to buy RDD, feel free to jump to the exchanges where you can buy the coin with Bitcoin or Ethereum.
BitMart
Launched in 2014, Reddcoin was one of the first altcoins. Its (at that time anonymous) developers wanted to examine the reality of cryptocurrency’s strengths and vulnerabilities in light of the largely opinion-based controversy surrounding the topic at that time.
They probed into the potential for cryptocurrency to be an economic breakthrough as well as a technological one, to be real money that people spend instead of “virtual property for speculation” that people hold. These weighty considerations led them to create Reddcoin, a truly unique decentralized social media coin. Let’s take a deeper look into how Reddcoin works, why you may want to get involved in this movement, and finally how to buy RDD.
What is Reddcoin?
Reddcoin is the digital social currency developed by Project Redd. This movement seeks to make cryptocurrency accessible to people and cultures all over the world as a way of creating real community through both micro transactions and social media tipping. It offers these transactions at speeds 10x faster than Bitcoin and at no cost. While gaining popularity for its monetization of the concept of “liking” social media content, Redd also sees their coin as a tool for people to send financial support to social programs and groups in need all over the world instantly and with no middleman.
Reddcoin was funded prior to its 2014 launch by an ICO (Initial Coin Offering) that raised $100,000. Now a 100% volunteer-based organization, the development team was not identified until 2017, when John Nash and Leonard Simonse were was revealed as the head software developers of the project. At the time of writing there are 28.81 billion RDD coins in circulation, representing a market cap of close to $217M. Reddcoin has no max supply, or total number of coins that can ever be created. Instead it allows a total of 5% of the current supply to be added each year, accommodating inflation and rewarding coin holders for staking RDD.
The vision to build an economy based around their social coin and let people connect through the platforms they already use in a new way is a huge goal. However, Project Redd also set out to create an ecologically friendly alternative to the Proof of Work consensus protocol used in the Bitcoin blockchain. Their solution was the Proof of Stake Velocity protocol, designed to both decrease energy consumption for mining and increase user participation in the blockchain network.
Let’s look into the most practical aspects of the coin for you as an RDD holder.
How Does Reddcoin Work with Social Media?
An attractive aspect of Reddcoin is its potential to elevate your appreciation for social media content from an emoji to actual money - and to be on the receiving end of that transaction as well.
So far, Project Redd has created Tipbots on Twitter, Reddit, Twitch and Discord, meaning in theory you can easily reward content you like on these platforms by tipping the creators with Reddcoin. It seems in practice these bots are still working out some bugs, but the Redd Team is working hard to improve and expand the options to use RDD in the most popular social networks. You can also send Reddcoin to others through the Bittrex exchange and some public Telegram groups created for both tipping and staking the coin.
What is Proof of Stake Velocity?
The Proof of Stake Velocity (PoSV) consensus protocol is Project Redd’s trademark blockchain innovation. To understand it better we will take a look at what a consensus protocol does, and how PoSV differs from Proof of Work (PoW) and Proof of Stake (PoS), two common protocols.
The ability to carry out financial transactions on the blockchain without the oversight of a centralized third party is possible in large part due to the concept of consensus protocols. A consensus protocol is the way individuals in a blockchain prove that they are not falsifying transactions (mining or exchanges) - that their stake in the network is real and they are acting in good faith.
The two major protocols to date have been Proof of Work, originally introduced by Bitcoin, and Proof of Stake, popular among the altcoins. Proof of Work requires miners to solve advanced mathematical problems in order to mine coins and demonstrate that their addition to the blockchain is valid: finding the correct answer to the problem proves this. The major drawback of this protocol is its high energy consumption. The current energy requirement to mine Bitcoin, for example, is estimated to be higher than the annual consumption of many countries.
If work equals credibility in the Proof of Work consensus, we can say holding coins takes the place of work in Proof of Stake. In the PoS consensus, staking coins, or holding them in the network, boosts the security and activity of the blockchain by verifying the individuals in the chain have a vested interest in transactions not being falsified. In return for staking their coins, PoS coins frequently reward coin holders with interest.
With a clearer understanding of PoW and Pos, let’s revisit Proof of Stake Velocity. Where many coin networks are supported by those with specialized blockchain knowledge and technology, Reddcoin is designed for everyone to use for practical purposes like sending money and tipping. To maximize the number of people who would participate in the network, the Reddcoin developers tweaked the traditional PoS consensus to encourage staking the coin regularly but not holding it for long periods of time. They did this by changing the way rewards are calculated.
In Proof of Stake networks, you can hold coins in a wallet offline and still earn interest on them. Proof of Stake Velocity made two changes to this aspect of the protocol. First, the coins only earn interest (up to 5% annually) when your Redd Core Wallet is online. Additionally, the interest is not earned at the same rate over time. Reddcoin pays interest at the highest rate in the first seven days the coins are held in the wallet, with the rate declining over the following weeks. These features together are meant to encourage keeping the wallet online and using the coin regularly in transactions. The Redd Core Wallet is available at Redd’s website here and the team is projecting a major update to the wallet in late 2021.
If you want to dive deeper into the technical aspects of this truly innovative project, you can find the Redd whitepapers here.
You can buy Reddcoin on numerous exchanges, the majority of Reddcoin trading is currently done through Bittrex, BitMart and Upbit. In this guide we will cover how to buy RDD on the Bittrex and BitMart exchanges.
How to Buy Reddcoin on Bittrex
To get started, make an account on Bittrex by clicking the button below. You will be asked to verify your identity with a government-issued ID and a selfie screenshot, but it is a quick process and will enable you to start buying and trading.
ReddCoin
$0.0006
Once you have created and verified your Bittrex account, we can start by finding out what trading pairs are available for Reddcoin on this exchange. Heading to the Market section from the homepage, after scrolling past the Browse section, you will see a search bar where the all coins are listed. Here, searching for Reddcoin by its ticker RDD brings the result you see below.
We see Reddcoin is available for purchase using BTC (Bitcoin) or USDT (Tether). Tether is a stable coin based on the US Dollar, meaning 1 USDT coin always equals 1 USD. This will make our calculations simple, so for our example we will purchase Reddcoin using Tether. To purchase Tether on the Bittrex exchange, select "Instant Buy and Sell" from the top menu.
Buy USDT with a Credit Card on Bittrex
In the "Instant Buy and Sell" page of the Bittrex exchange, search for Tether in the "I want to buy" drop menu. Here you can buy Tether with USD using a credit card. If the fiat currency connected to your credit card is not the US dollar, you can still make the purchase and the transaction will be completed using USD.
When your Tether purchase is complete, you will see your updated USDT balance in the "Holdings" section of the site.
Now that we have Tether, we can use it to purchase Reddcoin.
Buy RDD with USDT on Bittrex
Begin by heading to the "Market" section of the Bittrex exchange. Scroll past the Browse section to find a search bar above the listing of all coins. Search for RDD for Reddcoin to pull up its trading pairs (your screen will look like the picture above in the How to Buy Reddcoin on Bittrex section) and select RDD-USDT. You will see this screen next:
This may seem like a data overload! Don't worry, it is simple to buy Reddcoin here. Focus on the "Buy order" section on the right side of the screen.
Directly under the green Buy heading, you will see several options defining how your oder will be placed, including Limit, Market, Stop Limit and others. Select Market for the simplest buying process. You may choose to use the other options in the future to have more control over the price you pay for the coins you buy. The Market setting will give you the average trading rate for the coin at the time of the purchase.
Next, enter how much Reddcoin you want to buy as either the amount of RDD you want to get (use the Quantity option to do it this way) or based on how much USDT you want to exchange for RDD (use the Total option for this). Once you have filled these fields in, you will be asked to confirm your request and then your order will be placed. When it is filled, you will see the RDD balance updated in the "Holdings" section of the Bittrex platform.
Congratulations! You now have purchased Reddcoin. If you decide to download the Redd Wallet and store the coins there, you can earn up to 5% interest for participating in the network.
How to Buy Reddcoin on BitMart
BitMart
Begin by making an account on BitMart. You will be asked to verify your account and then you can log in.
Reddcoin is available for purchase on BitMart using BTC (Bitcoin) or USDT (Tether). While this is not as simple as buying the coin with a credit card, we can easily purchase either of these coins on the BitMart platform and proceed to buy RDD.
For our demonstration here, we will use Tether. Tether is a stable coin based on the US dollar, meaning 1 USDT always equals 1 USD. This will make the transactions simple.
Buy USDT with a Credit Card on BitMart
Begin by heading to the "Market" section of the Bittrex exchange. Scroll past the Browse section to find a search bar above the listing of all coins. Search for RDD for Reddcoin to pull up its trading pairs (your screen will look like the picture above in the How to Buy Reddcoin on Bittrex section) and select RDD-USDT. You will see this screen next:
You will see there are three channels in the BitMart exchange where you can buy different cryptocurrencies using different payment methods.
You can use MoonPay or Simplex to buy USDT, the coin we need. For the example we have selected Simplex. Proceeding with Simplex, you will see this screen next:
Select USDT as the currency in the drop down menu. Since you are logged in, your BitMart account should be pre-filled at the bottom of the form. Once everything is complete, select continue and verify your order before placing it. After finalizing your purchase, you will see your new USDT balance reflected by hovering over your username in the upper right corner of the BitMart home screen.
Buy RDD with USDT on BitMart
Now we are ready to purchase Reddcoin. From the BitMart homepage, go to the "Spot" menu and select the "Standard" option.
In the search bar on the right side of the screen, find Reddcoin by its ticker RDD. You will get the following result - select RDD/USDT.
Now, scroll down a bit and you will see options to buy or sell RDD. This section will appear using the "Limit" setting - select instead the "Market" setting. The limit setting allows you to specify the exact price you are willing to pay per RDD coin, which may be useful in the future if you are watching the market and want to try to buy the coin for less than the market rate. The market setting is the simplest way to buy a coin at the current average trading rate.
Since you have selected the market setting, you will see the price listed as "The best market price." Now, fill in the quantity of USDT you want to exchange for RDD. You can do this by entering a USDT amount in the Total section, or selecting a percentage from the boxes underneath. By selecting a percentage, you would be requesting to convert 25, 50, 75, or 100 percent of your Tether holdings to Reddcoin.
Once you complete the order form and verify your request, your order will be placed and filled. You will see your RDD holdings updated by hovering over or clicking your username from the BitMart homepage.
Congratulations! You now have purchased Reddcoin. If you decide to download the Redd Wallet and store the coins there, you can earn up to 5% interest for participating in the network.
Conclusion
We hope this guide answered your questions about Reddcoin and provided useful instructions for buying the coin. If you have any other questions about the coin or want to share your review of Reddcoin, please reach out to us!