Connect with us

Injective Protocol Investor

Investing In Injective Protocol (INJ) – Everything You Need to Know

mm
Updated on

Securities.io is committed to rigorous editorial standards. We may receive compensation when you click on links to products we review. Please view our affiliate disclosure. Trading involves risk which may result in the loss of capital.

The Injective Protocol (INJ) operates as a second-layer cross-chain ecosystem. The network is unique in that it offers users the ability to trade derivatives across decentralized networks in a secure manner. The Injective Protocol was built to help streamline DeFi onboarding and provide a viable alternative to the CEX (centralized exchanges) currently dominating the market.

What Problems Does Injective Protocol (INJ) Solve?

The Injective Protocol (INJ) seeks to tackle a variety of issues that continue to cause developers and users issues in the market. For one, the system was built from the ground up to be easy to navigate for anyone. The protocol accomplishes this task by providing a familiar set of features and layouts to users.

Injective Protocol (INJ) - Everything You Need to Know

Injective Protocol (INJ) – Everything You Need to Know

Lack of Scalability

Another major issue that the Injective Protocol helps to reduce is scalability concerns. When a blockchain network experiences congestion, it can drive the price of executing smart contracts through the roof. Ethereum is a prime example of how DeFi users can bog down a decentralized network which results in more fees.

The Injective Protocol leverages blockchain technologies and advancements made in consensus to provide top-notch scalability to users. The protocol is capable of executing sophisticated trades in seconds in a peer-to-peer manner.

Lack of Options

Traders who venture into the DeFi sector are often left unimpressed by the lack of certain basic features they have grown accustomed to using such as stop loss. The Injective Protocol integrates a variety of features that are usually only found on large CEXs. These services include options like cross-chain margin trading, derivatives, and forex futures trading.

Lack of Interoperability

Another major concern for developers is the lack of interoperability in the DeFi sector. Each Defi network operates as a separate financial island. This compartmentalization results in a lot of duplicate work put in by developers. Instead of leveraging already in use and proven systems, they must recreate duplicates that slow down innovation in the market.

Injective Protocol (INJ) - Features

Injective Protocol (INJ) – Features

The Injective Protocol connects users from various blockchain networks together in a way that enables them to exchange data and value securely. This system can support the interactions of private and public blockchains as part of this strategy. As such, it empowers developers to create more immersive Dapps.

High Fees

Another issue that has traders scrambling for new protocols to use is high gas fees. The most popular networks such as Ethereum have high gas fees due to record congestion. These fees make it difficult for users to leverage the network’s services and features. They also discourage developers from creating complex Dapps as the cost of executing features can be too high for users to conduct.

The Injective Protocol eliminates these issues through the introduction of zero gas fee trading services. The network leverages an advanced PoS (Proof-of-Staking) consensus mechanism to accomplish this task. PoS networks provide more scalability because they eliminate the need for miners.

Benefits of Injective Protocol (INJ)

There are a lot of benefits gained from the use of the Injective Protocol. The network offers users a decentralized cross-chain protocol that is extremely flexible. You enjoy cross-chain capabilities, low fees, and secure borderless trading options. These services can be leveraged across sovereign blockchains.

Flexibility

Those seeking to create on the Injective Protocol can do so in a streamlined manner. The system is set up to simplify the creation of any crypto or synthetic market of your choice. Users can set up and interact with these systems in a permissionless and frictionless way, which improves the usability of the overall ecosystem.

Passive Income

One of the main draws for those using the Injective Protocol is its passive income options. Anyone can stake their tokens to secure low-risk passive returns. Staking is an ideal feature for new traders because there is no risk of losing your original asset. Additionally, you can see exactly what your returns will be when staking using the staking calculator feature.

Injective Protocol (INJ) - Homepage

Injective Protocol (INJ) – Homepage

Developer-Centric

The Injective Protocol was optimized for building powerful inter-chain DeFi apps. The system provides support for these actions in the form of technical assistance and financial aid. Those seeking to build on the Injective Protocol enjoy an easier coding experience than previous generation networks.

How Does Injective Protocol (INJ) Work

The Injective Protocol is built on the Cosmos blockchain. It functions as an advanced Layer 2 application that enables users to create new and innovative financial markets. The system combines a reflexive DEX packed with unique features, a new cryptocurrency, and much more.

DEX

At the core of the Injective Protocol experience is the powerful DEX. This feature is what sets the Injective Protocol apart from most competitors. The exchange supports cross-chain margin trading, derivatives, and forex futures trading. All of these features are rare in the DeFi market. You can even trade with 20x leverage.

Injective Protocol (INJ) – Cross-Chain Bridges

Another pillar of the protocol is its cross-chain capabilities. You can access cryptocurrencies from platforms such as Ethereum and Polkadot without the use of additional systems. These systems leverage powerful smart contracts to exchange value across decentralized networks in a more efficient way.

Consensus

The Injective Protocol operates using a PoS consensus mechanism to remain valid. This system uses a Tendermint-based version of the PoS system which provides more scalability and better protects against network hacks. PoS networks are one of the fastest-growing areas of the crypto market. These networks improve on PoW systems like Bitcoin in multiple ways.

One of the biggest advantages of a PoS network is the reduction of energy consumption. PoS networks eliminate miners which reduces the overall amount of energy required to keep these networks operational. As such, PoS networks like the Injective Protocol have a much smaller carbon footprint which makes them a greener option for traders.

INJ - CoinGecko

INJ – CoinGecko

INJ

INJ is the main utility token for the injective protocol. This multi-purpose token can be used by traders to send value globally. The network can facilitate global trades in a permissionless manner. Additionally, you can stake INJ to gain passive returns. The token also serves a vital role as a reward token for users.

This strategy is ideal for traders and DeFi users because it enables them to take newly acquired rewards and use them to increase future ROIs. For example, you can take your staking rewards and add them to your next stake. This approach creates a wealth generation loop. Best of all, there is never any risk of losing your original assets due to market volatility like trading.

How to Buy Injective Protocol (INJ)

Injective Protocol (INJ) can be purchased on the following exchanges:

Kraken – Founded in 2011, Kraken is one of the most trusted names in the industry with over 9,000,000 users, and over $207 billion in quarterly trading volume.

The Kraken exchange offers trading access to over 190 countries including Australia, Canada, Europe, and is our most recommend exchange for USA residents. (Excluding New York & Washington state)

Bitstamp – Founded in 2011, Bitstamp is one of the oldest & most trusted exchanges in the world. This exchange currently accepts Canada, UK & USA residents excluding the states of Alabama, Hawaii, Idaho, Louisiana, Nevada,  & New Jersey.

Binance – Best for Australia, Canada, Singapore, UK and most of the world. USA residents are prohibited from buying Injective Protocol (INJ). Use Discount Code: EE59L0QP for 10% cashback off all trading fees.

KuCoin – This exchange currently offers cryptocurrency trading of over 300 other popular tokens.  It is often the first to offer buying opportunities for new tokens.  This exchange currently accepts International & United States residents.

WazirX – This exchange is part of the Binance Group, which ensures a high standard of quality.  It is the best exchange for residents of India.

The Injective Protocol (INJ)- A combination of Features that are Sure to Please

The unique combination of features provided by the Injective Protocol is ideal for both regular and large institutional investors. The option to trade derivatives opens up the network for large-scale adoption by traditional trading firms. As such, the network services a growing niche market in the DeFi sector. As such, it’s destined to see more adoption moving forward.

David Hamilton is a full-time journalist and a long-time bitcoinist. He specializes in writing articles on the blockchain. His articles have been published in multiple bitcoin publications including Bitcoinlightning.com

Advertiser Disclosure: Securities.io is committed to rigorous editorial standards to provide our readers with accurate reviews and ratings. We may receive compensation when you click on links to products we reviewed.

ESMA: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Investment advice disclaimer: The information contained on this website is provided for educational purposes, and does not constitute investment advice.

Trading Risk Disclaimer: There is a very high degree of risk involved in trading securities. Trading in any type of financial product including forex, CFDs, stocks, and cryptocurrencies.

This risk is higher with Cryptocurrencies due to markets being decentralized and non-regulated. You should be aware that you may lose a significant portion of your portfolio.

Securities.io is not a registered broker, analyst, or investment advisor.