New to the world of Arbitrum (ARB)? You’ve come to the right place to collect information and learn! If you want to dive right in, scroll down to the section about how to buy Arbitrum (ARB), where you can start right away!
Cryptocurrency is a type of digital money. Unlike traditional currencies such as Canadian dollars or Euros, cryptocurrencies like Arbitrum (ARB) operate on decentralized networks based on blockchain technology. “Decentralized” means that the network operates without a central authority or intermediary. There are several aspects of Arbitrum (ARB) and other cryptocurrencies that qualify them as decentralized. These aspects include the use of blockchain (distributed ledger) technology that no single person controls, peer-to-peer transactions that don’t involve an intermediary, consensus mechanisms to validate and record transactions, and open-source code that allows anyone to scrutinize records of transactions.
If you’re a complete novice, this explanation may still be opaque to you, but we encourage you to investigate the basics further. You’ll soon catch on, and your confidence will grow steadily.
There’s no doubt that Ethereum is awesome on its own, but let’s be real. It has its limitations. For instance, the Ethereum blockchain can only handle around 20-40 transactions per second (TPS). When there are too many transactions in the queue, users are forced to compete against each other for their transactions to be processed, which increases the gas fees. And this is what Arbitrum wants to solve.
In 2018, Ed Felton co-founded an Ethereum startup, Offchain Labs, which is the company behind Arbitrum. On August 31, 2021, Offchain Labs announced the launch of the Arbitrum One mainnet. The network was created to address the main problems of the Ethereum network, such as high gas fees and congestion, without compromising its security. The project raised $120 million in Series B funding in September 2021.
Arbitrum is a powerful Layer 2 scaling solution that uses Optimistic Rollup (OR) technology to improve the scalability of Ethereum. With Arbitrum chains, you can perform all the activities you typically do on Ethereum — such as using Web3 apps and deploying smart contracts — but with lower costs and quicker transaction speeds.
The Arbitrum Rollup chain operates as a sub-module within the Ethereum network. Instead of burdening Ethereum nodes with processing every Arbitrum transaction like regular Ethereum transactions, Arbitrum follows a different approach to make transactions quicker.
Rollups handle transactions off-chain before finalizing them on the main blockchain. This means the blockchain doesn’t have to verify individual transactions – it just approves a batch of “rolled up” transactions. These transactions are then submitted to the Ethereum network. As a result, the gas fees are lower. The network allows developers to execute unmodified Ethereum Virtual Machine (EVM) contracts and Ethereum transactions on a secondary layer while still using Ethereum’s layer 1 security.
The Arbitrum crypto coin, ARB, serves as the native ERC-20-compatible governance token for the Arbitrum blockchain. The total amount of ARB tokens is capped at 10 billion, with a small increase of up to 2% each year. In March 2023, about 1.275 billion ARB tokens or about 12.75% of the total supply, were distributed to eligible users and decentralized organizations (DAOs).
Arbitrum crypto is used for fund transfers, investing, and governance voting. Apart from governance decisions, ARB holders can vote on electing members for the Security Council. ARB tokens are also used as rewards for validation notes. Validators must stake ARB tokens to maintain the network’s security. If validators break the rules, they lose a fraction of their staked tokens.
The Arbitrum chain is experiencing rapid growth as a Layer 2 solution. This growth has led to the expansion of the Arbitrum ecosystem, which now includes several key products — Arbitrum, Nitro, and Nova.
Arbitrum One powers the entire network and processes transactions on the Arbitrum Virtual Machine (AVM), an extension that works with the EVM.
On August 31, 2022, Arbitrum One officially moved to Nitro, just a year after it went live. Arbitrum Nitro is an upgrade to the technology that powers Arbitrum One’s ecosystem. With Nitro, things get faster, more compatible with the Ethereum Virtual Machine (EVM), and cost less. Thanks to Nitro, developers can now use common EVM-compatible languages and run EVM contracts without changing them.
Arbitrum Nova is a new blockchain that promises to lower transaction costs for users by cutting down on data storage on the Ethereum blockchain. The transaction information is maintained by third-party storage providers. Unlike Arbitrum One, which keeps complete transaction data on Ethereum, Nova only stores data signatures on Ethereum. Nova is more centralized and does not rely entirely on Ethereum’s security. It is useful for games and social decentralized apps (dApps) that have higher transactions but low transaction values.
The ARB price obtained an all-time high of USD 2.39 on January 12, 2024. The daily trading of ARB is over USD 159 million as of August 12, 2024.
Want to jump straight into learning how to buy some Arbitrum (ARB)? Here’s our quick-start guide!
Coinsquare is a leading cryptocurrency trading platform that was started by Canadians for Canadians in 2014. Coinsquare is trusted by hundreds of thousands of Canadians for their Arbitrum (ARB) trades and has processed over $8 billion in trading volume to date.
This crucial step helps protect your identity and your Arbitrum (ARB) transactions. It also ensures that Coinsquare meets its regulatory obligations. You will need to submit some personal information, including your name, address and phone number, as well as a scan of a government-issued identity document such as your driver’s license or passport. Rest assured that this data will be kept in the strictest confidence. You will also need to answer a few questions to determine your risk profile.
These funds are what you’ll use to buy your Arbitrum (ARB). You can transfer money directly to your account for free using Interac e-transfer, or you can wire transfer the funds from your bank account.
Choose the currency you want to use to buy your Arbitrum (ARB). For now, you’ll be using CAD because that’s what you have on deposit in your Coinsquare account, but later on, you might use USD or another cryptocurrency for your purchase. Once you’ve selected the currency, you can go ahead and purchase your Arbitrum (ARB)!
You won’t be able to spend your Arbitrum (ARB) at all Canadian retailers, but the list of stores that accept Arbitrum (ARB) and other cryptocurrencies is always growing. Keep an eye on the news about Arbitrum (ARB) and ask your favourite retailers about their policies.
All cryptocurrencies carry some level of risk, just like other volatile investments. It's essential to thoroughly research the token you plan on investing in and understand the risks before making any decisions. Remember, you should never invest more than you can afford to lose.
You can transact on Coinsquare in numerous currencies other than Arbitrum (ARB), including Bitcoin (BTC), Ethereum (ETH), Avalanche (AVAX), Bitcoin Cash (BCH), Cardano (ADA), Dogecoin (DOGE), Chainlink (LINK), Polygon (MATIC), Shiba Inu (SHIB), USD Coin (USDC), XRP, and many more.
You can store your Arbitrum (ARB) in software applications called wallets. Wallets come in two varieties: hot wallets and cold wallets. Here are the differences between them.
Connectivity: Hot wallets are connected to the internet while cold wallets are not.
Access: Hot wallets offer quick and easy access for transactions while cold wallets require physical access.
Security: Cold wallets are more secure than hot wallets, which are more vulnerable to hacking and cyber attacks.
Usage: Hot wallets are ideal for frequent transactions and trading, while cold wallets are best suited to holding crypto in long term storage or in large amounts.
Setup and Maintenance: Hot wallets are easier to set up and maintain. Cold wallets require more complex set up and maintenance.
Recovery Options: Both hot and cold wallets often have recovery options like seed phrases, while cold wallets can also be backed up.
Convenience: Hot wallets are highly convenient for everyday use. Cold wallets are less convenient due to their physical access requirement.
Physical Risk: Cold wallets come with a higher physical risk, as they can be lost, stolen or damaged; while hot wallets carry a lower risk because they are not physical objects.
It is legal to buy and sell Arbitrum (ARB) in Canada, but Arbitrum (ARB) itself is not legal tender, meaning that it is not issued by the government or controlled by them. Cryptocurrency trading platforms are also legal in Canada, but be careful to choose one that is in good standing and has not been banned or isn’t allowed to operate in Canada. As a leader in the cryptocurrency trading space, Coinsquare is dedicated to complying with all federal and provincial regulations for cryptocurrency trading; we are held to the highest standards of any financial institution in Canada, so you can have confidence in the transactions you complete on our platform.
If you want to get more into the world of cryptocurrency, you can engage in additional activities.
You can purchase other cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Avalanche (AVAX), Bitcoin Cash (BCH), Cardano (ADA), Dogecoin (DOGE), Ethereum Classic (ETC), Polygon (MATIC), Shiba Inu (SHIB), USD Coin (USDC), XRP, and many more.
Get information and news updates in Coinsquare’s real-time news feed. On the website and in the mobile app, you can also check on the current market prices for Arbitrum (ARB) and other cryptocurrency products, look at the trading history of Arbitrum (ARB), and learn more about topics related to cryptocurrency.
Cryptocurrency has been criticized for its environmental impact, and not without reason. Traditional cryptocurrency mining, especially for coins like Bitcoin, has been associated with high energy consumption due to the power required for mining operations.
However, the cryptocurrency industry is sensitive to these concerns and is looking for ways to make cryptocurrency more sustainable. Here are some changes that some blockchains have undertaken to mitigate the impact of cryptocurrency on the planet:
Newer cryptocurrencies are being designed with sustainability in mind from the start instead of making changes after the fact. While these advancements show a commitment to sustainability and minimizing environmental impact, there is still a great deal of work to be done. Keep an eye on the news about the evolving cryptocurrency landscape.
Confirm your identity and answer a few onboarding questions.
Add funds to your account via e-transfer, wire transfer, or from another crypto account.
Choose Arbitrum (ARB) from the list and select the currency you want to use.
Complete your Arbitrum (ARB) purchase.
If you want to learn more about Arbitrum (ARB) and the cryptocurrency world, getting involved with the Arbitrum (ARB) community is a great idea. Here are some ideas about how you can follow trends, meet other investors, and contribute to the growth of the Arbitrum (ARB) space:
If you have technical or business skills, you can also engage with development teams, contribute your skills to the Arbitrum (ARB) project, or participate in governance by helping with decision-making and setting future directions.
Coinsquare offers a variety of services for all your Arbitrum (ARB) needs.
Coinsquare Wealth provides more customized services from certified Wealth Directors. Although our Wealth Director don’t provide investment advice, they help our clients navigate the cryptocurrency space so they can get more out of it and avoid obstacles. Coinsquare Wealth also offers other advantages, such as same-day settlement in CAD or USD and enhanced liquidity for large trades/
Coinsquare Pro gives experienced traders the resources they need to make complex decisions and apply advanced trading strategies. Intuitive trading tools, enhanced trading logs, and near-instant execution of trades allow them to control their investments with greater precision.
Coinsquare Trade is a no-fuss service that gives our customers access to over 53 digital currencies, in-app customer service support, fast withdrawal and deposit options, and a clean, user-friendly interface.
Coinsquare has been in business in Canada since 2014 and was developed by Canadians for Canadians. We are confident that we can provide you with the best Arbitrum (ARB) buying experience in the country. Join us today!
