The cryptocurrency market has been around for a very long time. And in all honesty, it has had a wonderful journey thus far thanks to its ability to draw in potential investors from all over the world and carve out a reputation for itself in the Indian economy.

Not only that, the industry has recently experienced a rise in its general growth and appeal, aiding in its ascent to greater heights! 

When we talk about top cryptocurrencies in India, Bitcoin, Ethereum, Cardano, Dogecoin, etc., are some powerful crypto coins driving the crypto market. These virtual currencies by leveraging blockchain technology, provide online translation without government restrictions and interference. 

This versatility has led to a sudden surge in the number of crypto investors across the globe. Along with it, several other tokens were introduced to serve crypto enthusiasts the best. One among them is the Spell token. 

Read on to discover some unknown facts about spell tokens.

First things first, what is a Spell Token?

Spell token, or as it is more generally known as SPELL, is nothing more than a reward token.

Abracadabra. money, a well-known platform, is reported to use interest-bearing tokens as collateral to borrow Magic Internet Money (MIM) which is a USD-pegged stablecoin. And, the Spell token is directly associated with this platform. 

Additionally, SPELL, the native utility token of the mentioned platform, can be staked, offering governance rights as well as other benefits. Having said that, Abracadabra has been able to deliver a wave of innovation in decentralised finance to its isolated lending markets all thanks to Kashi Lending Technology, which was presented by the well-known website SushiSwap.

However, be aware that the risk is not known to be shared jointly in a solitary loan market. But the reliving part is that all users on the platform can simply offer liquidity for any token, so even if a currency pair loses liquidity or the smart contract is damaged, only that particular pair is actually impacted, not the entire platform. In essence, this enables Abracadabra to provide a variety of pairs that are mostly unsupported by other decentralised exchanges (DEXs).

Not to mention, it is claimed that everything is completed in a single transaction, which is why users just have to pay a single gas fee. Last but not least, it is possible to mine the Spell Token by offering liquidity in one of the various pools. As was previously mentioned, SPELL can also be staked, and the staked tokens earn a portion of the platform fees, which compound automatically.

Investing in SPELL: Explained

There is no denying that the demand for Spell tokens is rising every day. You can also witness the same by referring to crypto trading platforms like WazirX. Such websites provide clear insights on the current price of cryptocurrencies, including SPELL. Since this token is gaining popularity, you can find it easily on the portal. 

However, we never know when things turn out wrong as the crypto market is highly volatile and unpredictable. It all depends upon demand and supply, market cap, awareness, etc. Hence, there is a possibility that the Spell token could prove to be a risky investment in the future, which is likely to provide you with fewer returns and it is possible that your current investment may decrease in value. 

We suggest you seek help from experienced crypto investors to get better guidance and clear your doubts face to face. They are professionals and can answer your ifs and buts very practically. 

Furthermore, do your own research to understand Spell tokens in detail. 

Hope through this blog, you are able to build a brief knowledge about what is Spell and how to invest in it.