Bonfire is a BEP-20 token with a core blockchain of Binance Smart Chain. The long term goal of this project is to create a decentralised social media platform for artists to sell non-fungible tokens (NFTs). It also aims to provide several other features that have not been announced yet.
As of the time of this writing, Bonfire has not yet developed its minimal viable product. As a result, investors are buying up Bonfire purely from their financial speculation. The token follows similar tokenomics-related processes as SafeMoon and NFTART.finance. (Tokenomics is a juxtaposition of the terms “token” and “economics).
Bonfire incentivises investors to hold on to their Bonfire tokens by charging a transaction fee of 10%. 5% of this fee is distributed between token holders of Bonfire, while the other 5% is given to the Pancakeswap liquidity pool. This may sound enticing, but these practices – which are part of tokenomics – greatly resemble the economics behind pyramid schemes.
To buy the Bonfire crypto, use these following steps:
Step 1: Open a Binance account.
Many centralised cryptocurrency exchanges, such as Coinbase, eToro and Kraken, have not yet supported any Binance Smart Chain tokens. Most of these cryptocurrencies are extremely new, and most teams behind these tokens have not established a minimum viable product yet.
In order to use Pancakeswap, you will need to own BNB tokens. These tokens are available on Binance, so to get started, you will need to make an account with the cryptocurrency exchange. If you are using Binance.us, it may take some time before your account gets approved for trading. Another option is to use Binance.com, but if you have an IP address that shows that you from the U.S, Binance will not let you make an account.
Step 2: Download MetaMask or Trust Wallet
Once you have managed to obtain some BNB tokens, you will need to transfer them to a cryptocurrency wallet that can be connected to Pancakeswap. The best options on the market are MetaMask and Trust Wallet, since they both have a secure platform that allows you to trade any kind of tokens on Pancakeswap. You will receive a prompt to do this when visiting Pancakeswap’s website.
Step 3: Make your purchase
Now, you can select Bonfire and purchase it by spending your BNB tokens. Your Bonfire tokens will be sent to your crypto wallet on MetaMask after the transaction is approved through your Metamask wallet.
If you are interested in earning profits from the cryptocurrency you purchase, you can use BlockFi. BlockFi allows you to collateralise your cryptocurrency for loans. You can spend these loans according to your preferences, and as long as you pay your loans back, you will not have to pay capital gains tax. If you default on your loan, then your cryptocurrency collateral will be used to pay off your remaining outstanding payments.