Arbitrum (ARB) is a scalable, secure and decentralised protocol for smart contracts. Learn more about Arbitrum, as well as how to buy ARB and where to store it.
Introduction to Arbitrum (ARB)
Developed by Ed Felten, Steven Goldfeder and Harry Kalodner (Offchain Labs), Arbitrum is a layer 2 solution that improves upon Ethereum’s (ETH) capabilities by drastically reducing fees and increasing transaction speeds.
Arbitrum achieves this by employing optimistic rollup technology, which executes transactions off-chain and reduces congestion on the Ethereum mainnet. This also means that Arbitrum can utilise Ethereum’s high levels of security.
The Arbitrum network uses ARB as its native governance token.
You can learn more about Arbitrum and ARB with our “What is Arbitrum (ARB)?” article.
Arbitrum is a suite of scaling solutions providing environments with high-throughput, low-cost smart contracts, backed by industry-leading proving technology rooted in Ethereum.
Arbitrum
Where to buy Arbitrum
ARB was launched in early 2023. Upon launch, 11.62% of the token’s circulating supply was airdropped to early supporters, with 1.13% given to developers.
Since then, ARB has been listed on several different cryptocurrency exchanges and trading platforms, including eToro. On most of these platforms, you can purchase ARB directly using fiat currencies.
Alternatively, decentralised exchanges (DEXs) allow users to trade cryptocurrencies directly, meaning you could potentially purchase Arbitrum (ARB) with assets such as BTC or XRP.
Because of the strong early adoption, ARB can now be purchased on several cryptocurrency exchanges, both centralised and decentralised.
Tip: Arbitrum partnered with Immunefi to create a $2 million bug bounty solution, ensuring constant monitoring of any potential vulnerabilities.
How to keep and store Arbitrum
Once you have purchased Arbitrum, you must store it safely. Some cryptocurrency platforms will allow you to store it directly on the platform itself, while others will direct you to a cryptocurrency wallet. These are generally deemed to be “hot” — if they are connected to the Internet — or “cold” — if they act as a physical storage device.
For Arbitrum, there are lots of good, secure wallets to choose from:
- Rainbow: A brightly coloured, user-friendly Ethereum wallet that supports non-fungible tokens (NFTs), ARB and other Ethereum-based cryptoassets.
- Metamask: A popular browser extension wallet that can store Ethereum-based assets such as Arbitrum (ARB).
- Ledger: With various devices available, Ledger is a leader in the cold wallet space. Users can store a range of cryptocurrencies offline, including ARB.
Learn more about Arbitrum
It is important to note that Arbitrum did not start as a cryptocurrency token. Offchain Labs, the company behind Arbitrum, was founded by computer science professors from Princeton University with the intention of bringing smart contract scalability to Ethereum.
Because of their Solidity coding, decentralised apps (dApps) built on Ethereum can migrate directly to Arbitrum to boost performance and security. This aims to greatly lower gas fees and improve transaction speeds, offering developers a more usable platform.
To learn more about Arbitrum (ARB), interested investors should utilise the following resources:
| eToro Academy | Online | Easily digestible, educational content about Arbitrum and DeFi, designed to help users understand the fundamentals of cryptocurrency investing. |
| Arbitrum.io | Website | The official website of Arbitrum, which offers in-depth details, technical information and updates about the project. |
| Offchain Labs Blog | Blog | The official blog of the company behind Arbitrum. It provides news on the development and progress of the project. |
How to buy Arbitrum (ARB) on eToro
With strong leadership and a detailed future road map, there are many investors who are interested in Arbitrum (ARB). eToro provides a secure, affordable platform to enable you to diversify your portfolio with cryptoassets such as ARB, Cardano (ADA) and Stellar (XLM).
But how do you buy Arbitrum (ARB) on eToro?
- Open an account
Create an eToro account by adding your personal details and choosing a password. - Verify your account
Follow the verification process by providing the necessary identification documents. This process is in place due to regulatory requirements and helps to ensure your eToro transactions are safe and secure. - Deposit funds
Deposit funds into your eToro account using a range of payment methods. On eToro, you can only buy ARB with fiat currencies. - Buy Arbitrum (ARB)
Search for Arbitrum (ARB) on the platform’s search bar. Click the “Trade” button and specify how much ARB you want to buy. You can enter the amount in either units of ARB, or by choosing a currency value. Click “Open Trade” to finalise the purchase.
Remember, cryptocurrency investments come with risk, and it is important to only invest money that you can afford to lose. Be sure to do your research before buying ARB or any other cryptoassets.
Final thoughts on investing in Arbitrum
Offchain Labs has introduced a decentralised autonomous organisation (DAO) for the Arbitrum One and Arbitrum Nova networks, putting governance responsibility into the hands of token holders.
This move toward decentralisation has captured the attention of cryptocurrency investors, as the Arbitrum community is able to shape the protocol’s future. Those who hold ARB tokens have voting power proportional to their holdings, allowing them to directly influence decisions related to the network’s development and future direction.
However, like all investments, Arbitrum comes with certain risks. Potential investors should thoroughly evaluate their risk tolerance and financial position before investing in ARB.
Learn more about cryptoassets on the eToro Academy.
FAQ
- Should you buy Arbitrum (ARB)?
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The question of whether you should buy Arbitrum (ARB) depends on several factors, such as your investment goals, risk tolerance and market research. ARB presents potential growth due to its innovative technology, which aims to solve Ethereum’s scalability problems. However, cryptocurrencies can be incredibly volatile, so there is no guarantee that the price of ARB will increase, and even if it does, it may not stay at those levels.
- What is a DAO?
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A DAO is a decentralised autonomous organisation, embodied in computer code and executed on a distributed blockchain. Its members manage it and govern it through a consensus protocol, making decisions and rules based on pre-programmed instructions.
The primary goal of a DAO is to enable total transparency and complete shareholder control, removing the need for a traditional, centralised authority.
- What is a layer 2 blockchain?
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Layer 2 solutions, such as Arbitrum, are built on top of layer 1 blockchains. They are designed to improve transaction speeds and reduce associated costs, without modifying the main blockchain. These solutions offload some data and operations from the main chain to a secondary chain, thus, increasing the network’s overall transaction capacity.
This information is for educational purposes only and should not be taken as investment advice, personal recommendation, or an offer of, or solicitation to, buy or sell any financial instruments.
This material has been prepared without regard to any particular investment objectives or financial situation and has not been prepared in accordance with the legal and regulatory requirements to promote independent research. Not all of the financial instruments and services referred to are offered by eToro and any references to past performance of a financial instrument, index, or a packaged investment product are not, and should not be taken as, a reliable indicator of future results.
eToro makes no representation and assumes no liability as to the accuracy or completeness of the content of this guide. Make sure you understand the risks involved in trading before committing any capital. Never risk more than you are prepared to lose.