How to Buy SAND Tokens in Canada

“SAND is the ERC-20 utility token used as the basis of transactions throughout The Sandbox ecosystem.””

The Sandbox is a unique metaverse project aiming to create a virtual world where users can buy or sell non-fungible tokens (NFTs), or digital collectibles, and digital real estate known as LANDS. In addition, the platform also offers a variety of gameplay transactions. The initial version of The Sandbox was launched in 2012 by game developers, Pixowl and Onimatrix, who in 2021 shifted focus by launching their blockchain-based metaverse.

SAND tokens are used as currency within The Sandbox marketplace, making it a unique investment opportunity that bets on the future of the metaverse. If you are wondering how to buy SAND tokens in Canada, Netcoins is a publicly-traded, fully regulated crypto trading platform based in Canada. With 0% funding fees, free cash withdrawals, and live customer support service seven days a week, we make it simple for Canadians to buy SAND and other cryptocurrencies.

Why Buy SAND?

By surpassing over two million registered users merely 13 months after its launch, it is evident that The Sandbox is a project with a lot of interest and a bright future. Investing in SAND is an opportunity to bet on the future growth and adoption of the project. If the game continues to expand its product offering and attract new users, the usage of SAND tokens may grow proportionally resulting in the potential for price appreciation. Similarly, The Sandbox could have an exciting chance to gain significant traction as the metaverse continues to grow toward mass adoption. For these reasons, investors are hopeful about the future of The Sandbox.

What Can You Do with SAND?

As the native currency in The Sandbox, SAND tokens can be used to make payments within the game. Examples include engaging with user-generated content and purchasing LAND (virtual plots of land considered digital real estate). SAND tokens can also be used within The Sandbox marketplace to buy, sell, or create NFTs that act as equipment for avatars and creations within LAND. Additionally, SAND is the governance token of The Sandbox decentralized autonomous organization (DAO), meaning that staking SAND tokens allows for participation in the governance of the project and helps influence key decisions made to its operations.

Related article: What is Crypto Staking?

How Much SAND Can I Buy?

Like other cryptocurrencies, SAND tokens are highly divisible and can be bought in whole tokens or fractions. Using a platform like Netcoins allows you to buy SAND tokens in fractions, enabling you to buy any dollar amount of SAND tokens you’d like. Buying a single token, numerous tokens, or fractions of a token are all alternatives available to meet your investing plan. Netcoins, Canada’s first publicly-owned and fully regulated cryptocurrency trading platform, offers all of these possibilities.

Does SAND Have a Supply Cap & Can It Be Mined?

There is a fixed supply of 3 billion SAND tokens in circulation (meaning that there will never be more than 3 billion SAND tokens in existence). This makes the token deflationary and a hedge against things such as inflation.

SAND is different from cryptocurrencies like bitcoin, which operate on a proof-of-work consensus (involving mining, the process of solving difficult computational puzzles by brute force in order to create new coins ). Through its proof-of-stake consensus, holders of SAND can stake (or give up as collateral) their SAND tokens by connecting their holdings to The Sandbox platform with the incentive of earning yield. In this way, they help secure the network while growing their holdings.

Related article: How to Buy Bitcoin (BTC) in Canada

Is The Sandbox better than Decentraland?

Both The Sandbox and Decentraland are working to accomplish similar goals in the Metaverse space. However, based on factors such as user friendliness, gaming focus, aesthetics, and a more thorough roadmap, The Sandbox is the apparent winner. While Decentraland touts its DAO, in such a delicate and intricate sector as blockchain gaming, a more experienced and decentralized platform often provides better results.

Related article: How to Buy Decentraland (MANA) in Canada

Is The Sandbox Crypto Safe?

Safety is an essential factor to consider before making a cryptocurrency investment like SAND. Like all cryptocurrencies, SAND is prone to volatility and can experience significant swings in price. An excellent way to combat volatility can be through dollar-cost averaging in, a method of building a position that involves buying in regular intervals (like every day or week).

All crypto projects are also prone to potential hackers. Notably, The Sandbox’s blockchain has never experienced a hack; this shows the attention to detail of the development team and helps point to a positive future. Lastly, a risk that The Sandbox shares alongside all cryptocurrencies is execution risk. By investing in SAND, there is a belief that the development team will continue to innovate The Sandbox, creating a better platform that draws in more users. Any delays or limitations in platform development may negatively impact SAND’s price performance.

How Do I Store My SAND?

You can buy SAND tokens from crypto trading platforms, like Netcoins, and leave your SAND tokens inside the platform. However, there are much safer options to storing your SAND tokens as leaving them in exchanges can expose them to certain risks like hacking and theft.

There are four different types of SAND wallets: hardware wallets, desktop wallets, mobile wallets and web wallets.

Hardware wallets look like a USB device. They are considered to be offline wallets because they’re not connected to the internet. The fact they’re offline makes them more difficult to find and to hack. As such, they’re typically considered the safest option to store your SAND.

Desktop wallets on the other hand are programs that store your SAND on your computer’s hard drive. Mobile wallets perform the same function as a desktop wallet but on a mobile device instead.

Finally, a web wallet is an online service that sends and stores your SAND on your behalf anywhere, anytime. Similar to checking your email.

Desktop, mobile and web wallets are all connected to the internet (and referred to as “hot wallets”). Like mentioned earlier, they are more susceptible to potential risks. On the other hand, hardware wallets (or “cold wallets”) are considered safer options as they are not connected to the internet.

This is why it’s often advised that Canadians pull out their SAND tokens from crypto trading platforms and send them directly to a hardware wallet. Only in this way, are they in full possession of their SAND and can keep them secure.

Is SAND a Good Investment in 2022 & Beyond?

Looking into 2022 and beyond, SAND is an investment whose price performance will depend heavily on execution and adoption. Up to this point, The Sandbox developers have shown both commitment and a desire to innovate, which are both significant positives concerning the project’s longevity.

Since The Sandbox is one of many Metaverse projects, one of the most significant determinants of SAND’s future price performance will be the adoption of the Metaverse. Adoption may act as either a headwind or a tailwind, serving as a possibility for a high reward if things go well. No matter your conviction in SAND, it may be a good idea to consider diversification before investing.

A project similar to The Sandbox is Decentraland, a project attempting to accomplish similar goals with their native token MANA, also in the Metaverse space. Paired with diversification, an investment in SAND can be a solid bet on the future of the Metaverse, which is in its early stages of adoption.

This post is for informational purposes only. For proper financial advice, we recommend you speak to a financial advisor.