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How To Buy Chainlink (LINK)?

Chainlink 500x286 1 - How To Buy Chainlink

A common question you often see on social media from crypto beginners is “Where can I buy Chainlink?” Well, you’ll be happy to hear it is actually quite a simple and straightforward process. Thanks to its massive popularity, you can now buy Chainlink on most cryptocurrency exchanges, including Coinbase and Binance in 3 simple steps.

Step 1: Create an account on an exchange that supports Chainlink (LINK)

First, you will need to open an account on a cryptocurrency exchange that supports Chainlink (LINK).
We recommend the following based on functionality, reputation, security, support and fees:

1

 Binance

Create Binance Account - How To Buy Chainlink

Fees (Maker/Taker)            0.075%*-0.1%*

Cryptocurrencies
Available for Trade                             500
+

Sign-up bonus
 10% reduced trading fees*

Available in
Europe, Asia, Oceania, Africa

2

 Coinbase

Create Coinbase Account - How To Buy Chainlink

Fees (Maker/Taker)             1.49%*-3.99%*

Cryptocurrencies
Available for Trade                              75
+

Sign-up bonus
 $10 sign-up bonus*

Available in
North America, South America, Europe, Asia, Oceania, Africa

3

 FTX US

Create FTX US Account

Fees (Maker/Taker)            0.10%*-0.40%*

Cryptocurrencies
Available for Trade                             45
+

Sign-up bonus
 5% reduced trading fees*

Available in
North America, South America, Europe, Asia, Oceania, Africa

In order to sign up, you will need to enter some basic information, such as your email address, password, full name and, in some cases, you might also be asked for a phone number or address.

Note: On specific exchanges, you might need to complete a Know Your Customer (KYC) procedure in order to be able to purchase cryptocurrency. This is most commonly the case with licensed and regulated exchanges.

Step 2: Deposit funds into your account

Many cryptocurrency exchanges will allow you to purchase Chainlink (LINK) with fiat currencies, such as EUR, USD, AUD and others. Furthermore, they will also provide you with multiple deposit methods through which you can fund your fiat account, such as credit and debit cards, ewallets or direct bank transfers.

Note: Some payment methods will have higher fees than others, such as credit card payments. Before funding your fiat account on your chosen exchange, make sure to do your due diligence to find out the fees involved with each payment method to avoid unnecessary costs.

Step 3: Buy Chainlink (LINK)

This process is similar across almost every cryptocurrency exchange. All you have to do is find a navigation bar or a search bar, and search for Chainlink (LINK) or Chainlink (LINK) trading pairs. Look for the section that will allow you to buy Chainlink (LINK), and enter the amount of the cryptocurrency that you want to spend for Chainlink (LINK) or the amount of fiat currency that you want to spend towards buying Chainlink (LINK). The exchange will then calculate the equivalent amount of Chainlink (LINK) based on the current market rate.

Note: Make sure to always double-check your transaction details, such as the amount of Chainlink (LINK) you will be buying as well as the total cost of the purchase before you end up confirming the transaction. Furthermore, many cryptocurrency exchanges will offer you their own proprietary software wallet where you will be storing your cryptocurrencies; however, you can create your own individual software wallet, or purchase a hardware wallet for the highest level of protection.

For more in-depth instructions, our ‘Absolute Beginner’s Guide To Cryptocurrency Investing‘ will take you through the process step-by step. In addition to providing instructions for sending and receiving your cryptocurrency.
And if you’re completely new to crypto our beginner, intermediate and advanced level articles will get you up to speed with everything you need to know about the cryptocurrency space starting out. 

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What Is Chainlink (LINK)?

Chainlink has become one of the most commonly used projects in the cryptocurrency space. It’s a decentralized oracle service that can provide external data to smart contracts on Ethereum. In other words, it connects blockchains with the real world.

You could think of Chainlink as a committee of wise men and women who are always looking to determine the closest thing to the truth. But why can they be deemed more trustworthy than others? Let’s see.

Chainlink is a blockchain-based decentralized oracle network that allows smart contracts to connect to external data sources. These can include APIs, internal systems, or other types of external data feeds. LINK is an ERC-20 token that’s used to pay for this oracle service on the network.

So what makes Chainlink decentralized? Well, first, we need to understand what a centralized oracle is. It isn’t hard to guess – it’s a single provider of external information to a smart contract. It’s only one source. This can present great problems. What if that one oracle provides false or incorrect data? All the systems that rely on it will fail. This is often called “the oracle problem” – and is what Chainlink is attempting to solve.

How does Chainlink work?

Chainlink uses a network of nodes in an attempt to make the data provided to smart contracts as trustworthy and reliable as possible.

Let’s say a smart contract requires real-world data, and it puts out a request for it. The Chainlink protocol registers this event and forwards it to Chainlink nodes to take their “bids” on the request.

What makes this process powerful is how Chainlink can validate data from multiple sources. Due to an internal reputation system, Chainlink can determine with a relatively high accuracy which sources are trustworthy. This can greatly increase the accuracy of the results and protect smart contracts from all sorts of attacks.

So, how is this connected to LINK? Well, the smart contracts that request the data pay Chainlink node operators in LINK in exchange for their service. The prices are set by the node operators based on the market conditions for that data.

Node operators also stake on the network to ensure long-term commitment to the project. Similarly to Bitcoin’s cryptoeconomic model, Chainlink node operators are incentivized to act in a trustworthy manner instead of being malicious.

Chainlink and DeFi

Ever since Decentralized Finance (DeFi) has become more popular, there has been a growing interest in high-quality oracle services. After all, most of these projects use smart contracts in one way or the other, and they also require external data to run properly.

With centralized oracle services, DeFi platforms can leave themselves vulnerable to a wide range of attacks, including flash loan attacks through oracle manipulation. Multiple incidents like this have already occurred, and they’ll likely keep happening if centralized oracles are still common.

Many people may be inclined to think that Chainlink can solve all of these problems – that may not be correct. Despite projects such as Synthetix, Aave, and others all relying on Chainlink’s technology, new types of risks are also introduced. If too many platforms rely on the same oracle service, they will all face outages if Chainlink suddenly stops working as intended.

This may seem unlikely. After all, Chainlink is a decentralized oracle service that supposedly has no single point of failure. Even so, in September 2020, Chainlink nodes suffered a “spam attack” where an attacker drained potentially up to 700 ETH from node operator wallets. The attack was quickly solved, but it’s a reminder that not all systems are completely resilient to malicious activity.

LINK supply and issuance

LINK has a maximum supply of 1 billion tokens. 35% of those were sold during the ICO in 2017. About 300 million are in the hands of the company that founded the project.

In contrast to many other cryptoassets, LINK has no mining or staking process that increases its circulating supply.

What is LINK used for?

As we’ve mentioned, Chainlink node operators can stake LINK as a way to offer a bid to the intended buyer of the data. The node operator that “wins” the bid must provide the information to the smart contract making the request. All payouts for node operators happen in the form of LINK tokens.

This approach incentivizes node operators to keep accumulating. Why? Owning more tokens means access to bigger and bigger data contracts. If a node operator decides to break the rules, they’ll have their LINK tokens removed as a result.

Official website: https://chain.link/

Market Overview

Coinmarketcap.com

Find the latest Chainlink (LINK) price chart, trade volume, market cap, and other vital information to help you with your cryptocurrency trading and investing.

Coinmarketcap will be your cryptocurrency go-to for just about everything. Here you can see the following:

Market Capitalization And Daily Trading Volume

Current Market Price Of Every Cryptocurrency Relative To USD (And Some Local Currencies)

Circulating And Total Supply

Historical Charts With Prices Relative To USD, Bitcoin (BTC), And Ethereum (ETH).

CMC - How To Buy Chainlink

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