How to Buy Chainlink (LINK)

What is Chainlink?

Chainlink is a crypto project that aims to help smart-contact users to get accurate data from outside sources as well as a reliable service. A smart contract – is a line of code that represents an agreement or contract between two parties, without third-party involvement. It is something like if you were selling real estate to somebody you’ve never seen before without the participation of a real estate agent. Sounds a bit scary, right? Both parties can rely on a trustworthy algorithm that will guarantee compliance with all contractual terms of sale. 

What does Chainlink exactly do?

Chainlink serves as a reliable bridge that connects the world of cryptocurrency with the outside world, making sure that this interaction is fair and safe. The process of extracting and entering information into blockchains is always associated with a great vulnerability: after all, it is necessary to trust a source outside the blockchain. Even just to get at least the current price of Bitcoin, you need to completely trust the source. As well as it is important to be completely confident that it provides accurate data.

The fact is that we live in a world full of information. The Internet can be called an information “dump”, as a search engine can provide completely different data regarding the same issue. Take at least Chainlink’s connection with Google and SWIFT. The media wrote that the company managed to become an official partner of SWIFT and Google. This information is actively used in a large number of publications related to Chainlink. 

However, is it really so? At the same time, other sources state both companies limited themselves to just mentioning Chainlink. SWIFT stated that they are working on their own blockchain projects with the involvement of various third-party services, and the news about the partnership with Google grew out of a publication in one of the corporate blogs Google Cloud, which described the functionality of Chainlink. Where is the truth?

How does Chainlink work?

The problem of finding the truth is compounded by the fact that most smart-contract platforms are isolated on individual blockchains and unable to connect with external data feeds. This would make smart contracts unable to react to real-world events, for example, when a goal scored in a football match, that changes the odds on a betting platform. Chainlink links smart contracts to real-world information, payments and events such as medical data, weather data, sports data, shipping data, and asset prices.

Oracles (decentralized data providers) filter data feeds that connect blockchains to off-blockchain data and discard unreliable and low-quality material, in order to supply the blockchain with only accurate data and protect it from intruders. Chainlink oracles, extracting useful information from external data sources, are spread all around the world, which make it even more reliable and secure.

But why can you trust the data provided by the oracles?

The point is that to become one of the data providers from Chainlink, you need to stake your own LINK (Chainlink’s cryptocurrency). Then, if you provide accurate information, you will be rewarded. Otherwise, you will be penalized with a decrease of your stake and your reputation score.

Should I Buy Chainlink? Is Chainlink a good investment?

Chainlink is not a soap bubble that exists only thanks to the hype and effective promotion, and that can burst at any second. It provides a really useful and necessary resource to the market and crypto-ecosystem as a whole. Suggesting innovative solutions, the platform expands the possibilities of both the cryptocurrency world and the world outside of blockchains. 

For this very reason, Chainlink is so in demand, and its cryptocurrency is growing in price and strengthening its position in the market. It proves the growing number of investors and respectable partners. More precisely, more than 300 partners have implemented Chainlink’s services. 

Chainlink (LINK) is included in the list of the most promising cryptocurrencies of 2021, based on expert opinion, rating and return on investment. So you are unlikely to go wrong by investing in it. In addition, the number of LINK tokens is limited and amounts to only 1 billion.

Assets are distributed as follows:

• 350,000,000 (35%) transferred to investors;
• 350,000,000 (35%) to incentivize network operators;
• 300,000,000 (30%) allocated to the team for further development.

In particular, investing in Chainlink is recommended for those who: 

• wants to become one of the oracles; 
• plans to use Chainlink services to execute smart contracts; 
• intends to make a long-term investment in cryptocurrency; 
• believes in the idea of Chainlink and wants to invest in blockchains designed for smart contacts;
• is going to pay for the services of node operators to obtain accurate data from the outside world;

Where can I buy LINK?

You can buy Chainlink through any reputable exchange like Binance, Kraken, CEX.io, Coinbase, Godex.io, Gemini or Bitstamp. There you can buy LINK both for the government currency, such as Euro or the US dollar, and for the cryptocurrency, which is supported by the selected exchange. Please note that there is a higher fee for purchases made with a credit card. 

Also, if you are looking for privacy, choose an exchange without registration and personal data requirements. And, of course, pay attention to the exchange conditions – automatic or manual mode of operation, a non-fixed rate, additional commissions for financial transactions, and others. 

Finally, try to buy coins at a favorable rate. There are platforms that display up-to-date offers in real time, so you can choose the most attractive price. Some services have a cashback function, which can also be a nice bonus.

How to Buy Chainlink?

To buy Chainlink you just need to follow a few basic steps:

1. Get a Chainlink compatible wallet.
2. Find the LINK exchange.
3. Make a transaction.
4. Transfer your LINK from the exchange to your storage wallet.

Step 1: Getting a Chainlink compatible wallet.

Assuming you want to buy and keep Chainlink for a long time, it’s important that you have a compatible wallet to store it. Since Chainlink is an ERC-20 (Ethereum-based token), there are several wallets that support it.

When your wallet is ready to go, you will need to find your LINK address. LINK is an ERC-20 token, so its address will look the same as Ethereum – it will be a long sequence of random letters and numbers starting with “0x”.

Here’s an example of how it should look: 0xa995910658808c859623c0fe2ff53e432a236739

Step 2: Finding the LINK exchange.

Previously, some of the popular exchange platforms were mentioned. Be sure to estimate the minimum balance required on the platform to start trading. When choosing the place to buy your LINK pay attention to whether:

• an exchange has a good name;
• you need to provide personal data to make a purchase;
• it has fixed or non-fixed price;
• there are any fees or hidden payments;
• it has customer support service;
• it is secure;
• it is easy to use.

Most likely, having found a suitable exchange, you will need to create your account there and top it up with fiat currency.

Step 3: Making a transaction

Usually, at this stage, no difficulties should arise even for beginners, especially if the platform has a clear interface. All you need to do is indicate the amount of currency that you want to exchange for LINK. View the offered price by clicking on the “Exchange” button. If you are satisfied with the rate, enter the address for sending the purchased currency to it, and again click on the “Exchange” button.

Step 4: Transferring LINK to the wallet.

Although currency can be stored directly on the exchanger, it is not recommended doing so. Especially if you buy a large amount of LINK. Therefore, immediately after purchasing Chainlink tokens, move them from the exchange to your wallet for storage.

To do so:

• find your LINK wallet address and enter it carefully on the exchange platform;
• send your tokens to this address from the exchange (this way you will have full control over your LINKS and you will be sure that no one can access them on the Internet).

How to Store Chainlink (LINK)?

Finding a place to store LINK will not be a problem, since cryptocurrency is in great demand. First, decide how you want to use your digital assets. If you are planning to trade large sums for long-term savings, hardware wallets will be the best choice. Some of the best LINK compatible wallets include the Trezor, Ledger Nano S and Nano X models, and KeepKey. They are safe because they are not connected to the Internet, which is full of various cyber threats. The downside is that they are quite expensive and not as convenient as software wallets. 

But if you are not going to manage large sums, a desktop or mobile wallet will be enough. They are usually free, mobile and reasonably secure. Among the most popular are Coinomi, Atomic Wallet, JAXX, MyEtherWallet, Coinbase, and Trust Wallet. 

There is also a paper wallet that is suitable for the long-term storage of large amounts of LINK. Since the security keys are on a piece of paper, it can be vulnerable and susceptible to destructive external factors. However, the fact that the wallet belongs to the cold types of wallets, as well as the fact that the keys are under the complete control of their owner, makes it almost 100% secure. You can generate such a wallet using the WalletGenerator website.

There are also places for storing LINK online, for example, on exchangers, but this option is not secure and is only suitable for the temporary storage of small amounts. One of the safest of this type is Binance.

Trade or Sell Your Cryptocurrency

As with any other cryptocurrency, it is difficult to predict the value of Chainlink in the future. Now (at the time of writing) it is priced at $ 22.63, but just early last month it hit a new all-time high of $ 52.74. 

Based on this chart, we can conclude that now is a rather favorable time to invest in Chainlink. Although no one can give 100% guarantees that the cost will not drop much, because only at the beginning of the year it was equal to $ 11.87.

What is The Future of Chainlink?

Since Chainlink tends to add value to other projects by offering them a unique product rather than competing directly with them, it looks like it’s not going anywhere anytime soon. Even more, thanks to its important mission and the contribution it makes to the development of the crypto ecosystem it continues to be one of the hottest coins in the market.

Disclaimer: Please keep in mind that the content of this article is not financial or investing advice. The information provided is the author’s opinion only and should not be considered as direct recommendations for trading or investment. Any article reader or website visitor should consider multiple viewpoints and become familiar with all local regulations before cryptocurrency investment. We do not make any warranties about reliability and accuracy of this information.