As the world becomes more digital, many alternative cryptocurrency projects are being designed to solve issues related to scalability and more. Chainlink is one such token and aims to facilitate smart contracts with ease.
Before you invest in LINK, it’s important to do prior research to ensure that you make the right decision. This guide will show you all the ways to invest in Chainlink, plus each of its pros and cons. You’ll also find out whether it’s safe to do so at the moment.
Best Way to Invest in Chainlink in 2023
Compared to many altcoins, you’ll find a good range of places to invest in Chainlink. However, knowing where to go is difficult.
To help you make the best possible decision, we’ve outlined our favorite providers in the table below.
What Is Chainlink - Quick Overview
Name and ticker Chainlink (LINK)
Date launched May 2019
Circulating supply | max supply: 467,009,549.52 | 1,000,000,000
Blockchain network Chainlink; built on the Ethereum blockchain
Creators Sergey Nazarov and Steve Ellis
Use-cases DeFi, insurance, NFTs/gaming
Famous backers Google, Binance, Ethereum Classic, etc.
Social media Twitter | YouTube | Reddit | Discord
What Is Chainlink – Explained
Chainlink is the native cryptocurrency for the Chainlink network, which was developed using the Ethereum blockchain. The cryptocurrency launched in May 2019, just under two years after the Chainlink network went live.
Over 2020, Chainlink’s reputation in the cryptocurrency space began to grow. During this year, the value of 1 LINK to USD rose from under $2 into double figures.
In 2021, the coin reached new heights once more. That May, the currency’s value surged beyond $50 – though it has since come crashing down to earth quite spectacularly. At the time of writing on 25th January 2022, Chainlink’s value is $15.19. In addition, Chainlink's innovative decentralized oracle network has been a game-changer for smart contracts, providing secure and reliable data feeds to various blockchain applications, with users benefiting from opportunities like Chainlink staking to participate in the network's consensus and earn rewards for their contributions.
Chainlink is one of the most prominent altcoins and is currently the 22nd-largest cryptocurrency on the planet. Its market cap is well over $7.1 billion, and it takes up 0.43% of the total cryptocurrency market.
Purpose
In its whitepaper, Chainlink mentions that it wanted to solve several problems in the decentralized online world. These include:
Creating hybrid smart contracts;
Addressing scalability issues and ensuring that its offerings work as it becomes more popular;
Creating a secure ecosystem in the cryptocurrency space.
Use Cases
Chainlink serves several industries, including insurance, finance, and gaming. Its primary use is to create secure smart contracts that can be properly executed.
Chainlink has been used for several reasons. For companies, it has provided a suitable way to make paying employee salaries more efficient. Similarly, the network has been used in the business world for remittances.
The network has also been used to facilitate cryptocurrency transactions. In some cases, users can pay with crypto – but the merchant can choose to receive fiat money. These have been utilized by both Alchemy and Paycoin.
Chainlink has also proven to be a crucial player in gaming, especially with the rise of non-fungible tokens (NFTs). The technology has been used to mint tokens quicker, with companies such as Aavegotchi and Ether Legends using the service to improve their effectiveness.
Famous Backers
When you research cryptocurrencies, you’ll notice that several of the main ones – and some smaller coins – have their share of famous backers. You don’t need to have Twitter to know all about Elon Musk’s support for Dogecoin, plus a selection of others. Meanwhile, YouTube star Logan Paul is embarking on a crypto project of his own.
In terms of famous backers, Chainlink is far from obscure in this respect. One of its advisors is Tom Gonser, who founded the online contract company DocuSign. Joining him is Jeff Weiner, who is currently the Executive Chairman of the social media giant LinkedIn.
Former Google CEO Eric Schmidt is also one of the Chainlink’s advisors.
In terms of companies, Chainlink has a lot of backing too. The company partnered with Google Cloud in 2019 and did likewise with Oracle. Other high-profile partners include Binance and Ethereum Classic.
How to Buy Chainlink
With a well-developed ecosystem, a clear company purpose, and several high-profile backers, you probably won’t be surprised to hear that you can purchase Chainlink from several platforms online.
When buying cryptocurrency, you’ve got two options. With the first, you can choose to purchase and own tokens outright. Alternatively, you can buy derivatives.
If you want to own your tokens, you’ll find numerous high-profile cryptocurrency exchanges. Once you purchase your coins, you’ll need to store them in a wallet to keep them safe. If you don’t want to deal with the technicalities of opening a wallet and transferring your coins, you can buy derivatives instead. Several brokers facilitate this, including eToro and Eightcap.
To show you how to buy your cryptocurrency from a broker, we’ll use eToro as an example:
Step 1: Create an Account and Verify it
Step 2: Search for LINK
Step 3: Confirm Your Order
How to Sell Chainlink
When you’re ready to sell your coins, you’ll find a whole host of places to do so. If you purchased the tokens, you could use a cryptocurrency exchange to move them on. You’ll need to transfer the money from your wallet to your account before submitting a selling order.
If you purchased derivatives, the platform you bought them from will allow you to sell them by going to the “Sell” option on the dedicated Chainlink page. For eToro, these are the steps you need to follow:
Step 1: Log into your eToro account.
Step 2: Go to the Chainlink page and select SELL.
Step 3: Choose how much you’d like to sell in LINK.
Step 4: Confirm the transaction.
Alternative Ways to Invest in Chainlink
The most common ways to invest in cryptocurrencies are by using cryptocurrency exchanges and brokers. However, they’re not the only options.
If you’ve already invested in larger cryptocurrencies like Bitcoin, you’ll know that you can pick from several options. These include trusts, ETFs, and mutual funds.
Chainlink has a number of alternative ways to invest, too – and we’ve listed these below.
Cryptocurrency Wallets and Apps:
If you have a cryptocurrency wallet, you might not even need to transfer your coins to the exchange. Instead, many apps allow you to directly change your crypto for another currency. This removes many of the fees related to buying and selling on brokers and exchanges.
ETFs:
Chainlink has a Grayscale fund that you can invest in, and doing so will remove much of the legwork you’d otherwise need to put in. The Chainlink Grayscale fund has more than $4 million worth of assets under its management.
Mutual Funds:
Mutual funds involve people who believe in a particular asset and are willing to contribute money to a pool. Once the money is in a portfolio, the managers will aim to generate a profit.
Is It Safe to Invest in Chainlink Right Now?
One of Chainlink’s core values is security, and it has gained the trust of some of the world’s largest companies. On top of that, its cryptocurrency is available in several reputable places online.
No form of online investing is 100% safe, even if you choose a well-known exchange or broker. However, sticking to the best – such as those we’ve mentioned in this list – will give you the best possible chance of staying safe while investing in LINK.
You can also take extra measures to improve your levels of protection. We’ve listed some of the most important ones below.
Make sure that you enable two-factor authentication (2FA) on your wallets and accounts. Doing so will add an additional layer of security.
Never keep your coins in your exchange account. If a breach occurs, you could lose your money and have no way of recovering it.
If possible, try to use a cold wallet. These require offline verification, making it more difficult for a hacker to get to your tokens.
Always stick to official websites and forums when asking for help. Never click on suspicious links, and discard and report any emails you think fall into this category.
Never pass on more than is necessary during the KYC checks. You’ll never be asked for your bank login details, card PIN numbers, and so on.
Be very careful when visiting websites. Make sure it has a lock next to the address, and beware of typos.
