Chainlink (LINK) is a token that has utility outside the crypto world and enjoys widespread acceptance within the DeFi community. Its founders, Sergey Nazarov, Steve Ellis, and Dr. Ari Juels, intended to create a unique network that can integrate real-world data into smart contracts and secure billions of dollars. This is a comprehensive guide on Chainlink and all you need to purchase it securely.
Best brokers to buy Chainlink in 2021
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More than 3,000 assets, including currencies, stocks, cryptocurrencies, ETFs, indices and commodities
CFDs are complex instruments and, because of the leverage they provide, there is a high risk of losing money quickly. 72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
What is the difference between buying and trading Chainlink?
Like other cryptocurrencies, Chainlink is a digital currency and an asset. So, other than using it as a means of exchanging and storing value, you can buy and trade it. Let’s investigate the differences between buying and trading the token.
Buying Chainlink: This refers to the process of spending fiat currency or crypto to own the LINK tokens. It works well if you have a compatible digital wallet where you can store your Chainlink.
Trading Chainlink: Chainlink trading refers to the act of speculating the token’s price movements via CDF trading accounts. It can also mean buying and selling the token via an exchange for profit.
How to buy Chainlink online
You can buy Chainlink via an exchange, brokerage, or peer-to-peer platform. Some leading exchanges that sell this digital asset are Binance, Coinbase Pro, OKEx, and BitMart. Swap services such as Swapzone and Changehero also allow you to acquire Chainlink. Here are the steps you should follow:
Find the best exchange: Crypto exchanges are not created equal. You should choose one that guarantees the safety of your funds and your data. Most users who choose exchanges that adhere to anti-money laundering laws get quality service. These platforms typically require their clients to go through Know Your Customer (KYC) verification procedures to qualify to access their services. Users should also consider whether their preferred exchanges are available in their locations, support their local currency, and charge reasonable fees.
Sign up and fund a purchase: Once you’ve chosen the best exchange, click the sign-up button and provide the required information. Verify the account and set up two-factor authentication to take your safety to the next level. At this point, you can connect the account with your preferred payment option.You can consider options such as credit cards, direct bank transfers, PayPal, and cryptocurrency. Please remember that you should look up the fees associated with each of the available payment methods. After adding your payment method, load your exchange from your account. Once that is done, your account balance should reflect the deposit.
Make a purchase: Some cryptocurrency exchanges have a similar level of features as stock brokerages. They offer market and limit orders. Others also come with stop-loss, stop-limit, take-profit, and more. Study these features to understand how they can improve your purchase experience. After that, enter the amount you are willing to spend and confirm the transaction details. Make the order and wait for the tokens to arrive in your wallet. Depending on your order type, you can receive it instantly. Make sure your wallet is secure. Some exchanges have built-in wallets. Since they are not the safest, you should consider using cold wallets to store your LINK tokens.
How to trade Chainlink?
As a Chainlink trader, you should speculate prices and carry out detailed technical analysis. You can opt to work with platforms that offer trading instruments like CFDs (contract for differences) and spread betting. Read on for the exact steps you should follow to trade Chainlink.
Find an online broker: Online brokers are best known as platforms for trading certain cryptos, including Chainlink. However, your choice of brokerage can determine the difference between your trading success and failure. If you choose a credible broker, you can make small deposits and use leverage trading. The platform can also give you learning opportunities that empower you to use their trading tools with ease. It would be safer if you worked with a licensed broker. Before you start trading, we recommend that you set up a demo account to help you practice trading.
Deposit money: Once you have found the right trading platform and verified your account, add your payment method. Choose the cheapest option to maximize your profits. Moreover, if possible, choose a platform that accepts your local currency. This is the right way to avoid currency conversion charges. Follow your broker’s instructions to deposit the funds into your trading account.
Decide how to trade (CFDs, spread betting): You should know what sets CFDs and spread betting apart to make the right decision on how to trade your Chainlink. If you want a very short-term financial contract that pays out the differences in the settlement price between the closing and open trades, you should opt for CDF. You can choose spread betting if you are ready to place a bet on the crypto’s price movement and earn based on your wager’s accuracy.
What are the different ways to pay for Chainlink?
The ideal way of payment depends on your exchange. Some crypto exchanges accept a wide assortment of payment methods. Others have forged partnerships with only a few options so they limit your choices.
Credit cards: This payment method is popular due to the convenience it offers. You can use credit cards whenever you are on a tight budget and want to borrow funds against a line of credit. Before using your credit cards, find out from your bank whether they allow crypto purchases. If they do, establish whether your trading platform supports your preferred mode of payment.
Debit cards: Debit cards are more cost-effective and accessible than credit cards since they are not credit facilities. The use of credit cards requires you to have funds in your bank account. Save for transaction limits that banks impose and lack of anonymity, debit cards are secure, easy to use, and support speedy transactions. Since most banks support this mode of payment, it is a great option if your exchange accepts it.
PayPal: PayPal allows you to purchase some cryptos. Unfortunately, it doesn’t support Chainlink yet. This means youshould find an exchange that supports Paypal as a payment mode. However, there are other less costly alternatives.
Bank transfer: This is an excellent method for purchasing Chainlink since it’s relatively cheap. It’s ideal for sending and receiving your funds through a broker. Nonetheless, it takes time to deposit funds in exchanges and won’t serve your needs when you want to purchase LINK tokens instantly.
What to consider when buying Chainlink
People buy Chainlink for varying reasons. A short-term link trader might have different priorities from a long-term trader. That means you should consider several factors when buying the token. Here are some of the leading factors you should consider:
Deposit fees: Check the fee schedule of a trading platform for deposit fees. Some exchanges allow users to deposit for free for a given period. Overall, the deposit fees should help you have a picture of the cost of the service.
Trading fees: Trading fees also differ from one exchange to another. Some of the platforms tier the payment in a way that rewards large transactions and active trading. Some of them charge flat rates, while others express the cost as a percentage.
Volatility: Like other cryptocurrencies, LINK is volatile. Political, economic, and social factors may influence the value of this crypto. Before buying it, you should evaluate past and current trends to forecast the future trend.
Regulations: In the UK, the Financial Conduct Authority (FCA) has assumed oversight over AML and CTF (counter-terrorism financing). They are regulating the use of cryptos, including LINK tokens. The US Securities and Exchange and other institutions are also doing this. When buying Chainlink, you should find out the possible impact of the regulations on the asset, e.g., taxes.
Long-term holding (HODL): This trading strategy involves purchasing and holding tokens for a long period with the hope of making huge profits. It capitalizes on the asset’s volatility. HODL is a highly viable trading method. However, it’s time-consuming. Moreover, it exposes your resources to great risk since there is no perfect way to forecast the future of LINK.
Short-term holding: If market indicators show that the token’s value is set to increase for the short term, you can purchase the coin. Remember that if you get this strategy wrong, you still risk losing some or all of the money.
Is it safe to buy Chainlink online?
There are many security threats online. Buy crypto from regulated cryptocurrency exchanges and store your coins in a secure wallet. Most exchanges offer wallets for their users. However, you should never store a substantial amount of crypto in those wallets due to security reasons. It’s safer to use hardware wallets since they store your coins in offline environments where hackers can’t access them. Seek support from official sources only. Never click on suspicious links in your email.
After creating your trading account and providing the mandatory KYC verification details, activate 2FA authentication. This will make it hard for those who don’t have the two forms of verifying your credentials from accessing your account.
How to store Chainlink
We’ve explained why it’s essential to store your coins in a secure and compatible wallet. It would help if you also had a wallet that doesn’t cost you a lot. Some great options are available for free. Here are the two main categories of LINK wallets:
Hot wallets: These wallets are connected to the internet. Some of them are part of websites. You can also find apps that serve the same function and are connected to the internet. Examples of hot wallets that are compatible with Chainlink are:
Cold wallets: Examples of wallets that store LINK in an offline environment (cold wallets) are:
Ledger Nano S/X
How to sell Chainlink
There are several ways to sell Chainlink. Here are some of them:
Once you choose a credible crypto exchange that can buy your crypto, find out whether it will give you the crypto or fiat currency you want. You can then follow these steps to sell your Chainlink:
Create an exchange account and verify it
Load the link from your secure wallet to the exchange
Place a sell order
Confirm the transaction
For traders to sell their LINK tokens on a broker platform, they should wait for their sell conditions to be met. The time this transaction takes varies depending on the market conditions.
Sell in person
You can sell LINK for cash in person. This will involve sending the tokens to the buyer in exchange for a cash payment. We recommend the use of an escrow service to avoid getting scammed.
Is it worth buying Chainlink right now?
If your decision is based on objective market analysis and extensive experience, it’s worth it. Remember, prices are highly volatile, so you must be prepared to take some risks no matter when you purchase.
Buying and trading Chainlink is relatively easy. These tokens are listed on popular cryptocurrency exchanges like Coinbase and Binance. If you have any crypto on these platforms, you can exchange them for LINK tokens with ease. Alternatively, you can use fiat currency to pay via a brokerage. For long term investment, store the LINK on a cold wallet.
Can I buy Chainlink in any country?
Yes, due to the widespread adoption of crypto, you can buy link tokens in any country. If your country has not fully embraced the token, you should research the easiest way to buy it locally.
Is there a limit to how many Chainlink I can buy?
No, there’s no known set limit currently. You can buy as manyLINK tokens as you like.
Can I buy Chainlink without an ID?
Yes, you can buy Chainlink without an ID if you find an individual or exchange that’s ready to accept your offer. However, to increase your safety you should try to work with platforms that follow the KYC verification procedure.
Can I buy Chainlink instantly?
It’s possible to buy Chainlink instantly. Choose a crypto exchange that offers instant services.
What is Chainlink?
Chainlink is open-source crypto that incentivises a global computer network to offer real-world data to smart contracts.
How does Chainlink work?
Chainlink users draft a service-level agreement, and the software uses it to match the user with the required oracles. The users submit the agreement and deposit their tokens. The oracle then connects with external sources and gathers the requested real-world data. The contract finally aggregates the result and returns a weighted score to the user.