What Is Chainlink And How To Buy Chain Link Cryptocurrency – Full Review
Cryptocurrency has taken over the digital world that so many firms and investors now use it as a very secure means of investing and they are so many digital token that one can Invest. Link is another powerful Cryptocurrency that has gain popularity recently and have been gaining strength In the the Crypto market.
ChainLink is a decentralized oracle network that provides real-world data to smart contracts on the blockchain. LINK is the digital asset token used to pay for services on the network.
To understand the benefits of ChainLink and how it functions, you need to understand some fundamental, interconnected concepts. Let’s start with smart contracts.
Smart contracts are pre-specified agreements on the blockchain that evaluate information and automatically execute when certain conditions are met. Crowdfunding is a good example: if a certain amount of Ether is deposited into a smart contract by a certain date, then payment will be released to the fundraiser — if it is not, then payment will be returned to donors.
Because smart contracts exist on a blockchain, they are immutable (can’t be changed) and verifiable (everyone can see them), guaranteeing a high level of trust among parties that they accurately reflect the stated parameters of the agreement and will execute if, and only if, those parameters are met.
Link, which is currently worth about $19, has gained about 418% since July 1, 2020, when it was trading around $4.55. Chainlink (link) is pushing closer to the $20 threshold and solidifying itself in the number five position for the most valuable cryptocurrencies ranked by market capitalization.
Sometimes when the price of crypto-assets increase overtime, it gets to a point when the bubble will burst and almost all assets will experience price correction. The less mature the crypto asset and the weaker the fundamentals, the sharper the correction will be.
We don’t believe that Chain link is overvalued. Compared to 2017, DeFi tokens are nowhere close to being as overvalued as mainstream crypto assets like BTC and ETH. However, there is a strong level of caution among investors.
Quick fact: According To Nairametrics Defi means “decentralized finance”. It is a crypto ecosystem made up of financial apps designed on leading blockchain platforms.
These digital assets are designed on Ethereum codes, and usually exhibit characteristics that include having protocols and financial smart contracts.
Chainlink is a blockchain that is designed to bridge the space between blockchain technology-based smart contracts (created by ETH), and other user programs.
Chainlink is traded at so called exchanges. Exchanges are platforms that allow the exchange of fiat currencies such as Dollars or Euros against digital currencies. Besides exchanges, there are so called broker services, which aim to facilitate the buying process for non-experts. These brokers allow the purchase of Chainlink at a fixed price and often feature more payment solutions and are easier to use for beginners.
Look out for the following conditions before you select a marketplace to buy Chainlink:
- Fees: Exchanges usually charge a relatively low trading fee between 0.1 and 0.3 percent on every trade, whereas broker services usually charge higher buying fees of up to 10 percent. Besides trading fees there are often fees for deposits and withdrawals.
- Verification: Most exchanges and broker services require you to verify your identity before you can start depositing fiat currencies like Dollars or Euros. The verification methods vary among different providers, but usually you will be required to upload a copy of your passport (or other identity document) and a valid proof of residence (e.g. a utility bill). The verification process may take between 10 minutes (using video conferencing tools) and several weeks.
- Payment Methods: To buy Bitcoin, Ethereum or other currencies you need to deposit money on a marketplace. Most exchanges only offer you the possibility to deposit money using wire transfer, which can take up to 5 days. Broker services, however, often offer additional payment methods such as VISA or MasterCard at an additional payment fee.
- Security: Security also plays a major role when trading cryptocurrencies- There have already been several hacks of cryptocurrency marketplaces. Cryptoradar helps you filter providers by offered security features such as 2FA, cold storage or multisig wallets. We also encourage you to not keep significant amounts of fiat or digital currencies on exchanges as these might be affected in case of an hack.
Best Crypto Exchanges
Know that Chainlink is a crypto token that you can Purchase without fear for security and availability, let look at some Top Rated Exchanges Where you can easily Purchase Chainlink without stress.
- Coinbase and Coinbase Pro: Best Overall
- Cash App: Best for Beginners
- Binance: Best for Altcoins
- Bisq: Best Decentralized Exchange
We’ve gotten to the end of this blog post hope you’ve been able to understand the full meaning of Chainlink and how it works, share your thoughts with us On our comment section.