Focused on real-world and blockchain connections, Chainlink is a popular decentralized project. But how does the ecosystem work, and is it worth buying the native token, LINK? Here’s everything you need to know, including where and how you can buy chainlink.
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What is Chainlink?
What is Chainlink? The decentralized oracle protocol differs from standard web3 projects. An oracle serves as a trusted source to bring real-world information, data, or validation into the digital world (e.g., applications or smart contracts).
In other words, Chainlink brings real-world data on-chain. Steve Ellis and Sergey Nazarov created Chainlink, the latter of which is the CEO of Chainlink Labs. Chainlink’ was ‘s development began in 2014 but wasn’t launched until 2017.
How does Chainlink work?
Chainlink is based on decentralized oracle networks (DONs). Basically, developers can plug into the Chainlink network and request oracle services.
Multiple nodes respond to the requests, retrieve the requested information for smart contracts, and receive LINK in return, Chainlink’s native coin. Chainlink uses multiple node operators to retrieve and verify the data to ensure data accuracy.
The network uses a consensus mechanism to verify the accuracy of the data provided by the node operators. Nodes collectively validate the data, and the majority consensus determines the final result.
Why is Chainlink popular?
Chainlink gained significant attention and adoption due to its specific focus on providing a secure and flexible decentralized oracle solution.
Chainlink’s approach, which involves a decentralized network of node operators and multiple levels of data verification, helped address some of the challenges associated with oracle reliability and security.
Chainlink vs. other cryptocurrencies
When it comes to the top cryptocurrencies by market cap, Chainlink ranks pretty high at 19, with a market cap of about $4 billion. As far as 24-hour trading volumes go, LINK is 12th, with a volume of $184 million.
Chainlink vs. Polkadot
Chainlink and Polkadot differ in a number of ways. While Chainlink is a decentralized oracle network, Polkadot is a “layer-0” protocol. In other words, Polkadot can facilitate interoperability between blockchains using the Substrate framework, while Chainlink can facilitate communication between APIs, data sources, and smart contracts.
Unlike a blockchain, Chainlink’s ecosytem is based on the applications that have integrated the Chainlnik decentralized oracle network. Here is a list of a few:
- The Graph
Because Chainlink’s LINK token is created using the ERC-20 standard, a multitude of wallets will accommodate LINK. Five of the leading choices include:
- MetaMask: A gateway to web3 and the entire Ethereum-based DApp ecosystem.
- Ledger: A leading hardware wallet manufacturer, all Ledger models support LINK.
- Trezor: Another strong hardware wallet contender and a Ledger alternative for those less impressed with the company following a tumultuous 2023.
- Trust Wallet: The official wallet of the Binance exchange, Trust Wallet is great for beginners and more experienced traders alike.
- SafePal: Another safe place to store your LINK, SafePal’s wallet includes solid hardware options as well as the X1, a new Bluetooth-supported open-source wallet.
By participating in LINK staking, users can earn rewards for helping to secure the network and maintain its integrity. The network utilizes competitive crowdsourced audits to ensure the codebase’s security.
Additionally, Chainlink staking incorporates a gso,overnance mechanism, allowing users to make decisions about upgrades, parameter changes, and other aspects of the network.
Where to buy LINK
Chainlink is a very popular protocol, and many exchanges list the native token LINK. Here are some good options:
Uniswap’s liquidity pools for LINK allowed us to perform direct token swaps efficiently — an aspect we found particularly appealing for its straightforwardness. Uniswap’s interface, while initially more complex than traditional exchanges, offered a unique and flexible trading experience once we got the hang of it. Overall, it is a pretty good alternative for buying LINK if you more inclined towards using DEXs — keep in mind, though, that the trading fees can sometimes be comparatively higher for small orders
Coinbase provided a streamlined and secure experience for our Chainlink transactions. Its user-friendly interface makes buying and selling LINK accessible, especially for those newer to crypto trading. We were impressed with Coinbase’s liquidity in LINK, which meant quick and reliable trade executions. If you are new to crypto or trading, the educational content on the platform can be really helpful.
Buying LINK on Kraken was a secure and comprehensive experience. We leveraged the platform’s advanced trading tools and diverse order types to optimize our LINK strategies. Kraken’s strong emphasis on security and regulatory compliance gave us confidence in the safety of our transactions. The platform’s detailed analytics tools were also crucial in informing our trading decisions.
In our experience, OKX stands out for its extensive range of trading options for Chainlink. The platform’s deep liquidity pools were key in facilitating efficient LINK trades. We found OKX’s interface to be a good mix of advanced functionality and user-friendliness, suitable for both experienced traders and newcomers.
Our experience with trading Chainlink on Binance was marked by high liquidity and a vast array of trading tools. We particularly liked the range of options available for LINK, from spot trading to futures and options. Binance’s user-friendly interface and advanced charting tools provided us with the necessary resources to execute informed trading strategies. Additionally, the Binance mobile app was an essential tool for monitoring our trades and responding to market changes promptly.
Using MoonPay for Chainlink transactions stood out for its simplicity and speed. The platform’s straightforward process for buying LINK was ideal for quick and hassle-free transactions. MoonPay’s focus on ease of use made it an excellent choice for direct purchases of Chainlink, especially for those prioritizing efficiency and convenience in their crypto dealings.
All of the exchanges listed above are recommended thanks to a solid industry standing. All are good options for purchasing LINK securely. If you’re a total beginner, it makes sense to choose one of the centralized exchanges, as they are slightly more intuitive than their DEX counterparts. However, to buy LINK anonymously, choose Uniswap.
How to buy chainlink
Here is a quick guide covering how to buy and sell chainlink using Coinbase.
How to buy chainlink
1. Firstly, open the Coinbase app and select trade. Look for LINK in the search box.
2. Secondly, select the “Buy” button and choose the amount you would like to purchase.
3. Lastly, press “Place Order” to complete your transaction.
How to buy chainlink with a credit card
- Choose a crypto exchange: Select an exchange that supports Chainlink (LINK) and accepts credit card payments. Popular exchanges like Binance, Coinbase, and Kraken often have this option.
- Create an account: Sign up for an account on the chosen exchange. This process usually requires providing some personal information and email verification.
- Verify your identity: Most exchanges require identity verification to comply with financial regulations. This process may involve submitting documents like a government-issued ID, passport, or driver’s license.
- Add your credit card: Link your credit card to your exchange account. This typically involves entering your card details and possibly verifying a small transaction.
- Deposit funds: Deposit funds into your exchange account using your credit card. Be aware of any fees that the exchange may charge for credit card use.
- Buy LINK: Once your account is funded, navigate to the trading section of the exchange. Select chainlink (LINK) as the crypto you want to buy, input the amount you wish to purchase, and execute the transaction.
- Transfer to a secure wallet (optional): For added security, consider transferring your chainlink tokens to a private wallet that you control, especially if you’re planning to hold them for a long time.
Remember, investing in cryptocurrencies can be risky, so it’s important to do your own research (DYOR) and consider your investment goals and risk tolerance. Additionally, buying cryptocurrencies with a credit card might incur additional fees and interest charges, so it’s wise to check these details with both your credit card provider and the crypto exchange.
How to sell chainlink
2. Secondly, under chainlink, press “Sell,” then choose the amount you want to sell.
3. Lastly, press “Place Order” to complete your purchase.
Chainlink: Should you buy into the hype?
So, is Chainlink’s native crypto worth an investment? Here are some things to consider before you decide whether to buy LINK.
- Wide adoption from multiple from TradFi to DeFi
- Diverse network of node operators to ensure data reliability
- Multiple other flagship services, such as Chainlink VRF and CCIP
- Diverse data sources
- Has a large market dominance in the oracle space
- Lack of crypto-economic punishment for malicious oracles
- Possibility of collusion amongst nodes
Is LINK a good investment for you?
If you are a venture capitalist or investor, then LINK might BE a good addition to your portfolio. The project has a clear use case and has secured significant adoption, both in web3 and traditional institutions. Furthermore, Chainlink has secured a large share of the oracle market, which is another good sign.
Lastly, the team behind Chainlink hasn’t stopped at simple price oracles. Instead, they have created other important services, such as verifiable random functions and cross-chain communication protocols. Holistically, the project looks solid, with good fundamentals in place. However, just because a project looks good on the surface does not necessarily mean it will make you money.
Only buy into projects you believe in, and be sure to determine your risk appetite and plan accordingly. As always, never invest more than you can afford to lose.
LINK price prediction 2023/2025/2030
If you are interested in investing in LINK, you might also want to check out our LINK price prediction. Our senior experts predict that the price of LINK will be $9.40 in 2023, $20.82 in 2025, and $217.07 in 2030. Note that these prices reflect possibilities as opposed to certainties. For LINK to reach these prices, adoption should continue, and the broader market must recover.
Is there a future for Chainlink?
Chainlink is a powerful protocol that many web3 applications rely on. The decentralized oracle network is the go-to blockchain-specific solution for connecting digital ecosystems with real-world information. As Chainlink expands, with more projects being built across blockchains, chainlink looks key to supplying data to web3 ecosystems in the future.
Frequently asked questions
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Top crypto platforms in the US | December 2023
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