Buy Chainlink (LINK): 3 simple steps to buy Chainlink

Chainlink (LINK) is in the fast lane. Buying Chainlink is worthwhile - especially with the current low prices. The question is where best to make the investment. In 2021, there are a number of crypto platforms that deliver different pricing models and investment forms in the cryptocurrency - as a beginner, it is easy to lose track here.

In the following article, we therefore provide everything you need to know about Chainlink. What should you consider when choosing the right broker or exchange, where is the cheapest way to buy Chainlink and what else should you look out for? These and other questions are answered succinctly in our Chainlink guide.

What is Chainlink?

Chainlink is a decentralised Oracle network that helps drive tokenisation and enables blockchain systems to communicate with other systems outside the blockchain. It is precisely in the area of tokenisation that we will see strong growth in the future, which is what makes Chainlink such an attractive investment in its still quite early start-up phase.

With a current value of just under €11.79, Chainlink has enormous growth potential to offer at the beginning of 2021, ahead of most other cryptocurrencies by quite a bit. Experts even estimate that Chainlink will break the $100 barrier in subsequent years and even has the potential to grow further.

Chainlink (LINK)

Chainlink key data

Key data

Chainlink

Name / symbol

Chainlink (LINK)

Chainlink website

chain.link

Chainlink provider

eToro, coinbase, Binance, Libertex

Chainlink founder

Sergey Nazarov and Steve Ellis

Chainlink start

2017

How are Chainlink and LINK related?

The LINK token is the native token in the Chainlink ecosystem. It is used to control the incentive system on the platform. Node operators make their data feeds, APIs or other inputs available as oracles for smart contracts and can monetise them by receiving LINK tokens - provided a smart contract request has been successfully answered.

Contract creators or smart contracts themselves, on the other hand, need a credit balance of LINK tokens in order to be able to pay a small usage fee for using the oracles or the Chainlink network. The more LINK tokens a node operator holds or uses, the more it is rewarded for successfully serving a request. The holding of LINK tokens by node operators is also desirable for the network because fewer LINK tokens are in circulation and thus their price increases.

Buy Chainlink: Broker comparison

etoro

Trade real cryptos and crypto CFDs
Licensed broker with deposit protection
Integrated wallet

libretex

Broker fully regulated
Numerous awards
Libertex experience for more than twenty years

binance

Huge selection of coins
Fair fees
Solid support

coinbasesd
Large selection of coins
Established exchange
One of the first on the market
kraken
Many cryptos to choose from
High security
Integrated trading tools

Differences between Chainlink CFD Brokers and Chainlink Exchanges

Chainlink CFD Broker

Pros

  •    State regulates broker and secures deposits
  •     Wallet at the broker, therefore no own link wallet necessary
  •     Trading with leverage effect possible
  •     Different options for deposits and withdrawals
  •     Mobile trading thanks to Android & iOS apps
  •     Use with demo account possible

Cons

  •    Investor only acquires certificate, no real ownership of Chainlink
  •     There may be a margin call obligation
  •     Investment associated with significant risk

Chainlink stock exchanges

Pros

  •    Investor really gets hold of Chainlink
  •     Investor can make first experiences with cryptocurrencies
  •     Large range of different cryptocurrencies
  •     (partly) trades can be made with leverage effect
  •     (partly) apps for Android & iOS also allow trading from smartphone or tablet
  •     Losses cannot exceed initial investment amount, limited to purchase (no obligation to make additional payments)

Cons

  •    Stock exchange is not audited by the state
  •     Deposits at the exchange are not covered by the state
  •     Frequent and popular target of cyberattacks
  •     Speculative, high-risk investment

Here's how real LINK and LINK CFDs differ.

If there are two ways you can buy Chainlink, there are obviously two different types of cryptocurrency:

    If you want to trade "real" LINK, you do it on LINK exchanges.
    If, on the other hand, you want to trade LINK CFDs, i.e. financial instruments that are linked to the LINK price, then you do so with LINK brokers.

Here are the advantages and disadvantages of both types of investment:

LINK CFD

Pros

  •    Trading at lower fees
  •     government supervision and safeguarding of deposits offers protection in the event of hacks
  •     No need for cumbersome configuration of a wallet
        Trading with leverage (= leverage effect)

Cons

  •     you do not really own LINK
  •     Fees are relatively high for long-term holdings
  •     High risk: when trading with leverage, you have to make additional payments in the event of losses.

Real LINK

Pros

  •     Acquired real LINK can be stored in the investor's own wallet
  •     Investor soon becomes an experienced crypto trader
  •     Long-term investors benefit here from lower fees in comparison

Cons

  •    Frequent target of hackers
  •     Investors must manage the keys of the wallet themselves. If they are lost, this can mean that the cryptocurrencies in the wallet are lost forever.
  •     Only the use of paper or hardware wallets is a secure option.

How Chainlink works: What problem does LINK aim to solve and what is LINK needed for?

There is a general problem with the way smart contracts work: due to their closed nature, a smart contract cannot access data stored outside the blockchain ("off-chain") (input) or pass on data (output). However, this data is always required when it comes to executing smart contracts.
Smart contracts refer to code implemented on the blockchain that is automatically executed whenever a certain event or predefined condition occurs. Ethereum was the first blockchain designed specifically for the execution of smart contracts. Blockchains that are smart contract-enabled are also called second-generation blockchains.
While oracles solve the problem of data input to the blockchain, there is again a big problem with traditional oracles: they are operated and maintained by a centralised provider. What may be easier to manage is a big problem for the security of a blockchain: because even if entries on the blockchain are immutable - the blockchain is only as secure as its weakest link - the Oracle or Oracle node.
oracles solve

A centralised Oracle, which acts as the only data input, could be used to abuse or manipulate the blockchain network, for example, deliberately by the operator or by hacking from the outside. A smart contract can only recognise that such a condition is fulfilled through externally transmitted data, which is why blockchain networks must be fed with external data via so-called oracles. An Oracle is a data feed for a Blockchain network.

which acts as the only

To solve this problem, it is necessary to use several decentrally operated oracles whose input can be used, compared with each other and then the validity of an input can be confirmed through weighted comparison. Only after this comparison is the input determined to be valid used as the trigger for programmed smart contracts. This is precisely the solution Chainlink is striving for with its blockchain.

But Chainlink also solves another problem. Although it is mostly about oracles and data input for smart contracts, smart contracts are also dependent on suitable outputs to transmit their results due to their closed nature. This usually involves accepted payment methods, which allows smart contracts to trigger payment transactions. Chainlink also connects smart contracts to such suitable outputs.

necessary to use several

In summary, Chainlink is a blockchain middleware that provides both a decentralised, highly reliable network of oracles and a means of transmitting key payment outputs from smart contracts to external APIs. Chainlink brokers the appropriate connected Oracles to the requesting smart contracts and charges a small fee in LINK tokens for this.

The LINK token is the central means of the incentive system in the Chainlink ecosystem, which is intended to ensure that numerous Oracles provide valid inputs and that requesting developers or users can always be connected to the suitable Oracles.

blockchain middleware

Chainlink fees: What does it cost to buy Chainlink?

The fees differ from provider to provider. It is important to find the right offer here. In addition to the regular transaction costs, potential investors should also look at other price factors, such as withdrawal fees.

In general, the fee models differ in that brokers do not charge transaction fees, as crypto exchanges do. Instead, brokers get paid through the spreads of the prices.

It remains to be said that investors who want to invest larger amounts with exchanges should definitely get a hardware wallet, for which costs are also incurred.

Chainlink development: Price trend over the last few years

Buying Chainlink If you want to buy Chainlink, the first step is to find out about the currency's potential. To do this, it is helpful to educate yourself about the currency's performance to date - this has been characterised by a rapid upward trend. After its release at the end of 2017, Chainlink has already established itself as one of the most lucrative cryptocurrencies.

With a current price of just under 11.79 euros and a total market capitalisation of over 4.79 billion euros, Chainlink is considered the tenth strongest cryptocurrency in a global comparison. The potential uses and future security are promising. Below is a brief insight into the young history of the cryptocurrency.

Time Course   

Share price development

September 2014   

The first traces go back to 2014, when the company SmartContract.com was looking for a bridge between external data and the blockchain.

September 2017

To solve the self-inflicted "Oracle Problem", the company decided to build the Chainlink network. To do this, founders Sergey Nazarov and Steve Ellis launched an Initial Coin Offering (ICO) in September 2017, which raised $32 million. The number of tokens was reduced to one billion LINK tokens, of which almost 400 million are still in circulation. The initial price was just 0.11 US dollars.

July 2019   

 
Chainlink continues to rise slowly but steadily. On 3 July 2019, the currency reaches its first peak at just under 3.82 US dollars.

August 2020

After a short downward phase, Chainlink reaches the highest result in its young history so far. On 17 August 2020, the currency reached a value of 19.85 US dollars. Anyone who had struck in the ICOs just 3 years earlier and sold at that point would have made more than a 180-fold profit.

Chainlink today   

After a descent, the price is currently the equivalent of 11.79 euros. The meteoric rise of bitcoin has made it clear that it makes sense to invest in the early days in order to profit from later price increases.

Should you use a Chainlink Wallet?

Investors have several options to profitably enter into Chainlink trading:

    If you want to own the real token, you have to buy Chainlink on a crypto exchange. For security reasons, it is advisable to store the tokens in a hardware wallet afterwards.
    On the other hand, if you are not interested in the cryptocurrency, but only want to profit from the price trend, you can easily invest in CFDs. As a positive side effect, no separate wallet is necessary for this, as it is only a question of a price trend.
use a Chainlink Wallet

How does Chainlink mining work?

With Chainlink, it is not possible to do your own mining to earn tokens. When the blockchain was launched, a total of 1,000,000,000 LINK tokens were created, 350,000,000 of which were available for public sale at the Initial Coin Offering.

The number of LINK tokens has therefore already been fully determined, although this is also referred to as "pre-mined", no more LINK tokens will be created. Anyone who wants to receive LINK tokens must either purchase them on an exchange or earn them as a node operator by providing data.
Chainlink mining work

Buy Chainlink for beginners in 3 steps

So that all sounds good. But how and where is the best way to buy Chainlink?

Step 1: Registration

The first step to Chainlink is to choose the right broker or crypto exchange. To make it as easy and cost-effective as possible for beginners to trade Chainlink, it is advisable to use a trading platform like eToro instead of a crypto exchange.

The choice of products is offered at favourable conditions, which are unbeatable in combination. Furthermore, the deposit and withdrawal options are far greater than with a crypto exchange.

To register, all you have to do is fill out the registration form on the provider's homepage. This includes name, email address and the creation of a secure password.

Step 2: Demo account & account landing

Once you have registered with eToro, the first step is to test the demo account extensively in order to try out trading with Chainlink completely risk-free and without obligation. Only when you have familiarised yourself with the user interface should you load your real money account in the next step.

At eToro, cryptocurrencies such as Chainlink can be easily purchased via a variety of payment methods. The most common methods include Sepa, credit card, SOFORT, PayPal and a variety of eWallets.

The minimum amount of €100 also does not carry a high risk. Particularly noteworthy here is the purchase with PayPal, as this is not possible with most other providers.

Payment options:

Payment method

Possible

Buy Chainlink with bank transfer

ok

Buy Chainlink with a credit card 

ok

Buy Chainlink with Neteller

ok

Buy Chainlink with Skrill

ok

Buy Chainlink with PayPal

ok

Buy Chainlink with online banking

ok

Buy Chainlink with Rapid Transfer

ok

Buy Chainlink with Sofort

ok

Buy Chainlink with a debit card

ok

Step 3: Buy Chainlink with credit card, instant transfer and more

As soon as the money has been received in the eToro trading account, Chainlink can be purchased at favourable conditions. To do so, simply find Chainlink using the search bar at the top of the screen:

After clicking on "Trade", the purchase screen opens. Here you can enter the desired purchase amount. Then just click on "Open trade" and the trade is completed:

Bitcoin Cash Miningd

Broker or stock exchange: Where is the best place to buy Chainlink?

In our experience, beginners are best off with a traditional broker, as here not only is the selection of financial instruments the largest, but the menu is also structured in a user-friendly way and customer service is always available in most cases, which is not always the case with a crypto exchange.

At eToro, for example, support is available in English and can be contacted via email or live chat. Furthermore, beginners do not have to commit to cryptocurrencies alone, but have a rich selection of financial instruments at their disposal. This can be advantageous for the later course of an investor's career, if one wants to diversify further through a larger portfolio.

CFD trading

With a broker, investors do not buy the currency, but instead trade CFDs. CFD stands for Contract for Difference and simply means that investors can profit from price movements through a derivative, but without owning the actual token. Investors who are willing to take risks can use leverage to boost the potential returns many times over.

CFD trading

Advantages and disadvantages of a Chainlink investment

So as you can see, Chainlink seems to be a very promising new cryptocurrency. However, there are not only advantages of an investment. Here are all the positive and negative points once again at a glance:

Pros:

  •    Low price at the moment
  •     High growth potential
  •     Future-proof digital currency
  •     Opens up new possibilities for tokenisation

Cons:

  • Trading in cryptocurrencies is always associated with a risk of loss
  • Chainlink is currently heavily dependent on individual corporations such as SWIFT and Google

Tips for buying cryptocurrencies

Tip 1: Find out about technologies and projects in the background before buying.

Tip 2: Choose a suitable trading platform (stock exchange or broker)

Tip 3: Never invest more than you are prepared to lose.

Tip 4: Remember: you can lose everything or win a lot

Tip 5: Do not pay attention to the media, but do your own research

Tip 6: Distribute: Never put everything on a single coin or token

Tip 7: Compare: Trading fees often make profits melt away

Tip 8: Define a trading strategy and follow it consistently

Tip 9: Stay calm: Short-term price drops are normal

Tip 10: Do not share private keys and passwords with anyone

New crypto study sees Bitcoin at $318,417 by 2025

Our conclusion: buy LNK or not

 Buying Chainlink is worthwhile!  We hope that this article has given potential investors a brief overview of Chainlink. Where should you buy Chainlink? Buying coins on the crypto exchange is only recommended for the sort of investor who wants to get to grips with the blockchain more intensively.

The majority of people are not interested in the Coin itself, but invest primarily for profit - and here CFDs more than pay off. Not only do you save on storage through paid wallets, but you can also use leverage to boost profits even further.

Since Chainlink is still relatively new, not many brokers or exchanges offer the currency. eToro is therefore one of the first and few providers on the market where you can buy Chainlink even as a beginner.

Here, there is a favourable offer, a user-friendly trading platform and a first-class customer service in German. In addition, users can expect a free demo account with which all functions can first be tested without any risk.
1

No matter which type of investment is chosen, investors should be aware that despite the good prospects for the future, losses cannot be ruled out with one hundred percent certainty. Therefore, it is important to invest only the money that is completely at one's disposal.

FAQ

How can I buy Chainlink?

Chainlink can be bought either from crypto exchanges like Binance or from brokers like eToro.

What is the difference between a broker and an exchange?

A broker can be described as an intermediary service or middleman that trades on the exchange on behalf of investors. Thus, brokers act as a kind of link between investors and exchanges. On crypto exchanges, trading is not done with prices, but with coins.

Will the Chainlink value rise in the future?

According to expert opinions, there is strong growth potential in the coming years, which could multiply the current Chainlink value.

Can I use my Bitcoin wallet for Chainlink?

Chainlink can be stored in Ethereum wallets like any other ERC-20 token, such as the Ledger Nano S or a web wallet, if the amount is not significantly high.

Buy Chainlink at eToro. A good idea?

Buying Chainlink at eToro will most likely pay off. Those who want to take more risk can even use the provider's leverage function to achieve even higher returns.

About the author

Hi there, my name is Zalman Weinberg. I'm enthusiast with over 7 years of experience in cryptocurrencies and blockchain. Professional Trader providing Blockchain solutions to Startups and Enterprises. Expert in all cryptocurrency exchange APIs (BitMEX, Bittrex, Binance, Bitfinex, Kraken, Poloniex, Gdax etc.). I have also worked with multiple Forex broker APIs.