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Chainlink (LINK) for Dummies: A starter’s guide 

 July 14, 2021

By  Brian Forester

Oracle cryptocurrency is a third-party service that entwines off-chain and in-chain information. Chainlink (LINK) is a one-of-a-kind oracle cryptocurrency. What makes it stand out is that Chainlink increases the value of other cryptocurrencies instead of competing with them. In simple terms, they serve each other as node operators. This article will shed light on its unique features, explain how to buy Chainlink, create an account, choose among various wallet services, and give some investment advice based on my experience.

How to Buy Chainlink Link: Brief summary

Here is how the process or CHainlink purchase goes down:

  • Choose a suitable wallet for Chainlink (LINK) such as Ledger or Exodus,
  • Determine your Chainlink (LINK) address,
  • Create an account at Binance,
  • Buy Chainlink, using crypto or a credit card,
  • Withdraw your Chainlink LINK or leave them on Binance if you want to do some trading.

Here is some essential information on how to buy Chainlink (LINK). See the review and the instruction below for more details.

1. What is Chainlink?

If our aim is to find out what LINK is, we need to understand the principles of the blockchain network, which serves it as a base. In this particular case, it is Chainlink. Chainlink is a dispersed network. In plain language, blockchain is specifically designed to supply safe data sources to cryptocurrencies.

Intentionally, blockchains can only supply data from on-chain information to prevent tampering along with other risks. Here we have to deal with smart contracts agreements between a buyer and a seller written in the code. But what happens when smart contracts are in search of off-chain data? How can we exchange various information such as fiat exchange rates, weather, or all possible kinds of “external” data feeds? The answer is: by using oracle networks that are able to help contracts by recovering from off-chain sources and bringing them to on-chain.

After giving the definition of blockchain, we define the main purpose of oracle networks-to store, calculate and use both chain and off-chain data all around the world, deal with smart contracts and be a reliable source of information without putting it at risk.

2. The Usage of Chainlink’s link

The LINK’s token is made to motivate participants of the Chainlink network to provide reliable data outside the chain.

There are approximately one billion LINK tokens in total with the following distribution:     

  • Around 350 million (35%) belong to investors
  • Around 350 million (35%) encourage network operators   
  • Around 300 million (30%) are assigned to the team for their further development.

3. How to purchase Chainlink Tokens

Step 1: Choose a Chainlink-compatible wallet

In order to buy Chainlink and keep it for a long time, you must choose a suitable wallet service to stock cryptocurrencies. As Chainlink is classified as an Ethereum-based token, several wallet services support it. The classification with detailed information is below.

  • Chainlink Hardware Wallets

The best way to store your LINK is in a hardware wallet– it will never put cryptocurrencies at risk. Hardware wallets are physical devices, which store users’ data offline. This means that as long as you’re holding your hardware wallet, nobody can intrude upon your privacy via the internet.

Ledger hardware wallets allow you to safely store LINK and offer a variety of digital currencies. There are two main models to choose from – the Nano S and the Nano X. The latter is more up-to-date, and what is more, it helps you to control the account via your laptop and cell phone. Ledger Nano X video overview

TREZOR Model T is another acknowledged hardware wallet. For more details, watch my video overview.

  • Chainlink Software Wallets

Exodus is a blockchain asset wallet with one of the best web apps. It is no wonder it is one of the most popular services of trading: it is one of the most popular services, as it has been downloaded over 4 million times and supports over 100 cryptocurrencies and tokens, including LINK and Bitcoin. Exodus has an implanted cryptocurrency exchange, which enables users to switch between crypto assets rapidly.

Coinomi is an acknowledged crypto wallet that is completely free of charge and is able to support Ethereum-based tokens such as LINK. It’s available for users of all platforms, including iOS, Android, and desktop.

Zeno is a simplified cryptocurrency wallet that supports LINK as well as Bitcoin, Tezos, Ethereum, and other Ethereum assets. Zeno is the world’s first gratuitous, non-custodial, keyless wallet, offering convenience without trading fees. It is available for users of iOS and Android and includes an in-app buy feature.

  • Locate Your LINK Address

When your wallet is ready to use, you’ll need to define your LINK address. LINK is an ERC-20-type token, so its address will look exactly like a typical Ethereum one– it’ll represent a long random chain of letters and numbers, which must have “0x” in the beginning.

For example: 0xa332840759909c958623c0fe4hh53e431a135378

Step 2: DIscover a LINK Exchange

 Binance is one of the largest and most popular cryptocurrency exchanges all over the world, known for its great marketability. You can buy LINK on Binance with every cryptocurrency the exchange supports or buy it instantly using a credit card. Please keep in mind that credit card purchases have a higher price for their services. My review on Binance is here.

CEX.io Is a regulated trading platform created in 2013? Here you can buy LINK directly using a credit card or buy it using fiat currencies such as EUR, GBP, USD, or USDT after making a deposit. Once again – don’t forget about the price. You can use a credit card, Skrill, bank transfer, or ACH payment. The overview

Kraken’s tentacles date all the way back to 2011, making them one of the long-lasting cryptocurrency exchanges in the world. You can buy LINK on Kraken using any cryptocurrency or with fiat currency after depositing SWIFT, SEPA, or wire transfers within the country. The overview

Step 3: Withdrawn your LINK Tokens

After buying your Chainlink tokens, you will probably want to transfer them from the platform into your account for safekeeping. To do this, find your LINK wallet address as mentioned in Step 1 above, and send your tokens to that address from the exchange.  This way, you’ll have complete control over your LINK, with peace of mind that nobody can put them at risk.

3. Summing Up

In plain language, as the cryptocurrency & blockchain trading ecosystem expands year by year and the number of brokers and crypto traders grows, Chainlink continues to develop with them to provide the needed real-world data. As it has a tendency to add value to other projects in place of directly competing, Chainlink doesn’t seem to be going anywhere anytime soon. If Chainlink goes on to play the part of the oracle network in the cryptocurrency ecosystem, it may continue to see steady growth and recognition.  

Have you ever had any experience with Chainlink? Share it in the comments below.

FAQs

How do I buy chainlink stock?

Read this detailed review. All the answers are given, as well as the algorithm. You need to choose the appropriate wallet and cryptocurrency service that meets your needs, as it was described above.

Will chainlink reach  $100?

Apparently not in the present time. According to the forecast, it is going to reach $100 by 2025. But still, one hundred dollars is quite an ambitious amount. Now it is usually sold in the range of $30-35. The chainlink was launched in 2014.

Is chainlink worth buying?

It depends on what investments you are interested in. If you are looking for short-term investments, it is a good idea. The price is expected to climb about 100 percent in the next 6 months. In three years’ time, it might triple.

Is Chainlink a good investment in 2021?

It surely is (look up the previous answer). Despite the devastating impact of the pandemic on masses of people worldwide, some individuals and brokers have managed to build up their assets and collect considerable sums of money which they surely would like to invest. While the world market has been fluctuating with peaks and plummets, the confidence investors have in all crypto has increased accordingly, placing the Chainlink platform among the top investments in 2021.

Brian Forester


Brian is an experienced journalist and crypto enthusiast. Founder of CryptoCurry - famed for his insightful input on the future of cryptocurrencies and blockchain technologies.

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