If you are interested in buying any cryptocurrency, including Chainlink, using a trading platform with a track record of excellence and standard security is essential. eToro stands out among the best trading platforms to trade not only stocks and ETFs but also crypto assets. Trading cryptocurrencies such as Chainlink —the focus of today’s guide, comes with benefits.
Today’s article will provide sufficient insight into Chainlink, its relevance in the world of cryptocurrencies, and finally, how to buy it on eToro. You will also learn about eToro and why the trading platform is the best fit to buy and store Chainlink.
The Problem Chainlink Aims to Solve
Chainlink creation attempts to solve the interoperability problem of blockchain smart contracts. If you are not familiar with this already, the blockchain is a decentralized protocol that depends on a set of distributed ledgers that takes account of valid transactions. The growth in blockchain technology has seen several smart contract networks spring up, each trying to solve problems a previous one didn’t handle. Despite their attempts to bring up solutions, they seem to perform their functions independently in isolation, without trying to combine efforts to solve complex blockchain issues. Also, the isolation of each blockchain smart contract makes it nearly impossible for each one to transmit information they get from different sources, especially real-time external data.
What is Chainlink?
Chainlink is a decentralized protocol that enables blockchain networks, especially smart contracts to co-operate and interact, thereby sharing information and values about real-world situations amongst themselves. The Chainlink network, created in 2017, is an abstraction layer of the blockchain that provides the platform for smart contracts to connect and interact.
Using a decentralized oracle (independent entities) protocol to power its blockchain, Chainlink enables different blockchains to interact with payment methods, external information, and events that occur outside the blockchain in a seamless, secure and timely manner. The decentralized oracles collect data from several data providers and combine them to transmit a single data which the smart contract validates and executes. The protocol gives formerly isolated and data-starved blockchain the necessary off-chain ingredient to power smart contracts. It offers decentralized applications (DApps) on crypto markets and finances off-chain services, providing information on fiat currency rates, credit or debit card transactions, financial trends, etc.
The Chainlink ecosystem is powered by LINK, its native token. LINK has a current market capitalization of $3.81 billion, a total supply of 1 billion LINK coins, and a circulating supply of 491,599,970. The 1 billion benchmarks for LINK coins help to protect its holders from inflation at any point. The network is hosted on the Ethereum smart contract, using the same proof-of-stake (PoS) protocol the blockchain employs.
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Development in the Chainlink network is operated by its open-source, decentralized community of node operators, security auditors, data providers, and smart contract developers. The network aims to guarantee absolute decentralization for all parties contributing to the growth of the network.
Top Features of Chainlink
Free-hand is Given to Node Operators to Make Contributions
Chainlink network decentralization enables node operators to earn rewards for running the data infrastructure needed to power the blockchain’s smooth run. Chainlink uses a combination of the node operator’s work to run a broad range of decentralized data and price updates through its live oracle networks. It is this combination that helps power Decentralized Finance (DeFi) applications like Compound, and Aave, amongst others.
An Industry leader
Chainlink preserves its recognition as one of the foremost decentralized networks to enable off-chain data to integrate with smart contracts. Chainlink plays a crucial function in data processing run on the blockchain, with primary data providers looking to monitor their data. Chainlink has an array of trusted data providers who have become partners in information delivery. Some Chainlink data providers include Alpha Huobi, Brave New Coin, and Alpha Vantage.
Bridging The Gap Between External Data And Blockchain
Chainlink allows smart contracts to interact and access data that are not within the blockchain and those that are off-chain. The network allow these data get extracted without compromising the reliability and security of the blockchain.
How Does Chainlink Operate?
The process through which Chainlink aims to use decentralized oracles to collect and send data to smart contracts starts with a user sending out a contract containing a request for information. A notification is created instantly, and it becomes an event on the blockchain. After this, a series of smart contracts are preceded by a Chainlink Service Leverage Agreement (SLA). Below are the smart contracts that will launch following the SLA:
Reputation Contract
The Chainlink reputation contract ascertains the authenticity of an oracle. It studies each oracle’s history, searching for past modifications to confirm if it is accurate. The blockchain oracle gets a rank after the study is done, with the rank aiding the system assign the best network oracles to smart contracts.
Order-Matching Contract
The Requesting Contract receives the nodes within Chainlink for audit. If and when the request is granted the total nodes accepted will go through a configuration process, selecting nodes that can complete the request.
Aggregating Contract
In this final phase, incorrect data come under review. Once the system discovers no way to connect a piece of data to any smart contract, it deletes it from the system. The remaining data is stored in the blockchain and is open to search by anyone.
Purchasing Chainlink On eToro: The Best Cryptocurrency Trading Platform For Newbies
Several analysts believe that Chainlink technology solutions based on its decentralized oracle protocol are setting the pace as an industry standard. Whenever its acceptance becomes mainstream by investors and businesses, this will drive the price of the asset up significantly, making it attractive in the long term to buyers. Now that expectations are high, it is a recommendation that you use the eToro trading platform to purchase some units of LINK whenever you want to invest in the crypto asset.
Opening An Account With eToro
To open an account with eToro, you have to fulfill these criteria before being eligible for an account:
- You have to be 18 years and above
- Users have to live in a country where the eToro trading service is available
- Users need to have a device (smartphone or computer) connected to the internet
- A valid contact address (phone number) is required
- Users have to submit a valid email address to validate their account
Once you fulfill the above requirements, you can open an account with eToro. Here are the steps you should follow:
- Search the eToro website or app, and click to “Create an account”
- Enter a username you prefer and your email address, then set up a password you can remember. In the alternative, you can sign up using your google accounts or through your Facebook profile
- Read through eToro’s regulations: Terms and Conditions, Cookie Policy, and Privacy Policy. Tick yes in the boxes after you read through them to accept and proceed with the rest of your registration
- Click on the “Create Account” icon to make your account live
- Go to your mailbox and click on a link that eToro will send to you to verify your email address
Fill Up Your Personal Information Requirement
After creating an account with eToro, it is necessary to add your personal information to configure your account to show your investment level. eToro wants to know if you have the requisite skills needed to trade.
- Log into your account, click the “Complete Profile” icon to proceed
- Click to “Continue” after reading through the message that pops on the screen
- Input your personal information, such as your name, email address, date of birth, and gender. Make sure these details tally with your proof of identity
- Add your birthplace and country where you are a citizen
- Fill out the form to complete the test about your knowledge of investment
- Accept the trading platform’s Terms and Conditions
All information about yourself that you provide to the trading platform is not accessible to any user on the trading platform. The information you provide is subject to change anytime you deem it fit.
Verify Your Identity
Before you verify your identity on the eToro trading platform, you must verify your phone number too. From the user home page, go to your account settings, under the “Credentials” section, click on the “Verify” button, then input a valid phone number and tap on the “Send SMS” icon. From the SMS code sent to your number, copy and enter the code into the available space, click “Verify” and confirm that your phone number is linked with your account.
The next step is to verify other details of your account using your proof of identity. Proof of identity usually is a copy of your legal government-issued identity card, Drivers license, or any means recognized in your country. The identity card must contain these:
- Your full name
- Date of Birth
- An expiry date
- And a photograph carrying your facial identity
When you upload details of your identity, make sure they are clear and legible, so the details are well captured for the system to recognize.
Another verification process eToro requires is that you upload proof of your address. Proof of address should include details of the eToro account holder’s name and the date of the issue (within the last three months). You should check your details if they comply with these:
- Your name
- Date of address issue
- Current residential address
- Issuing regulatory authority
- Reference to the issuing regulatory authority (such as logo, website, or contact information)
A list of issued documents that eToro accepts includes those issued by a utility company, a judicial authority, a bank, and a government agency. You can send any of these documents as JPEG, screenshots, or PDF files. Below is a list of proof of address that you can pick from to submit:
- Bank or credit card statement
- Social insurance statement
- A Driver’s License or a State or National ID or a Residence permit
Bill (water, internet, gas, electricity, and telephone)
- Rental house official agreement with a government issue
- Government or council tax letter
What Not To Submit
Here is a list of documents that the eToro trading platform doesn’t accept from users to verify their accounts:
- Handwritten bills
- Receipts from the purchase of goods or services
- Insurance or pension-related documents
- Invoices
In case you use another language other than the English language, you can check to change options to your accepted language when submitting your documents.
Deposit Funds Into Your Account
Finally, now that your account is live and ready to function, you can make your first deposit into your account. The eToro trading platform allows an average deposit into an account for as low as $50. However, the country in which you live can determine whether your deposit would be higher, with users from some countries having to pay as high as $500 for a start.
eToro allows several payment gateways that you can pick, from PayPal to Skrill, Neteller, bank transfer, and credit and debit card, amongst others. To deposit into your account, you can choose from any payment method available in your country. Once you log into your account, find and click on the “Deposit Funds” button, then enter the amount you want to deposit, select the payment method and then confirm payment.
Buy Chainlink (LINK)
Buying LINK on eToro is straightforward. Once your deposit hits your account, head over to the homepage of your account; under “Trade Markets,” click on “Crypto”. All 24 crypto assets available for trading on eToro will appear. Click on LINK from among the cryptocurrencies on the list and then “Buy”. Input the number of units you want to buy, and then you will see the total amount to spend on them. Your account would receive a credit of the same amount after you click the buy option. Note that there are two options when buying cryptocurrencies on eToro: Trade and Order. Trade and Order respectively signal to buy an asset at its current market price and set up to buy at a particular target price later.
Why buy Chainlink (LINK) on eToro
- Social trading features are readily available. Newbie traders can copy trade from professionals in the trading markets
- The trading platform charges as low as 1% on trades
- It has educational resources available for both newbies and professionals who look to brush up their knowledge about the crypto markets
- eToro is a well-secure and regulated platform under regulatory authorities such as CySEC and FCA
- It receives 0% commission on trades
Conclusion
Chainlink coin, LINK, gets its value from enabling smart contracts to execute their activities on the Chainlink oracle protocol. The coin plays an integral role in moderating communication between all Chainlink user nodes, serving as the reward for their contributions to the growth of the network. Its growing acceptance among data providers gives users confidence that the price will only get higher. Given its strong talking points, buying the coin on a trusted platform seems the only way to gain from its continuous acceptance and growth. The eToro trading platform fits every requirement an investor needs to invest in LINK.
