Is Chainlink (LINK) a Good Investment?
Investors are highly intrigued if Chainlink (LINK) is a good investment given that the LINK token practically exploded this year. With an ICO price ranging between 10 and 20 cents, the asset reached $20 after 3 years. Now, many speculated that LINK might reach even higher prices. Since the token retraced, now might be the perfect opportunity to invest.
Here, I will explain the importance of decentralized oracle solutions such as Chainlink and what it means for the entire blockchain industry. Moreover, I will also showcase what makes Chainlink a good investment and where you can buy it. In the end, expect a short but simple guide that shows you how to buy LINK. If interested, you can go right ahead and learn more about Chainlink in the section below.
What is Chainlink?
Created by a team of highly ambitious blockchain developers, Chainlink is a decentralized oracle solution that solved the ‘oracle problem.’ In the blockchain industry, the oracle problem is an issue where off-chain data cannot be reliably tracked on blockchain networks and vice versa. To solve this, the team created decentralized oracles that accurately and consistently track various kinds of pieces of information. For example, Chainlink’s main products are price feeds. This is a special kind of oracle that tracks and aggregates prices across multiple networks.
Chainlink is blockchain agnostic, meaning that it will support any kind of network willing to use their products and services. On that account, Chainlink managed to integrate its price feeds and other decentralized products into various cryptocurrencies via partnerships. After three years of development, this project is finally the leading decentralized oracle blockchain solution.
But the team, led by Sergey Nazarov, did not stop at that. In the future, Nazarov seeks to implement Chainlink nodes and decentralized oracles into almost any platform you can imagine. Starting from the simplest DeFi and crypto platforms up to major enterprise companies seeking to connect their data to the blockchain. This ambitious task might lead to Chainlink capturing multiple billion and trillion dollars worth of legacy industries.
The seriousness, dedication, and envisioned goals of the team can be seen in the project’s partnerships. For example, the main Chinese blockchain infrastructure project called Blockchain Service Network (BSN) partnered with Chainlink this year. Via this partnership, Nazarov’s decentralized oracles will track transactions across the entirety of China’s blockchain data highway. As the only oracle solution chosen by the BSN, it becomes clear that Chainlink is already a dominant solution in at least one country.
On another note, the LINK token is not only great as a speculative asset. In the near future, the team plans to feature staking. Staking is a process where users lend their tokens for various reasons. In the case of Chainlink, holders can stake LINK tokens as a form of collateral for finishing data tracking tasks as a decentralized oracle node. Therefore, not only will you earn from investing in a speculative asset, but you will also have a chance to earn passive income. This might be the token’s best selling point as the entire protocol relies on LINK tokens being used as a collateral asset.
Is Chainlink (LINK) a Good Investment?
As I explained before, the Chainlink team progressed far in the past few years. The project transformed from an unknown decentralized oracle solution to a top 10 cryptocurrency. But investors are troubled by this fact as they believe that they already missed out on a great investment opportunity. But is that really the case?
It is true that the LINK token’s value increased by a significant margin in the last year. Nevertheless, there is still a lot of speculative value behind this token. Some experts even believe that we are far away from the price reaching a ceiling. While I do not plan to explicitly state the potential prices, you can do your own research and see what the community believes to be the true value of LINK.
But I can share one thing that can prove that there is still a lot of room left for growth and that LINK is still a good investment. The secret of LINK’s value lies in its use case. As I explained, LINK tokens will be used for staking in the near future. By staking, holders collateralize their assets to track and report accurate data for various tasks. Since the collateralized assets remain locked until the task is finished, it is impossible to sell the tokens. Therefore, staking will negate a significant percentage of selling pressure. Moreover, a lot of these tasks can turn out to last for weeks, if not months.
On that account, it is more than possible that a great deal of the LINK circulating supply can disappear from the market. With fewer tokens in circulation, the price will naturally rise. And since more investors will seek to stake the tokens, this will drive an additional source of demand. All in all, it is relatively simple to answer why LINK is a good investment.
The token has a special utility that cannot be found anywhere else. And if Chainlink holds a ‘monopoly’ over decentralized oracles, it will completely dominate a highly valuable market in the blockchain industry.
Where to buy Chainlink (LINK)?
Now that you finally understand the real value of Chainlink, it is time to invest in the LINK token. To trade without any problems, all you have to do is find a beginner-friendly crypto exchange. But doing that is not as easy as it sounds. Most exchanges are terrible to deal with even if you are an experienced trader. For someone new to the market, trading on exchanges such as Kraken, Binance, or BitMEX might turn into a nightmare.
To save you from a headache, I decided to analyze the updated list of exchanges that support Chainlink (LINK). During my researching journey, I discovered one trading platform that stands out with its features and capabilities.
Coinuma is a cryptocurrency exchange based in Europe that focuses on simple and fast trading. The platform basically pays you to bring liquidity with the help of inverse means. Every time you make a trade, you will be rewarded. Moreover, Coinuma is a great long-term platform as the exchange lists the newest and most popular projects in the crypto market. You can find anything starting from older tokens to new DeFi tokens.
Since you probably never traded on Coinuma, I will show you exactly how to start out. In the guide below, I wrote a step-by-step guide that shows you how to create an account, deposit funds, and ultimately invest in LINK. It only takes a few minutes to complete all the steps so let us start right away!
Registering a Coinuma Account
The first step towards investing in Chainlink is creating an account at Coinuma. To do so, visit the official website and head over to the registration page. There, the exchange will ask you for two simple things, an email and a password. Once you complete the registration process, all you need to do is visit your email provider and check for any new mail.
As soon as you registered, Coinuma should have sent you an email through which you can verify your account. Click on the email and subsequently the verification link. Now, your account should be verified and you can finally log in. This marks the end of registering on Coinuma and you are ready to trade. But before you do that, you have to transfer money to your account first.
Making Your First Deposit
Before you buy Chainlink (LINK), you have to transfer cryptocurrencies to your funding account first. Do so by visiting the ‘Finances’ tab at the top part of your screen and the exchange will redirect you to the deposit and withdraw page. There, select the asset you want to transfer by clicking on ‘Deposit.’ Note that Coinuma only supports cryptocurrencies at the current time. You cannot transfer fiat currencies or buy crypto directly with a credit or debit card.
If you have assets on another wallet, open it and click on withdraw and paste the address Coinuma provided you with. In this case, you must transfer either BTC or USDT as these are the only LINK trading pairs. After transferring the assets, wait a couple of minutes and you will find your old assets on your new Coinuma exchange.
In the case that you do not have any cryptocurrencies at all, this might be a little bit trickier. To finish this step created an account on any P2P or centralized exchange that supports fiat currencies. There, you can buy Bitcoin with euros or dollars and send them to Coinuma. A simple solution would be to avoid an intermediary by buying crypto directly from a Bitcoin ATM. Once you complete this step, it is time to trade your Bitcoin or Tether for LINK on Coinuma.
Investing in Chainlink (LINK) on Coinuma
You are really close to becoming a proud LINK owner. This is the last step of this guide and similarly to the previous steps, it only takes a few minutes to get to know the interface better. From the previous ‘Finances’ page, switch over to the main trading homepage. There, you will encounter everything that you need to trade.
If the interface confuses you, let me dissect it bit by bit. On the left part of your screen, you have a list of crypto trading pairs. There, type LINK in the search box and select either LINK/BTC or LINK/USDT. A new chart will load up with your preferred tokens. For easier accessibility, you can visit this link to trade directly.
From this point, set the amount of USDT or BTC you wish to spend and click on the ‘BUY’ button. Either choose a market or limit order based on whatever you want to buy LINK at the current price or a lower one. If you pick a market order, it will fill instantly. Otherwise, you will have to wait until someone sells LINK at your desired price. See? This was not hard at all. After completing these three easy steps you are finally a LINK holder. You may also refer to yourself as a ‘link marine,’ a famous moniker in the Chainlink community.
Congratulations, now you finally own LINK! In this guide, I explain what Chainlink is, how it works, and how you can earn passive income from staking. So remember, not only will you speculate on LINK, but you will also have the chance to earn passive income in the near future. So if anyone asks if Chainlink is a good investment, you know how to answer.
Additionally, I also informed you about how to buy LINK and where. In this guide, I picked Coinuma as the easiest and simplest option for beginners. The exchange is not difficult to use at all, as you have seen. It has several great trading features, including inverse fees. Therefore, if you want an exchange that pays you to trade while at the same time you do not have to provide any detailed KYC information, Coinuma is a perfect choice!