The layer 2 Ethereum scaling solution attracted a lot of attention last month, leading to cryptocurrency enthusiasts asking if OmiseGO is a good investment. According to data from CoinGecko, the OMG token made a higher low by bouncing off from support, meaning that it is finally headed for newer highs.
Since now is the perfect chance to buy OMG at a discount, investors are looking to invest in the token but they do not understand it enough. But no worries, in this article I will try to explain OmiseGO so that even a complete beginner can understand it. The first step towards being an expert trader and investor is to understand what you are buying, so let me first explain what OmiseGO is and how it works.
What is OmiseGO?
OmiseGO is an Ethreum layer 2 scaling solution that solves problems such as low transaction throughput and high fees. The protocol delivers low-cost P2P transactions across a variety of applications, asset classes, and locations, making it the perfect choice for leveraging smart contract technology.
With the help of its Layer 2 Plasma architecture, the OMG network offers a powerful ecosystem where developers can create scalable and decentralized dApps. You can also access and manage any kind of cryptocurrency via the OMG Network. And all of this can be done without compromising the security and stability of Ethereum.
Businesses can adopt OmiseGO for various reasons. The OMG Network enables companies to create loyalty programs where they issue and manage ‘loyalty points’ across their businesses. By using OMG, they can manage loyalty points faster compared to other solutions while at the same time reducing frauds, operation costs, and development costs.
Another notable set of features that the OMG Network offers to businesses are payments and settlements. Via OMG, businesses reduce transaction costs by utilizing blockchain-based digital currencies. They can offer instant or timed payments to both customers and clients along supply chains.
Last but not least, OMG is a powerful solution for open-banking and finance. By creating financial services online and connecting with 3rd-party entities, businesses can provide value-add solutions. For example, a client can potentially reach open banking requirements while at the same time onboarding customers who think long-term.
Simply put, OmiseGO is a perfect option for clients and customers who desire fast, cheap, and secure transactions on the Ethereum network. The OMG network is open to all sorts of developers that can create dApps and trustless assets. Another notable feature of OMG is that it is eco-friendly. The protocol claims to reduce electricity usage by 99% per transaction compared to Ethereum.
Apart from regular businesses and users, OmiseGo is a perfect solution for enterprise-level use cases as well. OMG is the only production-ready L2 scaling solution for the Ethereum network and the only one to provide an Enterprise-specific solution via Plasma. The team also focused on making OMG easy to use and learn by creating and optimizing APIs that suit the needs of all kinds of users.
Is OmiseGo (OMG) a Good Investment?
The OMG Network is a perfect scaling solution for the Ethereum network that can lead to massive adoption amongst businesses, users, and enterprise companies. But what does the OMG token do and why should you invest in it? Basically, the OMG token serves for all payments and transactions on the scaling solution’s network. Therefore, any business or merchant that participates on the OMG network will have the ability to accept or send payments via OMG, and that’s one of the features that makes OmisgeGO (OMG) a good investment. But there’s much more.
The token is also used to secure the project’s public and permissionless Proof of Stake (PoS) network. The primary use case is to be exchanged in transactions on a crypto-to-crypto or crypto-to-fiat basis. Since the network is based on the PoS consensus mechanism users will have to stake OMG to secure the platform. Since this requires the tokens to be basically locked for a longer period of time, the protocol financially rewards all holders that stake.
OMG holders can also create a stream of passive income by validating the network. Every time a block is validated correctly, the holder receives the tx fees that the block earned. This is a healthy alternative to mining as users do not waste money on electricity or require strong hardware.
Essentially, the OMG token derives its value through adoption. Just like any other utility token, the cryptocurrency will increase in price as more users utilize the OMG protocol. If OmiseGO becomes the primary scaling solution for Ethereum, then investors can expect a hefty increase in the price of OMG.
Do note that OmiseGO does not only have speculative value. If you decide to use your OMG tokens to stake or validate blocks, you can earn money on the side. This means that you can, as time passes, increase your stack and have more tokens than what you initially bought. This makes OMG a perfect choice for those who cannot afford to immediately purchase a large number of tokens.
Now that I explained what makes OmiseGO a good investment, it is the perfect time to find out how to buy the token. You will find out more about where and how to buy the OMG token by reading the guide below.
Where to buy OmiseGo?
Investing in new cryptocurrencies may seem easy, but it is harder than people think. Of course, all you need to do to invest is set the amount of money you wish to spend and click the ‘buy’ button, but is that really the case? Serious investors need to take their investments seriously. And to do that, you must carefully consider where you invest and how.
Depending on what exchange you use, you may ultimately seal the fate of your investments. Therefore it is super important to pick an exchange that respects all of the basic requirements. This includes a large number of supported tokens, an easy registration process, limited KYC data, and low fees. During my time researching where one can buy OMG, I discovered one exchange that fits all of my criteria.
Coinuma may very well be the best exchange where both beginner and professional investors can trade. The platform requires almost no KYC information and has a 3-minute registration process. Furthermore, this is one of the few exchanges to offer inverse fees. What does that mean? You earn money by actively trading. Since you bring liquidity to the exchange, you earn a certain percentage of the maker fees.
As this will be the first time that you trade on Coinuma, I prepared a detailed and easy to follow guide. First, I will start by creating an account on Coinuma, followed by depositing Bitcoin and buying OMG on the trading platform.
Creating a Coinuma account
To register an account on Coinuma you only have to follow three simple steps. First, visit Coinuma.com and go to the registration page. You will find this page by clicking on the ‘Start Now’ button. There, the exchange will only request two kinds of information: email and password. To make sure your account is safe, think of a highly secure password that consists of numerous letters and numbers.
Click on register and Coinuma will inform you that it sent you an email. The email contains a verification link that you must visit to confirm your account. After you do that, you can finally log into your account by using the previously typed email and password. See? That only took a few minutes. And do not worry, trading is not harder at all compared to this.
Funding your Coinuma Account
Before you trade, you must transfer some of your cryptocurrencies to your new Coinuma account. If you do not own any cryptocurrencies, you will have to purchase either Bitcoin or USDT from another exchange.
You can also do this by creating an account on a peer-to-peer exchange or by using a nearby Bitcoin ATM. After you have bought your assets, open your wallet and head over to the ‘Finances’ tab on Coinuma.
There, you will have to locate either Bitcoin or Tether. These are the only two assets that Coinuma supports for trading OMG. A majority of the assets at Coinuma mostly have a BTC or USDT trading pair. If you bought Bitcoin, you should find the BTC section and click on ‘deposit.’
A unique BTC address will pop up, which you need to copy and paste into your wallet’s withdrawal process. Depending on the level of network activity, you will have to wait anywhere between two to ten minutes for miners to confirm the transaction. After that, your funds will appear.
Buying OMG With Bitcoin
Now is finally the moment to invest in OMG! To buy the token, click on the trading tab and find the OMG/BTC trading pair. Note that all trading pairs are located on the left part of the screen. If you have trouble finding it, visit the following link. After the new trading screen appears, you will see the current price of one OMG token.
At this point, you have probably decided what amount of BTC to spend. Under the trading pairs section, you will also find the part where you can create orders. Here, input the amount of BTC you wish to spend and the amount of OMG tokens you receive will pop up. You can also buy more OMG by selecting a limit order and setting a lower buying price. But be careful, if the price continues to grow your order may not be filled. After deciding what to do, click the ‘BUY’ button and your order will be filled in the meantime.
Now that you completed all of these steps you finally own OMG. You do not have to ask yourself any longer if OmiseGO is a good investment as you can just watch the price progress during the next weeks. You will see how much of a great decision you made by seeing the price rise!
After reading this article, you finally understood what makes OmiseGo a good investment and how you can profit from it by verifying blocks. Moreover, you also learned about Coinuma and how it works. If you wish, you can continue your trading journey via Coinuma as it is one of the most effective exchanges to trade on. There is no reason not to use the platform now that you learned how to use it, especially since you already know that you get rewarded by placing orders! Go ahead and check out the various assets supported at Coinuma, I assure you that you will be amazed by the sheer number.