in Chainlink (LINK)
Some crypto coins go through good periods where the price pumps and everyone gets excited about the project. But is Chainlink a good project with solid fundamentals?
The value proposition of Chainlink is that it will be used as a payment mechanism to support a network of decentralized oracles (oracles are data feeds that connect blockchains to off-blockchain data). Is this a service that the crypto ecosystem needs? And if so, does the Chainlink LINK token capture that value?
Let’s have a look and decide for ourselves if Chainlink is a good project and how to buy Chainlink.
Should I Buy Chainlink?
It’s becoming increasingly obvious that there is a real need for a decentralized oracle in the crypto ecosystem. On Black Thursday the price of Bitcoin collapsed by more than 50%, as did the price of many alt coins. That also included Ethereum, which went from $180 to $95 in the space of just 20 hours.
The result was a mass liquidation of Maker DAO loans as the value of the collateral (ETH) dropped so quickly that traders didn’t have enough time to add more collateral before they were liquidated.
However, there was a silver lining for a few traders on the edge of being liquidated. Maker DAO’s oracle failed to update as it should have done (owing at least in part to high gas prices on the Ethereum network) which caused the price of Ethereum (within the Maker DAO ecosystem) to appear higher than it actually was.
That bug saved hundreds of CDPs from being liquidated while at the same time proving that just when accurate pricing information is most important, an oracle can fail. Had the oracle feed failed in the opposite direction, hundreds of loan holders would have been wiped out even though they had enough collateral to back their positions.
Maker DAO’s failure is just one example of how traditional price feed oracles can fail while Chainlink keeps on working. Even in the good times, it’s essential to have a decentralized oracle as this ensures that no powerful organization or individual can tamper with price feeds to benefit themselves.
Whether it’s maintaining a collateralized loan or getting accurate prices for a DEX, a decentralized oracle is a big step toward creating a robust, tamper-proof blockchain system.
Then there is also the real need to bring off-chain data into crypto. There could be any number of examples; weather data, commodity prices, stock prices, football scores, manufacturing data, etc.
Chainlink is a brilliant project in that it will allow any and all data to be brought on-chain in a decentralized manner so that no single authority can corrupt the figures.
There is a real need for a project like Chainlink which can help to explain its continued rise in price (Google demonstrating Chainlink’s capabilities doesn’t hurt either).
Also Chainlink holders will soon be able to stake their LINK tokens on the network, which should improve the tokenomics of LINK, as a far greater percentage of the token supply will be locked up, instead of sitting liquid on exchanges.
If you’d like to know more about Chainlink including its roadmap, the team behind the project, how LINK staking works, etc. we’ve written a full Chainlink review so
that you can learn more about LINK.
How to Buy Chainlink (If you already have crypto)
If you already have some cryptocurrency then acquiring Chainlink is simple! The first thing to do is download the Exodus wallet as this will allow you to directly exchange another cryptocurrency for LINK.
After downloading Exodus you can follow these steps to make a simple swap into the LINK token from the cryptocurrency that you wish to sell.
How to Buy Chainlink with bank account
Whether your bank account is denominated in USD, EUR or GBP, Exodus can also help you buy LINK with fiat currency.
Through a collaboration with MoonPay, Exodus enables European, British and Brazilian customers to buy Chainlink via their bank accounts. As with the other options outlined above, you are given the opportunity to select this form of payment by clicking on the ‘buy crypto’ icon.
Click here for a full, easy-to-follow breakdown on how to buy LINK with your bank account.
How to buy Chainlink on Coinbase
While Coinbase has a somewhat controversial reputation due to their expensive fees and admission that customer funds may be at risk if the company ever goes bankrupt, they remain one of the most popular onboarding platforms for new & inexperienced crypto investors.
In terms of how to buy Chainlink on Coinbase, it’s pretty simple and intuitive. But the problem is that once you have bought your LINK tokens, it’s not advisable to leave them on the exchange, or any custodial exchange for that matter.
If you use a bank account to buy Chainlink on Coinbase, the price of LINK will be locked in at that time but you won’t be able to withdraw the coins to another exchange or your Exodus wallet for up to five days.
Chainlink Price (where to check LINK price)
If you’d like to keep track of the Chainlink price one of the easiest ways to do so is through the Exodus crypto price pages. Unlike CoinMarketCap which can appear somewhat crowded (and riddled with questionable advertisements), the Exodus charts are clean, easy to navigate and are a great way to find out the latest LINK price from your desktop or phone.
Chainlink Wallet (Where to Store Chainlink)
Unfortunately hacks are common in the cryptocurrency space with more than $4 billion worth of crypto having been stolen in 2019 alone. If you’re planning to buy LINK it’s critical that you store it securely. That’s where the Exodus Chainlink wallet comes in.
With the Chainlink wallet it’s possible to not only safely send, receive and store LINK, but also exchange it for other cryptocurrencies directly from the wallet.
So if you know how to buy Chainlink, and have bought LINK that you’d like to keep safe, consider the Exodus Chainlink wallet as one of the best solutions around.
This content is for informational purposes only and is not investment advice. You should consult a qualified licensed advisor before engaging in any transaction.