Chainlink (LINK) - All you need to know

Learn all about Chainlink and its native cryptocurrency. Use this page to find beginner-friendly information and guides on how to get started with the coin.
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Updated: Jan 26, 2022

Sign up with a cryptocurrency broker or cryptocurrency exchange to give you the widest range of options. From there, you can decide on an investing strategy that works for you. Trade coins quickly or hold them for the long term, depending on how soon you want to see results.

If you want to dive deeper, read on to learn various other options that you have. The links below direct you to individual pages which provide more details on how to navigate the process.

Chainlink is a bridge that links blockchain platforms to real-world data. Contracts created on the blockchain often rely on up to date information, like stock market prices or exchange rates, and Chainlink uses a network of individuals to source it. The LINK cryptocurrency is used to pay for this data and as a reward to those who provide it.

The blockchain features a lot of ‘smart contracts’: binding contracts that are triggered by a certain condition. An example might be a contract to sell a stock if it’s price hits £100. For this to work, the stock price data needs to be accurate at all times, which is where Chainlink comes in.

Formed in 2017, it’s already widely used in the realm of decentralised finance. Two leading platforms, Yearn Finance and AAVE, were early adopters. As was Google, which uses it to create crypto data sets.

Chainlink works by using groups of individuals instead of a central search engine. These users are known as ‘oracles’, and put up their computing power to respond to a data request as soon as it’s made. They stake LINK as collateral on the reliability of the information and assuming it meets expectations, they’re paid a fee.

The whole process involves a series of contracts stored on Chainlink’s own blockchain, and at the end, each oracle is given a rating based on how well it met the brief. The higher score, the better, and as only the ones with the top scores are chosen for future searches, it incentivises the best possible performance.

There are lots of different ways to invest in cryptocurrency, depending on your budget, timeframe, and level of experience. Here’s a list of some of the ways to get involved:

1
Min. Deposit
$10
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User Score
10
Accepts customers from the USA
Deposit $100 and get a $10 bonus!* Build a diversified portfolio with crypto, stocks, and ETFs — all in one place.
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Description:
eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.
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Bank Transfer, Wire Transfer
Full regulations list:
CySEC, FCA
Cryptoasset investing is unregulated in some EU countries. No consumer protection. Your capital is at risk.
2
Min. Deposit
$0
Promotion
User Score
9.3
No Hidden Fees
Instant Trading
Secure & Transparent
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Description:
World's longest-standing crypto exchange. Since 2011 Bitstamp has been providing a secure and reliable trading venue to over four million individuals and a range of institutional partners.
Payment Methods
Full regulations list:
3
Min. Deposit
$1
Promotion
User Score
8.7
0% deposit fees, 0% withdrawal fees, 0% trading commissions
Set up automated trades and up to 50 limit orders with ease
Buy and sell 90+ cryptos and utility tokens, precious metals and national currencies with as little as $1
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Description:
Create your account in minutes and start trading 90+ cryptos and other assets on the most flexible trading platform.
Payment Methods
Full regulations list:
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Sources & references
Risk disclaimer

Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >

James Knight
Editor of Education
James is a lead content editor for Invezz. He's an avid trader and golfer, who spends an inordinate amount of time watching Leicester City and the… read more.