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How to buy Chainlink (LINK) online
This beginner’s guide is an introduction to the LINK token. Learn why it plays such a big role in Chainlink’s process and where you can go to find some.
Compare where to buy Chainlink, and open an account
If you want to go ahead and buy right away, the brokers below are some of the best platforms to use. If you want to take your time to make a considered decision, read on to learn more about how it all works.
How to buy LINK online – a step-by-step guide
Step 1. Find an exchange
Exchanges are usually the best place to find cryptocurrency. The right one for you depends on your level of experience, your time frame, and the sort of coins you’re interested in. What’s available can vary quite significantly between exchanges, but they are some of the best places to buy LINK coins. Two of the top exchanges worth looking at are:
- Binance: The top exchange by market volume, you can trade hundreds of different cryptocurrencies on Binance. It now offers a lite version of its app for beginners. Sign up with Binance >
- BitPanda: BitPanda accepts fiat currency and offers quite a wide range of tokens. It’s ideal for beginners thanks to an interface that’s very simple to use. Join BitPanda now >
Step 2. Sign up and fund your account
Before you can start trading you need to set up an account. Keep contact details and a form of photo ID to hand and it should be a quick and easy process.
Some exchanges accept deposits in fiat currency (like GBP, USD, or EUR), while others only accept cryptocurrency to fund the account.
Step 3. Purchase
To find any coin you need to search for its ticker symbol on your chosen exchange. In this case, the ticker is LINK. If your account is funded with USD, look for the LINK/USD pair to execute the trade.
Step 4. (Optional) Get a suitable wallet
The best place to store your new coins is in a cryptocurrency wallet. Wallets are a way of keeping your coins secure by protecting them with a private key that only you know. There are different wallets available depending on the level of security you’re looking for, but a couple of the top ones around are:
- BitLox: BitLox is a hardware wallet with extensive security features, including multiple pins to access your coins and validate new transactions. Join BitLox now >
- Ledger Nano S: Another hardware wallet, the Ledger Nano S is like a USB stick that stores your coins. You can connect it to your computer with a cable, but the coins remain safe even if the PC is infected. Get the Ledger Nano S today >
How to trade Chainlink – a step-by-step guide
Step 1. Find a broker
To trade a cryptocurrency you want to find a reliable broker with no (or low) trading fees. A key aspect of trading is opening and closing a lot of positions quickly, and you don’t want to be restricted on how much you can trade, or pay through the nose for every one.
Step 2. Deposit money
You have to use fiat currency to fund a broker account. You might also be charged a fee to do this, as many brokers charge for deposits as well as withdrawals.
Step 3. Decide how you’d like to trade
The most common way to trade cryptocurrency is using CFDs. These are contracts for difference, and a way of betting on the price of a coin without owning it outright. You can use CFDs for other assets as well, it’s particularly popular as a way for retail investors to trade stocks, and as such you’re able to do it on all the top broker platforms.
Step 4. Start trading
Before you start trading for real it might be worth considering a demo account. You can usually access this feature in the settings of your broker account and it’s a way of trading the market with fake money, rather than putting your own capital at risk.
Demo accounts can be a good way for beginners to get to grips with the market and understand how it all works. You can learn when to take a long (buy) position on a coin and when it’s best to short (sell) it.
There are other trading strategies available once you gather more experience. The most popular is trading with leverage, which is when you put up a small portion of the overall trade value as a deposit. You borrow the rest from your broker to make a bigger trade than you could otherwise afford. Be warned though, you can see big losses using this strategy just as easily as big wins.
Don’t worry if you can’t make up your mind. Below is a summary of some pros and cons of investing, followed by some more questions to help you decide.
- It plays a vital connecting role in the blockchain network to the outside world
- It’s already used by established companies both inside and outside the blockchain
- The LINK token is a vital part of how the system works, so it should always be in demand
Finally, these are three more questions to think about before you invest in Chainlink.
1. Is it a good time to buy Chainlink?
It depends on whether you’re in for the long haul or just looking to trade it quickly to try to make a quick profit. If you’re positive about its prospects and have a long term vision, then it’s better to get started sooner rather than later.
As for short term traders, there are a few more factors at play. You should consider the current price of Chainlink and whether it looks like a good opportunity, and think about using some tools and charts to predict how that price is likely to move. Here is some of our own market analysis to help you:
Chainlink (LINK) price analysis for April
Up or down? Chainlink (LINK) price prediction for April
Chainlink (LINK) price prediction for January
2. What problem does Chainlink solve, and what are the coin’s investment prospects?
Chainlink solves the problems of blockchain networks being unable to access accurate real world data. It acts as a bridge between the two, and uses a mass of individuals rather than a central body so there is no single point of weakness in its system.
If the amount of blockchain networks continues to grow, Chainlink is well placed to benefit. As long as smart contracts exist and there’s demand for a link to the real world, there is going to be demand for its services. Plus it’s already established and has partnerships both within decentralised finance and with Google in the outside world.
Despite those positives, it’s always important to do your research before you make an investment. Cryptocurrency tends to move quickly, with new developments being introduced all the time. Use our latest news section below to keep up to speed:
Chainlink price movement: how has LINK’s value evolved and how can it perform?
LINK price forecast will the growth of the ecosystem lead LINK’s value forward?
Chainlink (LINK) gains around 10% amidst strong buying pressure
3. Do you want to hold Chainlink for the long term?
You can use Chainlink as an investment in ‘the blockchain’ as a whole, in which case it might be a good idea to hold for the long term. But the answer ultimately depends on what sort of investor you are, and we have some final tips here whether you’re in it for the long or short term.
Considerations for a long term investment strategy
If you want to hold some coins for the long term as you expect them to increase in value, the best thing to do is choose an exchange and get some straight away. You can then think about getting a wallet to store your new coins in.
Considerations for a short term trading strategy
If you want to make lots of trades quickly to try to make a small profit each time, you want to think about picking a broker that offers CFD trading. Think about working on your technical analysis skills to learn how to predict market moves.
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 >