EOS is a platform and cryptocurrency designed to help developers create decentralised apps (dApps). EOS has been called the Ethereum killer, but is the hype the be believed?
Compare where to buy EOS Coin, and open an account
Read on to find out more about EOS in 2020 or skip ahead to our step-by-step buyers guide if you’re up to speed and ready to buy EOS.
What is EOS?
EOS is blockchain-based smart contracts platform that offers developers the necessary tools for dApp creation and an easy to use interface. In theory at least, EOS could be an Ethereum killer because it can handle millions of transactions per second and it eliminates the need for micropayments. Developers are free to charge what they want, potentially putting an end to transaction fees.
However, EOS is one of those love it or hate it projects, and it’s not without its problems. The platform has champions and detractors and the EOS team has been in the firing line since they launched EOS back in 2018.
How does EOS work?
EOS uses a Proof-of-Stake algorithm, which has been blamed for some of the issues the cryptocurrency community has with the project. There are only twenty-one block producers verifying transactions, which means EOS doesn’t look that decentralised.
The EOS token is fairly unique in that it’s mainly for developers using the EOS platform to generate their own tokens. Only EOS token holders have the right to vote on whether new dApps should be accepted into the network.
The good news for traders and investors is that all the controversy has made the EOS token volatile and therefore a coins to keep a close eye on.
How to buy EOS online – step-by-step guide
Step 1. Get a suitable wallet
When it was first launched, EOS relied on the Ethereum blockchain. Now it’s moved away from Ethereum, buyers have a new set of compatible wallets to choose from. Here are a few of our top picks for keeping your EOS safe:
- Lumi Wallet: If you’re looking for something new, we suggest you head over to Lumi and check out their wallet. It hasn’t been around long, but don’t let that put you off. It’s available as a web app or as a mobile download from Google play and the App Store.
- SimplEOS Wallet: Created especially for EOS, the SimplEOS Wallet boasts some impressive features. It’s a versatile desktop client that’s compatible with Linux, macOS and Windows.
- Freewallet: If you’re after something different, then check out Freewallet, a well-designed and easy-to-use multi-coin wallet that’s available as a web or mobile app.
Step 2. Find an EOS exchange
When you’ve set up your wallet, you’ll want to make your way to an online exchange to buy EOS coins. There are plenty of places to buy EOS, but it’s worth shopping around to get the best fees and exchange rate. Here are our top exchanges to buy EOS online:
Changelly: No matter which cryptocurrency you’re looking for, Changelly is one of the first places to hit up. Changelly’s easy to navigate interface allows you to fill your wallet with ease and it usually offers great prices and relatively fast transaction times.
Binance: Widely considered to be the best, most dependable place to buy crypto, Binance is the world’s biggest crypto exchange. It offers a huge crypto marketplace and fees that compare favourably with other cryptocurrency exchanges.
Step 3. Withdraw your EOS
It’s much safer to keep your funds in a wallet instead of leaving them on the exchange, so make sure you withdraw your assets as soon as you buy EOS coins.
How to trade EOS – step-by-step guide
You won’t need to set up a wallet if you’re only planning on trading as you won’t be looking to buy and own the currency. Instead, you’ll be trying to predict whether its value will go up or down.
Step 1. Find a broker
Finding a broker on the web is easy but deciding whether they’re reputable or trustworthy can slow you down. Each broker has different features and levels of support. Some are ideal for newbies while others will suit more experienced traders, so it’s well worth doing some homework and checking a few out before you settle on your preferred trading platform. We like eToro and Plus500 as they’ve been around for a while and are fairly easy to get to grips with.
Step 2. Deposit money
Once you’ve settled on a broker and you’re ready to start trading you’ll need to put down a deposit. But before you dive in, we recommend spending some time familiarising yourself with the platform in the risk-free environment of a demo account. This will also allow you to experience how volatile cryptocurrencies can be and get to grips with platform before trading for real.
Step 3. Decide how you’d like to trade
The two principal methods for trading cryptocurrencies are spread betting and CFDs (contracts for difference). On paper, they don’t look too dissimilar – both entail betting on your chosen cryptocurrency rising or falling in value over a set period of time. You might want to do some more research into the nuances of CFDs and spread betting before you choose which method you prefer.
Step 4. Start trading
In essence, trading cryptocurrency isn’t massively complicated. Your task is to take a position on whether you think the value of your chosen cryptocurrency will rise or fall. If you think it will rise, then you should take a long position (‘buy’) or, if you think it will fall, you should take a short position (‘sell’).
Depending on your experience and the type of broker you’ve chosen, you may also opt to add leveraged trading to your strategy. Leverage allows you to pay a fraction of a trade’s total worth in the form of a deposit or ‘margin’. The broker covers the rest. Be warned, this is a high-risk strategy and probably not for the inexperienced. Savvy traders use stops to mitigate the risk and limit potential damage.
- Thanks to its operating system-like interface, the EOS platform is great for developers
- The EOS token is valuable to anyone looking to become part of the EOS ecosystem
- The EOS team have found a way to eliminate transaction fees
- There are concerns about the lack of decentralisation
- The EOS platform isn’t unique and has a lot of competitors