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How to buy Lisk online
This page is a beginner’s guide that explains Lisk and how it works. It explores some of the pros and cons of the platform, what the LSK token does, and what its prospects are.
Compare where to buy Lisk, and open an account
If you’re ready to get started straight away, then use one of the brokers below. Our team of experts have reviewed all the best cryptocurrency trading platform, and these are some of our favourites. If you want to learn more about Lisk first, then scroll down to keep reading.
What is Lisk?
The LSK token is Lisk’s cryptocurrency and helps run the platform. It’s a method of payment for transaction fees and developers need it to be able to build on Lisk. LSK holders also have the opportunity to vote on governance issues, with voting power corresponding to the amount of LSK you own.
Lisk launched back in 2016 as one of the first decentralised blockchain platforms. While this is a good thing in terms of trust and experience, a lot more competition has sprung up since then.
How does Lisk work?
Lisk works by recording all movements on its blockchain, a public ledger that contains a history of every transaction on the platform. It lets each individual application run its own, smaller, blockchain that then connects to the main chain, like tributaries running into a river. This speeds up the network as each app can process transactions at the same time.
To add new blocks to the blockchain, Lisk uses a consensus mechanism. This is a process of letting delegates approve new transactions. These delegates are chosen by LSK coin holders, who vote to nominate them. Everyone involved – delegates and voters – are rewarded in LSK for helping to run the platform.
How to buy LSK online – a step-by-step guide
Step 1. Find an exchange
The best place to buy Lisk tokens is on a cryptocurrency exchange. These platforms offer a wide range of features, including the most coin options and ways to swap between them. Two of the best around are:
- Binance: With Binance you can trade more than 100 cryptocurrencies. Binance has more trading volume than any other exchange and so is a great place for most crypto trading. Sign up for Binance >
- BitMEX: BitMEX lets you trade with Bitcoin and offers access to some more advanced trading strategies. You can trade with leverage and use future contracts. Join BitMEX now >
Step 2. Sign up and fund your account
To start buying crypto on an exchange you need to set up an account. Signing up will require some personal information, like an email address and phone number, as well as a form of photo ID for verification. To fund the account, some exchanges let you use fiat currency while others will only accept deposits in cryptocurrency.
Step 3. Buy Lisk
Search for the Lisk coin ticker, LSK, and you’ll see a list of different ways to get some. For now, they might exclusively be using other cryptocurrencies, so often the best thing to do as soon as you sign up is to swap your fiat currency – like GBP or USD – for Bitcoin. Then you can go ahead and use that for all your other transactions. In this case, by picking the LSK/BTC pair and executing your trade.
Step 4. (Optional) Get a suitable wallet
While you can store your coins in an exchange account, a wallet offers more security and control over your holdings. Wallets come in a variety of formats, like online, mobile, and offline, depending on how much security you want. In each case you get your own private key that gives you access.
Here are two of the top wallet providers available:
- Infinito Wallet:Infinito is a mobile wallet that lets you access your coins through a mobile app. It also offers staking rewards and an opportunity to lend coins and earn interest. Sign up for an Infinito Wallet >
- StrongCoin: StrongCoin is a hybrid wallet that lets you access your coins through a web browser but keeps an offline backup copy as well. Join StrongCoin now >
How to trade Lisk – a step-by-step guide
Step 1. Find a broker
If you want to trade LSK you need a reliable broker with low fees. The top brokers – like eToro and Plus500 – let you trade things like stocks and forex as well as cryptocurrency. Be aware that it might be tough to find a broker that lets you trade LSK at the moment, as they tend to offer only the biggest crypto coins.
Step 2. Deposit money
Brokers normally only accept deposits in fiat currency. They often have limits on deposits or withdrawals as well as fees, so you should check for any restrictions before you sign up.
Step 3. Decide how you’d like to trade
Two top options for trading cryptocurrency are spread betting and contracts for difference (CFDs). Both are popular, but trading CFDs is the most common way of speculating on the price of your chosen crypto. Using CFDs is a way of trading without needing to own the underlying asset itself.
Step 4. Start trading
If you’re new to cryptocurrency it might be a good idea to start with a demo account. The top brokers offer beginners a chance to trade with pretend money, so you can learn how everything works without putting your own funds at risk.
When you do start trading, you need to decide whether to go long (buy) or go short (sell). If you feel positive about the LSK coin’s prospects then you should buy it, if you don’t then shorting it could be a better bet.
There are other strategies available once you have more experience. You can start to trade with leverage, which is a way of making big trades while only putting up a small percentage of the overall value. Your broker puts up the rest, so it’s a way of making big money but it can lead to big losses as you’re always liable for the total amount of the trade.
If you’re not sure whether Lisk is for you yet, we can help. Here’s a summary of the pros and cons of the Lisk platform followed by some more questions for you to consider.
- You can earn extra LSK for helping the platform run
- It’s a very easy platform for developers to build on
- The LSK will be reduced over time, potentially driving up value
Below are three questions for you to think about so that you can decide whether to invest in Lisk.
1. Is it a good time to buy Lisk?
That depends on your investing goals. Lisk tokens offer a way of participating in the platform, and if that’s your aim then now probably is a good time to buy. If you have more of a trading focus, there’s a bit more to think about.
For both long and short term investors you want to think about whether the LSK price is at an appealing level. You should consider the competition and any new developments in the market that could change Lisk’s outlook, and possibly use some technical factors to time your moves. Use our market analysis below to help you:
2. What problem does Lisk solve, and what are the coin’s investment prospects?
Lisk solves the problem of blockchain platforms being awkward and time-consuming to build on. It lets developers create apps in a language they’re familiar with and offers lots of templates and support to help. It’s also created a platform that can support lots of apps running simultaneously in a decentralised way.
The platform’s ease of use and openness to developers is how Lisk is trying to stand out as an investment prospect. There are lots more platforms trying to create some version of a decentralised alternative internet now than there were when Lisk launched in 2016, like Polkadot, Cardano, and a more advanced Ethereum.
The challenge is for Lisk to offer a better, or at least competitive, service. All these platforms rely on attracting the best projects to bring in new users, so Lisk might be able to use its low barriers to entry as an advantage. You should research these other platforms and follow the latest Lisk news below if you want to invest for the long term:
3. Do you want to hold Lisk for the long term?
If you want to use LSK to participate on the Lisk platform then you will want to hold for the long term. For investors, some other things to think about are the state of its competition and whether new projects are launching on Lisk. Here are some last things to consider depending on your investing timeline.
Considerations for a long term investment strategy
If you believe in a decentralised internet, Lisk could be a way of getting exposure to it. It could be part of a diversified portfolio of similar platforms, or as the leader of the pack if you like how it appeals to developers. If that’s the case, you should sign up for an exchange straight away.