How to buy Ocean Protocol online
This guide introduces you to the OCEAN token and how it helps this data marketplace run smoothly. Read on to find out how it works and where’s the best place to buy it.
Compare where to buy Ocean Protocol, and open an account
If you’re ready to buy OCEAN straight away, you can use one of the brokers below. Our team of experts has reviewed all of the top platforms out there so you can be confident these are some of the best around. Otherwise, carry on reading to find out more before you buy.
What is Ocean Protocol?
Ocean Protocol is a marketplace for buying and selling data. You can sell your own private data on the open market at a value of your choice, and researchers can buy the data they need whenever they want. The Ocean token is the means of payment for all these transactions, and it’s used for staking and governance as well.
At the moment, private data is hoarded by a handful of big tech companies. This is bad both for individual privacy and because it blocks anyone else from accessing it. The Ocean Protocol transforms data into a commodity to be bought and sold, putting control back in its owners’ hands.
How does Ocean Protocol work?
Ocean Protocol works by ‘tokenising’ data sets. This is just a way of turning a loose batch of data into a crypto token that can be traded, in the same way some popular stocks have been turned into tokens. Each set is encrypted and secure, with each transaction stored on the blockchain so ownership can be verified.
To create and verify these data sets means using the OCEAN token. Users can stake their coins as collateral that a data set is high quality and they own it, then other users can also stake their coins to verify that’s the case. Assuming it is, everyone earns a reward. If it turns out to be fraudulent in any way, all the staked coins are destroyed, incentivising everyone to act in the best interests of the platform.
How to buy Ocean Protocol online – a step-by-step guide
Step 1. Find an exchange to buy Ocean Protocol
Exchanges are usually the easiest place to buy small-cap cryptocurrencies. Often you can only buy them with another crypto – usually Bitcoin – and exchanges offer the widest variety of pairs to choose from. Here are some of the best ones around.
- 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: The BitMEX exchange lets you trade with Bitcoin and has its own integrated wallet to store your new coins. There are lots of trading options including leverage and futures as well. Join BitMEX now >
Step 2. Sign up and fund your account
Before you can start trading you need to set up an account. Usually all this takes is a few contact details and a form of photo ID, but the exact demands vary depending on who you use.
How you can fund an account varies too, most leading exchanges accept fiat currency (like GBP or EUR) but others will only let you deposit cryptocurrency. As always the best one to use is Bitcoin, as almost everywhere accepts it.
Step 3. Buy Ocean Protocol
Buying crypto is as simple as looking for its ticker symbol on the exchange – OCEAN – and picking out the OCEAN/BTC pair. Choose how much you want to buy and execute the trade.
Step 4. (Optional) Get a suitable wallet
To store your coins securely, it’s best to use a wallet. You don’t have to do this, but wallets are safer than leaving them in your exchange account. There are different options depending on the level of security you want, ranging from apps on your phone to offline ‘cold storage’ wallets. Here are a couple of the best ones:
- Guarda Wallet: This is a hybrid wallet that lets you access your coins through your desktop, web browser, or a mobile app. It’s integrated with the Ledger Nano S hardware wallet as well. Get Guarda Wallet now >
- Ledger Nano S: Speaking of which…the Nano S is a wallet that keeps coins completely offline, and protected even if you connect it to an infected computer. Get the Ledger Nano S today >
How to trade Ocean Protocol – a step-by-step guide
Step 1. Find a broker
To trade crypto you want a broker that charges low fees. Otherwise, making lots of trades can get very expensive. There are lots of other things to look out for as well, but fees are the most important.
Step 2. Deposit money
You need to set up an account and fund it before you can trade. Brokers only accept deposits in fiat currency and sometimes charge for deposits and withdrawals. Keep an eye on the fee structure before you sign up.
Step 3. Decide how you’d like to trade
Most crypto traders use CFDs. It’s not the only way to trade but it is the most popular and learning about contracts for difference is a great place to start. In short, CFDs are a way to speculate on the price of a coin without owning it.
Step 4. Start trading
If you’re new to trading, think about starting with a beginner’s account. This is a way of trading without putting your own money at risk and any broker worth using offers it as an option.
When you come to actually trading, you have to decide how you think a coin is going to perform. From there you can either go long (buy) or short (sell).
Beyond that there are some more advanced trading strategies once you have more experience. One of these involves using leverage, a way of making big trades while only putting up a small amount as a deposit. You can win big if it works, but your losses can escalate quickly if the market moves against you.
If you aren’t ready to buy yet, don’t worry. Here are some pros and cons to think about, followed by a few final questions that can help you make a decision.
- Data privacy is a hot button issue and a place to share it securely could have value
- Earn rewards for contributing to the platform
- A great place to access data sets that would otherwise be hard to find
- It might take some time for people to trust sharing data sets like this
Last but by no means least, here are three more questions to think about before you invest in Ocean Protocol.
1. Is it a good time to buy Ocean Protocol?
If you want to use its marketplace or expect it to go up in value over time, then yes. In that case you want to find an exchange and buy some coins so you can start staking or storing them right away.
For short term traders there are some other things to think about. Does the current price represent good value? Have you used tools and charts to spy an opportunity? Are there any recent developments that make you think the price is about to change? We can help with that last one, and our latest market analysis is the best place to start:
Uma (UMA), OMG Network (OMG) and Ocean Protocol (OCEAN) price analysis as total cryptocurrency market value exceeds $1 trillion
2. What problem does Ocean Protocol solve, and what are the coin’s investment prospects?
Ocean Protocol solves two problems: it lets individuals decide how much their private data is worth and profit if they choose to sell it, and it makes vast data sets available to buy on the open market, instead of being dominated by a handful of big tech monoliths.
It’s prospects could be good if data privacy continues to be an important issue. With the internet dominated by a handful of players, more people could turn to the blockchain to avoid them. In that case, Ocean Protocol is well placed to benefit. Particularly as there aren’t many competitors out there.
As always with cryptocurrency, you should do your research before investing. The best place to do that is right here, where you can get the latest news and analysis at your fingertips.
3. Do you want to hold Ocean Protocol for the long term?
If you think it’s prospects are good, then yes you want to hold it for a while. Likewise if you want to use the marketplace to make money from data you own, or stake coins as collateral on other data sets, buy and hold it so you have the option. Here are some last things to consider before you buy.
Considerations for a long term investment strategy
Long term investors who are bullish about a coin’s prospects should buy some straight away. Set up an exchange account and dive in. You want to think about getting a wallet to store your coins as well.
Considerations for a short term trading strategy
The best strategy for short term traders is finding a broker that charges low fees. Making lots of trades can be expensive if you have to pay a chunk in fees every time. Once you have a broker, brush up on technical indicators and analyses to help you trade.