How to buy OMG Network coin online
This page is an introduction to the network and its OMG coin. Learn what it does and how it works, as well as the best places to buy some.
Compare where to buy OMG Network, and open an account
To buy OMG Network straight away, you can use any of the brokers in the list below. These have been chosen by our crypto experts after reviewing all of the options out there. If you aren’t ready to buy yet, read on to learn more.
What is OMG Network?
The OMG Network is a platform for transferring money and assets online. It’s like Paypal built on the blockchain, somewhere you can send money seamlessly anywhere in the world. Holders of the OMG token have the right to vote on governance issues and earn a percentage of the transaction fees.
Some of the possible uses for OMG are things like offering financial services to the ‘unbanked’, and allowing them to send and receive money without needing one. Formed in 2017, the company behind it is OmiseGO, whose developers have been active in the Ethereum community from the very beginning.
How does OMG Network work?
It works by batching transactions together and sending them all to be added to the blockchain at the same time. It’s like a carpooling service, where combining these transactions into one batch reduces congestion, cost, and the amount of energy you need to perform them.
All this is achieved without compromising on security because OMG is closely linked to the Ethereum network. It uses a framework known as ‘Plasma’ to do a lot of the necessary work before adding the transactions to the main Ethereum blockchain.
This system increases the number of transactions per second from 14 on Ethereum to up to 4000 using OMG, they cost 3x less, and the electricity demands are reduced by as much as 99%. The last point is especially significant as the energy consumption of cryptocurrencies is becoming a hot button issue.
How to buy OMG Network online – a step-by-step guide
Step 1. Find an exchange to buy OMG Network
The best place to find small cap coins is on an exchange. Exchanges come in a variety of shapes and sizes but in this case it’s best to stick to the ones that offer the widest range of coins. Two of the best ones for that are:
- Binance: Binance is the exchange with the largest amount of trading volume every day, with millions of transactions across hundreds of different coin pairs. Join Binance now >
- Bittrex: Bittrex has an intuitive interface and is easy to use, which is ideal for beginners. It too offers hundreds of coin pairs and is a good place to find small cap cryptos. Sign up with Bittrex today >
Step 2. Sign up and fund your account
Every exchange makes you create an account before you trade. This is simple, just provide some contact details and a copy of your photo ID as verification and you’re good to go. With the most popular exchanges you can often deposit funds in fiat currency (like GBP or USD), while the rest only accept cryptocurrency.
Step 3. Buy OMG Network
To buy any coin you need to log in to your exchange account and then search for the right ticker, which is OMG in this case. If you’re using Bitcoin to buy it, for example, then find the OMG/BTC pair and execute the trade.
Step 4. (Optional) Get a suitable wallet
The most secure place to store your coins is in a wallet. There are lots of different types of wallet depending on the level of security you’re looking for: from hybrid online wallets to completely offline ones that hold your coins in ‘cold storage’. You don’t have to get a wallet – keeping coins in your exchange account is normally nothing to worry about – but it is the best option.
Here are two wallet providers to look at:
- Guarda Wallet: Guarda is a very flexible wallet that you can use on web, desktop, or mobile app. It also comes with an integrated exchange so you can do your trading from within the wallet itself. Get Guarda Wallet now >
- CoolWallet: CoolWallet is a hardware wallet that keeps your coins offline, protected from any malicious activity on the internet. It comes with a mobile app as well though, so you can use a bluetooth connection to access your coins. Sign up for CoolWallet >
How to trade OMG Network – a step-by-step guide
Step 1. Find a broker
Our main advice for short term traders is to find a broker with low fees. You want to trade quickly and often, and fees can make that very expensive if you have to pay lots every time.
Step 2. Deposit money
You need fiat currency to fund your brokerage account. Beware that some platforms charge for deposits, as well as withdrawals and trading. The fee structure is an important thing to consider before you sign up for anything.
Step 3. Decide how you’d like to trade
There are a few popular trading strategies for trading crypto coins. Contracts for difference (CFDs) are one you might have heard of, which means speculating on the price of a coin without actually owning it. Another is spread betting, where you try to predict how the entire market is going to move.
Step 4. Start trading
The first thing you should do if you’re new to trading crypto is use a beginner account to practice. This is usually just a button you can click in the settings of your broker account that lets you trade with pretend money. It’s a good way of getting used to how things work before you put your own money at risk.
To trade a coin you need to decide whether you think it’s going to go up or down. That way you can take a long (buy) position or a short (sell) one. If you go short that basically means you borrow the coin off your broker now and sell it, with the idea of buying it back later at a lower price.
Another more advanced trading strategy is using leverage to make big trades. Here, you can again borrow something from your broker: you put up a deposit and borrow the rest of the trade value from the broker so you can make a much larger trade. You always remain liable for the whole value, so be careful.
If you aren’t ready to buy yet, don’t worry. Taking time to think about an investment is a good idea and you can use our summary of the pros and cons to help you.
- Close ties to Ethereum make it more trustworthy and reliable
- Coins give you voting rights and the ability to earn rewards
- Reducing energy consumption could be a major positive in the future
- The introduction of Ethereum 2.0 could solve a lot of the speed issues that at the core of OMG’s offering
- There’s lots of competition to Ethereum trying to solve similar problems
Last but by no means least, here are three final questions for you to think about before you invest in OMG Network.
1. Is it a good time to buy OMG Network?
It depends on your strategy and how long the timeframe for seeing results is. If you’re bullish about OMG’s prospects and can only see it going one way, maybe now is the right time to buy. Just note that cryptocurrency can be unpredictable, even when it’s trending up you have to expect swings in price.
Short term traders, meanwhile, should look out for when the current price becomes an appealing opportunity. You might decide this based on some technical factors, or because of the wider state of the market. Both short and long term investors can use our market analysis to help:
2. What problem does OMG Network solve, and what are the coin’s investment prospects?
OMG solves the problem of sending money without the need for a bank by vastly improving on the network speed of the original Ethereum network. It’s also a lot ‘greener’ than most blockchains, drastically reducing the amount of energy you need to process transactions.
These factors could stand it in good stead for the future. Reducing energy consumption could well become more important in the next wave of the technology’s development and OMG is already there.
Some complicating factors are the sheer number of platforms out there trying to offer similar fast transaction speeds. Polygon is similarly linked to Ethereum, while the likes of Polkadot and Cardano are competitor platforms. If you’re investing for the future, it’s important to stay on top of the latest news so you’re aware of any developments:
Genesis Block Ventures (GBV) announces the acquisition of OMG network
3. Do you want to hold OMG Network for the long term?
Once again it depends on how you like to invest. With its transaction speed and reduced energy costs, OMG could be suited to a long term hold. But there are other platforms that offer more rewards if you want to hold them. Whatever your investing strategy, here are a few final tips to help.
Considerations for a long term investment strategy
If you expect a coin to only go up from here, long term investing is the best way to go. You should choose an exchange and buy some coins, then find a wallet to store them.
Considerations for a short term trading strategy
If you’re looking for more immediate results, short term trading is the best bet. Here you want to make lots of trades quickly to try to make small profits every time. Pick a broker with low trading fees and consider learning about some analysis techniques to help you.