LetsExchange Blog

How to Buy Chainlink: Step-by-Step Guide

James King -

Read this guide to learn if Chainlink is a good investment and how to buy Chainlink at the best rate ?

Chainlink is a blockchain oracle network built on Ethereum. The network was created with the aim to facilitate the transfer of tamper-proof data from external off-chain sources to on-chain smart contracts.

Smart contracts can be compared to legal agreements. They are executed automatically when certain conditions are met. However, most smart contracts rely on data from the external world to execute the terms. They have to trust these external sources in matters of providing reliable and accurate information.

Chainlink solves the issue effectively by ensuring that smart contracts get information in and out in a secure, decentralized, and trustworthy way. It uses oracles as sources of data between the external world and smart contracts run on different blockchains.

Chainlink doesn’t have its native blockchain. It integrates with multiple blockchains by providing them with up-to-date information streams. So, it acts as an oracle and as an oracle aggregator. Chainlink receives information from multiple providers and streams the received information directly to blockchains. Data providers are interested in providing accurate reputation because the information is assessed and given a reputation score. Depending on the score, an information provider can be either awarded or removed from the network.

With it, Chainlink’s oracles serve as bridges between a blockchain (in our case, any blockchain that supports smart contracts, for example, Ethereum) and an external source of information. The network oracles collect, query, and validate data received from thousands of external data providers. Then, the validated data is streamed to the Chainlink network. And from there, the information is provided to smart contracts on multiple supported blockchains.

Chainlink is the first network that made it possible for off-chain data to be integrated with existing smart contracts.

LINK is also a native token of the Chainlink network. It is a utility token used for:

  • Staking purposes
  • Incentivizing data accuracy
  • Keeping smart contracts stable.

LINK is also a tradable cryptocurrency. It can be bought and sold on many cryptocurrency exchange platforms.

Chainlink is a promising project that has changed the way information is delivered to smart contracts. Even though the LINK price isn’t high yet, the token can be purchased and sold on some major exchanges and the majority of instant cryptocurrency exchange services.

The selection of the best platform to buy LINK might be connected with some difficulties. You need to select all possible options and compare their conditions, exchange rates, commissions if any, and other details that might impact the swap outcome.

You can opt for time- and effort-demanding search for the best platform among many possible options or you can choose LetsExchange to buy and sell LINK. Here, you get top safety level, hassle-free swaps without mandatory registration, and the best rates carefully selected among multiple major platforms.

Buying LINK on an advanced platform shall not be an issue even if it is your first purchase of cryptocurrency. The entire process can be described in three simple steps.

If you choose to purchase LINK on LetsExchange.io, you need to get a wallet that supports the token. It is needed to receive the LINK tokens.

LetsExchange doesn’t provide a wallet to keep coins. The platform provides non-custodial services that means that your coins are stored in your wallet and are managed by you only. You are the only one who has private keys to your crypto coins.

You might choose a hot or a cold wallet depending on your purchase purpose. If you want to try yourself in trading, a hot wallet might be the most convenient option. For investing purposes, a cold wallet is safer.

Before making a final decision, make sure you check such parameters as the reputation of the company - the wallet manufacturer. It is better if the manufacturer specializes in the product or has extensive experience in the field.

The wallet shall be safe. The wallet's safety is determined by many details, including two-factor identification, stealth addresses, a self-destruction function in case of a breach, and similar.  Amore detailed guide on the wallet selection is available here.

Once you get a wallet, you can move to the next step - finding an exchange that supports the coin.

We have already mentioned that LINK has attracted the attention of major exchanges. So, finding a platform where you can swap the token shall not be an issue.

However, you might face some difficulties when selecting the best service. First of all, you will need to decide whether you would like to buy LINK on a traditional or an instant platform. They both have their pros and cons:

Once the best exchange is found, you can proceed with the purchase.

When the purchase is completed, you can proceed with the last step and withdraw your LINK if you have used a traditional exchange service. Why withdraw? Do not forget that the private keys to your coins are stored by the platform, you don’t have access to them. Therefore, it is safer to keep your coins in a place that is controlled by you only - your wallet.

If you have used an instant exchange for the swap, your coins are already in your wallet. You don’t need to do anything.

Bottom Line

Chainlink is a promising project. While the LINK price is not skyrocketing, the token is distinguished by constant growth in value. Now, when smart contracts grow in importance, Chainlink is going to be in demand. So, we can expect further growth of the LINK price. This means that LINK can be a lucrative investment in the long term.

Stay tuned for further updates, crypto guides, and market insights from LetsExchange. You can also follow us on Twitter, Facebook, Reddit, Instagram, LinkedIn, Medium, Quora, Telegram, Steemit, and Bitcointalk for first-hand information from our team.