How to Buy Chainlink: Step by Step Guide
in Chainlink (LINK)
Whenever you see an article with a title like, “Find out which surprising altcoin is up 247% in the last year,” most of the time it’s going to be about Chainlink. What makes Chainlink unique isn’t so much that it has pumped massively in the last year, altcoins pump all the time, it’s the fact that Chainlink holds onto its value.
As high as its rise has been, we still have to ask: is Chainlink a good project with solid fundamentals? The value proposition of Chainlink is that it will be used as a payment mechanism to support a network of decentralized oracles (oracles are data feeds that connect blockchains to off-blockchain data).
But is this a service that the crypto ecosystem needs?
Let’s have a look and decide for ourselves if Chainlink is a good project and how to buy Chainlink.
Should I Buy Chainlink?
It’s becoming increasingly obvious that there is a real need for a decentralized oracle in the crypto ecosystem. A recent incident illustrates this need well. On Black Thursday the price of Bitcoin collapsed by more than 50%, as did the price of many altcoins.
That included Ethereum which went from $180 to $95 in the space of just 20 hours.
The result was a mass liquidation, or termination, of MakerDAO loans* as the value of MakerDAO loan collateral (ETH) dropped so quickly that traders didn’t have enough time to add more collateral before they were liquidated.
*MakerDAO is a crypto lending and borrowing protocol.
However, there was a silver lining for a few traders on the edge of being liquidated. MakerDAO’s oracle failed to update as it should have. This caused the price of Ethereum (within the MakerDAO ecosystem) to appear higher than it actually was.
That bug saved hundreds of CDPs from being liquidated while at the same time proving that just when accurate pricing information is most important, an oracle can fail.
Had the oracle feed failed in the opposite direction - and caused the price of ETH to appear lower than it was - hundreds of loan holders would have been wiped out even though they had enough collateral to back their positions.
Maker DAO’s failure is just one example of how traditional price feed oracles can fail while Chainlink keeps on working. Even in the good times, it’s essential to have a decentralized oracle, as this ensures that no powerful organization or individual can tamper with price feeds to benefit themselves.
Whether it’s maintaining a collateralized loan or getting accurate prices for a DEX (decentralized exchange), a decentralized oracle is a big step toward creating a robust, tamper-proof blockchain system.
Then, there is also the real need to bring off-chain data into crypto. There could be any number of examples; weather data, commodity prices, stock prices, football scores, manufacturing data, etc.
Many believe that integrating blockchains with external data - whether that is with Chainlink or not - is necessary for mainstream adoption of blockchain.
Though there are other blockchain oracle solutions out there, Chainlink is a brilliant project in that it will allow any and all data to be brought on-chain in a decentralized manner so that no single authority can corrupt the figures.
There is a real need for a project like Chainlink which can help to explain its continued rise in price (Google demonstrating Chainlink’s capabilities doesn’t hurt either).
If you’d like to know more about Chainlink including its roadmap, the team behind the project, how LINK staking works, etc., we’ve written a full Chainlink review so that you can learn more about LINK.
How to Buy Chainlink (If You Have Crypto)
If you already have some cryptocurrency then acquiring Chainlink is simple! The first thing to do is download the Exodus wallet as this will allow you to directly exchange another cryptocurrency for LINK. After downloading Exodus you can follow these steps.
Note: these instructions are for Exodus Desktop. If you’re using Exodus Mobile, follow these instructions to learn how to exchange on mobile.
- Open your Exodus wallet and select the cryptocurrency that you have and would like to exchange for LINK. Exodus automatically lists dozens of today’s most popular cryptocurrencies but if you don’t see the coin you have, you can add it to Exodus by clicking Add More at the bottom of the listed cryptocurrencies
2. Once you’ve found the coin in the Exodus wallet, you can click on Receive
3. Exodus will display a cryptocurrency address that you can send your crypto to. Once you send the coins, the transaction clears and you have the coins in your Exodus wallet. Then, click on the exchange button - the two arrows just to the right of the receive button
4. Select the cryptocurrency that you have and want to exchange for LINK and choose how much LINK you want to buy
5. Click exchange and the transaction will begin. Depending on which cryptocurrency you're trading (for example BTC is slower while XRP is faster), the exchange may take just a few minutes or it might take longer. As soon as the transaction clears, you’ll be able to see your newly bought LINK in your Exodus wallet!
How to Buy Chainlink (If You Don’t Have Crypto)
If you don’t already have crypto, you can use Cash App, Coinbase, or another service to buy Bitcoin or another popular crypto that you can then exchange for LINK.
Also, some services allow you to buy Chainlink directly with government currencies like the US dollar and euro.
For example, we’ve written out a brief guide below for buying Chainlink on Coinbase, a popular centralized exchange service.
However, once you’ve acquired your LINK, we always recommend that you take it off the exchange and store it in a secure wallet like a hardware wallet (you can use a Trezor hardware wallet with Exodus), Exodus (desktop and mobile), or your preferred wallet.
This is because centralized exchanges are hacked frequently and are not a safe place to store crypto for the long term.
How to buy Chainlink on Coinbase
For this article, we’ll assume that you already have a Coinbase account. While Coinbase has a somewhat controversial reputation (which cryptocurrency exchange doesn’t?) they remain one of the most reliable and secure onboarding platforms in crypto. Here’s how to buy Chainlink on Coinbase.
- At the top of the Coinbase page click on “Portfolio”
- Find and click on “Chainlink”
- Click “Buy Chainlink”
- Select how much Chainlink you want to buy and what your preferred payment method is
- Click buy
That’s it! If you buy with a debit card (more fees), you’ll be able to withdraw the LINK from Coinbase within 30 seconds or a minute. If you use a bank account (less fees) to purchase Chainlink, you won’t be able to withdraw the coins to another exchange or your Exodus wallet for up to five days.
If you’d like to keep track of the Chainlink price one of the easiest ways to do so is through the Exodus crypto charts.
Unlike CoinMarketCap which can appear somewhat crowded, the Exodus charts are clean, easy to navigate and are a great way to find out the latest LINK prices from your desktop or cellphone.
Chainlink Wallet (Where to Store Chainlink)
Unfortunately hacks are common in the cryptocurrency space with more than $4 billion worth of crypto having been stolen in 2019 alone. If you’re planning to buy LINK it’s critical that you store it securely.
That’s where the Exodus Chainlink wallet comes in.
Aside from giving you the power to safely send, receive and store LINK, the Exodus LINK wallet has the following features:
- Supports over 100 crypto assets
- Focuses on premium design and ease of use
- Is the only wallet to support desktop, mobile, and hardware wallet (Trezor) integration
- Allows you to exchange cryptos right from your wallet - without creating an account!
- Gives you the ability to sync your wallet between desktop and mobile
- Has 24/7, fast human support if you ever need help
We hope this guide on how to buy Chainlink was helpful, fellow marines!
Information provided is for informational purposes only and should not be considered financial advice. Investing in crypto assets is speculative and carries a high degree of risk; you may lose some or all of the money that is invested. Past performance is not indicative of future results.