How to Buy Chainlink (LINK)

Beginner’s Guide

What Is Chainlink (LINK)?

Chainlink is a decentralized oracle network that allows smart contracts to securely access off-chain data, such as data from external APIs, payment systems, and other real-world data sources. It is a blockchain-based solution designed to provide a secure and reliable link between the blockchain and the real world.

Smart contracts are self-executing contracts with the terms of the agreement directly written into code. However, smart contracts are limited to the data and information that is stored on the blockchain. With Chainlink, smart contracts can access off-chain data, enabling them to interact with real-world data and systems, making them more useful and versatile.

Chainlink operates on a decentralized network of nodes, and each node is responsible for retrieving off-chain data and providing it to the smart contract. The network is secured by a consensus mechanism and uses cryptographic techniques to ensure the integrity and accuracy of the data provided to the smart contracts.

LINK is the native token of the Chainlink network and is used as a means of payment for node operators to perform data retrieval services. It is also used as a form of collateral and to govern the network.

Overall, Chainlink is a critical component of the decentralized finance ecosystem, enabling smart contracts to interact with real-world data and systems, providing more secure, reliable and versatile solutions for a wide range of use cases.

How to Buy Chainlink Summary

Get a Chainlink wallet (e.g. Ledger, Trezor , Exodus, Guarda, AtomicWallet)
Find an exchange that sells Chainlink (e.g. Crypto.com, Binance , Coinbase , Bitfinex , Kucoin)
Deposit money and make the trade
Withdraw the Chainlink to your wallet

Buying Chainlink in 3 Simple Steps

Desctop & Mobile

Chainlink Hardware Wallets

Chainlink (LINK) can be stored in hardware wallets, which are physical devices designed to securely store cryptocurrency. Hardware wallets are considered to be one of the safest storage options as they provide an extra layer of security compared to software wallets.

Here are some of the popular hardware wallets that support Chainlink (LINK):

Ledger Nano S and Ledger Nano X: Ledger is a well-known brand in the hardware wallet space, and both the Ledger Nano S and Ledger Nano X support Chainlink.
Trezor One and Trezor Model T: Trezor is another leading hardware wallet brand, and both Trezor One and Trezor Model T support Chainlink.
KeepKey: KeepKey is a simple and secure hardware wallet that supports a wide range of cryptocurrencies, including Chainlink.

It’s important to carefully research and compare different hardware wallets before choosing one that fits your needs. You should consider factors such as security, compatibility, user-friendliness, and cost. Once you have a hardware wallet, you can use it to store your Chainlink securely offline, away from the potential risks of online storage.

The best option for storing any cryptocurrency would be to use a hardware wallet. These are pieces of hardware that store the private key to your coins offline.

Today, there are two leading hardware manufacturers to choose from – Ledger and TREZOR. Both companies have different models of hardware wallets that will get the job done.

If you want deeper insights on specific models, you can read my Ledger Nano X review or my TREZOR Model T review.

Chainlink Software Wallets

Chainlink (LINK) can also be stored in software wallets, which are digital wallets that can be accessed through a computer or mobile device. Software wallets are convenient for everyday use, but they are considered to be less secure than hardware wallets.

Here are some popular software wallets that support Chainlink (LINK):

MetaMask: MetaMask is a browser extension and mobile wallet that allows users to store, manage, and trade cryptocurrencies, including Chainlink.
MyEtherWallet: MyEtherWallet is a client-side interface for managing Ethereum and ERC-20 tokens, including Chainlink.
Trust Wallet: Trust Wallet is a mobile wallet for Android and iOS devices that supports a wide range of cryptocurrencies, including Chainlink.
Exodus: Exodus is a desktop wallet that supports a range of cryptocurrencies, including Chainlink.

It’s important to research and compare different software wallets before choosing one that fits your needs. You should consider factors such as security, user-friendliness, features, and customer support. You should also be cautious of phishing scams and always make sure to download software wallets from official sources.

Hardware wallets cost money, so if you’re not sure how serious you are about cryptocurrencies and just want to get a taste of what they feel like, perhaps you would be better off starting with a software wallet.

Payment methods:

Credit/debit card

Buy Chainlink through Crypto.com

Crypto.com is a cryptocurrency exchange company based in Singapore. As of May 2022, the company reportedly had 50 million customers and 4,000 employees. The exchange issues a token, Cronos. The company was initially founded in Hong Kong by Bobby Bao, Gary Or, Kris Marszalek, and Rafael Melo in 2016 as “Monaco”. In 2018, the company was renamed as Crypto.com following a purchase of a domain owned by cryptography researcher and professor Matt Blaze. Domain sellers valued the domain at US$5–10 million.

Buy Chainlink through Binance

Binance is a cryptocurrency exchange which is the largest exchange in the world in terms of daily trading volume of cryptocurrencies. It was founded in 2017 and is registered in the Cayman Islands. Binance was founded by Changpeng Zhao, a developer who had previously created high frequency trading software.

Buy Chainlink through Coinbase

Coinbase is a convenient and cheap way to buy Ethereum and the platform is open to 200+ countries). Coinbase will sell you CRO for a variable fee that depends on your payment method (credit cards have a higher fee than wire transfers), order size and market volatility. Here’s how you buy Ethereum on Coinbase: Open a Coinbase account Add your payment method (Credit card or bank account) Go to “Buy/Sell” and select the amount of Ethereum you desire Click “Buy Cronos”

Buy Chainlink through Bitfinex

Bitfinex is a cryptocurrency exchange owned and operated by iFinex Inc registered in the British Virgin Islands.Their customers’ money has been stolen or lost in several incidents, and they have been unable to secure normal banking relationships. Bitfinex was founded in December 2012 as a peer-to-peer Bitcoin exchange, offering digital asset trading services to users around the world. Bitfinex initially started as a P2P margin lending platform for Bitcoin and later added support for more cryptocurrencies.

Buy Chainlink through Kucoin

Kucoin is a global cryptocurrency exchange for numerous digital assets and cryptocurrencies. Launched in September 2017, KuCoin has grown into one of the most popular crypto exchanges and already has over 8 million registered users from 700+ countries and regions. According to Alexa traffic ranking, KuCoin’s monthly unique ranking is in the top 5 globally. Known as the “People’s Exchange”, KuCoin operates in Seychelles, providing users with multi-language and 24/7 customer service. Meanwhile, KuCoin has established local communities all over the world in South Korea, Japan, Spain, Italy, Vietnam, Turkey, Russia, India, and other regions, providing users with the most local services. Currently, 1 out of every 4 crypto holders in the world is with KuCoin.

Step 3 – Withdraw Your Chainlink

Once you decide on an exchange, open an account and buy your Chainlink . Make sure to withdraw the Chainlink from the exchange to your personal wallet.

Never leave coins on an exchange, as you risk losing them all if that exchange gets hacked or shuts down (which has happened in the past) and always double check address before send coins because you can send the coins to wrong address .

Overview

Who Are the Founders of Chainlink?

Chainlink was co-founded by Sergey Nazarov and Steve Ellis in 2014. Nazarov has a background in cybersecurity and software development, and Ellis has a background in financial services and technology.

Nazarov serves as the CEO of Chainlink, and is responsible for leading the company’s strategy and growth. He is a well-known thought leader in the blockchain and decentralized finance (DeFi) space, and is a frequent speaker at industry events.

Ellis, who is no longer with the company, was responsible for the technical development of Chainlink. He has since moved on to other ventures in the blockchain and DeFi space.

Together, Nazarov and Ellis saw the potential for using blockchain technology to create secure and reliable connections between smart contracts and the real world, which led to the creation of Chainlink. Today, Chainlink is a leading provider of decentralized oracle solutions, and is playing a critical role in the growth and development of the DeFi ecosystem.

What Makes Chainlink Unique?

Chainlink is unique in several ways that make it stand out from other blockchain-based solutions:

Decentralized Oracle Network: Chainlink operates as a decentralized oracle network, which means that it provides a secure and reliable connection between smart contracts and external data sources. This is done through a network of independent node operators who are incentivized to provide accurate data.
Wide Range of Data Sources: Chainlink can access a wide range of data sources, including off-chain APIs, traditional financial systems, and other external data feeds. This allows smart contracts to be triggered based on real-world events and data, which opens up new possibilities for decentralized applications.
Robust Security Measures: Chainlink has robust security measures in place to ensure the accuracy and reliability of its data. This includes cryptographic signing, node reputation systems, and decentralized dispute resolution mechanisms.
Flexible Integration: Chainlink is designed to be flexible and easily integratable with a wide range of blockchain platforms and decentralized applications. This makes it a versatile solution for developers and businesses looking to leverage the benefits of smart contracts.
Community-Driven Development: Chainlink has a strong and growing community of developers, users, and enthusiasts who are contributing to its development and growth. This community-driven approach helps to ensure the long-term success and sustainability of the network.

Overall, Chainlink’s combination of decentralized oracle capabilities, wide range of data sources, robust security measures, flexible integration, and community-driven development make it a unique and valuable solution in the rapidly growing blockchain and DeFi space.

Chainlink and Google, Introduction of Staking in 2022

Chainlink and Google have collaborated on several initiatives that aim to bring the benefits of blockchain technology to a wider audience. One notable example is the integration of Chainlink’s oracle solutions into Google’s cloud services, which allows developers to access real-world data within their smart contracts on the Google Cloud platform.

In 2022, Chainlink introduced staking as a way for its users to earn rewards for providing security and reliability to the network. Staking allows users to “lock up” their LINK tokens and participate in the validation of transactions and the creation of new blocks on the Chainlink network. In return, they receive a portion of the network’s transaction fees as a reward.

The introduction of staking has helped to further decentralize the Chainlink network and increase its security, and it has also provided a new income stream for LINK token holders. Staking has become a popular feature among the DeFi community, and it has helped to drive growth and adoption for the Chainlink network.

Chainlink has grown from aggregating and providing cryptocurrency price data to DeFi protocols like Aave, to a lot more. The ecosystem currently access over 1B data points, securing over $75B in value through 1,000 project integrations with 700 oracle networks. Mainstream organizations like AccuWeather, FedEx, FlightStats and the Associated Press have partnered with Chainlink for data verification. However, one of the biggest wins Chainlink have secured is onboarding Eric Schmidt, ex-Google chairman and CEO, as a technical advisor to the oracle network protocol. According to Schmidt, “Chainlink is a secret ingredient to unlocking the potential of smart contract platforms and revolutionizing business and society,” and he is interested in helping Chainlink build a world powered by truth. Schmidt joins other notable Chainlink advisors including former LinkedIn CEO Jeff Weiner and DocuSign co-founder Tom Gonser.

On the roadmap for 2022, Chainlink will finally rollout staking for LINK holders to secure the network and earn rewards. Chainlink has been working on a staking solution for years, however oracle networks are not a blockchain but a form of decentralized computing. Co-founder Nazarov explained that Chainlink does not produce blocks but “make consensus on hundreds of oracle networks about price data.” He says the team is finally satisfied with the security and scalability of the consensus mechanism and ready to launch staking this year.

Securing the Chainlink Oracle Network With Staking

Staking is a way of securing the Chainlink Oracle Network by incentivizing node operators to provide accurate and reliable data. When a user stakes their LINK tokens, they are effectively “locking up” their tokens and using them as collateral to participate in the validation of transactions and the creation of new blocks on the Chainlink network.

The process of staking helps to ensure the security and reliability of the Chainlink Oracle Network in several ways:

Decentralization: By allowing a wider range of users to participate in the validation of transactions and the creation of new blocks, staking helps to further decentralize the Chainlink network. This reduces the risk of a single point of failure and increases the overall security of the network.
Incentives for Accurate Data: Node operators who provide accurate and reliable data are rewarded with a portion of the network’s transaction fees. This incentivizes them to maintain the quality of the data they provide, which helps to ensure the overall accuracy and reliability of the data on the Chainlink network.
Security through Collateral: By using their LINK tokens as collateral, stakers are incentivized to act in the best interests of the network. If a node operator provides inaccurate or unreliable data, they risk losing their staked tokens as a result. This creates a strong incentive for them to maintain the security and reliability of the network.

Overall, staking has been an effective way of securing the Chainlink Oracle Network, and it has helped to drive growth and adoption for the network. By providing a new income stream for LINK token holders and increasing the overall security of the network, staking has become an important part of the Chainlink ecosystem.

How Will LINK Staking Work?

LINK staking is a process where a user can lock up their LINK tokens in exchange for rewards from the network. Here’s how it works:

A user deposits a certain number of LINK tokens into a staking wallet.
The user then selects a validator node to delegate their tokens to. Validator nodes are responsible for validating transactions and creating new blocks on the Chainlink network.
The validator node uses the staked tokens as collateral to participate in the validation of transactions and the creation of new blocks.
The validator node earns rewards in the form of transaction fees for their contributions to the network. A portion of these rewards is then distributed to the staker who delegated their tokens to the validator.
The staker can choose to withdraw their staked tokens at any time, but they will typically receive higher rewards if they keep their tokens staked for a longer period of time.

It is important to note that staking is not without risk. The value of a user’s staked tokens may fluctuate based on market conditions, and there is a risk that a validator node may become inactive or provide inaccurate data, which could result in a loss of rewards or the staked tokens themselves.

Despite these risks, staking has become a popular way for users to earn rewards from their investments in the Chainlink network, and it has helped to further decentralize the network and increase its security.

Chainlink Economics 2.0

Chainlink Economics 2.0 refers to the updated economic model for the Chainlink network, which was introduced in 2021. The new model includes several key changes that aim to improve the overall functioning and security of the network, as well as increase the incentives for users to participate in the network.

Some of the key changes in the new economics model include:

Increased rewards for node operators: The new economics model provides higher rewards for node operators who provide accurate and reliable data to the network. This incentivizes them to maintain the quality of the data they provide and helps to ensure the overall accuracy and reliability of the data on the Chainlink network.
Staking: The introduction of staking has allowed users to earn rewards by participating in the validation of transactions and the creation of new blocks on the Chainlink network. Staking also helps to further decentralize the network and increase its security.
Token burning: The new economics model includes a token burning mechanism that reduces the overall supply of LINK tokens over time. This helps to reduce the inflation rate and increase the scarcity of the tokens, which can have a positive impact on their value over the long-term.
Governance improvements: The new economics model includes improved governance mechanisms that allow for more democratic decision-making and greater transparency in the management of the network.

Overall, the Chainlink Economics 2.0 model aims to provide a more robust, secure, and incentivizing environment for users to participate in the network. By making changes to the economics model, Chainlink is working to create a more sustainable and thriving network for the future.

How Many Chainlink (LINK) Coins Are There in Circulation?

As of my knowledge cut off in 2021, there are approximately 1 billion Chainlink (LINK) coins in circulation. The total supply of LINK tokens is capped at 1 billion, and no new tokens will be minted beyond that amount.

It’s important to note that the exact number of LINK coins in circulation may vary over time based on factors such as token buybacks and token burn events. Additionally, the number of tokens in circulation is not necessarily the same as the number of tokens that are actively in use or being traded.

Overall, the capped supply of LINK tokens helps to ensure scarcity and maintain the value of the tokens over the long-term. This can make the tokens more attractive to investors and increase demand for the tokens on the market.

During the initial coin offering (ICO) for LINK in September 2017, Chainlink announced a total and maximum supply of 1,000,000,000 LINK tokens. The current supply is about 453,509,553 LINK tokens, or about 45% of the total supply, as of end-September 2021. The Chainlink price at ICO was $0.11 and a total of 350 million LINK tokens were sold. This represents an over 200X from the ICO price to Chainlink price today.

Chainlink price experienced a massive bull run in the period around mid-2019 to mid-2020. Chainlink bulls were colloquially referred to as “LINK Marines,” becoming a well-known meme in the crypto community. Chainlink price reached an all-time high of $52.88 on May 9, 2021, on the back of an overall crypto market rally, as well as ongoing developments in the Chainlink ecosystem.

According to the ICO documentation, 35% of the total token supply will go towards node operators and the incentivization of the ecosystem. Another 35% of LINK tokens were distributed during public sale events. Lastly, the remaining 30% of the total token supply was directed towards the company for the continued development of the Chainlink ecosystem and network.

How Is the Chainlink Network Secured?

The Chainlink network is secured through a combination of decentralization, consensus algorithms, and cryptographic techniques. The following are some of the key elements that help to secure the Chainlink network:

Decentralization: The Chainlink network is composed of numerous decentralized nodes that are run by independent node operators. This helps to ensure that there is no single point of failure in the network, as data can be provided from multiple sources.
Consensus algorithms: The Chainlink network uses consensus algorithms to validate transactions and create new blocks on the network. This helps to ensure that data on the network is accurate and cannot be easily tampered with.
Cryptographic techniques: The Chainlink network uses cryptographic techniques, such as digital signatures and hashing algorithms, to secure data and transactions on the network. This helps to prevent unauthorized access to the network and protect against potential hacking or cyber attacks.
Staking: Staking is a process by which users can participate in the validation of transactions and the creation of new blocks on the Chainlink network. This helps to further decentralize the network and increase its security, as more users are participating in the validation process.
Oracle selection and reputation system: The Chainlink network uses an oracle selection process to select the most trustworthy and reliable nodes to provide data to the network. The network also includes a reputation system that helps to ensure that node operators are providing accurate and reliable data, and can help to identify potential malicious actors.

Overall, the combination of decentralization, consensus algorithms, cryptographic techniques, staking, and oracle selection and reputation system help to ensure the security of the Chainlink network. By implementing these security measures, Chainlink aims to create a robust and reliable network that can be trusted to provide accurate and secure data to its users.

Where Can You Buy Chainlink (LINK)?

Chainlink (LINK) can be bought on various centralized and decentralized cryptocurrency exchanges. Some of the most popular exchanges that offer Chainlink (LINK) include:

Binance: One of the largest cryptocurrency exchanges in the world, Binance offers a wide variety of trading pairs and supports multiple languages.
Coinbase: A popular and user-friendly platform that allows users to buy, sell, and store cryptocurrencies.
Kraken: A well-established cryptocurrency exchange that offers a range of trading options and supports multiple countries and currencies.
Huobi: A major cryptocurrency exchange that operates globally and offers a wide range of trading pairs and services.
Bittrex: A U.S.-based cryptocurrency exchange that offers a secure trading platform and fast transaction processing times.

It’s important to note that the availability of Chainlink (LINK) may vary depending on your location, and some exchanges may have specific requirements for using their platform. Before buying Chainlink (LINK), be sure to research the exchange and ensure that it is trustworthy and has a good reputation. You may also want to compare the fees and features of different exchanges to find the one that best fits your needs.