How to Buy Optimism (OP)
Beginner’s Guide
What Is Optimism (OP)?
Optimism (OP) is the native cryptocurrency of the Optimism network, a Layer 2 scaling solution for the Ethereum blockchain. OP tokens are used to facilitate transactions on the network and incentivize network participants to help secure and maintain the network.
The OP token is an ERC-20 token that is used to pay for transaction fees on the Optimism network. When users initiate a transaction on the Optimism network, they pay a small amount of OP tokens as a fee. These fees are used to incentivize validators and other network participants to help maintain the security and integrity of the network.
In addition to being used for transaction fees, OP tokens can also be used for staking and governance on the Optimism network. Stakers can earn rewards for helping to secure the network by staking their OP tokens, and token holders can participate in network governance by voting on proposals and protocol changes.
The total supply of OP tokens is capped at 100 million, with a portion of the supply allocated for development and ecosystem growth, and a portion reserved for staking and governance rewards.
Overall, the OP token plays a critical role in the functioning and governance of the Optimism network, and is a key component of the network’s overall ecosystem.
Optimism is one of the biggest scaling solutions for Ethereum with over $300 million in TVL. It is home to 35 protocols, the biggest being Synthetix (SNX), a derivatives exchange, Uniswap (UNI), a DEX, and Velodrome (VELO), an AMM. Users can begin their journey on Optimism by adding the chain on their Metamask and bridging tokens like ETH to the L2. On May 31, 2022, Optimism conducted a highly anticipated airdrop of its OP token. The airdrop was so popular that it briefly slowed down the Optimism blockchain.
How to Buy Optimism Summary
- Get a Optimism wallet (e.g. Ledger, Trezor , Exodus, Guarda, AtomicWallet)
- Find an exchange that sells Optimism (e.g. Crypto.com, Binance , Coinbase , OKX, Kucoin)
- Deposit money and make the trade
- Withdraw the Optimism to your wallet
Buying Optimism in 3 Simple Steps
Step 1 – Get a OP wallet
Guarda
Software Wallet
supported :
Desctop & Mobile
Optimism Hardware Wallets
Optimism is a Layer 2 scaling solution for the Ethereum blockchain, which aims to increase its throughput and reduce transaction fees. Optimism hardware wallets are physical devices that enable users to securely store and manage their digital assets on the Optimism network.
Hardware wallets are considered to be one of the most secure ways of storing cryptocurrency, as they provide an offline storage solution for private keys, which are the codes required to access and manage digital assets. Optimism hardware wallets are designed to work specifically with the Optimism network, providing users with an added layer of security and ease of use.
Some of the key features of Optimism hardware wallets include:
Secure offline storage: Optimism hardware wallets store private keys offline, making them less vulnerable to hacking and other online threats.
User-friendly interface: Optimism hardware wallets typically come with an easy-to-use interface that allows users to manage their digital assets without having to be tech-savvy.
Compatibility: Optimism hardware wallets are designed to work seamlessly with the Optimism network, making it easier for users to transact on the network.
Backup and recovery: Optimism hardware wallets come with backup and recovery features, allowing users to recover their funds in the event of loss or theft.
Overall, Optimism hardware wallets offer a secure and convenient way for users to store and manage their digital assets on the Optimism network. However, as with any digital asset storage solution, it is important to do your research and choose a reputable and trustworthy hardware wallet provider.
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.
Optimism Software Wallets
Optimism is a Layer 2 scaling solution for the Ethereum blockchain, which aims to increase its throughput and reduce transaction fees. Optimism software wallets are digital wallets that allow users to securely store and manage their digital assets on the Optimism network.
Software wallets are a type of digital wallet that are stored on a user’s device, such as a desktop computer or mobile phone. They offer a convenient way to manage digital assets on the go, without having to carry a physical device like a hardware wallet.
Some of the key features of Optimism software wallets include:
Security: Optimism software wallets are designed with security in mind, using encryption and other security measures to protect users’ digital assets.
User-friendly interface: Optimism software wallets typically come with an easy-to-use interface that allows users to manage their digital assets without having to be tech-savvy.
Compatibility: Optimism software wallets are designed to work seamlessly with the Optimism network, making it easier for users to transact on the network.
Backup and recovery: Optimism software wallets come with backup and recovery features, allowing users to recover their funds in the event of loss or theft.
Overall, Optimism software wallets offer a secure and convenient way for users to store and manage their digital assets on the Optimism network. However, it is important to note that software wallets are typically less secure than hardware wallets, as they are vulnerable to hacking and other online threats. As with any digital asset storage solution, it is important to do your research and choose a reputable and trustworthy software wallet provider.
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.
A software wallet is a free program that lets you store your coins on your computer or mobile phone.
The easiest Optimism software wallets to get started with are undoubtedly Exodus, AtomicWallet and Guarda . All wallets are very intuitive. Exodus, Atomic Wallet and Guarda is available on desktop for Windows, Mac and Linux, as well as on mobile for both iOS and Android. If you want more information you can read my Exodus, AtomicWallet and Guarda review.
Step 2 – Find an Optimism (OP) Exchange
Buy Optimism 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 Optimism 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 Optimism 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 Optimism through Okex
- OKX (Chinese: 欧易), formerly known as OKEx, is a Seychelles-based cryptocurrency exchange and derivatives exchange. It was founded by Star Xu (徐明星) in 2017. OKX is owned by Ok Group, which also owns crypto exchange Okcoin. It is not available to US based investors. The company’s CEO is Jay Hao and CMO is Haider Rafique. Initially headquartered in Beijing, China, OKX is now under a blanket ban by Chinese regulators. On October 13, 2021, it issued a “Notice on Regulatory Policy in Mainland China”, announcing that it would continue its policy of “withdrawing from the Chinese mainland market” and would not establish an office or team in the region. However, according to Caixin, although the exchange officially announced that it would no longer set up an office in Mainland China, it still has a large number of R&D staff working in the region, including engineers, who continue to work for OKX in the form of third-party outsourcing companies.
Buy Optimism 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 Optimism (OP)
Once you decide on an exchange, open an account and buy your Optimism. Make sure to withdraw the Optimism 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 Optimism?
Optimism is led by the Optimism Foundation, a nonprofit organization dedicated to growing the Optimism ecosystem. Similar to Ethereum, Optimism aims to become a fully decentralized public good that is not profit-oriented. Optimism is completely funded by donations and grants, and pledges to produce infrastructure that promotes the growth and sustainability of public goods. In its roadmap, Optimism aims to have L1 governed fault proofs ready by 2024.
What Makes Optimism Unique?
Optimism is a Layer 2 scaling solution for the Ethereum blockchain that offers a unique approach to scaling and improving the performance of the network. Here are some of the key factors that make Optimism unique:
Optimistic Rollups: Optimism uses a technology called Optimistic Rollups, which allows the network to process transactions off-chain and then submit a summary of those transactions to the Ethereum blockchain. This approach allows for a significant increase in transaction throughput, while still maintaining the security and decentralization of the Ethereum network.
EVM Compatibility: Optimism is designed to be fully compatible with the Ethereum Virtual Machine (EVM), which means that developers can easily port their existing smart contracts and dApps onto the Optimism network without the need for significant changes.
Seamless Integration: Optimism is designed to seamlessly integrate with existing Ethereum infrastructure, including wallets, exchanges, and other dApps, making it easy for users to transact on the network.
Lower Transaction Fees: Optimism’s off-chain approach to transaction processing results in lower fees for users, making it more accessible to a wider range of users.
Community-driven: Optimism is an open-source project that is developed and maintained by a community of developers, which ensures that the project remains transparent and accountable to its users.
Overall, Optimism’s innovative approach to scaling the Ethereum network, combined with its compatibility, integration, and community-driven development, make it a unique and promising solution for improving the performance and accessibility of the Ethereum blockchain.
How Many Optimism (OP) Coins Are There in Circulation?
Optimism aims to create an ecosystem, where value is generated for its three constituencies:
- Token holders receive value through the productive re-deployment of sequencer revenue.
- Contributors and builders receive value from retroactive public goods funding.
- Users and community members receive value from ongoing airdrops and project incentives.
In short, demand for OP block space generates revenue, which is distributed to public goods, which drives more demand for blockspace. That is why Optimism’s token allocation looks as follows:
- Ecosystem fund (25%): split between the governance fund (5.4%), the partner fund (5.4%), the seed fund (5.4%), and unallocated (8.8%).
- Retroactive Public Goods Funding (20%)
- User airdrops (19%): split into a first airdrop of 5% and subsequent airdrops yet to be announced.
- Core contributors (19%): people who help bring the Optimism Collective from concept to reality
- Investors (17%)
The initial token supply is 4,294,967,296 OP tokens, at an inflation rate of 2% a year. In Year 1, 30% of the initial token supply will be made available to the Foundation for distribution. After the first year, token holders will vote to determine the Foundation’s annual OP distribution budget. The Foundation expects to seek the following annual allocations:
- Year 2: 15% of the initial token supply
- Year 3: 10% of the initial token supply
- Year 4: 4% of the initial token supply
How Is the Optimism Network Secured?
The Optimism network is secured through a combination of on-chain and off-chain security measures. Here are some of the key security measures that are in place to ensure the security and integrity of the network:
Optimistic Rollups: Optimism’s use of Optimistic Rollups allows for off-chain processing of transactions while still maintaining the security and decentralization of the Ethereum blockchain. The Optimism network periodically publishes a summary of these transactions to the Ethereum blockchain, providing an additional layer of security and immutability.
Fraud Proofs: In the event of a fraudulent transaction on the Optimism network, users can submit a fraud proof to the Ethereum blockchain, which can be used to challenge and reverse the fraudulent transaction.
Smart Contract Auditing: Optimism’s smart contracts undergo extensive auditing by third-party security experts to ensure that they are secure and free from vulnerabilities.
Bug Bounty Program: Optimism offers a bug bounty program that rewards users for identifying and reporting security vulnerabilities in the network.
Community Vigilance: The Optimism community is highly engaged and vigilant in monitoring the network for security threats and vulnerabilities, ensuring that any issues are addressed promptly and transparently.
Overall, the combination of on-chain and off-chain security measures, along with community vigilance and engagement, helps to ensure the security and integrity of the Optimism network.