What is EOS crypto and how to buy it?
Reading time: 2 minutes
EOS is the one of the most recent and exciting cryptocurrencies to enter the market. It’s arrival has caused a lot of interest in the crypto community, but what is EOS exactly? In this guide we’ll explain what EOS is all about, as well as the story behind the project. After that, you can read about how to invest and buy the EOS coins.
Let’s get started!
What is EOS?
To understand what it is, it’s good to know a bit of the history behind it. The creator of the project is Dan Larimer, and the company developing it is called Block.One. Larimer is also the chief technology officer at Block.One and was involved in the development of Steemit and BitShares.
The name EOS is the acronym of Ethereum Operating System, which means that it’s a network where it possible to develop decentralized apps. If you’re wondering what a dApp is, it’s like any normal internet or smartphone app like Instagram or YouTube, but instead of having a centralized control point they’re decentralized.
The coin has been designed to rival Ethereum and the platform has been based on Ethereum’s ability to manage smart contracts. Besides the smart contract technology, EOS also has its own cryptocurrency, also called with the same name, where you can transfer and receive funds from your wallet.
Based on figures from coinmarketcap, in terms of market capitalization, EOS is currently the 8th largest cryptocurrency. This goes to show how popular EOS has become to enter the top 10 when there is plenty of competition.
In comparison Ethereum is still ranked at number 2, just behind Bitcoin, so EOS has a bit of catching up to do. There are also 927.552.697 EOS coins currently in circulation.
EOS gained a lot of attention when it launched as an ICO (initial coin offering) in June 2017. By the time it finished running in June 2018, the project has raised more than $4 billion in funds. As its still a fairly young project, under 3 years old, there is still a lot more development to come.
The fact the ICO raised so much money in just a year was impressive. It also caused EOS to gain a lot of attention from both the press and investors.
The main goal of this coin is for them to become the quickest and most affordable smart contract blockchain platform globally. That’s why they are one of the main competitors to rival Ethereum. Let’s take a closer look at how the platform works.
How Does EOS Work?
Now that you know that this virtual coin is based on the same platform concept of Ethereum, which is the 2nd most popular currency behind Bitcoin. The important thing to remember about Ethereum though is that it’s not just a cryptocurrency. Besides being a crypto, it also has a network based on blockchain technology. From the network it’s possible to develop decentralized apps and run smart contracts.
Before we examine the EOS crypto, let’s look at the blockchain technology of EOS.
The original design aim of EOS was that it would be more growable than Ethereum, which would simplify the Dapps creation process for developers. However it’s considered more centralized than Ethereum, mainly because there’s a set number of computers creating new blocks. Ethereum on the other hand uses miners to produce new blocks.
There are also a few other differences between Ethereum and EOS. These include:
- EOS is much faster and can potentially run up to 50,000 of transactions each second
- There are no transaction fees. Unlike Ethereum, EOS won’t charge any transaction fees when people send and receive funds
With the EOS blockchain, users will be able to run smart contracts. This technology will let people send important documents or funds securely, but only when certain conditions are meant. This use of the technology has attracted interest from many companies including banks and retailers.
In order to use the EOS blockchain though, users will need access to the EOS crypto coins. This is why EOS is both a blockchain network service and a cryptocurrency. The coins can only be purchased, not mined, and the maximum amount of EOS coins allowed in 1 billion.
If you’re interested in buying or investing in EOS as a digital currency, there is a few ways to do it. But now let’s take a look at the price.
Due to the successful launch of EOS as an ICO, expectations were high for its price when it entered the crypto market in 2017. The coin’s value grew rapidly from 50 cent in October 2017 up to $9 for the end of the year.
At the start of 2018 EOS reached a good price trend when compared to the other cryptocurrencies. Whilst Bitcoin reached their highest price peak in January 2018, EOS crypto did it in April 2018. In April 2018, one EOS coin was worth an impressive $21,46.
However, like most other cryptocurrencies in the market for most of 2018, EOS faced a sharp decline in price. In fact the price fluctuated to as low as $1,86 in December 2018.
Well for 2019 the EOS price has appeared to stabilise, and the crypto market generally seems to have returned to a bull market outlook. Whilst it’s hard to predict the future price of any coin, it’s worth analysing what’s happening to EOS this year to guess any price changes. One positive sign for value growth is that EOS has announced that they are making big improvements on the platform for 2019. This is likely to attract further investment and use of the platform which will cause the price to increase.
Currently as of August 2019 one EOS coin is worth $4,03. However it’s predicted that because EOS is more technologically advanced than Bitcoin, as well as increased use of its network, that coin prices are expected to grow.
Why Invest in EOS
There are many reasons why it’s worth investing in EOS. The main one is the amount of interest that the project has attracted. Whilst there are many ICO’s and cryptos around, EOS has attracted a lot of attention mainly due to its advanced network technology and how it could help major businesses.
With Block.One behind the development and great minds behind the project, it’s also like to succeed and do well in the future.
Another reason why it might be worth investing, is that the EOS coin price is affordable to buy. Unlike 1 Bitcoin, which costs a few thousand dollars at the moment to buy, 1 EOS is currently a few dollars. So if you are looking to invest without spending too much, EOS could be a great choice as you get a lot more for your money.
If you wish to trade on EOS, the fact that so many platforms such as IQ Option, eToro and Plus500 offer it as a CFD, shows how popular it has become. Having such good access to EOS via multiple platforms means that traders can easily trade the cryptocurrency whenever they want. This will encourage further investment and interest in the crypto.
How to Buy EOS
It’s important before you invest in EOS to decide if you want to buy EOS coins, or if you just want to trade on the price of it.
That’s because the 2 things are completely different. When you buy any cryptocurrency you completely own it. This means that is the value of that crypto goes up, you have made a profit on your purchase. However, it also means that if the coins value decreases, you also lose money. The good thing about buying crypto though is that you fully own it and you can do whatever you like with it in the future.
With trading, you don’t actually own the cryptocurrency, you are just speculating on its price movement. So you decide whether to base your trade on the price going up (to buy), or going down (to sell). If your trade action matches the price change of the cryptocurrency, then you make a profit. That’s why with trading you can also make a profit even if the actual EOS value decreases.
To trade you will need to have a trading account with an online broker that offers CFD (contract for difference) trading. CFDs mimic the price behaviour of various financial instruments, this includes cryptocurrencies and stocks for instance. EOS can be found at all the major online trading platforms. This includes eToro and IQ Option for example.
It’s really up to you to decide whether you want to buy the EOS crypto or just trade it. The choice is yours, but if you have no interest in buying the EOS crypto, it’s usually better just to trade.
Where to Buy EOS
If you’re looking to trade, then EOS can be found in all the major trading platforms in the market. Whilst many people decide to buy the EOS crypto but others prefer to trade it and earn money on its growth in the CFDs market.
To start, let’s take a look at how you can buy EOS. One of the easiest ways to buy EOS is through a coin exchange such as Binance or Changelly. You’ll have to set up an account with them if you don’t already, then you’ll need to buy either BTC or ETH which you can exchange for EOS. Both exchanges accept credit cards and are quite open with their fees.
However, if you are looking to only trade EOS, then you’ll need an online broker. The most important thing is that the broker is regulated, which means they are monitored by an official financial authority such as CySEC for instance. All the brokers listed below and on this site are fully regulated, which means you’re protected against fraud and scams.
Let’s take a look at some now.
Buy EOS in IQ Option
IQ Option is a regulated broker with licences from CySEC and the FCA. The broker is famous for having the lowest minimum deposit in the market. Depending on from which country you’re trading, the minimum deposit is just £10 / €10 /$10.
This is great if you are looking to invest in EOS but have a smaller trading budget, and you only wish to deposit a set amount.
Deposits can be made via Credit or Debit card (Visa and MasterCard), or wire/bank transfer. To make it easier for users to deposit, online payment methods such as Skrill, Neteller and WebMoney are also allowed.
To get started sign up for an account with the broker. You’ll need to provide some personal info such as name and email, and choose a secure password for your account. You’ll then be able to log into your trading account as well as access the free demo account. A demo account is ideal if you want to get used to the platform and see how it works before trading for real.
In order to secure your account and to make withdrawals, you’ll need to have your account verified. This is a step that the broker legally must do. To do this simply provide the identification documents when requested by the customer support team. Documents include a proof of identity and a proof of address, such as a passport or a credit card bill for example.
Once the verification is complete you can start trading. First of all search for EOS in the search bar at the top of the page, it should be quite easy to find. When you’ve found the EOS page you’ll see the crypto overview with recent price figures and charts.
To the left-hand side of the page you’ll see the green ‘BUY‘ and the red ‘SELL‘ buttons. Remember to select buy if you think the EOS price will increase, and sell if you think the value will go down. Click on the button to confirm your selection and open the trade.
The trading window will appear and from here you will be able choose the amount you wish to spend and set the stop loss limit. Confirming the trade will open it. It’s possible for you to manually close the trade anytime you wish direct from your account.
With trading, you don’t need access to a wallet as you don’t own the crypto. You just keep the profits made from the trade. With IQ Option it’s easy to withdraw your profits or funds at anytime, normally back to the payment method you made the deposit with.
Buy EOS in Other Trading Brokers
Alternative online brokers where you can trade EOS include Plus500 and eToro. Both brokers offer EOS and other cryptocurrencies for CFD trading, however there are a few differences between the two.
For instance, Plus500 is known for having a user-friendly and simple trading platform, they also charge 0% commission fees on trades. For eToro, they charge a low commission fee on trades, but they offer a great social platform.
They are the only broker where it’s possible to connect with other users and discuss trading matters. In the trading community they are famous for their CopyTrader feature. This lets you copy the traders of other successful members, so if you’re new to trading and want to learn from others, it’s a good way to do so. Both brokers offer a free demo account as well.
Investing in EOS
If you decide to invest in EOS one thing we would always recommend is that you have an investment plan. This doesn’t need to be a complicated thing to do, it doesn’t have to be written down either, you just need to consider the following things:
- How much do you want to invest in EOS and what’s your budget limit?
This is important because you need to make sure that you don’t go over budget and that you can afford to risk the money. Like any investment, there is no 100% guarantee that you’ll make a profit, so you need to make sure that your finances can afford it.
- What suits you better – to buy EOS coin or to trade?
As explained in the ‘How to buy EOS’ section of this guide, there is a big difference between trading and buying EOS. You need to think which option suits your needs better. You also need to consider which broker or coin exchange you’d like to use when you decide what you’d like to do.
- Are you looking for a short or long-term investment?
A short term investment is a period from a few days up to 12 months, whilst a long-term investment is anything over year. Whether you buy or trade, both are relevant. This is because you need to think about how the EOS price will behave and whether it’s better for you to hold on to your investment for a long time or not.
These are the 3 key questions you should ask yourself before doing anything, so that no investment is made impulsively. All the best traders train themselves to not invest emotionally and to only base their buying behaviours on rational decisions.
It’s also worth keeping aware of what’s happening in the crypto market and whether there have been any key news events that are likely to influence the EOS price in the future. By keeping aware of what is going on, you are better prepared for any price changes that might happen in the market.
You may have wondered if it’s possible to mine EOS, but to keep it simple, it cannot be ‘mined’. The normal concept of mining and using miners to create new blocks for the blockchain cannot be applied to EOS.
That’s why instead of miners, you have what’s known as ‘producers’. These producers are responsible for the creation of new blocks. However, there can only be 21 producers on the EOS blockchain at one time.
Besides a limit on miners, there is also a set limit on the amount of EOS coins that can be produced, which is currently 1 billion. But the price of this coin is fixed on events happening in the market and not by the producers at all.
>> To learn more about EOS and where it’s better to trade it please visit this page here.