Invest in Chainlink – How to Invest in Chainlink for Beginners
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Chainlink (LINK) is a protocol that makes it possible for blockchains to access much-needed off-chain data for smart contracts. The network enjoys the support of a large community including data providers, smart contract developers, node operators, security auditors, researchers, and more.
If you’re interested in this digital token and want to understand how to invest in Chainlink, this guide will answer all your questions. Here, you’ll understand the step-by-step process involved, the best Chainlink brokers to consider, and how to hedge your risks when completing your investment.
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#1 Broker to Invest in Chainlink – eToro
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How to Invest in Chainlink – Choose a Broker
Although there are numerous platforms that allow you to invest in Chainlink, some rank higher than others. Here, we provide you with the best brokers to invest in Chainlink in the US.
- eToro – Overall Best Broker to Invest in Chainlink
- Coinbase – Great Broker to Invest in Chainlink for Beginners
- Binance – Largest Crypto Exchange to Invest in Chainlink
- Coinmama – User-Friendly Place to Invest in Chainlink
- Kraken – Credible Exchange for Investing in Chainlink
We have examined these brokers based on certain metrics such as fee structure, ease of use, regulation, supported markets, investment tools, and more. Later in this guide, you’ll come across our detailed review of these Chainlink brokers.
If you want to invest in Chainlink immediately, then all you need is a quick walkthrough of the process involved. Here, we walk you through those steps in a precise manner.How to Invest in Chainlink (LINK) – A Quick Guide For 2021
- Step 1: Open an eToro Account – This can be done by heading over to the broker’s website. You’ll have to register with your contact details and then choose a username and password.
- Step 2: Provide a Valid ID: eToro is a regulated broker and one of the requirements of using such a platform is identity verification. This standard procedure is called the Know Your Customer (KYC) process. You can complete the process by uploading a government-issued ID such as a passport or a driver’s license.
- Step 3; Add Funds to Your Account: You cannot invest in Chainlink until you’ve made a deposit into your account. Here, you have to add the $50 minimum amount to your account, after which you can proceed to the next step. To make this deposit, you can use a debit/credit card, online banking, or ACH.
- Step 4: Invest in Chainlink: You can find the token by entering ‘Chainlink’ into the search box. After the result tab displays the token, select the ‘Trade’ button and input your stake. Following that, verify your order and open your trade.
Once you follow these steps, you’d have successfully invested in Chainlink in the US. These steps may, however, not be comprehensive enough if you’re just getting started in the cryptocurrency investment space. Therefore, later in this How to Invest in Chainlink Guide, you’ll find our extensive discussion of the above steps.
Cryptoassets are highly volatile unregulated investment products. Proceed at your own risk.
Where to Buy Chainlink – Full Broker Reviews
You’re required to exercise some care when choosing a broker when learning how to invest in Chainlink. This is because several platforms in the market won’t offer you the great service you need.
Therefore, we have provided some essential parameters to assess suitable Chainlink brokers before making a choice. These include regulation, supported markets, user-friendliness, fee structure, and more.
However, you might be frustrated if you have to examine dozens of Chainlink brokers in the market using the above-listed metrics, as this will be extremely time-consuming. As such, below we have researched the best brokers for you to consider when looking to invest in Chainlink in the US.
1. eToro – Overall Best Broker to Invest in Chainlink
eToro is a distinguished broker in the crypto market for various reasons. The first is that the broker is regulated by the SEC, meaning the platform is mandated to have a well-established scope of operations and a fair trading system. Additionally, in other jurisdictions, the broker also enjoys regulation. For instance, eToro is regulated by ASIC in Australia and the FCA in the UK. This heavy regulation is a great pointer to the credibility of the broker in the cryptocurrency market.
Since eToro is approved by leading financial institutions – such as FINRA and the SEC, you can make payments using your debit/credit card. Other options you can also use include ACH and online banking. Using any of these options, you can get started with a Chainlink investment by adding the minimum required amount of $50 to your account. Another feature we like about this broker is that when you make a deposit, you won’t incur any fee. This is unlike some other brokers – such as Coinbase, where you’re charged about 4% when adding funds to your account.
Additionally, eToro offers you certain tools that make it convenient for you to invest in Chainlink. This includes the copy trading tool – which you can use to invest passively. Here, you simply need to choose an experienced investor and the copy trading tool will mirror their future trades in your portfolio. You also have the CryptoPortfolio – through which you can invest in a long list of cryptocurrencies via a single trade. To make your investment journey interactive, eToro also provides you with a social platform where you can gain insights from other investors.
Another impressive thing about this broker is its list of supported markets. Asides from Chainlink, you can invest in over 30 other cryptocurrencies, making it easy for you to diversify your portfolio if you’re looking to hedge your risks. The available markets include tokens like Bitcoin, Ethereum, Cardano, EOS, Stellar, Litecoin, and more. The broker also supports Defi tokens like AAVE and Spark. What’s exciting here is that eToro allows you to invest in Chainlink alongside these other markets from as little as $25.
Finally, in terms of fee structure, eToro ranks high on this list of brokers where you can invest in Chainlink. The broker allows you to invest on a spread-only basis, meaning once you cover the difference between the ‘buy’ and ‘sell’ price, you’re good to go. Impressively, the spread on eToro starts from 0.75%, while on other brokers, you might find it exceeding 2%. This array of benefits in terms of regulation, cost-effectiveness, user-friendliness, and fee structure makes the broker a leading option for investing in Chainlink in the US.
Pros
- Invest in cryptocurrencies on a spread-only basis
- Minimum investment per trade from just $25
- Supports debit/credit cards, online banking, and local bank transfers
- Regulated by the SEC, FCA, CySEC, and ASIC
- Minimum deposit of $50 and no transaction fees for US citizens
- Used by over 20 million people
- Perfect for beginners
- Social and copy trading tools
Cons
- Perhaps too basic for technical traders
- No support for MT4 or MT5
Cryptoassets are highly volatile unregulated investment products. Proceed at your own risk.
2. Coinbase – Great Broker to Invest in Chainlink for Beginners
It’s been almost a decade since Coinbase has been in the cryptocurrency brokerage scene. For the past nine years, the broker has remained a popular choice for its ease of use when it comes to buying and selling cryptocurrencies. If you’re looking to invest in Chainlink in a seamless manner that’s burden-free, Coinbase is a broker you might want to consider. Getting started with this broker is super easy, as you simply need to provide some personal information like your full name and address and verify your identity through a government-issued ID.
However, what we consider a drawback with this broker is the fee structure. Although the broker supports different payment methods including debit/credit cards, there are certain commissions you’ll incur when you invest in Chainlink with this platform. Coinbase charges nearly 4% of the purchase amount, meaning you’d be receiving just $960 if you invest $1,000 in Chainlink using your debit/credit card. Based on this, it’s safe to say the broker is not the best if you’re on a budget.
Nonetheless, Coinbase is a great broker with impressive security protocols for keeping your funds safe. The broker stores the bulk of your digital assets in cold wallets, keeping them out of hackers’ reach. Additionally, the broker allows you to schedule your purchases, meaning you can automatically invest in Chainlink daily, weekly, or monthly. This allows you to execute your dollar-cost averaging strategy conveniently, making your entire Chainlink investment journey super convenient.
Pros
- One of the most popular cryptocurrency exchanges
- More than 68 million users
- Supports instant debit card purchases
- Dozens of digital currencies to choose from
- Institutional-grade security practices
Cons
- Debit card deposits are expensive at 3.99%
- You will pay a standard trading commission of 1.49%
at eToro, #1 Broker in the US
Cryptoassets are highly volatile unregulated investment products. Proceed at your own risk.
3. Binance – Largest Exchange to Invest in Chainlink
Although launched in 2017, Binance has grown substantially to become the largest cryptocurrency exchange in terms of trading volumes. While the global platform is accessible to all users, Binance has gone a step further to create another version of its cryptocurrency exchange that’s dedicated to Americans. Although the US-dedicated Binance doesn’t support as many markets as the global exchange, you still get access to over 50 tokens including Chainlink, Tezos, Cardano, Ethereum, and more.
Furthermore, if you want to invest in Chainlink in a swift manner, Binance is a platform worthy of consideration. The exchange is known for its high execution speeds, making it a suitable platform for initiating and completing Chainlink trades within record time. You can get started with this exchange by signing up and completing a KYC process to verify your identity. The fastest method to complete your Chainlink investment on Binance is through your debit/credit card. However, do note that for this payment method, you’ll be charged a 0.5% fee.
However, asides from not having access to as many markets as non-US users, we also found that Binance is not the best option when it comes to ease of use. If you’re a beginner looking to invest in Chainlink, you might find it a bit difficult to use the exchange. Asides from these two drawbacks, using Binance for investing in Chainlink might be worthy of consideration if you want asset diversity. You can also get started by downloading the exchange’s mobile application – which is supported by both Android and iOS.
Pros
- Facilitates billions of dollars in daily trading volume
- Supports hundreds of digital asset pairs
- Near-instant deposits via debit/credit card
- Trading commission starts at just 0.1% per slide
- Offers crypto savings accounts
- Ideal for both beginners and experienced traders alike
Cons
- Not all supported cryptocurrencies can be purchased with a debit/credit card
- No e-wallet deposits or withdrawals
at eToro, #1 Broker in the US
Cryptoassets are highly volatile unregulated investment products. Proceed at your own risk.
4. Coinmama – User-Friendly Place to Invest in Chainlink
You can also invest in Chainlink on Coinmama, as the token is one of the supported markets on the platform. The broker’s ease of use will also make it convenient for you to invest in Chainlink, especially if you’re a beginner with no prior experience in the cryptocurrency space. Another impressive thing we found about the broker is its great customer support, making it swift for users to resolve any issue they face while investing in Chainlink.
However, the first drawback with this broker is that there aren’t many markets listed on it. The broker, as at the time of writing, only supports just over 10 markets, meaning you don’t have many options if you’re looking to diversify your Chainlink investment. Additionally, the broker doesn’t have an in-built wallet, which means you have to transfer your LINK tokens to a reliable wallet after purchasing them. This transfer process is unsafe and might compromise your tokens.
Furthermore, the broker didn’t get a great score when we assessed it in terms of its fee structure. First, when you add funds to your account using a debit/credit card, you incur a 5% fee. Additionally, when you want to sell your Chainlink tokens, the broker charges you 3.90%. This fee structure makes the broker an expensive option despite it being one of the leading platforms where you can invest in Chainlink. Such a high fee structure will affect the returns you can make on your LINK investment, so you should consider this if you want to use the broker.
Pros
- Easy to use platform
- Buy crypto directly with a debit or credit card
- KYC process is fairly simple
- Plenty of supported digital tokens
- Good reputation
Cons
- Super expensive fees
- Forced to withdraw crypto to a private wallet
at eToro, #1 Broker in the US
Cryptoassets are highly volatile unregulated investment products. Proceed at your own risk.
5. Kraken – Credible Exchange to Invest in Chainlink
Home to several markets including crypto-crosses and fiat-to-crypto pairs, Kraken is one of the many places allowing you to invest in Chainlink and numerous other tokens. Firstly, the broker has a simple user interface with prompts that help you navigate your way as a beginner. The broker also has a mobile app, making it possible for you to invest in Chainlink with convenience. The app is supported by both iOS and Android, so you can get started with buying tokens irrespective of your device type.
Margin trading is also one of the features you can enjoy when you use Kraken in the US. This form of investment allows you to collateralize your existing asset to fund new purchases. However, while this feature is a way to secure substantial gains in the market, it can equally amount to huge losses. Nonetheless, if your risk appetite is high and you’re looking to try out new investment features, Kraken is a great place for that purpose.
However, our assessment shows that Kraken is a broker with a high fee structure. The lowest possible commission on the broker is 0.10%, which only becomes accessible after a minimum 30-day trading volume of $10 million. Otherwise, you’d be paying 0.26% commission per slide. Additionally, another drawback with the broker is the absence of an in-built wallet, meaning you have to look for an external storage option to keep your Chainlink tokens safe. If you also want to sell your tokens, you’ll have to transfer them back to the broker.
Pros
- Popular cryptocurrency exchange and broker
- Great selection of cryptocurrencies
- Supports both crypto-cross and fiat-to-crypto pairs
- Accepts debit/credit cards and bank transfers
- Offers complex crypto instruments for experienced traders
Cons
- Not all US states are supported
- Fees are somewhat pricey
at eToro, #1 Broker in the US
Cryptoassets are highly volatile unregulated investment products. Proceed at your own risk.
How to Invest in Chainlink – Detailed & Explained in Full
Now, we will take you through the complete tutorial on how to invest in Chainlink using eToro – a cost-effective and SEC-regulated broker. After learning these steps, you’ll be able to buy Chainlink tokens in under five minutes.
Step 1: Open an Investment Account
When you want to invest in Chainlink, the first thing to do is to head over to the eToro website to sign up. This step will require you to provide some personal details such as your full name, home address, social security number, and more. You’ll also need to choose a username and password during this step.
eToro leverages the registration process to inquire about your investment experience. This helps the broker to determine the trading services it should offer you. Once you answer all the required questions, you’d have completed this step and can now move to the next.
Cryptoassets are highly volatile unregulated investment products. Proceed at your own risk.
Step 2: Provide a Valid ID
When you’re yet to verify your identity, there will be certain restrictions on your account. You won’t be able to invest in Chainlink, as the broker will prevent you from accessing the order page where you buy the token. To remove this restriction, you’ll need to provide a government-issued ID. This can be a driver’s license or a passport, among several other options.
Furthermore, this step requires you to submit a document that contains your home address. Here, you can provide a utility bill or bank statement. After submitting these documents and the broker verifies them, the restrictions on your account will be removed in just a few minutes. Then, you’ll be able to make payments in US dollars using your debit/credit card.
Step 3: Add Funds to Your Account
Before proceeding to invest in Chainlink, you must have funded your eToro account. Since you’re investing in Chainlink from the US, all you need to add to your account is the $50 minimum required amount. This can be done through the available payment options including debit/credit cards, ACH, or online banking.
The notable thing here is that you get to add funds to your account for free when using eToro. This is unlike other brokers where you might incur up to 5% when making a deposit using a debit/credit card.
Step 4: Search for Chainlink
You can find the token by entering ‘Chainlink’ into the search box. You’ll come across different options in the result tab, so make sure to select ‘LINK.’
On the ‘LINK’ option, click on the ‘Trade’ button, which will take you to the order page.
Step 5: Invest in Chainlink
eToro is designed to make the Chainlink investment process convenient for you. So, on the order page, all you need to do is to enter your stake, and the broker will execute your purchase. Although the minimum stake you can enter is $25, you can easily make adjustments if you intend to invest more in Chainlink.
Following that, click ‘Open Trade’ and have successfully invested in Chainlink in the US using eToro!
How to Sell Chainlink
As with all investors, your goal is to make a profit when you buy Chainlink. Meaning, you purchase the tokens and hope to sell them when the coin’s price increases. For instance, if you invest $1,000 in Chainlink and the market moves in your favor, creating a 20% increase — you’d have made a $200 profit on this trade.
However, you can’t say you’ve made a profit until you secure it. This is because the cryptocurrency market is volatile and prices can increase or decrease within seconds. Therefore, you must also understand how to sell Chainlink tokens. With the steps below, you can do this in no time.
- Head over to eToro and click on your portfolio.
- Locate the ‘Sell’ button and click on it.
- Confirm your sell order and the broker will proceed to execute it accordingly.
- Meaning, your Chainlink tokens will be sold at the next best price (if you choose the market order).
- After the sale, you’ll receive your funds in your account.
You can withdraw your funds through any of the supported payment methods. This can be through a debit/credit card, ACH, or an e-wallet.
Ways to Invest in Chainlink
As an investor, you want to understand the different ways in which you can invest in Chainlink in the US. While there are varying ways for you to do this, understanding the most effective method will save you from a lot of investment troubles.
Therefore, you should always consider some features when choosing an investment platform. One of the most important things to consider is the platform’s security. So, here, we discuss the features of cryptocurrency brokers and exchanges to help you make an informed decision.
Invest in Chainlink Using an Online Broker
Choosing to invest in Chainlink through a broker is a great option. This is because most brokers are regulated, meaning your funds are protected on the platform. For instance, eToro is regulated by the SEC and registered with FINRA.
- Being approved by these bodies makes eToro a credible broker where you can invest in Chainlink.
- Additionally, a regulated broker supports payments in US dollars, meaning you can add funds to your account through your debit/credit card.
- Regulated brokers are mandated to disclose their fee structure and also operate a fair trading system.
Another advantage of using a broker like eToro is that you get an in-built wallet for you to store your LINK tokens. Therefore, when you’re ready to sell them, you can do so directly from your portfolio.
Invest in Chainlink Using a Cryptocurrency Exchange
Although cryptocurrency exchanges are mostly unregulated, some investors consider them a great option. This is because a number of these platforms have a significantly low fee structure. Additionally, when you’re investing in Chainlink on these exchanges, you’re not mandated to upload your ID, meaning you can trade anonymously.
However, while you might want to consider the above features as perks, you need to understand the importance of security when investing in Chainlink. An unregulated exchange cannot ascertain the protection of your funds. Furthermore, since these exchanges are unregulated, you cannot use your debit/credit card to make purchases.
This means you’ll have to engage in crypto-to-crypto exchanges, which might be complex – especially if you’re a beginner. Essentially, it’s safer and more cost-effective to use a regulated broker. This way, you get complete transparency from the Chainlink broker and also understand the platform’s scope of operations. So, if you’re considering the right broker to choose, eToro is a good pick.
Should I Invest in Chainlink?
The ‘Should I Invest’ question is a common one in the cryptocurrency investment scene. Every investor wants to be sure they are making the right choice when buying a token. So, it’s possible that you might find yourself asking the same question when you’re looking to invest in Chainlink.
However, in that case, the best line of action is to research more about the coin. To make this process easy for you, we have provided some features worthy of consideration below. Learning more about these features will offer you more insights into LINK tokens.
Solves a Significant Problem
A notable feature of Chainlink is that the protocol attempts to solve a significant problem in the blockchain space. This problem concerns the communication of information to and from the blockchain. This role has traditionally been undertaken by oracles. Oracles are designed to monitor different things such as sports scores, weather, stock value, and more.
Subsequently, the oracles provide data where they are needed on-chain. However, while oracles perform a key function in the blockchain ecosystem, they are centralized. This makes oracles subject to the control of a single central authority, which is against the principle of the blockchain vision. Therefore, with Chainlink bridging this gap, the protocol has been able to draw attention in the cryptocurrency market.
Provides Users With Revenue Opportunities
Chainlink is a decentralized network that provides users with opportunities to contribute to the success of blockchain technology. Because of its impressive use case, the network has been able to draw the attention of trusted providers who can provide Chainlink with access to data in return for a fee.
Additionally, the network provides users with the opportunity to become node operators and contribute to the data infrastructure that supports its blockchain. In return for this service, they earn a fee. This reward system helps the network garner some traction in the market, which invariably impacts the LINK token as well.
Established Project
A crucial factor to consider when evaluating a project is its track record. A project that has been in the cryptocurrency scene for a while will have sufficient historical data for you to study.
For instance, CoinMarketCap lists over 11,000+ cryptocurrencies, most of which were launched in the previous two years. Interestingly, Chainlink was launched in 2017, meaning the project is relatively more established than many other tokens.
This way, you can assess various bullish and bearish moments of the token to determine its overall performance so far. Doing this will allow you to know more about the token and thus – you can decide whether it’s a good buy or otherwise.
Notable Announcements
Chainlink has also enjoyed support in the wider cryptocurrency market.
- The network hosted an ICO in 2017, which as at the time of writing in late 2021, is one of the biggest fundraising events to take place in this industry.
- The event made the network a total sum of $32 million, which has helped the protocol to expand its services and push new boundaries.
- Furthermore, the network also entered into a strategic partnership with Google in 2019.
- This remarkable move drew the attention of investors to the token as the partnership provides Chainlink holders with access to BigQuery via API — Google’s popular cloud service.
Announcements of this nature continue to create more traction around the token, and this might be something worthy of consideration when you’re looking to invest in Chainlink.
What are the Risks of Investing in Chainlink?
Any smart investor will want to understand the risks that come with investing in Chainlink. After all, when you’re informed about the risks, you can decide on the best ways to hedge them.
Therefore, in this section of our How to Invest in Chainlink Guide, we discuss the risks you should consider before buying this token.
Token’s Success is Linked to The Network’s Use Cases
Chainlink seeks to make data more accessible in a decentralized manner. However, the success of the LINK token is dependent on the relevance of the network’s use case.
This means that investors will be more drawn to the token if the platform itself is able to achieve its objectives. This relationship might hinder the token’s growth in the market if the network is not performing optimally.
Volatility
The cryptocurrency industry is characterized by market volatility. Meaning, Chainlink’s price can shoot up or drop within seconds. So, suppose you invest in the token and the price drops not long after, you’d have incurred a loss.
Therefore, you have to prepare your mind for the possibility of wild market volatility. This is why, as an investor, you need a trading plan that will guide your investment decisions.
Unregulated Exchanges
By now, you’d have noticed our constant emphasis on regulated exchanges in this How to Invest in Chainlink Guide. This is because we understand the importance of security over funds when you’re making an investment. Unregulated exchanges do not offer you this, making them less credible, unlike licensed brokers.
Furthermore, because these unregulated exchanges might not have an in-built wallet for your tokens, storage becomes a challenge. The alternative is to transfer your tokens to a reliable wallet, but that might make them susceptible to remote attacks.
How to Hedge Your Risks
Here, we discuss some effective strategies with which you can manage the Chainlink investment risks discussed above.
- Always do your research. This way, you’ll know more about Chainlink and have an adequate understanding of the token’s trajectory.
- Consequently, you can make investment decisions from an informed perspective.
- Leverage the dollar-cost averaging strategy through which you can buy Chainlink in small but regular amounts.
Furthermore, choosing a cost-effective and regulated broker also makes it more convenient to invest in Chainlink. With a broker like eToro, you don’t just get a user-friendly interface but also a wide range of markets for you to diversify your Chainlink investment.
How Much Does it Cost to Invest in Chainlink?
When you’re contemplating what fees you’ll incur while investing in Chainlink in the US, you need to understand that your broker is the ultimate determiner of the cost.
- This is why it’s essential to choose a cost-effective broker like eToro – where you incur no deposit fee for adding funds to your account through a debit/credit card.
- Additionally, while the spread on some other brokers might exceed 2%, this starts at just 0.75% on eToro.
- The minimum you need to add to your eToro account is just $50 and you can start investing in Chainlink with as little as $25.
Therefore, always consider the fee policy of the broker you’re choosing. Regulated brokers like eToro have no hidden fees and operate with complete transparency.
How to Invest in Chainlink – Conclusion
Having read this guide, we believe you now understand the steps required to invest in Chainlink in the US. Our guide also covered the best brokers you can use for this purpose.
Of these brokers, eToro stands out for its cost-effectiveness, heavy regulation, supported markets, and tools available to make LINK investments easy for beginners. These are key features to consider in a broker when you’re looking to invest in Chainlink.
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FAQs
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