What is EOS?
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EOS is a blockchain platform designed for developing dApps (decentralized apps) which are computer applications that run on a distributed computing system. Similar to other blockchain projects, EOS has its own native digital token, which is also known as EOS. The native coin is what people on the network used to carry out transactions and to keep track of usage.
There is no official definition for EOS, and the creators decided not to define the acronym formally. EOS supports various functionalities that allow individuals and businesses to create blockchain-based apps, similar to what we have with a web-based app. The dApps have various functions, such as providing secure access and authentication, data hosting, game coin banking, communication between the dApp and the internet, and usage management.
The EOS ecosystem is comprised of two key elements. The EOS tokens and the EOS.IO. EOS.IO is the OS (operating system) of the network, and it manages and controls the blockchain network. It uses the blockchain architecture to enable both horizontal and vertical scaling of dApps. EOS token, on the other hand, is the cryptocurrency that powers the EOS network.
Developers are required to hold EOS coins so they can be eligible to utilize the network resources and to build and run their dApps. Token holders that do not operate any apps can allocate or rent their bandwidth to other participants on the network that might need it. So, let us look at how you can buy, sell and trade EOS.
Where to Buy EOS
EOS is a leading crypto coin and it is available on virtually all cryptocurrency exchanges and online broker platforms. As an investor or trader, the first place to look when you want to buy, sell or trade EOS is a reputable broker or cryptocurrency exchange. This is because reputable platforms offer security, liquidity, and effective trading tools and services that ensure the trading process is safer and easier for you.
Why Buy EOS from Brokers?
Online cryptocurrency brokers serve as an alternative investment and trading platform, offering users access to a wide range of crypto tokens and coins, including EOS. These brokers also enable you to trade other assets such as forex, stocks and commodities. Brokerage platforms have certain advantages over crypto exchanges when it comes to trading EOS. They include:
Zero Cost on Storage
When you trade EOS with a cryptocurrency brokerage platform, you do not have to worry about storing your EOS coin. This is because you are not actually buying the cryptocurrency. Instead, you are simply trading cryptocurrency CFDs (contracts for differences) on their platforms. Here, you will need to simply make a prediction regarding the direction that the price of the asset will move. As a result, this will save you the money that you would otherwise spend on buying a digital wallet to store your EOS stash and other cryptocurrencies.
Instantly Buy and Sell
Reputable brokers are used to dealing with billions of dollars in daily transactions when it comes to forex and other CFD trading. Thus, with their large liquidity, it is easy for them to handle the numerous EOS transactions they receive from crypto traders and investors. Their massive liquidity means that you will get to instantly buy and sell your EOS without encountering any delays.
Due to the increasing value of cryptocurrencies, cyber-criminals and other bad actors continue to attack crypto platforms. However, when you trade EOS with crypto brokers, your funds and investments are secure because most brokers deploy a wide range of security measures, like the SSL certificate and others, to help protect both your funds and personal data. Since many brokers are regulated, they also ensure the safety of your investments by providing insurance. This means that you will get your money back in case something happens to the platform.
Powerful Trading Tools
Cryptocurrency brokers offer traders a wide range of tools such as access to various trading platforms (MT4, WebTrader, and more), an economic calendar, charting tools, cryptocurrency market news, calculators, and more. These trading tools make it easier to trade cryptos more effectively and accurately.
Here are some of the pros and cons of trading EOS with an online crypto broker:
Why Buy EOS from Crypto Exchanges?
Cryptocurrency exchanges, or digital currency exchanges, are platforms that allow investors to trade cryptos or digital currencies for other assets, such as for fiat money or other digital currencies. EOS, and virtually all cryptocurrencies, were listed on crypto exchanges before they became available on other online trading platforms. Thanks to this, crypto exchanges remain an excellent avenue to buy and sell EOS and a wide range of digital currencies. You should consider exchanges because of the following reasons:
You can easily access EOS coins on cryptocurrency exchanges because they operate 24/7, just like the crypto market. You can easily buy EOS on the exchanges at any time of the day or night and every day of the week. Cryptocurrency exchanges also offer massive liquidity of the EOS coins, which means that you can easily buy, sell, and trade EOS with ease. EOS has several trading pairs such as the USD, USDT, BTC, ETH, and more on the crypto exchanges. Hence, you can buy the crypto coin and trade it against a basket of other leading cryptocurrencies.
Usage of the Coins
When you buy EOS from crypto exchanges, you are buying the digital coins. This means that you can hold the EOS coin and use it on the blockchain to pay for your dApps and more. You can also trade the cryptocurrency on crypto exchanges. Furthermore, since you hold the crypto coins, you can store them in digital wallets, both cold and hot storage wallets. This means that you can hold the EOS coins in your wallet and sell them when the price increases. Thus, unlike on brokerage platforms, buying EOS on cryptocurrency exchanges means that you can buy and sell this actual crypto and you are not trading EOS CFDs.
Here are the pros and cons of buying and selling EOS on a crypto exchange:
The Difficulties of Buying EOS
Despite EOS being one of the leading cryptocurrencies, some people still find it hard to buy and sell this digital coin. This is because some cryptocurrency exchanges do not support buying EOS directly with fiat currencies. You have to first buy Bitcoin, Ethereum, or Tether (USDT) with fiat currencies and then you need to use the BTC, ETH, or USDT to buy the EOS. The process can be long and tedious and not suitable for all investors. Crypto exchanges might also have complicated identity verification processes which can slow down your investment activities.
The same problem is not encountered when you buy the cryptocurrency on brokerage platforms. Brokers allow you to trade EOS CFDs directly using the fiat currencies you deposited on their platform. It eases the process of purchasing EOS, and it is more lucrative since you do not have to spend extra money just to store the cryptocurrency.
Why You Should Invest in EOS
EOS is a solid investment because of the nature of the cryptocurrency. For starters, EOS has always been amongst the top ten cryptocurrencies in terms of market value, however, it has recently underperformed, putting it in 12th place. However, knowing the nature of EOS and the usefulness of the cryptocurrency in the crypto market, it is likely to bounce back allowing investors to make real profits.
EOS has changed the dApp world and remains perhaps the fastest smart contract platform in this space. The fast transaction speed and ease of use continue to make EOS appealing to dApp developers. Thus, as more of them use the EOS blockchain to host their dApps, the EOS coin will continue to gain more usage and become more valuable.
Another strong point to consider is the strong management team behind EOS. The project is headed by lead developer and Block.one CTO Dan Larimer. Larimer is the inventor of proof-of-stake (PoS) and the concept of decentralized autonomous organizations or DAO. His contribution to projects such as BitShares, Steemit, and Graphene, makes Larimer an influential figure in the crypto space. Hence, the strong management team behind EOS makes it an excellent project, and the coin could continue to appreciate over the coming months and years.
EOS is a cryptocurrency with a strong future because of its importance in the decentralized app and smart contract space. Despite Ethereum currently being the leader in this space, EOS has more scalability, which means that it can handle more transactions and at a faster speed than Ethereum. EOS offers new scalability solutions like asynchronous access to resources and parallel execution. Such solutions help numerous developers to simultaneously use the network and overcome resource problems at the same time.
EOS also has a development kit available to programmers, making it easy for developers to create decentralized apps. The sophisticated nature of the development kits attracts more developers to the EOS network, and as more developers use the blockchain, the EOS token will become even more valuable.
At the moment, there is no direct or correlating comparison between EOS and Bitcoin since the two cryptocurrencies do not have the same function. Bitcoin is mostly used as digital money to pay for goods and services, and it is the leading cryptocurrency. EOS, on the other hand, is currently the 12th largest crypto by market cap, and it is used to power dApps and stablecoins. There is also a wide difference in trading price as BTC is trading above the $10,000 region at the moment, while EOS is trading just close to the $3 mark per coin.