5 Ways To Invest In EOS in 2021
Launched not too long ago in June 2018, EOS is a blockchain-based decentralised operating system, meant for easy creation, hosting, security and support of decentralised applications (dApps) and smart contracts.
The EOS ecosystem constitutes two main elements – the EOS tokens and the EOS.IO. While EOS.IO can be likened to an OS just like iOS or Windows, EOS is its native coin which drives the EOS.IO network.
In this detailed article on how to invest in EOS, we’ll throw light on 5 different ways to invest in the cryptocurrency.
1. Trade EOS
One of the most commonly used ways of investing into EOS, is by trading the cryptocurrency on a reputable brokerage platform. While some broker services may allow you to buy/sell actual EOS, enabling ownership of the cryptocoins, the trading activity on most brokerage sites doesn’t involve exchange of cryptocurrencies at all. These brokers will simply facilitate easy usage of financial derivatives like Contracts for Difference (CFDs), Options, Futures etc. to bet on movements in the price of EOS, giving you a chance to register significant profits, without locking up a lot of capital.
As this type of trading activity may involve regular study of price movements and use of different types of analytical tools, you must indulge in it only if you know exactly what you’re doing. Starting out EOS investors are encouraged to first learn the ropes, before investing any substantial capital.
Where to trade EOS
If you have decided that trading is the route you’d like to take to invest into EOS, you must start by locating a dependable and reputable brokerage platform to place your trades. Owing to the significant boom witnessed in the cryptocurrency markets over the past 5 to 7 years, there are many online crypto brokers available to trade EOS. You must select one which meets all your requirements, and is not too difficult to use. Some of the well-known criteria you can use to compare and shortlist such trading platforms include their regulatory status, value-added services, spreads, customer service, deposit/withdrawal options and more.
Needless to say, carrying out such comparative analysis can be a very time consuming task. Our team has done all the hard work and has shortlisted a brokerage platform below, based on all the important parameters listed above.
2. Buy and HODL
HODL is a term derived from ‘Hold’ and is actually a misspelling which came to the fore in 2013, courtesy a drunk Bitcoin investor’s rant on a Bitcoin forum! It actually refers to the ‘Buy and Hold’ strategy, which enjoys a wider implementation today, across the broader financial spectrum, and not just in cryptocurrencies. Nevertheless, this strategy has proven to be particularly effective in the highly volatile cryptocurrency market.
Buying and holding is essentially about purchasing the cryptocurrency under consideration and then holding on to it for the long term, to benefit from its price discovery. As EOS has pretty solid, long-term fundamentals and is a viable competitor to Ethereum too, using this strategy to invest in EOS can be particularly beneficial for anyone. Furthermore, as this is more like a ‘Buy it, Forget it’ kind of approach, with a long investment horizon, you don’t require any technical trading knowledge to make it work. Simply buy EOS and then store it somewhere safe in a cold hardware wallet, for the long-term.
In case you believe that ‘Buy and HODL’ is the investment route you’d like to take for EOS, you will first need to purchase the coin/s from someone, preferably on a reliable cryptocurrency exchange. There are different ways you can buy EOS on the Internet today. Our team carried out detailed research and has created some dedicated pages focused on purchasing EOS with some of the most popular payment options available out there. You can find links to these pages below. Please keep in mind that the availability of these payment options may depend upon the local crypto laws in your country. Such transactions may also attract certain fees or expenses that should be factored in beforehand.
- Buy EOS
- Buy EOS with PayPal
- Buy EOS with Credit Card
- Buy EOS with Debit Card
3. Invest in Cryptocurrency and Blockchain Companies
For investors who are wary of the high price fluctuations witnessed in the cryptocurrency market, and don’t want to take the trading or buying approach, to invest in EOS, they can take a slightly alternate route by investing in businesses invested into the EOS or its blockchain in some way. By doing so, you would be able to benefit from both the appreciation in the EOS’ value as well the performance of such an organisation. But please note, you’d still need the services of a reliable broker platform to make such an investment.
Where to invest in EOS shares
When it comes to investing into the shares of an EOS or blockchain-based company, you have two options. Either you can actually purchase the ownership of such shares and then keep them safe for sale at a later date, or you can take the speculative approach and use derivative products like CFDs, Futures and Options to simply bet on the price movements of the company’s stock. For all these services, you will require a broker platform.
You will need to open an account with a regulated online broker, and then verify your credentials (in line with their KYC procedure) to start using its services. After your account is activated, you can either purchase the shares of the concerned company, or open long or short positions on that stock, depending upon your research and the direction in which you expect that stock’s price to move. Brokers may also provide you the leverage option, to help you gain higher market exposure, by depositing only a small percentage of the trade value called margin. However, please be aware that such trading activity involves both high profit as well as loss potential. So don't invest more than you can afford to lose.
Considering the important role played by the brokerage services in this entire activity, you must pick yours with great care. Ideally, you must compare various broker platforms on important parameters such as customer service, commissions, payment options and regulatory compliance, before finalising any service provider. Quite evidently, it can be a very time-consuming affair. To make things easier, we have carried out a detailed comparative analysis on all the well-known brokers in the market today and have shortlisted some of the best ones below.
4. Become a Staker
Becoming an EOS Staker is yet another viable route to acquire the EOS cryptocurrency. While Proof of Work (PoW) and Proof of Stake (PoS) are the two most commonly used consensus mechanisms in the cryptocurrency industry, EOS takes a unique approach known as Delegated Proof of Stake (DPoS). Unlike as in the case of PoW or PoS wherein anyone can validate the transactions and produce fresh blocks (as long as they meet the corresponding criteria), in DPoS mechanism, it’s only a select group of 21 delegate nodes who are responsible for maintaining the blockchain. Such a small number of transaction validators gives EOS’ blockchain a lot of scalability compared to other similar blockchains like Ethereum.
Anyone can become an EOS Delegate, and there were around 462 at the time of writing this piece. These Delegates, who are elected by the staking EOS token holders, become Block Producers and earn rewards in the form of EOS tokens. The number of tokens earned is proportionate to the number of votes obtained by them.
Where to store EOS
Almost 1% of the entire EOS supply enters into the Block Producer Reward Pool every year. As mentioned above, EOS Delegates are awarded tokens from this pool based on the number of their votes. The EOS token holders who stake their coins to vote for these Delegates also earn EOS tokens as rewards.
At the time of writing this piece, the topmost EOS Delegate named ‘EOSnationftw’ was earning a daily reward of 945 EOS, equivalent to around $4725 per day. Delegates outside of the top 21 list also stand to earn EOS coins. These are standby producers who must step in if any of the Delegates in the top 21 list isn’t able to do a good job at transaction validations. The 50th one on the list, ‘Ecoboost1111’ was making 102 EOS (around $510) per day at the time of writing this piece.
Any amount of EOS that you earn from this activity will need to be stored safely in some wallet, so you can use it for whatever purpose you may like, at a later time. Two of the most commonly used options in this regard are software wallets and hardware wallets. Whilst software wallets like desktop apps, online wallets and mobile apps are more vulnerable as they stay connected to the internet more often than not, cold hardware wallets, which are usually the size of flash drives, are considered the safest to store EOS coins. We have listed our recommended crypto wallet below.
5. Become an EOS Developer to Make Money
The main idea behind the creation of EOS was to improve upon Ethereum’s capabilities and allow developers to create decentralised applications and smart contracts, without any hassles. In fact, the project’s primary goal is to make the adoption of blockchain technology as straightforward as possible, for software programmers. You can make use of a wide range of educational resources and tools offered by EOS.IO in this regard, and quickly develop functional apps powered by its network.
You will require a degree in software engineering and mastery of multiple programming languages, to enter this field. However, once you do, you may be easily able to acquire a handsome amount of EOS coins for yourself.
Expert Tip on When and How to Invest in EOS“ To summarise, we delved into multiple ways of investing in EOS in this article, including trading the cryptocurrency, buying and holding it, investing into EOS or blockchain-based companies, becoming an EOS Delegate and lastly opting to develop EOS-powered decentralised applications. No matter which EOS investment route you take, you will need to learn about studying crypto price movements, historical analysis and forecasting future developments, to make the most of your holdings. As a final thought, we’d like to emphasise that there’s no right or wrong time to invest in EOS. You may do well as long as you base your investment decisions on thorough due diligence and manage risk properly. ”- Ashish Sood