EOS is one of the new digital coins and the main competitor to Ethereum. In the capitalization rating, its positions are rapidly increasing. Analysts give positive forecasts and recommend this coin as a tool for long-term investments. EOS promises to change the industry of decentralized applications.
The EOS Network is a turnkey decentralized application platform that allows developers to use a complete authentication system.
User accounts are assigned rights with different levels of access, as well as accounts securely, locally store their own personal data. Recent updates to EOS have added the ability to use one common database for multiple accounts, as well as the ability to store user data on a local machine off-chain.
The network has provided the ability to recover an account if it has been compromised or stolen. The ultimate goal of EOS is to build a secure and transparent blockchain platform for decentralized applications. Precisely one that would easily scale up to thousands of transactions per second, while providing equally convenient access to the service for ordinary users, entrepreneurs and developers.
How to Invest in EOS?
Crypto exchanges and crypto wallets
The crypto exchange is the main tool for buying and selling assets, but at the moment there are many cryptocurrency exchanges, so before you start trading, you will have to spend enough time to understand which type of exchange is right for your needs.
Cryptocurrency exchanges are the most active and important category of services in the crypto economy, and they come in different types and formats to meet the needs of all users, whether they are a beginner or a professional who has been trading for many years.
When choosing a service, it is recommended to pay attention to the following criteria:
- Reliability rating is the main parameter on which the safety of a trader's funds depends. It is not worth replenishing the account of an exchange that does not have a positive reputation. You can get acquainted with customer reviews on thematic resources.
- Trading volume. The higher the daily turnover of funds on the exchange, the more chances a trader has to make money. A platform on which trades for $ 300 per day are conducted cannot provide high profits. The volume of trade is an indicator of the demand and success of the crypto exchange.
- User verification. Some exchanges require clients to verify their identity. Others are loyal and allow traders to remain anonymous.
- The size of the commission. Cryptocurrency exchanges make money from the deductions of clients for conducting trading operations. Each site sets its own commission size. On average, the value is 0.2% of the transaction volume.
- Technical support service. In problem situations, it is important to get prompt help from specialists, which will minimize possible losses and damages.
To work on crypto-exchanges, you will need to create a crypto wallet.
A crypto wallet is a set of software and / or hardware methods that allow you to buy, sell, and transfer it to other users. Cryptocurrency wallets provide their owners with:
- increased security of operations, transparency and availability;
- ease and simplicity of buying / selling digital currency;
- guarantee of anonymity, safety of personal data and cryptocurrency;
- low costs and high speed of financial transactions;
- invariability and irreversibility of transactions.
The main feature of crypto wallets is reliable cryptographic protection of transactions with them. For this, two types of keys are used: public (public) and private (private). When initiating a transaction, the user uses a public key that is in the public domain. Information about the transaction (amount, wallet addresses) is available to all participants in the system. However, only the participant whose address is indicated in the shipment can decipher the message and receive money. For this, a private key is used that is available only to its owner.
There are several types of crypto wallets that allow you to buy cryptocurrency:
- Software wallet. An application for a PC or phone that stores information about keys. Allows you to exchange cryptocurrencies with an increased degree of security.
- Online wallets. These are Internet services that provide services for the creation, maintenance and support of cryptocurrency online.
- Hardware wallets. They are a device equipped with a connector for connecting to a computer or laptop. They contain a special software and hardware filling for storing keys and wallet data.
- Paper wallet. Literally - a piece of paper with the image of the wallet owner's public and private keys printed on it. Keys are presented in the form of a QR code.
The most common type of crypto wallet for buying / exchanging small amounts of digital currency is online wallets. The registration process for online wallets is simple. It is enough to provide an e-mail address, come up with a complex password and, if possible, make a backup copy of the keys on your computer. Most often, online wallets are used to buy or sell cryptocurrency.
Hardware and paper wallets are suitable for long-term and safe storage of digital cash. They have the highest degree of protection, but are inconvenient for frequent operations.
Software wallets are downloaded to a physical device. There are two types - "thick" and "thin". The first involves storing not only cryptographic keys on the user's computer, but also copies of the entire blockchain network. They require a lot of free disk space. "Thin" wallets are a common client program that interacts with the blockchain network, which is stored on a remote server.
The essence of cryptocurrency mining is that many unconnected computers solve mathematical computational problems through a special program (miner).
“Mining, also mining, is the activity of maintaining a distributed platform and creating new blocks with the ability to receive rewards in the form of new units and commissions in various cryptocurrencies.
There are three ways to organize the mining of digital assets:
- Extraction in pools. Special pools are created, into which users are united, connecting their equipment or using cloud capacities (a more optimal option). As a result, the mined cryptocurrency is divided according to the share of participation.
- Cloud mining - equipment rental (hash rate) from large pool services, all management of cryptocurrency mining comes down to replenishing the balance in the personal account of the cloud service and withdrawing funds to your personal wallet. Rentals are usually given for a period of 1 to 3 years. This is the most acceptable mining option.
- Single mining (solo mining). You are only involved in solving cryptographic problems with the power of your equipment. Currently, this option has become completely inoperable.
It is noteworthy that at the moment it is impossible to get EOS cryptocurrency using mining.
In the EOS ecosystem, mining is absolutely impossible. Here, unlike Ethereum, which still supports the Proof-of-Work (PoW) consensus algorithm, the Delegated Proof of Stake (DPoS) protocol was initially implemented. Its essence is that all network participants choose a small group of users (21 validators) that creates blocks. After 24 hours, the authority is transferred to the next group of block producers and so on.
At the same time, mining as such does not occur, the validators receive a reward for processing transactions. DPoS is a modification of Proof-of-Stake, in which the proof of stake was replaced by voting, the block reward was removed, leaving the fees for the nodes. The system seems very democratic, but any electoral process can be manipulated if desired.
Staking means getting passive earnings by simply storing crypto coins. When users choose a blockchain with this algorithm and store coins in their wallets, they are rewarded. This stimulates the participants of the system to get involved in the staking process and thereby ensure the operability of the blockchain.
By its principle of operation, staking resembles a bank deposit - the user transfers money to the account, does not touch it, and they bring him passive income.
The more money on the account, the higher the level of profit.
There are several types of staking:
- Fixed Staking - Fixed staking is a favorite type for those users who want to make big profits. It stipulates in advance for how long the funds will be frozen. In other words, you yourself can choose the period for which you will give the digital currency. This can be a week, month, year, etc. It should be borne in mind that during the selected time the funds will not be available for trading or withdrawal. Naturally, you can redeem them back without waiting for the end of the period, but in this case, only the amount will be returned to you, without additional interest. It is also worth mentioning that the interest rate on fixed contracts is higher than in other types.
- DeFi Staking / Projects in the DeFi sector involve the provision of financial services using smart contracts. They are used to generate higher annualized returns for certain currencies.
- Perpetual staking. Here, unlike the fixed one, it does not have an expiration date of the contract. Interest is accrued until you yourself want to withdraw the pledged assets. Usually, interest begins to accrue within a day after you deposit funds. Payment of remuneration occurs every 30 days. Perpetual staking is suitable for those who like the flexibility of assets and at the same time are not ready to freeze them for a long time.
The advantages of staking:
- The staking process is quite simple to understand, so even a beginner can figure it out;
- Staking has no commissions;
- An asset that is in non-fixed stacking can be used. That is, if you see that the price of an asset begins to grow, then it can be sold at any time;
- The threshold for entering staking is quite small.
Another equally popular method of making money on cryptocurrency is trading through online brokerage platforms. Trading has its advantages, namely:
- use of derivatives;
- availability of leverage;
- low limits on settlement transactions;
- low investment entry threshold;
- the presence of a whole arsenal of tools for the possibility of technical and fundamental analysis of the market;
- the presence of a demo account.
CFD trading is one of the main advantages and features of trading.
CFD is an abbreviation for "contracts for differences". In the case of assets, we are talking about the price difference that formed over a certain period.
Contracts for Difference (CFDs) are a derivative financial instrument that allows you to make money both on the rise and fall in the value of an asset. The main task of the trader is to correctly predict the direction of the asset price movement and choose the right moment to open and close a deal. At the same time, opening a deal does not imply a real purchase of an asset, you speculate only on its value.
Reliable trading platforms are equipped with technical analysis indicators, the use of which helps traders to determine the current market trends and make the correct forecast when opening a trade. Also, you can use leverage, by applying which you will increase the amount of the transaction and, accordingly, the potential profit, in times. But it should be remembered that in the event of a failed transaction, the use of leverage will bring the opposite result. Therefore, study well how the leverage mechanism works before using it.
A demo account will help you in studying trading, access to which is provided by almost all high-quality trading platforms.
A demo account is a virtual account, a kind of simulator that allows you to get used to a certain broker, terminal, and practice. The amount on the deposit, as well as all losses and profits, are virtual.
To get real profit, fund your real account and start real trading.
At the moment, the EOS crypto-coin is one of the leading modern crypto projects. It was developed specifically to provide the ability to solve existing problems with the flexibility of crypto platforms, their low speed, poor scalability and the presence of commission fees. The coin is popular in the crypto world and you can buy and invest in Eos in any country. All forecasts for EOS are based on the fact that despite the risks, the coin, thanks to progressive solutions, provides an opportunity to attract the attention of the user audience. Within the community of experienced crypto investors, there are some users who view EOS as a reliable tool for generating long-term profit. Since this coin is capable of generating income, it attracts more and more users who want to invest in it.
It is important to understand that EOS is a multifaceted crypto platform where the technical capabilities of blockchain technology are implemented. This feature makes it possible to call EOS not a cryptocurrency, but a full-fledged and detailed financial cryptosystem. The functions available at the site enable users to carry out work related to the creation of special investment instruments, models that allow them to make a profit.