OmiseGO explained: What you need to know before investing | finder.com

What is OmiseGO (OMG)?

What is OmiseGO (OMG)?

A step-by-step guide

What is OmiseGO?

Built on the Ethereum platform, OmiseGO’s vision is to become the number one, peer-to-peer cryptocurrency exchange platform. OmiseGO is much more than an altcoin. It’s designed to be a financial platform, with the intent of disrupting current financial institutions and methodologies. It’s all built on top of Ethereum, one of the most popular decentralized application platforms on the market today.

OmiseGO describes itself as: “The answer to a fundamental coordination problem amongst payment processors, gateways and financial institutions”. The goal of the platform is not so much to be a cryptocurrency such as bitcoin or Dogecoin, but rather to offer users an alternative to online exchanges.

IconSymbolInitial release dateAlgorithm typeMax. supply
OMG2013N/A~140 million OMG

The problem with current exchanges is that, in order to buy a cryptocurrency like bitcoin, one must always start from a fiat currency, for example USD. There are very few options and little variety available in exchanges, especially when it comes to converting one cryptocurrency to another.

This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

Where can I buy, sell and trade OmiseGo in the US?

Name Product Payment Methods Available Fiat Currencies Available Cryptocurrencies
Cryptocurrency
BTC, XRP, USDT, ETH, NEB, XVG, TRX, NEBL, ETH, NEO, FUN, ETC, BCC, POE, DASH, ELF, ICX, BNB, ZRX, APPC & 80+ more
Trade 60+ cryptocurrency pairs on this up-and-coming exchange based in China. Multi-language support.
Cash, BPAY, POLi, Cryptocurrency
AUD
BTC, BCH, ETH, XRP, ADA, XEM, LTC, XLM, MIOTA, TRX, DASH, NEO, XMR, EOS, QTUM, BTG, LSK, ETC, XVG & over 45+ more
CoinSpot is an Australian marketplace that allows you to easily buy, sell or exchange multiple cryptocurrencies using AUD.
Credit card, Debit card
USD, EUR
BTC, BCH, BTG, ETH, ETC, DASH, DOGE, NEO, OMG, PIVX, SALT, STEEM, USDT, XLM & 50+ more
Access competitive crypto-to-crypto exchange rates for more than 35 cryptocurrencies on this global exchange.
Cryptocurrency
-
BTC, BCH, ETH, LTC, DOGE, NEO, XMR, POWR, DASH, PIVX, XEM, OMG, GNT & 500+ more
Buy and sell hundreds of cryptocurrencies with minimal verification on this all-in-one, New Zealand-based exchange.
OKPay, PerfectMoney, Yandex Money, Payeer, QIWI, Cryptocurrency
USD, EUR, RUB
BTC, XRB, ETH, DCN, BCH, NIO, TRX, DASH, COB, DOGE, PRIX, DSR, XCPO, LTC, VERI, LOC, NUA, PKT, PPT, ICO & 80+ more
Supporting over 100 coins, you can exchange a variety of cryptocurrency pairs on this peer-to-peer platform.
Cryptocurrency
-
BTC, BCH, BTG, ETH, ETC, FUN, 1ST, ANT, BAT, BNT, BLK, CVC, CLAM, DASH, DCR, DGB, DNT, DOGE, EDG, EOS, FCT, GAME & 25+ more
Cryptocurrency
-
BTC, BCH, KCS, DRGN, DBC, XRB, ETH, PRL, LTC, SNOV, DENT, RPX, QLC, NEO, UTK, BNTY, ACT, POE, UKG, LA, LEND, VEN & 50+ more
Browse a variety of coin offerings in one of the largest multi-cryptocurrency exchanges and pay in cryptocurrency.
Cryptocurrency
-
BTC, ETH, XRP, DOGE, XLM, ETC, STRAT, LTC, SC, DGB, BCH, LSK, XMR & 50 more
Trade various coins through a global crypto to crypto exchange based in the US.
Cryptocurrency
-
BTC, ETH, XVG, SC, XRP, DOGE, STRAT, XMR, ADA, OMG, ETC, BCC, XLM, DGB, UKG, QTUM, ZCL, RDD, LTC, NEO & 120+ more
New account registration is currently halted on Bittrex due to a surge in demand.

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How is OmiseGO different from standard exchanges?

OmiseGO aims to disrupt the current method of buying and selling cryptocurrencies from exchanges. It does this by connecting currently existing cryptocurrency wallets to a central OmiseGO blockchain, over which users can exchange cryptocurrencies quickly and easily. OmiseGO differentiates itself by being decentralized and currency agnostic in the following ways:

  • Decentralized

Exchanges today are centralized operations. This means that the databases containing all transactions carried out on the exchange are stored on a server (or group of servers) owned by the exchange, alongside all the data available for a particular user, and often including identification like a passport and driving license.

OmiseGO offers the same exchange functionality but keeps all its transactions decentralized and stored on the blockchain. This keeps the data secure because a hacker cannot access one location to tamper with, say, the available funds of one person. A hacker would need to convince every user of the blockchain, making hacking attempts virtually impossible.

  • Currency agnostic

Most exchanges allow users to exchange money from fiat to cryptocurrency and back. This restriction causes a lot of fees to be taken out of a user’s account. For example, if I wanted to convert my BTC (bitcoin) to ETH (Ether), I would first need to find an exchange that trades in both BTC and ETH. Next, I would have to send BTC from my wallet to the exchange. Then I’d convert my BTC to a common fiat currency (e.g. USD). Finally, I would have to convert the USD back to ETH.

Throughout this whole process, exchanges would take fees, often when selling the BTC and again when buying the ETH.

OmiseGO circumvents the process by claiming that it is currency agnostic. It doesn’t matter whether you’re converting ETH to USD, or ETH to BTC. The process and fees remain the same: one direct conversion with one tiny fee.

Where can I use OMG?

Currently, in September 2017, OMG are not coins you can use outside of holding them in your wallet as an investment in OmiseGO.

How do I invest in OmiseGO?

To invest in OmiseGO, you will need to acquire some of its valuable OMG coins. To do this, you can create an account with a reputable online exchange and convert some USD into OMG. Once the OMG coins are in your wallet, their value will rise if OmiseGO’s value rises, making you a profit when sold back to the exchange.

The value of OMG coins has been consistently on the rise since OmiseGO’s inception (as of September 2017), going from $1.30/OMG at the beginning of August 2017…

to $12.33/OMG by the beginning of September.

Since then it has held its value at an average of $10.00/OMG. However, the coin is still very young and a lot remains to be seen.

Using OmiseGO

As of September 2017, OmiseGO’s exact operational method remains unclear, but the vision is to bring together service providers and help them bridge the gaps between them by using the OmiseGO currency agnostic blockchain.

For this reason, OmiseGO is not a platform that can be used on its own. It requires other service providers to plug into it for users to reap its benefits. If it sees widespread adoption, most users might not even know that they’re using OmiseGO’s platform as they go about using their own cryptocurrency’s platform.

Making money with OmiseGO

At the time of writing this guide in September 2017, the only way to make money with OmiseGO is to treat it as an investment. If you predict that the value of OmiseGO will rise, you can buy OMG coins when their value is low and sell them back into the market when the value rises.

What to watch out for

OmiseGO is a very young platform, still in its early stages both in terms of development and adoption as of September 2017, so not a lot is known about it other than a general, bird’s eye view of its team’s vision.

What’s next for OmiseGO?

The future of OmiseGO is unpredictable and a lot remains to be seen. This is both a good thing, as the community has a lot of power over where the platform will go next, and a bad thing, since investors might be wary of putting money into the coin.

Market and cryptocurrency experts seem confident that OmiseGO has good things in its future but nothing is guaranteed.

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