How to get started buying and selling ChainLink (LINK) in the Philippines.
ChainLink is blockchain middleware that aims to connect smart contracts with real-time information from off-chain resources, for example, banks and stock exchanges. This allows smart contracts to access data feeds, application programming interfaces (APIs) and traditional bank payment systems that operate outside the blockchain infrastructure.
ChainLink’s ecosystem revolves around the LINK token and the LINK network. How do LINK tokens work and how can you buy or trade them in the Philippines? Read on to find out.
Where to buy ChainLink
LINK tokens are available on a number of cryptocurrency exchanges around the world, such as the following:
How to buy ChainLink: Your step-by-step guide
It’s not currently possible to buy LINK tokens directly with fiat currency (PHP, for example). Instead, you’ll need to buy a widely traded cryptocurrency such as bitcoin (BTC) or Ethereum (ETH) and then trade that currency for LINK tokens. The basic process you’ll need to follow is outlined below:
Step 1. Create an account on a cryptocurrency exchange that allows you to trade LINK
You’ll need to provide your name, email address, phone number and proof of ID to register for an account. It’s also a good idea to setup two-factor authorization to provide an extra level of security.
Please note that you’ll also need to buy or already own another cryptocurrency (such as BTC or ETH) before you can trade it for LINK.
Step 2. Deposit funds into your account
The process you’ll have to follow to deposit funds into your account varies depending on the cryptocurrency exchange you choose. For example, Binance users can click on “Funds” and then “Deposit” in the menu at the top right of the screen.
Step 3. Buy LINK
The last step is to exchange BTC or ETH for LINK on your chosen exchange. Once again, the process varies depending on the exchange you choose, but when trading on Binance you’ll need to do the following:
Find the currency pair you want, such as LINK/ETH. Enter the amount of LINK you want to buy in the box provided and choose the best available market price or your own limit. You can then review the total cost of the transaction and if you’re happy to proceed, click “Buy LINK”.
ChainLink coins are ERC20 tokens that exist on the Ethereum network. As a result, they can be stored on any Ethereum-friendly wallet, such as:
What is ChainLink and how does it work?
Launched in 2017, ChainLink is an intermediate blockchain that aims to connect blockchains with other off-chain applications. One of the drawbacks of smart contracts is that because they’re based on information secured on a blockchain and because of the way miners reach consensus around blockchain-based transaction data, they can’t interact with external resources such as data feeds and payment systems.
Smart contracts are self-executing contracts executed on decentralized infrastructures and with the terms of the agreement written into cryptographic code. Because they exist on decentralized networks, such as a blockchain, smart contracts cannot be altered and therefore create a relationship that doesn’t rely on trust.
ChainLink acts as a fully decentralized oracle network to help connect smart contracts with external resources, off-chain payments and APIs. The potential applications for this are many and varied, and include connecting smart contracts with all manner of essential information, such as the following:
- Central bank interest rates
- Current exchange rates
- Off-chain payment methods
- Shipment and customs data
- Sports scores
- Weather forecasts
For example, let’s assume that there’s an Ethereum smart contract that needs to make a payment through PayPal. There’s currently no compatibility between Ethereum and the PayPal API, which is where ChainLink comes in. By linking the smart contract with the PayPal API, it can ensure fast and secure payment.
What to consider before buying LINK
- LINK availability. The total supply of LINK tokens is one billion, and at the time of writing, there were 350 million tokens in circulation.
- Use. LINK tokens are the cryptocurrency of the ChainLink network. When any company that operates a data feed, payment service or other useful off-chain API connects them to smart contracts through the ChainLink network, that company will receive LINK tokens in exchange.
- Potential. The value of the LINK token depends on the takeup and popularity of the ChainLink network. Take a look through the company’s whitepaper and consider the real-world applications for ChainLink to help you decide whether it could be a worthwhile investment.
- Competition. While ChainLink was the first to announce a service of this kind, make sure you stay abreast of any competitors who launch similar technology and may compete for market share.
- Future developments. At the time of writing, there was little information available about future developments slated for ChainLink or its roadmap for success. ChainLink also doesn’t seem to be backed by as much marketing as some other cryptocurrency projects, so it’s important to monitor forums and news reports for anything that could potentially influence the value of LINK tokens.
- Partnerships. It’s also worth checking for news of any commercial partnerships ChainLink has in place. For example, it’s already established a partnership with global financial messaging service provider SWIFT to develop the SWIFT Smart Oracle.