5 Things to Consider If You Want to Buy EOS
Before buying EOS, you will need to consider the several different methods of buying and storing the cryptocurrency and choose the one that is right for you.
You will have several decisions to make; from trading platforms, payment methods and choosing an EOS wallet. Choosing the right method is critical to ensuring your expectations are met.
Carefully choose your preferred secure payment method
While some countries offer a wide array of payment methods, others do not.
Payment methods vary in terms of convenience, speed and cost. If you have options you will need to choose one based on your priorities. Let’s look at some of the most popular payment methods step-by-step.
Will you need to set up your own wallet?
Longer-term investors generally like to store their EOS in dedicated wallets, as leaving crypto coins on an exchange comes with a lot of risks.
Exchanges get hacked or go bankrupt and in some high-profile cases exchange founders have ‘exit scammed’ with traders’ coins.
Cryptocurrency wallets have different levels of security and you’ll need to choose one that is trustworthy.
EOS.IO blockchain protocol is a smart contract platform that has eradicated transaction fees.
Yes, you heard that right. It costs nothing to send EOS - the native cryptocurrency of the EOS.IO blockchain. That’s why cryptocurrencies like EOS are considered disruptive when compared to existing payment rails.
If you decide to trade EOS, blockchain transaction fees are not a cost you’ll need to consider.
Safety and security
The EOS blockchain is based on a delegated proof-of-stake consensus algorithm (DPoS) and secure by design.
Unlike the proof-of-work (PoW) consensus algorithm employed by Bitcoin, proof-of-stake consumes less electricity and computing power.
Notably, Ethereum, the second-largest cryptocurrency by market cap, recently changed from proof-of-work to proof-of-stake in the belief it is more secure, faster and more efficient.
A bigger concern for most traders than the security of the underlying protocol is the level of security on the exchange or trading platform they use.
Two of the industry’s leading trading platforms are MetaTrader 4 (MT4) and MetaTrader 5(MT5). Both have cutting edge security mechanisms, innovative automated trading systems and professional helpdesks.
A further level of security often provided by brokers and exchanges is 'two-factor authentication' (2FA) – a mechanism that requires users to provide two different pieces of digital confirmation for identity verification.
Can you understand and navigate the platform?
Once you have identified the exchange or trading platform you want to use, you’ll need to become very familiar with how to navigate it effectively before risking funds.
A wrong address, an extra zero or an incorrect key can result in a lot of heartbreak. Avoid trading on exchanges with a level of complexity where you feel out of your depth.
If you are not comfortable trading on an exchange, brokers offer a more easy-to-use solution.
What is the Best Payment Method for Buying EOS?
It’s really up to the individual to decide the payment method that suits them best. Let’s look at some of the most popular.
Buying EOS with PayPal
The preferred payment option of millions of merchants and consumers around the world, PayPal is one of the most convenient payment options around.
Purchasing EOS with PayPal can be difficult, however, as many exchanges don’t offer it as a payment option.
Brokers are far more likely to offer PayPal as a payment option as they are also regulated. In terms of fees, PayPal is neither the cheapest nor the most expensive option on this list.
Purchasing with Cash
If you think about it, cryptocurrencies like EOS were invented to provide a better means of transferring value digitally.
The digital world and cash have never been a match made in heaven and purchasing anything digital with cash aren’t easy.
Basically, you will need to find a person selling EOS on a peer-to-peer marketplace where you can arrange to meet in public to conduct the transaction. It's still likely they'd want to make a digital monetary exchange such a bank transfer.
EOS is not as prevalent on these marketplaces as Bitcoin and finding someone who is willing to sell you EOS via this method is a challenge.
Via Bank Transfer
Bank transfer remains one of the most popular methods of purchasing EOS online but it isn’t always smooth sailing.
You will need to find an exchange or broker that accepts transfers from your bank and they can take time depending on bank processing.
Bank transfers do compare favourably to other payment methods in terms of fees, however, being lower than both PayPal and credit cards.
Brokers normally accept more fiat currencies for bank transfers than cryptocurrency exchanges.
Buying EOS with Credit Cards or Debit Cards
Everyone knows that credit and debit cards are one of the most convenient payment methods around but convenience comes with a cost.
Credit and debit cards are generally only offered as a payment method at the more established global crypto exchanges.
Due to the fees, buying smaller baskets of cryptocurrencies like EOS with your credit or debit card isn’t really economical.
Being regulated by global authorities, brokers are far more likely to offer this payment method, due to having greater regulatory clarity than exchanges.
What Fees Are Involved when you buy EOS?
Unlike most other cryptocurrencies, EOS has zero fees when transferring a coin from one address to another. For this reason, investors and traders don’t need to factor in the cost of blockchain fees and can concentrate on the EOS price.
Exchange and brokerage fees do need to be considered, however. No matter where you buy and sell your EOS, you will most often be charged fees of some kind.
As mentioned earlier, there are no transaction fees on the EOS.IO blockchain. Exchanges and brokers do have fees to consider, however.
As brokers don’t involve the actual transfer of coins, deposit fees tend to be fewer than on exchanges. In some cases, brokers will offer no deposit fee whatsoever to encourage more clients to use the platform.
Most exchanges will also charge you fees to withdraw your coins or fiat currency from the platform. Like with deposits, brokers tend to charge fewer withdrawal fees than exchanges. The number of fees will be affected by the payment method you have chosen.
Safely Storing Your EOS
If you decide to purchase EOS on an exchange rather than a broker, you’ll need to research how to store it securely. There are several options available with varying degrees of risk.
Leaving your coins on an exchange is considered risky as exchanges have been hacked in the past. One high profile example is Mt Gox - a large Japanese exchange hacked for 650,000 Bitcoin. Storing your EOS in a dedicated cryptocurrency wallet is a safer option but not without some risk.
If you prefer to purchase EOS through a broker (CFDs) you will not require a personal wallet and the platforms have built-in security.
Okay, let’s look at the different cryptocurrency wallets available to store EOS coins.
Essentially a web wallet is a custodial wallet located on the servers of the cryptocurrency exchange. They are called custodial because a third party stores your private keys.
While many people choose to leave their crypto coins on the exchange, it is not the safest option as MT Gox demonstrated. Exchanges can go bankrupt and in some cases ‘exit scam’, running away with investors' funds.
Desktop wallets are a type of ‘hot wallet’, so named as it has access to the Internet. These enable you to store your cryptocurrency within encrypted software on your desktop.
While a safer option than web wallets, these wallets are far from infallible. You will need to research and identify those that have a long track record of keeping funds safe. These can also be bolstered with security measures like 2FA. Popular desktop wallets to sore EOS include Atomic Wallet and Jaxx Liberty.
Another form of ‘hot wallet’, mobile wallets are similar to desktop wallets in that they are also connected to the Internet. They feature encrypted software where you can store your EOS coins and your private keys.
In some ways, mobile wallets are more secure than desktop wallets, in that they have in-built security features like pin codes and fingerprint verification.
However, mobile phones are also vulnerable to a type of attack desktop wallets aren’t. Known as a ‘SIM swap’ attack, hackers can convince your mobile carrier to switch your phone number over to a SIM card they own.
This enables them to bypass your verification process and access your account. Well-established mobile wallets include Mycelium and Coinomi.
Most investors in cryptocurrency recommend you get your coins off exchanges as soon as possible and store them in a ‘cold wallet’ or hardware wallet. These are not connected to the Internet and therefore are almost impossible to hack.
These wallets often look like a simple USB thumb drive and connect to your computer when you want to gain access to your coins. Just don’t lose it! Popular hardware wallets for storing EOS include the Trezor and the Ledger Nano X
It is never a good idea to keep all your valuable digital assets in one place as a security breach or personal mistake could see you lose your investment.
If you want to buy and sell EOS through an exchange and store it safely it’s a good idea to spread your investment between different EOS wallets.
For many looking to only purchase EOS for trading purposes, a broker represents the best option, as you will not be required to take ownership of your EOS or secure them.
What Other Coins Can I Trade or Use to Buy EOS?
In cryptocurrency, the term ‘trading pairs’ refers to a trade between one type of cryptocurrency and another, rather than a fiat currency (USD).
For example, a person might buy EOS with Bitcoin (BTC) if that market pair is offered by the Bitcoin exchange in question.
Bitcoin remains the cryptocurrency with the most exchange pairs worldwide but more and more are being added daily as the market grows. EOS can be purchased with Bitcoin and Ethereum on many exchanges.
What’s the Smallest and Largest Amount of EOS I Can Buy?
Some people still believe when you buy a cryptocurrency you have to buy at least one. The truth is most are divisible.
Bitcoin is divisible to the 8th decimal place, so it can easily be split into 100,000,000 units. This is convenient as not everyone can afford to own a whole Bitcoin. With a larger supply than Bitcoin, a whole EOS is extremely affordable for most people. There is typically no minimum purchase for EOS.
You are really only limited by the fees charged by the exchange or broker. If the amount of EOS is too small it may not be economical.
Likewise, there is no maximum limit to how many EOS you can own within the available supply. How much EOS you can buy is really only dependent on your budget.
Can I Buy EOS Anonymously with no ID? Is it Safe and Legal?
Unless you are buying a dedicated privacy cryptocurrency, your transactions will appear on a public blockchain and can be discovered.
If you were buying Bitcoin, there is the option to buy anonymously through an ATM. Unfortunately; it is not currently possible to do this with EOS.
It is both safe and legal to buy EOS in many countries around the world. Check your regulatory environment if you have any concerns.
Will Buying EOS Make Me Money?
So, does buying EOS make you money? If someone tells you the answer is yes, they are not telling you the whole truth.
It is never as simple as ‘buy EOS get rich’. Cryptocurrencies are volatile and their price depends on a number of factors like fundamentals, the health of the network and adoption. The more usage the EOS.IO network sees the higher in value its native EOS token will likely go.
While EOS appears to have a very bright future, it’s prudent to thoroughly research any cryptocurrency you are considering buying.
Head over to our EOS price page where you’ll find all the information you need to make an informed decision.
How to Spend Your EOS
To understand where EOS can be spent, you first need to understand the EOS.IO platform. EOS is designed for the development of decentralized applications (DApps), similar to Ethereum.
Many people believe DApps are the future of the Internet. They are comparable to normal apps, but the main difference is they run on a peer-to-peer network where no single individual or entity has control of the network.
Businesses and services built on the EOS.IO blockchain accept EOS as a payment.
There are now a growing number of DApps on the EOS.IO blockchain covering everything from games to social media and DeFi (Decentralized Finance).
How to Sell Your EOS
When you sell EOS it also comes with varying levels of complexity depending on how you have purchased and stored your EOS.
If stored in a digital wallet, you will need to send it to crypto exchanges first before you can sell EOS and this will incur fees.
If you bought EOS for trading purposes through a broker, the process is far simpler and generally incurs fewer fees. There are no coins to move and all your transactions are executed in a split second on the broker’s trading platform.