How To Invest In EOS 2021
To get started EOS investing, pick a strategy based on the amount you'll invest, the timelines for your investment goals, and the amount of risk that makes sense for you.
EOS has a unique and fantastic feature - it is both a cryptocurrency and a platform. The EOS platform is reputed for speedy transactions and matched only by a few of its competitors in the industry. The highly scalable project boasts an impressive transaction per second.
So, if you want to join the list of investors injecting capital into this crypto asset project, then a careful read of this guide will be of great help.
Not only do we explain how to invest in EOS in a convenient, safe, and cost-effective manner - but also the possible risks to look out for before taking the plunge.
How to Invest in EOS: The Easy Steps to Follow
Investing in EOS is easier than beginners might think — Follow the quickfire 5-step walkthrough below to invest in this digital asset!.
1. Open an account with a regulated exchange
2. Deposit some funds with your credit/debit card or e-wallet
3. Choose how much money you want to invest in EOS
4. Confirm your investment
5. Leave your EOS coins stored until you choose to cash out
What is EOS?
EOS is a unique and innovative blockchain ecosystem that is gaining widespread popularity due to its powerful transaction network. Before EOS joined the cryptocurrency space, the programming and integration of smart contracts was somewhat problematic.
The EOS ecosystem has continued to match its objectives of the development of decentralized applications and transforming its market niche. EOS has succeeded in erasing the payment of transaction fees due to its innovative framework.
One striking feature of EOS is that it incorporates some of the features of both Bitcoin and Ethereum. EOS is well known for its tight security and ease of programming.
The platform boasts of a robust authentication system that allows businesses to share database access to anyone on the network. Similarly, companies can choose to take data from the EOS network and store it locally.
By so doing, firms can keep data off the blockchain for as long they want. Today, EOS is touted to be one of the best dApp protocols available in the market. As such, industry commentators foresee EOS becoming the go-to platform in the ever-growing dApps scene.
Released on June 1, 2017, the overarching goal of EOS was to build a dApps platform capable of securing and processing thousands of transactions per second.
The EOS platform is gradually becoming the safest operating system for decentralized applications available in the market today. EOS has taken with its groundbreaking services an array of extraordinary features such as cloud storage, integrated user authentication, and server hosting.
EOS is a subsidiary of Block.one - a private blockchain firm. Managed by some of the best brains in the industry, EOS has succeeded in becoming one of the most talked-about crypto projects in its short lifespan.
How Does the Invest in EOS Process Work?
You might be wondering how your investment in EOS can translate into profits? If so, before you invest in EOS, you must understand how the market works.
Investing in this project means you are purchasing EOS tokens. The number of tokens you get is based on the amount of money you invest. Each EOS token entitles you to a certain percentage of network resources - including bandwidth, storage, and processing power.
Look at it as buying up blockchain real estate. It simply means that with each token you buy, you become part of the EOS ecosystem. For instance, if an organization wants to build a digital brand on EOS, they would need a specific amount of resources to run their application.
It means they would have to buy token EOS tokens or rent the required resources from EOS investors if they want access to the network. As an EOS cryptocurrency token owner, you can earn fees by lending out your tokens' unused resources.
You can also make money on your EOS investment by staking. The process of staking is a mechanism whereby you keep your tokens for a particular period. Staking allows EOS token holders to restrict the circulation of tokens to push up its market price.
It is simply subjecting EOS tokens to the law of demand and supply. In other words, the less the circulation of EOS tokens, the more it can increase its value. You can find several projects that reward EOS holders for staking their tokens.
With that being said, the vast majority of people invest in EOS on a speculative basis. That is to say, they hope that the market price of EOS will naturally rise over the course of time. Then, it’s just a case of selling the EOS tokens for more than you originally paid.
Cryptocurrency experts have already predicted a rise in the price of EOS. With a market capitalization of over $2 billion, EOS is ranked among the world's top 15 biggest cryptocurrencies.
Why Should you Invest in EOS?
EOS is arguably the most promising DAPP/smart contract platform. Based on its scalability and ease of use, EOS has been dubbed as the “Ethereum Killer”.
After all, commentators are concerned about scalability issues with Ethereum, giving rise to several other projects like EOS.
Despite being a relatively new cryptocurrency, EOS has shown immense promise and has presented itself as a great investment opportunity.
If you’re still on the fence as to whether or not EOS is a good investment, check out the benefits of what this project offers.
Read More: Is EOS Better Than Ethereum?
EOS is an Adequately Funded Project
Every successful blockchain project relies on a method for ongoing revenue to incentivize development. Without it, a lot of blockchain projects would not see the light of day. EOS pays for project development through inflation.
A maximum of 5% is allowed on the EOS platform in which part of it is used to pay 21 “block producers”. Token holders vote on how the rest is used.
To overcome the challenge of overall inflation, token holders can choose to vote on burning tokens or fund established projects to benefit the wider ecosystem.
Parent company Block.one has also taken steps to ensure that the ecosystem remains well funded by investing some of its token sale proceeds into several other relevant projects. This includes the likes of EOS Global and Galaxy Digital.
This is done to ensure external investors continue to improve the EOS ecosystem through capital investments.
The EOS Ecosystem is Managed by an Experienced Old-Timer.
It is common to find young and inexperienced founders at the helm of many crypto projects in the industry. Crucially, the profile of a founder or CEO plays a significant role in the project’s future success.
The fact that EOS is managed by an experienced cryptocurrency stakeholder - Dan Larimer, is a valid reason to consider investing in this project.
Dan Larimer’s reign at the helm of Block.one has been nothing short of a success. With notable stints at Steem and Bitshares, this has proven that Larimer is a born leader with outstanding experience and a proven track record in the blockchain industry.
Impressive Long Term Performance Projections
One of the most fundamental factors that investors consider before buying any cryptocurrency is its current price trends and future price projections. Being a relatively new crypto project, EOS is predicted to perform exceptionally well in the future.
With that said, the price of EOS has been shaky over the years. For example, its price has gone from an all-time high of $18.16 in 2018 to a current price of $5.
However, a smart investor never measures the success of a crypto project by its recent trend. After all, while EOS might be worth a fraction of its former glory, many would argue that at current prices the digital currency is heavily undervalued.
The EOS ecosystem is built on a sophisticated technology that has revolutionized the blockchain industry. EOS is a highly established blockchain project with fully functional capabilities. The platform is decentralized and it enables the use of smart contracts and dApps.
The EOS ecosystem can facilitate between 1,000 to 8,000 transactions per second on its blockchain - which is far higher than many of its market rivals
Ethereum, for example, can handle just 15 transactions per second. Crucially, developers of EOS have succeeded in ensuring the platform is easy to deploy applications on the network.
Holding an EOS Token Grants you a Stake in the Digital Space
Once you become a holder of an EOS token, it grants you several perks. For example, the EOS ecosystem allows token holders to utilize shared resources. The process works by allotting EOS token holders a percentage share of available resources at any given time.
Constrained network resources would therefore force the patronage of a secondary EOS token rental market.
New projects can then choose to buy EOS tokens at market prices or rent from other token holders for a fee. As an investor in the EOS ecosystem, you become the part-owner of a digital field.
Highly Decentralized System
The EOS ecosystem is famous for its highly decentralized system, adding another reason why you might invest in this digital currency project. Its decentralized nature enables the development, hosting, and implementation of commercial-scale dApps on its platform.
Similarly, the EOS network uses a system called the Delegated Proof of Stake (DPOS). This implies that as an investor on the EOS platform, you are awarded an element of voting power, so you get to decide who mines on the blockchain.
Would You Consider Investing In EOS?
How to Invest in EOS - Various Options Available
Like most cryptocurrencies in the space, there are several options available when purchasing EOS. If you’re wondering how to invest in EOS in the most convenient way possible, check out the options discussed below.
EOS Exchange Platform
There are several exchange platforms that you can use to buy EOS via other cryptocurrencies. Before buying EOS tokens on any exchange platform, you must consider the potential drawbacks.
For example, the vast majority of cryptocurrency exchanges are not regulated. This means that your funds are never 100% safe. This also means that the exchange is not required to follow strict regulatory demands surrounding segregated bank accounts and customer care.
And of course, most cryptocurrency exchanges that allow you to invest in EOS do not support fiat currencies. In turn, this means that you first need to deposit a competing cryptocurrency like Bitcoin. Then, you need to exchange your chosen cryptocurrency with EOS.
If you do decide to use a cryptocurrency exchange, you should consider withdrawing your EOS investment out to a private wallet. This at the very least means that you will not be impacted from an exchange hack.
However, if you’re learning how to invest in EOS for the first time, you should know that storing cryptocurrencies in a private wallet can be a daunting process. After all, you need an understanding of how private keys and wallet security works.
Taking all of this into account, we would suggest using a regulated cryptocurrency broker.
In terms of how to invest in EOS in the safest and most convenient way possible, cryptocurrency brokers lead the way.
For example, if using a regulated broker like eToro - you can instantly deposit funds with a debit card, credit card, Paypal, Skrill, Neteller, and more. This makes the EOS investment process fast and convenient.
Additionally, not only will you save time by investing in EOS at eToro, but money, too. This is because eToro is a 100% commission-free broker. The platform is also ideal for those looking to invest with small amounts, as you can purchase EOS from $25 upwards.
And of course - the most important benefit of using a broker like eToro is that it is heavily regulated. This includes licenses with the FCA, ASIC, and CySEC - and approval from FINRA in the US.
How to Choose a Platform to Invest in EOS
As we discussed in the section above, regulated brokers are the way forward when learning how to invest in EOS for the first time. With that said, there are several options in the market to choose from - so you need to do a bit of homework before proceeding.
To help you along the way, below you will find the most important metrics to consider when looking for a platform to invest in EOS.
Licensing and Reputation
In this era of cyber theft and hacking, choosing a platform to invest in EOS can be a bit challenging. Platforms that are well regulated and licensed are less likely to have security based loopholes or exposed to fraud.
For this reason, you must consider the reputation and regulation of the platform you intend to use. Furthermore, you should ensure that the licenses held by the broker, if any, are with a reputable body. As noted above, this should include the likes of the FCA or ASIC.
Fees to invest in EOS
All trading sites and brokerage firms charge fees. After all, they need to make money to give you access to your desired financial market. In the case of cryptocurrency brokers selling EOS, you will likely pay a variable commission.
For example, if you are thinking about how to invest in EOS with Coinbase, you might want to reconsider. This is because the broker charges a whopping 1.5% in commission. If you were planning to use your debit card to invest in EOS at Coinbase, the fee increases further to 3.99%
Fortunately, eToro does not charge any trading commission whatsoever - so you can invest in EOS fee-free.
Minimum EOS Investments and Payments
Investing in EOS, just like any other crypto project, comes with a measure of risk and reward. The crypto market is somewhat volatile, so you need a platform that allows you to invest minimal amounts.
We found that eToro is perfect for this sentiment, as the crypto platform allows you to invest from just $25 onwards. This is ideal, as you can invest small, but regular amounts into EOS and thus - benefit from dollar-cost averaging.
eToro has made it easy for EOS investors to access the market by offering convenient payment methods. The platform allows debit cards, credit cards, bank transfers, and e-wallets, making payment procedures simple and fast.
Storage and Cashing Out
The safety of your EOS funds should be of utmost concern to you. As such, you must ensure that your digital coins are transferred to a private wallet for security and safety. However, this likely isn’t suitable if you have no knowledge of how crypto wallets work.
Furthermore, when it comes to cashing out your EOS coins, you will then need to transfer them back into the exchange you bought them from. This is a cumbersome process.
With that said, eToro allows you to keep your EOS coins at the platform fee-free. As eToro is heavily regulated, you don’t need to concern yourself with safety. And of course - when it comes to cashing your EOS investment out - you can do this at the click of a button!
Tips on How to Invest in EOS and Make a Profit
The odds of you making a profit on your EOS investment will depend on several factors. At the forefront of this is timing the market well. In doing so, you’ll be able to sell your EOS coins for more than you paid.
This is easier said than done, so check out the three handy tips listed below on how to invest in EOS in a risk-averse manner.
Tip 1: Set Some Financial Goals
Before investing in EOS, you should plan how much you seek to make.
While some investors may be in for the long term, others may choose to trade and cash out over the course of days, weeks, or months.
Have a clear understanding of the strategy you want to deploy and know how to go about it.
Tip 2: Dollar-Cost Average Your EOS Investments
Instead of investing all of your trading funds into EOS in one hit, consider dollar-cost averaging. This is where you will be investing a fixed amount on a set date. For example, you might consider $40 per week or $100 per month.
Either way, the consistency of your dollar-cost averaging strategy will ensure that you don’t need to have sleepless nights about short-term volatility. After all, you will be averaging your cost price out after each EOS investment.
Tip 3: Diversify Your EOS Investment
The Crypto market is highly volatile, so it is wise you diversify your investments. EOS is one of the many cryptocurrencies out there, so it’s worth building a basket of digital assets to reduce your long-term risk. Consider adding more traditional assets to your portfolio too - such as stocks and bonds.
Ready To Invest In EOS?
How to invest in EOS Today- Step by Step Walkthrough
Wondering how to invest in EOS right now? If so, follow the walkthrough outlined below to invest in EOS at eToro commission-free!
Step 1: Open an account
You can begin the process by going to the eToro website and opening an account. You will be expected to provide some personal information and contact details.
Step 2: Upload Some ID
You will now be promoted to upload a government-issued ID. Similarly, by strict regulatory compliance, eToro will also need you to upload a document that validates your address. This can be a utility bill or bank account statement.
Step 3: Make a Deposit
The minimum deposit for an account at eToro is $200. The platform offers a wide range of payment options such as debit/credit card, Paypal, Neteller, and Skrill for your convenience. You can also fund your account via bank transfer.
Step 4: Search for EOS
Once your account is funded, you can then search for EOS on the eToro platform. Then, click on the ‘Trade’ button.
Step 5: Complete EOS investment
Next, you need to enter your stake in the ‘Amount’ box. The minimum EOS investment at eToro is just $25.
The eToro platform offers users other features, including switching from a market order to a limit order, stop-losses, and take-orders.
Finally, click on the ‘Open Trade’ button to complete your commission-free EOS investment.
Step 6: Cashout Your EOS Investment
Your investment is now safe in your eToro wallet and you do not need to pay any monthly maintenance fees to keep your position open. When the time comes around to cashing out, simply click on the ‘Sell’ button from within your eToro portfolio.
How to Invest in EOS - The Bottom Line
EOS is a unique crypto project that is yet to reach its true potential. Backed by an experienced team of developers and cutting-edge blockchain protocol, EOS remains one of the brightest cryptocurrencies to look out for.
If you’re still wondering how to invest in EOS is the fastest and most cost-effective way - consider eToro. The regulated broker allows you to invest in EOS on a commission-free basis. Plus, you can instantly deposit funds with your debit/credit card or an e-wallet like Paypal.
eToro – Best Broker to Buy EOS
eToro have proven themselves trustworthy within the crypto industry over many years – we recommend you try them out.
Virtual currencies are highly volatile. Your capital is at risk.
Is EOS a good investment in 2021?
Various financial forecasts have shown that the price of EOS could well rise this year. As such, many argue that now is a good time to invest in EOS.
How do I start investing in EOS?
You can start by opening an account with eToro. Deposit at least $200 into your eToro account to invest in EOS commission-free!
Can I lose money on EOS?
Remember, the crypto market is somewhat volatile. As such, it is possible to lose money by investing in EOS. But, with well-planned strategies, investing in EOS could grant you the financial breakthrough you have been looking for.
Can I invest $100 in EOS?
The minimum EOS investment will depend on your chosen exchange or platform. At eToro, you can invest in EOS from $25 upwards.
How much should I invest in EOS?
EOS tokens remain among the cheapest cryptocurrencies in the market. While there is every chance that the price of EOS could rise this year, it is advisable to invest only the amount of money you can afford to lose.