EOS is the cryptocurrency that runs off the EOS.IO blockchain, an open-source platform built to power decentralized applications (dApps). Ever since Bitcoin launched the world’s first digital currency in 2008, other cryptocurrencies have been scrambling to do the same – but better. EOS is one such cryptocurrency.
Most cryptocurrencies use what is known as a “blockchain.” The technology has vast potential in terms of security and transparency, but the earlier protocols were limited. The EOS blockchain aims to support millions of users at high speed and at no cost. What is this disruptive altcoin, and how do you buy EOS?
EOS stands for “Electro-Optical System” and is the name for the digital token used to represent transactions on the EOS.IO network. While it is not to be confused with the EOS.IO platform, the two terms are often used indistinguishably. EOS launched in June 2017 with an Initial Coin Offering (ICO) on the Ethereum network. Like most altcoins, the digital token has fluctuated wildly in the markets, reaching a peak of $21.54 in April 2018. This pinnacle coincided with the announcement (on a Times Square billboard) that EOS would be moving from the Ethereum network to its blockchain: EOSIO.
EOSIO calls itself “the most powerful infrastructure for decentralized applications.” The EOSIO blockchain platform was designed to power applications and projects for individuals and businesses. The idea is that any developer, public or private, can build decentralized infrastructure on the EOSIO platform. That said, EOS is not entirely decentralized. Like the altcoins IOTA and Ripple, EOS uses what is known as a “Proof-of-Stake” (PoS) algorithm. Essentially, the more digital tokens you own (in this case, EOS), the greater your stake in controlling the network. This is in contrast to the “Proof-of-Work” (PoW) system used by Bitcoin or Ethereum. In this system, transactions on the network are approved through individual users or “miners” solving complex cryptographic puzzles. Neither method is perfect, but one advantage that PoS has over PoW is that it is less energy-intensive and easier to scale.
There are around 955 million EOS coins in circulation, and the market capitalization of the EOS cryptocurrency currently stands at $4 billion. As a usable coin, EOS is consumer-facing, with no fees to receive or send the coins.
The EOSIO platform uses blockchain technology, a public database or “ledger” that records network transactions. Blockchain ensures that each transaction is both verified by the public PoS users and secured by cryptography. While most people associate blockchain with cryptocurrency and speculating in Bitcoin “digital gold,” the technology has potential across industries – allowing greater transparency, security, and innovation. The delegated Proof-of-Stake system (DPoS) was created by Dan Larimer, the founder of EOS. The DPoS protocol is ultrafast – powering millions of transactions a second. EOS is not the only digital token that runs on the EOSIO network. Meet One, Everipedia, and HorusPay are just some of the other tokens issued through the EOSIO platform.
What is the future of EOS?
EOSIO has ambitious plans. The EOSIO whitepaper states:
The EOS.IO software is designed from experience with proven concepts and best practices and represents fundamental advancements in blockchain technology. The software is part of a holistic blueprint for a globally scalable blockchain society in which decentralized applications can be easily deployed and governed.
That said, the future of EOS is not necessarily going to follow that of its platform, EOSIO. Remember that EOS is the token issued by EOSIO, itself a platform powered by the software company Block.One. Both EOS and EOSIO took a hit earlier this year with the announcement of the resignation of Dan Larimer as CTO of Block.One. EOS tumbled through the markets, losing around $1 billion that day.
This comes full circle to the boost that Block.One initially gave to the cryptocurrency. EOS hit the ground running back in 2018. After the news that Block.One would back the cryptocurrency and EOSIO; EOS crowdfunded a staggering $185 million in Ethereum (ETH). Another way in which EOS’s future could be dictated by its past is in the unique way Block.One approached the token. Block.One made the code for EOS’s underlying software publicly available for anyone to use. Also, even though Block.One was the largest stakeholder of EOS; it remained uninvolved in the administration and governance of the digital coin until last year.
Investors’ confidence in EOS was shaken further after YouTuber Colin Talks Crypto sold 100% of his EOS in response to Dan Larimer’s resignation. There is also a telling lack of mention of EOS tokens, specifically in the EOSIO and Block.One sites. Some EOS holders went as far as to allege an inside job, with one user tweeting:
Nonetheless, EOS has delivered unprecedented transaction speeds, and some have called the cryptocurrency the “Killer of Ethereum.” While some investors have cooled off the altcoin, many others continue to speculate on the frequent price movements of EOS in the volatile crypto market.
Which brings us to the all-important questions: how do you trade EOS, and where do you buy and sell EOS? There are many ways to trade EOS, and a popular technique is to use a CFD (“Contract for Difference”). Using this trading strategy, you would open a contract with your broker at one EOS price, then sell it at a later date for another. The advantage of CFD trading is that you can use leverage (borrowed money from your broker) to make bigger trades and aim to increase your profits. Bear in mind, however, that CFD trading magnifies your losses as well as your profits.
Where to buy EOS?
You can choose to buy EOS tokens directly from a cryptocurrency exchange. While some exchanges will only let you swap one crypto for another, there is an increasing number that accepts credit and debit card payments. Once you have your EOS, it may be a good idea to download it and store it offline in a “hardware” wallet. This protects your digital assets from cyberattacks such as hacking or other malware. Also, there are plenty of cryptocurrency sites out there, and not all of them are legitimate, keep your guard up for scams.
Another popular route to buying EOS is through a broker or trading platform. This way, you can trade with derivatives and potentially make money off EOS in the cryptocurrency markets without the hassle of having to purchase EOS tokens themselves.
For example, here at TradeOr, you can trade EOS and other cryptocurrency pairs, forex, stocks or commodities with derivatives and leverage of up to 500:1. TradeOr clients also have access to state-of-the-art charting software such as TradingView.
The future of EOS is uncertain, but many investors feel that whichever way the cryptocurrency market swings, there is money to be made if you play your cards right. The best way to be successful in day trading on the markets is to keep a finger on that ever-changing crypto pulse.