With so many new cryptocurrencies flooding the market every day, it can be hard to know which ones to invest in or take the time to learn about. Trading OMG is well worth considering, however.
OMG’s price boomed in 2018, from around 22 cents to just over $28. You may not be able to expect such huge percentage increases like this in the near future, but many traders believe OMG is undervalued right now. Before investing in any coin, it’s worthwhile understanding a bit about how it works, what its goals are and its potential, as well as its possible flaws. It is worth thinking carefully about which online broker you use if you decide to trade OMG or any other cryptocurrency.
OMG Network was initially called “OmiseGo,” but it changed name in June 2020. It was first created by the payments company “Omise” in 2013. Its purpose has always been to provide an intermediary between e-wallets. Many new networks and wallets operate on blockchain, but many of them are limited in how and where they can send funds. OMG seeks to be the payment solution for numerous networks. They can take on a high volume of transactions using their network, but they rely on Ethereum’s blockchain to validate transactions. OMG is technologically tied to Ethereum, and companies and networks such as these are vital to ensuring the future of Ethereum’s model.
Although OMG’s technology is entwined with Ethereum, OMG has the potential to be a huge player in cryptocurrency, and it would be a mistake to view it as merely an appendage of Ethereum. OMG is not a completely independent ecosystem, but their technology is valuable, and its own goals are separate from Ethereum. It seeks to make cryptocurrencies as respected as the current banking system for fiat currencies and ultimately replace it. Their wallets will act as a glue in peer-to-peer payments between decentralized cryptocurrencies registered on their network. OMG has its own token, which does not require mining (which is great from an environmental perspective), although it has now started a proof-of-stake system (with rewards) for users to validate transactions on the blockchain.
Taking a look under the hood of OMG Network, it is a “child chain” to the Ethereum network, which is controlled by “smart contracts.” OMG uses a version of Plasma called “MoreVP” (More Viable Plasma). What does this all mean? A “child chain” operates similarly to sidechains, but it allows the parent chain to validate transactions on the child chain. Think of it like two trains pulling up next to each other and exchanging cargo (transaction data). OMG’s “train” can then speed off to deliver the cargo to stations (e-wallets) on completely different train lines to the ones upon which Ethereum operates.
Next, imagine the people that are catching and throwing the cargo from train to train are the “smart contracts.” Smart contracts are the pre-programmed code that allows various operations to occur on a network, including verifying transactions between parent and child chains. “MoreVP” is a protocol designed specifically for the Ethereum network. It helps with the “handover” between the parent and child chains, ensuring it is secure and reducing the number of checks or “signatures” needed for each transaction. It’s not a perfect analogy, and, at some point, all analogies break down with this massively complex technology. In short, however, OMG enables transfers between different e-wallets operating on the blockchain with the support of Ethereum’s blockchain.
Investing In OMG
Omg Network is no mere cryptocurrency token but a decentralized exchange that aims to bridge e-payment platforms. Their mission is to “Unbank the Banked.” For those unable (or unwilling) to open bank accounts, OMG Network symbolizes alternative financial independence. For traders, OMG Network represents an opportunity in the markets. There are many reasons investors are interested in the OMG token. Trading OMG allows you to support the Ethereum project, expand your cryptocurrency portfolio, and diversify your trading approach.
As with any cryptocurrency, there are two basic ways to invest in OMG:
- Buy OMG tokens and store them on a cryptocurrency exchange or offline wallet
- Trade OMG tokens on a brokerage platform
Traders looking for a long-term investment to buy the coins and wait (in hope) for the value to increase may prefer the first option. However, do be mindful of the risks involved when storing your OMG tokens with trading pairs on a third-party cryptocurrency exchange. Recent history has taught us that these exchanges are not invulnerable to cyberattacks, and investors have lost their coins to hacks or scams. Equally, bear in mind that if you choose to store your coins offline in a “cold storage wallet.” In this case, you will need to remember your long-digit security key (there is no “lost password” option when it comes to cryptocurrency wallets!)
Many investors choose to trade OMG using a broker. This way, you can capitalize on the rise and fall of OMG in the cryptocurrency markets. Trading OMG on an exchange platform also opens you to more options. In the case of OMG trading, you could open a CFD (“contract for difference”) with your broker and trade with leverage.
The cryptocurrency market is highly volatile. This makes it an exciting and attractive place to trade, but with potential profit comes risk. Before you begin trading OMG, assess your requirements and desires. If you believe wholeheartedly in the OMG Network and want to put all your eggs in one cryptocurrency, then make sure you do your research. What is the OMG roadmap for the future, what is the maximum number of OMG Tokens (140,245,398), what do cryptocurrency advisors predict?
If you are rich in time but not capital, consider short-term trading strategies (scalp trading, swing trading) where you can buy and sell OMG tokens with CFDs or other derivatives without needing to own the underlying asset.
If you are ready to start trading OMG, you will need to find the right online broker. Here at TradeOr, you can trade not only cryptocurrency pairs but also invest in forex, commodities, indices, and more. We offer CFD trading with leverage margins up to 500:1, and our customer support team is available 24/7 to answer any questions you have. With any online investment, research and information are critical. TradeOr clients can access our cutting-edge trading tools such as TradingView, to assess the markets and monitor trades.
In 2017, OMG Network announced it had partnered with McDonald’s in Thailand (meaning 71 million Thai could pay for their McNuggets with OMG coins.) Globally, there is an estimated two to three billion people with access to phones but not banks. There is a staggering 438 million people without a bank account in Southeast Asia alone. OMG could be the answer for them. As a non-profit, there is much attention on OMG Network. As an altcoin, there is confidence in the underlying tech of the OMG token.
Cryptocurrency giant Ethereum remains plagued by scalability issues, and one proposed solution is to move transactions off the main chain onto “Layer 2” chains, together with Enya. OMG Network recently announced the launch of “OMGX,” a layer 2 Ethereum scaling solution. If OMGX proves successful and OMG Network nails down more deals like McDonald’s and partners with other mega-corporations, it will continue to climb up the coin charts.