How to Buy EOS Coin: A Complete Guide
- What is EOS?
- How EOS Works
- EOS Token
- How To Buy EOS
- Best EOS Digital Wallets
- EOS Features
- Ethereum vs. EOS
Before we get into the business of buying EOS tokens, it is essential to have a clear idea of what EOS is all about.
What is EOS?
Ethernet over Sonnet (EOS) is a powerful blockchain-based infrastructure that enables the development, hosting and execution of decentralized applications. EOS is a brainchild of, Dan Larimer who is also the co-founder of Bitshares and Steemit.
Just like Ethereum, it provides an operating system that simplifies the process of creating Decentralized Applications commonly referred to as DApps. However, unlike Ethereum, EOS seeks to be more scalable and flexible in a bid to make it easy for developers to come up with decentralized applications.
Decentralized applications run on a decentralized rather than centralized peer-to-peer network servers. Unlike other apps, they don’t require third party or intermediaries for operations. Instead, they connect providers users directly.
How EOS Works
Simply put, EOS is an architecture that compliments the internet. It acts as a software that allows developers to create decentralized applications while leveraging blockchain technology. EOS network is designed to meet the performance requirements of decentralized applications when it comes to interacting with millions of people at any given time.
Unlike other platforms used for DApps, EOS has no fees requirements. It is also upgradable and comes with low latency that allows for scaling of transactions to millions per second.
The EOS network uses Delegated Proof of Stake DPOS as its consensus algorithm to secure the blockchain. Unlike Proof of Work (POW) or Proof of Stake (POS) algorithms, only those holding tokens on a blockchain utilizing the EOS.IO software are allowed to vote for block producers. Delegates can only produce blocks depending on the number of votes they receive with respect to other producers.
A single authorized producer produces a block in EOS blockchain every 3 seconds. The network rewards block producers with tokens instead of transaction fee, for every block produced. EOS relies on people and voting to secure the blockchain as opposed to miners solving complex puzzles.
Outside the open source software, there is an EOS token that powers the network. The token was released using Ethereum. The native cryptocurrency can be used and exchanged for other cryptocurrencies.
However, its primary purpose is to power the EOS ecosystem. Anyone looking to develop decentralized applications using EOS blockchain must own some EOS to manage demands on the network. To be able to run an application one needs disk space as well as CPU, time and RAM. Block producers must publish capacity of the three, by first buying server time using EOS tokens.
The EOS network is similar to a decentralized operating system whereby developers can build applications. It is powered by the EOS coin which acts as a claim of on server resources. Developers need EOS coins to be able to access and use the EOS blockchain
How To Buy EOS
There are many ways through which EOS tokens can be acquired’ to be able to access tools and resources needed to build decentralized applications on the EOS blockchain
STEP 1. Choosing an EOS Wallet
The first step to owning EOS tokens entails owning a functional digital wallet that can be used to store tokens, bought. Currently, there are no official EOS wallets, which means one has to rely on third-party wallets.
Given that EOS uses the ERC-20 token, one can store tokens in any ERC-20 Compatible Wallet
The Best EOS Digital Wallets
Jaxx and Exodus are some of the most sought after desktop wallet for EOS storage. The fact that both of them are multi-cryptocurrency wallets means they can be used on Windows, Mac, and Linux. Jaxx can also be used on Android and iOS-powered devices.
Exodus is a free desktop wallet with user-friendly features. It comes with a live chat feature for checking the value of one’s EOS holdings, promptly and easily.
Jaxx, on the other hand, is ideally suited for beginners given that it is flexible and easy to use. It is compatible with iOS and Android devices and can still be accessed through Chrome browser extension. Jaxx also comes with a 12- word master seed for recovering the wallet.
Another key advantage of using the two wallets has to do with the fact that they come with the ShapeShift functionality, which allows for easy trading of ERC-20 tokens that one might possess.
Web Wallets are the best as they allow for safe storage of tokens on a computer rather than online. MyEtherWallet is an open source EOS wallet that stores user’s private keys on a computer. MyEtherWallet is among the best as it allows users to be in full control of their information.
Mobile wallets come hand in handy when one wishes to access their EOS holdings via a smartphone. Jaxx Wallet is a perfect fit in this case as it has support for iOS and Android devices.
These types of wallets use a piece of hardware to secure tokens by providing a form of cold storage. Trezor is a perfect fit in this case as it has multiple layers of security that allow it to operate on zero Trust approach.
Trezor comes with a four-digit pin code designed to shield people’s holdings from unauthorized people. It also comes with a 24-word seed that is useful in case one loses the wallet or forgot the Pin Code. Other layers of security that may come hand in handy include Encrypted passphrase and wipe password.
To be able to use this wallet you will have to pat with $104, which makes it one of the most expensive digital wallets.
What to Look For in an EOS Wallet
In a world where hackers are constantly looking for loopholes to steal tokens, security should be a top consideration when selecting an EOS wallet. It is thus important to analyze the kind of security features that a wallet comes with, to be on the safe side. Things like two-factor authentication and advanced encryption are a must in this case.
- Private keys
An EOS wallet should be able to provide support for Private Keys as they enable the sending and receiving of tokens. A good wallet is one that allows one to retain control of the private keys.
- Continued Development
A wallet that is constantly evolving with new features would be perfect given that the cryptocurrency landscape is changing by the day. Hackers are becoming powerful by the day thus important for a wallet to also evolve.
It is important to be on the lookout for what other people are saying about an EOS wallet before settling on one. Always look out for things like security flaws in the reviews as well as talk about customer service and development team.
Step 2. Visit a Cryptocurrency Exchange
Cryptocurrencies exchanges act as stock market where one can buy and sell an array of digital currencies. Once you have set up a digital wallet, the next step to buying EOS tokens entails visiting a crypto exchange.
Buy EOS on Binance
Binance is one of the biggest and most reputable crypto exchanges, listing a number of Altcoins including EOS tokens. Unlike other transactions, Binance only accepts cryptocurrencies as a mode of buying other Altcoins.
Once you have opened a Binance account, ensure you have some Bitcoin or ETH to be able to purchase EOS.
Buy EOS in Kraken
Kraken Cryptocurrency is one of the best exchanges for buying EOS tokens, given that it accepts a wide array of payments. For instance, you can use fiat currencies of the likes of USD, EUR, and GBP to buy tokens in addition to other digital currencies.
It is easy to register for an account with the crypto exchange and charges low transaction fees.
Buy EOS via ShapeShift
ShapeShift provides an easy way of owning EOS tokens anonymously. Unlike all the other cryptocurrencies exchange, you don’t have to sign up for an account with ShapeShift. In the exchange web page, you will be able to select the crypto you want to swap which in this case could be Ethereum Bitcoin, etc.
Next, you will have to select the crypto you wish to receive which in this case would be EOS. Once all this is done, ShapeShift will create a deposit address once you deposit the funds.
Buy EOS on Bitfinex
Bitfinex is a perfect fit for anyone looking to buy EOS using U.S dollars given that it is one of the traded pairs in the exchange is EOS/USD.
Buying EOS with Fiat Currencies
Currently, there is no way to buy EOS using Fiat currencies. The only thing one can do is visit an exchange like Coinbase and use fiat currencies to buy ETH or BTC. Once in possession of either BTC or ETH, you can use them to buy EOS on any of the top crypto exchanges.
Coinbase and CEX.IO are the two exchanges that allow one to use credit or debit cards to buy crypto of choice. Once you have bought, say a BTC or ETH you can transfer it to another exchange such as Binance and use it to buy EOS.
Step 3. Withdraw EOS Tokens to Your Wallet
Once you have bought the desired amount of EOS tokens from crypto exchanges, it would be important to transfer them to a secure a crypto wallet. Never leave your holding on an exchange as they are most vulnerable to hack attacks.
Crypto wallets ensure one’s holdings are protected in case an exchange becomes insolvent or gets hacked.
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EOS network is scalable in that it can support thousands of commercial-scale decentralized applications at any given time. The network can also process millions of transactions, a second, with the use of asynchronous communications.
- Zero Transaction Fees
Unlike other blockchain projects that charge people transaction fees, EOS will allow people to access its blockchain resources depending on their EOS token holdings. However, individual app developer determines transactions fee that is generally low.
Block producers hold the right to determine which transactions are confirmed on the blockchain, in addition to being able to make changes to the EOS systems or the source code. What this means is that the community can upgrade downgrade or fix bugs on the system.
- Blocks Formation
In EOS network, blocks are produced every three seconds, by delegated’ block producers. The fact that the network has a limited member of delegates producing blocks at any given time means that blocks are solved in batches of 21.
Ethereum vs. EOS
While Ethereum and EOS are extremely popular because of their efforts to capitalize on the capabilities of blockchain technology, they also differ a great deal.
- Programming language
Developers looking to develop decentralized applications on Ethereum must be conversant with solidity, a programming language on which applications are run on the network. Programming language Limitations is seen as one of the reasons why a number of developers have shunned the network.
EOS, on the other hand, is compatible with any programming language as long as it can be compiled in the Web Assembly. A majority of developers in the network use C++, a programming language that is appealing and popular.
- Consensus protocols
Ethereum runs on Proof of work consensus protocol which can process an average of 15 transactions a second. The downside of the protocol is that it makes it impossible to fix broken decentralized applications on the network.
EOS on its part relies on delegated proof of stake that eliminates a good chunk of the challenges that Ethereum network faces. The protocol allows developers to freeze the network whenever a broken application is detected.
One of the benefits of the DPOS protocol is that it allows EOS to process an average of 1,000 transactions per second
- Network Economics
EOS network operates under an ownership model whereby EOS tokens give a proportional share in the network bandwidth storage and processing power. It also comes with zero transaction fees and no costs for developers except the initial EOS tokens.
Ethereum, on the other hand, operates under the Rental Model whereby gas fees are required in exchange for every calculation, storage operation and bandwidth utilization. Transactions fees are not fixed as they keep on fluctuating as miners are allowed to select transactions with the largest fees.