It is no secret that the commitment around cryptocurrency has been twofold, and this has…
In today’s market, there are many popular projects that are based on the same technology as cryptocurrency. Chainlink is one of these projects.
Chainlink is one of the first networks where it is possible to integrate centralized sources and smart contracts. In addition, Chainlink is one of the largest networks that allows this.
In the years that have passed since its launch, the network has received a lot of attention from large suppliers within, for example, the computer industry. Providers such as Aplha Vantage, Brave New Coin and Huobi have been impressed by Chainlink’s idea.
In this article, we’re going to get to know Chainlink a little better, because here there are many questions that need an answer. Because what exactly is Chainlink, and what affects the Chainlink course? There are probably also many who wonder whether Chainlink is a good investment, and possibly how to invest in it. You will find an answer to all of this here!
A nice video showing what Chainlink is with animations:
What is Chainlink?
What is Chainlink? That is the first thing we will give you a good explanation for. Chainlink is a term that belongs in the crypto world, but the term itself can be a bit confusing. Of course, we fully understand that. If Chainlink is a term that confuses you, then just read on.
Chainlink is primarily a decentralized network . The network mainly serves two purposes, and that is to create a way for blockchains to interface with any APIs, enabling payments to be sent anywhere.
In practice, Chainlink can be described as a type of software that acts as a kind of intermediary. Chainlink makes it possible to integrate two other (different) software so that they can work together. Without this “intermediary”, the two software programs would not have been able to achieve a working collaboration.
In connection with the Chainlink network, you will be introduced to another term, and this term is LINK. But what is LINK? LINK is a cryptocurrency that has been developed specifically for use on the Chainlink network.
When LINK was developed, it was with one specific thing in mind – that this cryptocurrency should be used to finance projects and the like.
However, after the launch, something the developers probably didn’t foresee happened, and that was that the value of the coins skyrocketed. The reason for that was that Chainlink was seen as a revolutionary project that paved the way for the cryptocurrency.
If you were to invest in british right now, one coin would have cost you NOK 67.95. This means that this does not necessarily have to be a huge investment – unless you want to own several million of it.
Cryptocurrency is known for its volatility, and Chainlink is no exception. That means Chainlink is a volatile cryptocurrency. In practice, this term indicates that the price fluctuations on Chainlink are large. The price changes all the time, in the worst case it can be from second to second.
However, it is important to remember that price fluctuations are based on various factors . There are several factors that play an important role in connection with price development and cryptocurrency. Let’s take a closer look at some of these factors:
- Demand – LINK coins are governed by demand to a very large extent. If demand is high, the price will usually increase, because more people see that there is a greater probability that any investment will lead to a higher return. But interest can fall as quickly as it rose, and this will also have consequences for the price.
- Offer – The offer is about how many coins it is possible to buy. How many coins are in circulation, in other words. A total of 1 billion LINKs can be produced – that’s a limit the developers decided upon when they developed LINK. At the time of writing, there are only approx. half of this has been produced, so LINK is a cryptocurrency that can still be produced if needed. The greater the supply of the cryptocurrency, the lower the price.
- The rest of the market – However, it can pay to keep an eye on the rest of the market as well, and not just LINK. The rest of the crypto market is an important factor in how the price of LINK coins develops, because it is not unusual for different cryptocurrencies to follow each other. If Bitcoin and Ethereum, which are among the market’s largest and most popular cryptocurrencies, decline, then it is very likely that the rest of the market will slowly but surely follow suit.
Is Chainlink a good investment?
Many people probably wonder if Chainlink and LINK coins will be a good investment. Here, however, we can only point out the most obvious, which is that it is difficult to say how the Chainlink and LINK course will develop as time progresses.
Chainlink and LINK are an interesting investment object in certain situations. So it may well happen that day traders will consider Chainlik a good investment – and we naturally have no objections to this.
However, we do not want to go so far as to say that Chainlink is not a good investment, but it is very important that anyone and everyone who invests in this way familiarizes themselves with how it actually works and learns to see the risk factors in such process.
How to invest in Chainlink
Are you considering investing in Chainlink and LINK coins? Then this part of the article in particular will be of interest to you. Investing in Chainlink is very easy.
To use the Chainlink network, you naturally need a user on the network . But first of all, you have to acquire LINK coins that enable you to use the software.
Acquiring LINK coins is very easy. This process consists of a few very simple steps. Here is a small overview that shows what you have to do:
- Find a trading platform and create a user.
- Verify your account and deposit money into the account.
- Find the investment object you want to invest in, which in this case will be LINK coins.
Decide how much you want to trade for, and press “Buy” or “Open trade” (may vary based on which trading platform you use.