A Beginner's Guide To Investing In Eos Crypto

EOS is a blockchain-based platform for running decentralized applications (DApps). It is similar to Ethereum but aims to be more scalable and flexible, making it easier for developers to create DApps. EOS also differs from Ethereum in that it does not have transaction fees and has the potential for millions of transactions per second.

To invest in EOS, you will need a wallet and an account on a cryptocurrency exchange. Here is a simple, step-by-step guide:

1. Choose a wallet: Some of the most popular EOS wallets include SimplEOS, Lumi Wallet, Freewallet, and Exodus.

2. Set up your EOS account: Your account will consist of 12 characters stored on the blockchain, which will be used for your transactions.

3. Find your EOS address: This is a long string of characters that starts with 0x.

4. Fund your account and buy EOS: You can use a debit/credit card, wire transfer, or crypto to fund your account. Some popular exchanges that list EOS coins include Coinbase, Binance, and Kraken.

5. Withdraw the EOS tokens to your wallet: It is recommended to store your EOS tokens in a personal crypto wallet for added security.

Choose a crypto broker and open an online account

To invest in EOS or any other cryptocurrency, you'll need to open an account with a crypto broker. Crypto brokers work in a straightforward manner. You'll first need to link a payment method, such as a debit or credit card, bank transfer, or service like PayPal. You can then place an order using the broker's trading platform, and they will buy or sell the cryptocurrency for you.

When choosing a crypto broker, there are several factors to consider:

• Supported assets: If you want to invest in cryptocurrencies beyond EOS, check the list of supported assets. Some brokers only support a few cryptocurrencies, while others allow you to trade hundreds.
• Payment methods: Most crypto exchanges support wire transfers, but some platforms also let you buy crypto using credit or debit cards, or other digital payment methods.
• Fees: Research the broker's fee structure, as high fees can eat into your investment returns. Crypto exchanges typically charge trading fees and withdrawal fees, but other transaction fees may also apply.
• Security: Crypto exchanges are a prime target for hackers, so choose a broker with strong security measures in place.
• Customer service: If you're a beginner, select a broker with excellent customer support that can help you get started.
• Reputation: Research the broker's reputation by reading customer reviews and looking into the exchange's history and any relevant news stories.
• EToro: eToro is a multi-asset investment platform that offers an easy-to-use, beginner-friendly trading platform. It supports multiple payment options, including credit and debit cards, PayPal, and more.
• Coinbase: Coinbase is a beginner-friendly crypto exchange available in 100+ countries. It offers a large number of supported cryptocurrencies, robust security, and advanced trading options. However, trading fees can be relatively high.
• Binance: Binance is a specialized crypto exchange that allows you to buy and sell hundreds of digital currencies. It has low fees that get cheaper the more you trade, but it has faced regulatory issues and security concerns.
• Kraken: Kraken is a reputable crypto exchange with low fees that's been around since 2011. It offers a professional-grade trading platform and advanced features for experienced traders. However, it's not available in all U.S. states.
• Robinhood: Robinhood is a popular option for buying cryptocurrency directly, offering commission-free trading. While its app is slick and easy to use, it may disappoint more advanced traders looking for a full-featured trading experience.

Set up a crypto wallet

Setting up a crypto wallet is an essential step in investing in EOS. A crypto wallet is a device or application that allows you to send, receive, store, and manage your EOS tokens by giving you access to your private and public keys. Your private keys are required to sign transactions (send crypto assets from one wallet to another), while your public keys represent your wallet on the blockchain and can be used to receive crypto assets.

There are several types of crypto wallets to choose from, each with its own advantages and disadvantages:

Online (or Web) Wallet

This is the most accessible option, as it can be used on any device with a web browser. However, your private keys are typically stored on servers, creating security concerns as your funds may be at risk in the event of a cyber breach.

Software (or Hot) Wallet

Software wallets are similar to online wallets but require you to download a third-party mobile or desktop app. They are usually free and easily accessible, but they also have the same security concerns as online wallets since they require an internet connection.

Hardware Wallet (Cold Wallet)

Hardware wallets are considered the most secure option. They store your private keys offline, providing an additional layer of physical protection in the event of a hack. They usually resemble standalone USB devices and cost between $70 and $150.

Paper Wallet

With a paper wallet, you write down your private and public keys on a piece of paper and store it in a secure physical location. This method is free and non-technical, but it lacks convenience and can cause significant issues if the paper is lost or stolen.

When choosing a wallet, consider factors such as price, touchscreen access, support for multiple cryptocurrencies, and security. Some popular options for EOS wallets include Ledger Nano X, Exodus, Atomic Wallet, and SimplEOS Wallet.

Fund your account

Funding Your Account to Invest in EOS

To fund your account and buy EOS, you will need to use a crypto broker or a cryptocurrency exchange.

Crypto Broker

The easiest way to purchase EOS is to open an account with a crypto broker that offers access to the coins and tokens you’d like to add to your portfolio. Crypto brokers work in a straightforward manner. To get started, you’ll link a payment method. Depending on the broker, you might be able to purchase cryptocurrency with a debit or credit card, bank transfer, or using a service like PayPal. From here, you’ll place an order using the broker’s trading platform. Your broker will buy or sell your cryptocurrency of choice according to the directions in your order.

Cryptocurrency Exchange

If you want to buy EOS tokens and store them, you will need a wallet and an account on a cryptocurrency exchange.

Some of the most popular cryptocurrency exchanges that list EOS coins are Coinbase, Binance, and Kraken. All three allow you to buy EOS through wire transfer and credit card. Also, on these exchanges, you can purchase digital coins with USD or euros.

If you’re willing to speculate on the price, you can also use eToro to buy EOS.

If you want to buy EOS with PayPal or cash, you will need to buy Bitcoin first and then trade it with EOS. This process can be more expensive due to the multiple conversions required.

Choose an EOS exchange

The next step is to choose an EOS exchange. EOS is available on most major exchanges, including Binance, Coinbase, Kraken, Bithumb, and Upbit. You can also use a platform like eToro to speculate on the price of EOS.

When choosing an exchange, it is important to consider factors such as security, speed, and fees. It is also crucial to ensure that the exchange is available in your country and accepts your preferred payment method.

Some exchanges, like Coinbase, offer a simple and easy way to buy EOS with relatively high fees. Others, like Binance, allow you to trade other cryptocurrencies for EOS. If you plan to use this method, you will first need to acquire Bitcoin or Ethereum from an exchange like Coinbase.

It is also worth noting that EOS is an ERC-20 token, so you can store it in any ERC-20 compatible wallet, such as MyEtherWallet.

Withdraw your EOS tokens to your wallet

Withdrawing your EOS tokens to your wallet is a crucial step in the process of buying EOS. It is important to remember never to leave your tokens on an exchange, as this could put your investment at risk in the event of a hack or exchange theft. By transferring your EOS tokens to your own personal wallet, you can ensure that your investment is protected.

To withdraw your EOS tokens to your wallet, you will first need to create an EOS account on the EOS network. This is because EOS has an account system, which means that you need to have an account before you can withdraw your tokens from the exchange. An EOS account is a 12-character human-readable name that is stored on the blockchain. It can be owned by an individual or group, depending on the permissions configuration.

Each EOS account consists of two keys: the active key and the owner key. The active key is used for transferring funds, voting for block producers, buying RAM, etc. The owner key indicates ownership of the account and is needed to make any changes to the account, such as resetting the active key. It is important to keep your owner key safe and offline, as it is not needed for most activities on the EOS network.

There are several ways to create an EOS account, such as using cleos or one of the available toolkits. For example, you can use the EOS account generator by EOSVibes or Zeos. Keep in mind that you will need an existing EOS account to create a new one. Alternatively, you can use a tool that creates an account for you, but always research and use these tools at your own risk.

Once you have created your EOS account, you can proceed to withdraw your tokens from the exchange. Log in to your exchange and navigate to the withdraw or balance page. Enter your EOS account name, not your active or owner key. After double-checking the account name, you can submit the withdrawal request.

After the withdrawal has been processed, you can use a block explorer, such as bloks.io, to check if the EOS has been deposited into your account. Once the tokens have reached your wallet, you have successfully completed the process of buying EOS and can begin using your tokens.

Frequently asked questions