Chainlink (LINK): What is it? Is it a good investment?

LINK became known in 2019 after the token went up no less than seven times in a few months in the first three quarters of 2019. To be specific: If you had pumped an amount of $ 1,000 into the token on January 1, 2019, you would have made $ 7,300 nine months later. That’s a lot more fun than the average pregnancy, don’t you think?

No doubt, Chainlink is still one of the main cryptocurrencies of the moment and the oracle par excellence of the Ethereum network, which is why it is available in the vast majority of brokers and exchanges. 

However, you may still have some doubts about investing in it. That’s why in the following, I will be helping you with sufficient information about this coin to help you make the right investment decision. Have a good read!

What is Chainlink?

Chainlink is a very innovative cryptocurrency, which is based on a decentralized network of Oracles. It was created in 2014 by Sergey Nazarov and Steve Ellis.

The added value of this Altcoin is to have created a reliable tamper-proof network that can exchange information with the blockchain.

Chainlink Oracles can share crucial real-world information and make it available to the blockchain, in a secure way, perfect for smart contracts and DeFi.

Chainlink has developed a very well articulated system that is catching on quickly and consequently is leading to the growth of the price of its token: LINK.

What is LINK?

LINK is the token of Chainlink. It may be clear that the marketing team didn’t spend a lot of time toiling on the name of the token, but at least it has become a catchy name, shall we say.

At the same time, LINK doesn’t need marketing to stand out. As mentioned earlier, a return of no less than 730% in the first three quarters of 2019 generated so much media attention in the crypto industry.

Features of LINK

  • Token: LINK
  • Daily trading volume: $365,265,718
  • CMC ranking: #26
  • Number of tokens in circulation: 467,009,550
  • Total number of tokens: 1,000,000,000
  • Price during ICO: $0.11
  • Price today: $7.47
  • Token type: ERC-677
  • Live Market Cap: $3,484,178,40

Chainlink(LINK) roadmap

Unlike most companies and tokens that start an ICO, Chainlink has deliberately chosen not to publish a roadmap. That does not mean that they are completely out of control, quite the contrary. The choice not to publish a roadmap has everything to do with the fact that they do not want to put undue pressure on themselves from predetermined deadlines. 

These could possibly be at the expense of quality and that is not acceptable for the men of Chainlink. You can of course keep track of the progress of the company on the Chainlink website if you want to.

How to buy Chainlink (LINK)

Buying Chainlink is not difficult and there are two intermediaries you can use for this type of investment: CFD Brokers and Cryptocurrency Exchanges. The best way to buy ChainLink (LINK) is via Binance.

Let’s try to understand what are the pros and cons of these intermediaries.

Buying LINK with Brokers

Pros:

  • Quick transactions
  • No commission
  • Very high security dictated by operating licenses
  • The possibility also to aim for the downside
  • Guaranteed deposits

Cons:

  • You don’t actually buy LINK tokens
  • Tokens cannot be used to trade with other cryptocurrencies and to buy goods or services

Some of the best CFD brokers on the market include IQ Option, eToro, and XTB.

Buying Chainlink with Exchanges

Pros:

  • Wide choice of cryptocurrencies
  • Ability to convert cryptocurrencies between them

Cons:

  • They suffer frequent cyber attacks.
  • Commissions for each transaction.
  • Slow transactions.
  • You can only invest on the upside (with some exceptions).
  • They do not have the supervision of control bodies.
  • They do not offer deposit guarantees (except in rare cases).

Some of the best exchange sites on the market to buy LINK include Binance and Coinbase.

Pros and Cons of buying Chainlink(LINK)

Pros:

  1. Chainlink’s infrastructure is extensible, which means that it can obtain and transmit information of all kinds at high speed.
  1. Installing Chainlink is very simple, which makes it easy for hundreds of projects to incorporate it as an oracle.
  1. The system is 100% decentralized and its main task is: to transmit the correct information in an environment that is as secure as possible.
  1. Chainlink has reached agreements with big companies like SWIFT and Google Cloud to develop interesting projects.
  1. It can become the tool par excellence to convert current financial agreements into smart contracts.
  1. The Chainlink model allows those people who provide truthful information and the services requested by users to obtain profits for it.

Cons:

  1. Like other oracles, Chainlink has issues with the privacy of the information it sends. This is no secret and appears in Chainlink’s own whitepaper, but their team hasn’t been able to come up with a solution yet.
  1. The system is vulnerable to Sybil attacks, that is, users who enter false data and manipulate the protocol information, which can lead to failures in the platform’s operation.
  1. It is a cryptocurrency with extreme volatility. The price gets some exaggerated movements, with drops of 80% quite frequent, but also with increases of 1,000% in a short time. This is very good for those who are risk lovers, but for those who invest a significant amount of money and seek the peace of mind, it is not the best investment.

Chainlink (LINK) contract address

Below are Chainlink (LINK) contract address for various networks:

Ethereum: 0x514910771af9ca656af840dff83e8264ecf986ca

BNB Smart Chain (BEP20): 0xf8a0bf9cf54bb92f17374d9e9a321e6a111a51bd

Solana: CWE8jPTUYhdCTZYWPTe1o5DFqfdjzWKc9WKz6rSjQUdG

HECO: 0x9e004545c59d359f6b7bfb06a26390b087717b42

xDai: 0xE2e73A1c69ecF83F464EFCE6A5be353a37cA09b2

Fantom: 0xb3654dc3D10Ea7645f8319668E8F54d2574FBdC8

Polygon: 0x53e0bca35ec356bd5dddfebbd1fc0fd03fabad39

Avalanche C-Chain: 0x5947bb275c521040051d82396192181b413227a3

Sora: 0x008484148dcf23d1b48908393e7a00d5fdc3bf81029a73eeca62a15ebfb1205a

Terra Classic: terra12dfv3f0e6m22z6cnhfn3nxk2en3z3zeqy6ctym

Hoo Smart Chain: 0x294cde734a863dcf65417992424405bccf3973e7

Near: 514910771af9ca656af840dff83e8264ecf986ca.factory.bridge.near

Is Chainlink (LINK) a good investment?

Even though results achieved in the past are no guarantee for the future, the potential for Chainlink ( LINK) is still limitless. As more and more companies invest in blockchain and look for solutions to integrate their datasets with other companies’ datasets, Chainlink’s oracle solution will prove to be an incredibly inventive one.

And as Chainlink’s technology becomes more popular, more node operators are needed. The more node operators are needed, the more they get paid together. And the more they get paid together, the more demand there will be for LINK. And that is more than insanely good news for anyone who has a warm heart for LINK or has invested in this prominent altcoin.

Chainlink (LINK) price prediction

Now let’s see the predictions on Chainlink made by some sector analysts:

  • Wallet Investor believes Chainlink is a great investment for 2022 with a target price of $30.793 by the end of the year.
  • Digital Coin expects LINK to rise and close the year at a price level of $ 30.86.
  • Trading Beasts and its analysts agree with other LINK forecasts but are a bit careful. They predict LINK to end the year on $23.692.

Conclusion

Buying Chainlink is undoubtedly one of the most interesting investments in the Altcoin segment and analysts’ forecasts are inspiring.

Industry experts believe one should speculate on Chainlink’s short-term fluctuations and focus on the long-term on only a small portion of the capital intended for investment.

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Anthony Adewuyi

Anthony Adewuyi

Anthony is a Content Writer with MakeMoney.ng. He is passionate about Finance, Business, and Tech related topics. He is a Digital Entrepreneur with vast experience in Data Analytics and Advanced Google Analytics

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