How to Buy EOS Coin: A Beginner’s Guide
EOS is a cryptocurrency that aims to support large-scale decentralized applications (dApps) with fast transactions, low fees, and high scalability. EOS was launched in 2018 by Block.one, a software company that also developed the EOSIO blockchain platform. EOS is one of the most popular smart contract platforms in the crypto space, ranking among the top 50 cryptocurrencies by market capitalization.
If you are interested in buying EOS coin, you might be wondering how and where to do it. In this article, we will explain the basics of EOS coin, how it works, and how you can buy it easily in 2020.
What is EOS Coin?
EOS coin is the native token of the EOSIO blockchain platform, which is designed to enable developers to create and run dApps for various purposes. EOS coin serves as a utility token that provides access to network resources, such as bandwidth, storage, and computation. Users can stake EOS coins to get these resources or rent them out to others. Developers can also use EOS coins to deploy and upgrade their dApps on the network.
EOS coin is also used for governance on the EOSIO platform. EOS coin holders can vote for block producers, who are responsible for validating transactions and maintaining the network. Block producers are rewarded with new EOS coins for their service, which are generated through inflation. The inflation rate of EOS coin is determined by the community through voting.
EOS coin has a total supply of â tokens, which means there is no hard cap on how many coins can be created. However, the annual inflation rate of EOS coin is capped at 5%, which can be lowered by the community vote. As of December 2020, there are about 1.1 billion EOS coins in circulation.
How Does EOS Coin Work?
EOS coin works on the basis of the delegated proof-of-stake (DPoS) consensus mechanism, which is a variation of the proof-of-stake (PoS) model. In DPoS, EOS coin holders delegate their voting power to a group of 21 block producers, who are elected by the community every 126 seconds. These block producers take turns to produce blocks and validate transactions on the network.
DPoS allows EOS coin to achieve high scalability and performance, as it reduces the number of nodes involved in the consensus process. EOS coin claims to support thousands of transactions per second (TPS), with an average confirmation time of 0.5 seconds and zero transaction fees. However, DPoS also introduces some trade-offs, such as centralization risks and security vulnerabilities.
EOS coin also leverages smart contracts, which are self-executing agreements that run on the blockchain. Smart contracts enable developers to create dApps that can interact with each other and with users without intermediaries. EOS coin supports smart contracts written in C++, which is a widely used programming language that offers flexibility and efficiency.
Where to Buy EOS Coin?
There are two main ways to buy EOS coin: using a cryptocurrency exchange or using a cryptocurrency wallet.
Using a Cryptocurrency Exchange
A cryptocurrency exchange is a platform that allows you to buy and sell cryptocurrencies using fiat money or other cryptocurrencies. There are many cryptocurrency exchanges that support EOS coin, such as Coinbase, DigiFinex, Gate.io, and BingX. To buy EOS coin using a cryptocurrency exchange, you need to follow these steps:
- Create an account on the exchange of your choice and verify your identity.
- Deposit fiat money or another cryptocurrency that you want to use to buy EOS coin.
- Find the trading pair that matches your deposit currency and EOS coin (e.g., USD/EOS or BTC/EOS) and place a buy order.
- Wait for your order to be filled and receive your EOS coins in your exchange wallet.
- Transfer your EOS coins to your own wallet for safekeeping.
Using a Cryptocurrency Wallet
A cryptocurrency wallet is a software or hardware device that allows you to store and manage your cryptocurrencies. There are many cryptocurrency wallets that support EOS coin, such as