EOS is a “Do It Yourself” platform for running decentralized apps (similar to Ethereum) that has gained a lot of attention lately due to its $4 billion ICO and key figures. In this post I will explain how to buy EOS tokens and where to store them.
In order to buy EOS you need to follow these steps:
- Get an EOS wallet (Ledger Nano S, Exodus)
- Set up your EOS account
- Find your EOS address
- Go to Kraken and open an account
- Fund your account and buy EOS
- Withdraw the EOS tokens to your wallet
1. What Is EOS?
Seen by many as a potential competitor to Ethereum, EOS is a platform for running decentralized applications (Dapps). Dan Larimer who created EOS is also the cofounder of BitShares and Steemit.
By its very design, EOS is aimed to be more scalable and flexible than Ethereum, which makes it easier for developers to create Dapps. On the other hand EOS is more centralized than Ethereum due to the fact that only 21 computers are responsible for producing new blocks (as opposed to all miners in Ethereum).
EOS is also different from Ethereum in the following ways:
- It does not have transaction fees
- It has the potential for millions of transactions per second
EOS ran a year long ICO (between June 2017 and June 2018) in which it managed to raise over $4 billion. However, the project is still in its early stages and the network has yet to gain sufficient traction to threaten Ethereum’s popularity.
2. How to Buy EOS in 3 Steps
Step 1 : Choosing an EOS Wallet
There are several wallets that can hold EOS tokens. If you want to get a quick start you can use a desktop wallet, however keep in mind these wallets are generally less secure. For maximum security use a hardware wallet like the Ledger Nano S.
Desktop Wallets for Storing EOS
Jaxx and Exodus are among the most popular desktop wallets for EOS. They are both multi-cryptocurrency wallets that are available on Windows, Mac, and Linux. In fact, Jaxx is also available on Android and iOS.
Both Jaxx and Exodus have ShapeShift built in, which allows for the quick, easy trading of cryptocurrencies.
Hardware Wallets for Storing EOS
You can use the Ledger Nano S in order to store EOS tokens. Ledger is compatible with Windows, Mac, and Linux. In order to interact with your EOS tokens on Ledger you will need to use Fairy Wallet – an open source desktop.
Once you have your EOS wallet, it’s time to get your EOS address so you can send EOS tokens to it. An EOS address is a long string of characters starting with 0x. For example: 0xd0a6e6c54dbc68db5db3a091b171a77407ff7ccf
How EOS Wallets Work (optional read depending on your wallet)
EOS wallets work a bit differently than most cryptocurrency wallets in the sense that they have two private keys – An owner key and an active key.
The Owner key controls the active key which is used for staking, unstaking and transferring tokens (more on staking here).
In order to send EOS from your wallet you will need an EOS account. An account is a 12 characters long human-readable name that is stored on the blockchain (e.g. myaccount123). EOS accounts can only be created through existing EOS accounts. This means that you will need to use some sort of 3rd party that already has an account to help you out.
There are different ways to create an accounts, depending on the wallet you’ve chosen. Some wallets create the EOS account name for you, others will show you how to create it yourself and in some cases this could cost a few bucks.
Since each wallet deals with EOS account creation in a different way I suggest consulting your wallet’s FAQ after the initial setup.
Here are some guides for the main ones:
If you want to create your own account name, you can use this website and the following tutorial.
Caution – whenever using a 3rd party website, use caution as you can never know if it is legit or not. Also NEVER give away you private key to anyone (only your public key if needed).
Step 2: Find an EOS Exchange
There are several exchanges that will allow you to buy EOS tokens either directly with fiat currency (i.e. Dollars, Euros, etc.) or through exchanging your Bitcoins/ Ethereum to EOS.
Buy EOS through eToro
If you only want to speculate on the price of EOS, the best platform to do so would be eToro. eToro supplies an easy to use, beginner friendly trading platform that can be funded with multiple payment options.
It’s important to make a distinction between actual exchanges that allow you to buy and hold your own EOS tokens, and platforms like eToro that only let you speculate on the price (i.e. you don’t get to actually withdraw the coins).
With eToro you can only buy/sell EOS for fiat currency (i.e. Dollars, Euros, etc.).
IMPORTANT! If you use eToro you don’t actually need an EOS wallet as they don’t supply you the actual coins. Also, Cryptocurrencies can widely fluctuate in prices and are not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework. So keep in mind that your capital is at risk.
Buy EOS with Fiat currency
Kraken allows you to fund your account with EUR, USD, JPY, or CAD. You can then trade EOS for USD, EUR or even BTC and ETH.
Kraken is known for being relatively easy to register, and for offering comparatively low fees. However, its performance has recently suffered during peak trading times.
HitBTC is a cryptocurrency exchange based in Europe. It offers many different cryptocurrencies, including EOS. You can make a deposit using EUR or USD. While the exchange is easy to use, it doesn’t have the best online reputation since many claim that it lacks transparency . You should treat HitBTC with caution, as it is an unregulated exchange.
Bitfinex is one of the few cryptocurrency exchanges with an EOS/USD pair, so it’s a popular option for anyone buying EOS. However, it’s not a particularly beginner-friendly platform, since it has a rather complex interface .
Buy EOS with Bitcoin or Ethereum
Binance has quickly established itself as one of the most popular cryptocurrency exchanges. It has listed dozens of altcoins, including EOS tokens. You can only fund your Binance account with BTC or ETH and then trade those for EOS.
Changelly is a crypto to crypto exchange service that allows you to exchange many different cryptocurrencies for EOS. The fees are on the steep side, but it’s a small price to pay for the convenience and privacy that it offers.
Buy EOS with Cash
There is currently no viable way to buy EOS with cash. If you’re looking for a quick workaround you could always buy Bitcoin with cash on LocalBitcoins, then trade it for EOS on Binance. Keep in mind this process could get expensive due to the multiple conversions.
Buy EOS with Credit Card
Very few cryptocurrency exchanges allow you to buy crypto with a credit or debit card. Your best bet is to use Coinmama or CEX.IO, purchase either BTC or ETH with your credit or debit card and trade it for EOS on Binance.
Buy EOS with PayPal
Much like a credit card, there isn’t a way to directly buy EOS from PayPal. However, you could buy BTC through VirWOX using Paypal and then exchange that BTC to EOS on Binance. This process will probably the most expensive of all described in this post.
Step 3: Withdraw your EOS tokens to your wallet
Remember, never leave coins or tokens on an exchange. If you use an exchange platform to buy EOS like the ones mentioned above, make sure to withdraw your coins from that exchange into your own personal wallet. Therefore, you are protected if the exchange gets hacked or becomes insolvent.
While EOS was dubbed as the “Ethereum Killer” it still has a long way to go before dethroning the king of decentralized apps. Having said that, it’s off to a good start with a huge amount of capital raised through its ICO and a team with a track record behind them.
Buying EOS is a bit more difficult than other more popular cryptocurrencies, but as the platform evolves and the token becomes more mainstream it will probably be available on more and more exchanges.oin Vid