EOS is a cryptocurrency that you can’t really buy anything with. Wait, what? Why would anyone want to use a cryptocurrency that you can’t use to even buy anything?
EOS isn’t the only cryptocurrency that isn’t making full use of the currency part. The power of EOS is in its ability to provide a platform for decentralized applications. While that might also make your head spin, in this article, we’ll find out why inventors have dumped $700 million into EOS, why more investors are trying to get in, and how you can invest in it.
What Is EOS?
EOS is a project created by Dan Larimer. The company behind EOS is block.one. Larimer is also its CTO. Brendan Blumer is the CEO. Larimer is good people to have on a cryptocurrency project. He’s been involved in other successful crypto asset projects such as steemit.com (a blockchain for content), bitshares.org, which is a decentralized exchange.
According to coinmarketcap.com, EOS is ranked #10. Its current price is $13.24 and there are 625,462,477 EOS currently in circulation.
How Is EOS Different?
EOS allows companies to build applications. Think of it as an operating system for decentralized applications. The software behind EOS is called EOS.IO Software. It’s a programmable blockchain that doesn’t require developers to have servers when creating applications for the platform. Meaning, businesses have a full platform to create, deploy and run their decentralized applications on.
Because of its architecture, EOS can support millions of transactions per second with sub-second latencies. The system uses delegated proof of state.
Some of the use cases for EOS are:
- Businesses that need to manage inventory.
- Banks that need to manage records.
- Stock exchanges that need to manage trades.
All of these businesses can build their applications on EOS. Additional use cases include the next Airbnb or the next Uber. The way that will work is to allow passengers and drivers to interact without having to pay in USD or having a middleman take a fee for each transaction.
steemit.com is another example of EOS in action. steemit.com allows people to put articles on the blockchain. Each article is time-stamped, making it reliable. When you put content on the blockchain, you know it wasn’t changed or if it was, there is a record.
The above scenario is related to security. Without EOS, if the server gets compromised, you can lose all the data on that server. Or an admin with misguided goals might modify records.
The blockchain decentralizes applications. You no longer send a password to the server. Everyone is secure. If a hacker compromises the system, they compromise one person instead of every body all at once. This means they can’t modify records or data after the fact.
How To Invest In EOS
There are more exchanges coming in the near future that will allow you to buy EOS. For now, we’ll have to use Binance.
Let’s walk through the process in detail.
1. Create A Binance Account
The first thing you need to do is setup a Binance account.
Binance is a popular choice because it allows crypto-to-crypto transactions from companies like Coinbase. It’s important to note that you can’t send money to Binance. You have to go to Coinbase -> Exchange (Binance) -> EOS.
So, you’ll always need two accounts:
- Binance: which you can signup for here
- Coinbase: Coinbase gives you $10 in free Bitcoin when you signup and deposit $100 or more
Hopefully, this changes soon, but that’s how it goes today.
2. Buy Bitcoin or Ether on Coinbase
Once you have a Binance account setup, you need to buy Bitcoin or Ether on Coinbase.
It’s very easy to do once you have a Coinbase account setup. You simply go to the Buy/Sell page and enter your information. Then, your Bitcoin will be in your wallet and you can move to step 3.
3. Transfer Your Bitcoin To Binance
Once you have your Bitcoin or Ether in your Coinbase account, you can transfer it over to Binance. This is also fairly easy to do.
In your Binance account, go to your balances then wallets and you can see all the different coins you can hold in your account.
In our case, we’re transferring over Bitcoin, so click on Bitcoin, and you’ll see a Wallet Address generate. Here’s what most look like:
Once you have that address, you go back to Coinbase, choose “Accounts”, and then “Send.” You’ll see this screen come up where you can send your Bitcoin to the address generated in Binance:
4. Buy EOS
Once you have your Bitcoin in your account at Binance, you can finally buy EOS.
In your Binance account, execute the EOS/BTC (or EOS/ETH) exchange.
Once you place your trade, it will show up in your Binance account.
If you are a developer, EOS provides a great platform for creating blockchain based, decentralized applications. This is a relatively new space in how it being made available to developers.
While EOS as a cryptocurrency doesn’t yet provide much use, it is still available to trade. With investors pouring money into the company, it’s obvious they see long-term value in EOS.
However, remember, with any cryptocurrency purchase, it’s extremely risky. You are buying something with the “hope” that it rises in price and other people on the Internet will be willing to pay more for it in the future that you did. That’s a huge risk, so don’t invest more than you can afford.
If you’re not sure about using a digital wallet and this whole process, and want to invest via an ETF, you can’t do it yet. However, there is a Bitcoin ETF – GBTC, and you can invest in it for as little as $5 on Stockpile. We’ll give you $5 for free when you sign up for Stockpile through this link.
Let us know your thoughts on EOS in the comments!
Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him here.
He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.
He has been quoted in major publications including the New York Times, Washington Post, Fox, ABC, NBC, and more. He is also a regular contributor to Forbes.