How to buy Chainlink on Binance? This guide will explain it in detail in 5 simple steps.
Since the start of 2021, the entire cryptocurrency market has officially turned ‘bull’ again after 2 years of consolidation. During that period of consolidation, many new blockchain projects have been in continuous development. One of the projects leading the way in this sector is Chainlink (LINK).
In 2021, the outlook for the Chainlink oracles blockchain looks very promising with realtime adoption taking place; for instance in 2020 alone the Chainlink technology has been used in more than 100 different blockchain projects and the numbers are counting.
This guide is going to show you how to get your first LINK tokens, via one of the world’s most popular exchanges, Binance.
In general, buying Chainlink(LINK) at Binance is a straightforward process, however, first-timers must do some extra necessary steps before they can own the LINK tokens.
In short, below the buying process for Chainlink at Binance:
- Register at Binance for free by email or mobile phone
- Verify your account(KYC)
- Send crypto(BTC, ETH, or any other) to Binance
- Convert this crypto to Chainlink(LINK)
- Or: Buy Chainlink(LINK) with a credit card at Binance
- Withdraw your LINK tokens from Binance
Chainlink is a decentralized network of nodes with the aim to deliver electronic data that isn’t available on the Ethereum blockchain. In other words, smart contracts on the Ethereum very often need data that comes from electronic devices like security cams or other external devices. Chainlike acts as a second layer on the Ethereum blockchain and uses ‘Oracles’ to collect this electronic data.
What is the problem
The Ethereum blockchain uses smartcontracts that are available in a decentralized way which removes the need for a third party and is trustless. Currently, when a smartcontract needs external data it uses an API from an ‘Oracle’ to collect it.
However, these oracles are centralized services that invalidate the nature of a decentralized smartcontract. Moreover, this dependency on getting external data introduces the single point of failure problem.
To fill this gap, Chainlink was developed as the first decentralized oracle that can provide external data to smart contracts. As a result, the security and determinism of smart contracts can be combined with the knowledge and breadth of real-world external events.
Chainlink will provide a decentralized smart contract with access to any external API needed.
Chainlink was launched from an ICO back in 2017. This launch had some complications and one of the reasons was that investors had to invest 100 ETH to get the LINK tokens. In 2017, ETH was trading at 300 USD and to invest 100 ETH wasn’t for everybody.
Also not long after launch, the price dropped dramatically and the project seemed to be doomed. Although price action went south and investors leaving the ship, it didn’t demotivate CEO Sergey Nazarov to continue with the project.
Fast forward today, the total market cap of Chainlink has grown to a stunning $14 billion and is the 11th largest blockchain in the world. As an illustration, an early ICO investor in 2017 should now make 100x on the investment while things are just getting started.
In this guide, I’m focusing on the Binance trading platform. Why Binance? Based upon the current figures it’s one of the safest and highest volume exchange on the globe.
At the same time, the Binance exchange has several advantages compared to other digital asset exchanges in the space. Binance has one of the largest liquidity for altcoins in the crypto market and it offers a large number of trading pairs. In the last 24 hours, Binance handled almost $122 billion(!) in trading volume, according to data provided by CoinMarketCap.
Besides, if you are looking for additional options besides trading then Binance is the place to go. For instance, they also offer cryptocurrency staking(pools) via Binance earn, cryptocurrency lending, and margin trading(5x).
Cryptocurrency trading pairs for LINK on Binance
Binance has some rich options for traders to buy or sell Chainlink in several trading pairs:
Finally, I want to mention that you can get an extra discount(10%) on trading fees if you sign up at Binance by using this link. Moreover, the discount will be deposited back into your wallet for a lifetime 😀
How to buy Chainlink coin on Binance? At this stage, I’ll explain in more detail what is needed for every step to acquire some brand new Chainlink cryptocurrency.
Of course, it’s totally up to you to decide if you want to trade these LINK tokens, earn additional passive income by staking, or just holding these coins in your wallet.
1. Register for an account at Binance
The first step will be to register for an account at Binance. If you haven’t already, register for an account. The process can usually be completed very quickly.
It just takes a few simple steps in order for users to be able to start trading digital currencies on the platform. However, if the goal is to have higher limits, the process needs verification and can take some more time to be completed.
It’s important to know that you have two options for sign up: by email or by mobile phone.
2. Verify your account
Before you can start trading Chainlink on Binance you have to confirm your account. Additionally, this can be done in two ways and depends upon the way you did your registration.
The first way would be to confirm your email adress by clicking on the link that has been sent to you.
On the other hand, if you used your mobile phone you have to enter a confirmation code that has been sent to you by SMS. Remember that this code remains valid for just 30 minutes!
Verification on Binance
For cryptocurrency traders there are three levels on the Binance platform: Level 1, Level 2, and Level 3. In the first place, there is Level 1 which allows you to start trading on the platform without any verification or KYC procedure.
Additionally, you are only allowed to trade or withdraw at a maximum of 2 BTC per 24 hours. If you are a professional trader and want to trade in bigger volumes then you have to upgrade(with KYC procedure) to level 2 or even 3. Level 2 allows you to trade and withdraw at a maximum of 100 BTC per 24 hours.
After you have verified your account(whether by email or mobile) the following screen appears to get started on Binance:
At this point you have three options to acquire some Chainlink(LINK):
- deposit fiat
- deposit crypto
- buy crypto with credit card
Also, make sure you have set the 2FA authorization to upgrade your security at Binance.
Deposit fiat at Binance
If you want to deposit money by bank transfer it’s possible to do this with EUR, USD, or GBP. Furthermore, it depends on what country you live in to choose the method for deposit:
- SEPA transfer
- Bank card
Another option that answers the question ‘how to buy Chainlink on Binance’ is by just depositing crypto(BTC, ETH or any other). Moreover, this is the quickest and cheapest way to acquire LINK in just minutes.
In other words, if you already have some crypto in a local wallet or at another exchange, just sent it over to Binance and you can start using Binance right away!
The last option you have in buying Chainlink at Binance is by using a credit card. To do this choose above in the menu for ‘Buy Crypto’ and then ‘Credit/Debit card’. A new screen appears that allows you to select the fiat currency and what coin to buy.
4. Wait for your deposits
This step is only required when you chose to deposit crypto to Binance. In addition, deposits and withdrawals are often cleared quite quickly, but depending on the network load it can take a little while. Wait for Binance to give you confirmation that your deposit has been successful.
The last step explains how to trade or buy Chainlink coin on Binance. Basically, you have three options in doing this: convert, classic, or advanced trading. Moreover, all these three options are available under the menu item ‘Trade’.
First, the convert option, which is the easiest solution in ‘how to buy Chainlink on Binance’. Additionally, you just swap your USD, crypto, or stablecoin(USDT, BUSD) for LINK right away without the need to load the Binance trading engine interface.
On the navigation bar at the top of the site, hover over “Trade” and click “Basic”.
Now go to the box on the right side of the page. Select the coin you wish to trade with (BTC, ETH, BNB, or USDT) and search for LINK. Select the pair that comes up (e.g. LINK/BTC).
Binance offers a lot of data, such as price and order history, to help you make trades at the right time. They also give you the ability to set limit orders. This means you set the price you want to buy (or sell) LINK for, and once it hits that price, the exchange will automatically make your trade.
These advanced trading options have been created for those users with more knowledge about markets and how virtual currencies and exchanges work. Although it seems complex, it is very easy to use for those users with some experience in the cryptocurrency market.
You can load this screen on the navigation bar at the top, hover “Trade” and click “Advanced”.
Choose the amount to buy
Finally, the basic and the advanced trading screens give you the ability to enter the amount of LINK you want to buy at a given price in the order book.
Just click the green “Buy LINK” button to complete your trade. Once Binance confirms your transaction, you’re done!
It’s a good idea, when not trading, to move your coins off the exchange and into a secure wallet that you control. This way the security of your funds is in your hands, you are not at the mercy of the exchange’s security measures.
To do this, you will need a wallet that supports LINK tokens. The Atomic mobile wallet is a feature-rich software wallet and is available for iPhone and Android. Alternatives include the Exodus desktop wallet for Windows and Mac. However, for the highest level of security, I recommend using a hardware wallet like the Ledger Nano X.
When you have a wallet ready, you can withdraw your tokens from Binance. Go to the menu at the top of the page, select “Funds”, then “Withdrawals”. Choose LINK from the dropdown menu.
In the past, Binance was affected by a hack that resulted in the loss of around 7,000 BTC. Although the exchange was able to give users back the funds lost, it is always better to be in control of the private keys of the digital assets.
How to withdraw from Binance
Put in the address from your Chainlink wallet as the LINK ‘Withdrawal Address’. Double-check the address is correct, choose how much you want to withdraw, and hit submit. Binance will confirm when your transaction has been completed.
…and that’s all you need to know about how to buy Chainlink on Binance, one of the most used trading platforms on the globe with the highest daily trading volumes. Happy trading and take care!
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