Should I Invest in Chainlink

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This 101 guide covers all ingredients according to Chainlink. Also an answer to the question ‘Should I Invest in Chainlink’ and future price developments.

Chainlink (LINK) is considered to be one of the most revolutionary digital assets in the cryptocurrency market. Specifically, after the incredible bull run, it has experienced over the last years.

Nowadays, it is the 13th largest digital currency in the world and it is moving higher trying to reach the top 10. If that happens, this could be the confirmation Chainlink is going to be in the cryptocurrency market for a long time.

Disclaimer: All the information in this guide should be considered as educational content and not financial advice. We are not responsible for any action you make following this guide or the things written in it.

What is the current price of Chainlink(LINK)?

Below is the table that shares all actual data of the Chainlink cryptocurrency. First and foremost, it will give you the actual price(updated once every 24 hours), also it will give you some extra specifics about the network including total market cap and circulation supply of coins.

Actual Chainlink price(24 hours)

Chainlink(LINK) price$10.39(-3.49%)
Total market cap$4,037,411,358
Circulating supply of coins388,509,556 LINK
Maximum supply of coins1,000,000,000 LINK
CMC ranking7

*CMC ranking: Ranking of the Chainlink project on Coinmarketcap website

Invest in Chainlink: What is Chainlink and why is it important?

Chainlink is considered to be an oracle network that aims at helping blockchain networks gathering reliable data. This data is going to be certainly important. Moreover, as for these blockchains to have functioning smart contracts rather than solutions that do run following the wrong information.

Oracles provide clear information to smart contracts for them to get executed at the right time, precisely and properly. Without these oracles, blockchain networks would not have the possibility to gather information from the external world. Indeed, this would be a very difficult thing to do.

Chainlink is important because it will definitely improve the quality of data from which blockchain networks base their smart contracts. If the entire crypto and blockchain markets are able to rely on more accurate and precise oracles, they will certainly behave better and offer better solutions to users.

As the blockchain network continues to expand, improving the quality of the oracles and the data gathered by them, Chainlink is going to definitely help the entire ecosystem have improved and high-quality information.

Currently, Chainlink is working with the LINK token which became one of the largest in the world. This token is used to pay node operators for their work.

Pricechart of Invest in Chainlink
Price of LINK in USD since 2018

Who created Chainlink?

Chainlink was created back in 2017 when the entire cryptocurrency market was experienced the “ICO Craziness.” Indeed, Chainlink was born as an Initial Coin Offering. ICOs were token sales where developers and businesses created their own digital assets to gather funds and build their own networks and services.

The founders of this cryptocurrency are Sergey Nazarov and Steve Ellis, who worked as the co-founder of Chainlink. Meanwhile, Sergey Nazarov was the main developer of the project. Nowadays, the network is totally decentralized and it does not depend on its founders. Despite that, they are always recognized for creating this decentralized network. Besides, the founders remain involved, usually discussing different ways on how to improve the whole crypto ecosystem.

Is Chainlink Centralized?

This is a question that several users make when analyzing this cryptocurrency and blockchain network. Indeed, it is certainly important for blockchain networks to promote decentralization rather than centralization. So, when you consider to invest in Chainlink this question is very legit.

While other oracles operators use centralized services and provide centralized solutions to blockchain networks, Chainlink is currently offering an innovative and decentralized oracle service. The network is based on totally decentralized node operators. Besides, all these nodes help Chainlink remain a decentralized solution for crypto users.

Notably, other blockchains have been considered to be centralized and offering centralized services. Chainlink is at the forefront of the oracle innovation working with decentralized solutions.

Node operators are rewarded with LINK tokens which incentivized them to remain accurate. Also, they share quality data with the community in order to power a wide range of smart contracts around the world.

Chainlink decentralization of Oracles

How does Chainlink Work?

An oracle plays a very vital role in a blockchain by acting as an interface that connects the blockchain with the real world. Basically, in order for a smart contract to operate seamlessly, it needs to be supplied with off-chain data. Additionally, this data would then trigger the terms of this digital contract to be executed. This is the major role an oracle plays on every blockchain network.

Before the advent of Chainlink, existing oracles only provided centralised services, which meant that most smart contracts were forced to rely on data provided by third-parties, making the whole network susceptible to a major breach if the oracles for any reason transmits a bad or compromised data into the network. For this reason, any smart contract using such services is regarded as unsafe and is in no way different from any other centrally run digital agreement.

The way Chainlink oracles handles off-chain data

Chainlink, however, is a decentralized oracle network that allows blockchain smart contracts to connect to off-chain data in a decentralized manner. This vital piece of smart contract infrastructure provides a secure bridge. Moreover, a bridge where data can be transmitted into any blockchain without being manipulated, compromised, or falsified on the network. This way, Chainlink is able to provide essential information like price feeds, event results, and links to traditional payment systems in real-time. With Chainlink, the network will no longer need to rely on any third party to relay data as Chainlink creates a trustless network consisting of purchasers and providers of data. Hence, the network can maintain a very high level of credibility as every data coming in is strictly vetted.

What problem does Chainlink solve?

In general, the following ‘technical’ problems in the blockchain industry will be solved by Chainlink:

  1. Smart contract connectivity issue
  2. Centralised oracle issue
  3. Data manipulation and falsification issue
  4. Security issue stemming from centralised networks
  5. Single trusted third party

Particularly, Chainlink is currently working in order to improve smart contracts, how they execute and the information they receive in order to function. While oracle networks are usually centralized and are highly inaccurate, Chainlink works on a daily basis to improve this specific issue affecting a large number of distributed ledgers in the world.

Oracles are certainly useful for blockchain networks. Smart contracts rely on them to be able to execute and keep networks running. Without these oracles and accurate information, these smart contracts would work erroneously. In addition, they sometimes provide wrong and mistaken outcomes that can be financially damaging for users.

With the solutions offered by Chainlink’s decentralization and oracles, it is possible for the network to improve blockchain’s standards around the world. This is going to help blockchain technology expand and increase its use cases by governments and firms. Chainlink is certainly taking the lead in improving the whole crypto market with high quality and accurate oracle solutions.

Is Chainlink Built on top of Ethereum?

The Chainlink network is currently running on top of the Ethereum mainnet. This is due to the fact that Chainlink creators considered that Ethereum could work as a great smart contract ecosystem. At the same time, Ethereum allowed Chainlink to create an ERC-20 cryptocurrency (LINK) that is now among the most valuable in the world.

There are many blockchain projects that are running on top of Ethereum in order to be operative and start offering solutions to the market. Not all of the projects need to have their own blockchain networks to operate. Also, to start offering high-quality services to users and to those that need them.

Nonetheless, in the future, Chainlink may decide to change the way in which it operates and run its own blockchain network.

Is it Worth Investing in Chainlink?

Reasons to invest in Chainlink

We do not have a definite answer to it considering we are not crypto advisors. However, we can name and understand some of the most important things. Therefore, we should take into consideration in order to invest in Chainlink.

Reason 1: Bullish Trend Since 2017

One of the reasons why we should look at Chainlink in a positive way is due to the fact that LINK showed great resilience over the last years in the market. While many altcoins and cryptocurrencies were falling and reaching new lows, LINK is in a bull trend since 2017. That means Chainlink has never experienced a multi-year bear market.

The virtual currency skyrocketed in mid-2019 and since then it didn’t stop growing towards the upwards. In the near future, the LINK cryptocurrency could reach new highs and help Chainlink reach the top 10.

Reason 2: Clear Solution to the Oracle Market

Another reason we should take into consideration at the time of investing in Chainlink is related to the fact that this is the only network in the market that is offering a clear solution to improve the oracle market.

As smart contracts continue to evolve and require high-quality information in order to operate, Chainlink will become more and more important for these blockchain networks. If Chainlink improves its services over time, we could eventually see the demand for LINK increase.

Reason 3: Chainlink being in top 20 is a ‘large’ Altcoin

It is always important to have a diversified portfolio in cryptocurrencies. Chainlink has demonstrated that it can be a good addition over time that would certainly have a positive impact on the investments made by users.

Balancing and rebalancing portfolios is always a good strategy and taking into consideration a large altcoin such as Chainlink could be a good long-term strategy.

Most important Chainlink Partnerships

Chainlink has already signed several partnerships with a large number of companies in the market. This shows that the Chainlink networks is certainly useful and has been embraced by large companies around the world.

One of the most important partnerships was made with Google Cloud. Chainlink provided its oracle services through is nodes and it allowed Google to build hybrid blockchain cloud applications with Ethereum and also Google Cloud.

There are dozens of networks and firms already working with Chainlink. Some other partnerships include Web3, GameDEX, Celer, Synthetic, Ocean Protocol, Hedera Hashgraph, Matic, GoChain, and many others.

Can Chainlink reach $1000?

First of all, if you consider investing in Chainlink at the current price you still might be one of the early investors in this cryptocurrency. Also, most investors that invest in cryptocurrency are there for the long run. So will one Chainlink ever reach $1000? It’s possible yes, however, it could take some time(probably years) before it will reach that level. All in all, this could be a realistic price mostly because Chainlink is not a company, instead it will be a network operating on a global scale. To reach $1000 per token, the total net worth of the network should exceed $1 trillion(!).

If you are curious and want to know more about the options you have in buying Chainlink on exchanges. Read the article we wrote about buying Chainlink at cryptocurrency exchanges.

Invest in Chainlink: Cryptocurrency wallets

As explained above, Chainlink as a decentralized network is considerred reliable and secure, however, it’s wise to take some additional measures to protect yourself. For instance, when your consider buying Chainlink on an cryptocurrency exchange don’t leave it there. Instead, withdraw the funds to your local wallet on mobile or desktop or even better on a hardware device that can be taken offline immediately. How does this work?

Hardware wallet

The safest way to invest in Chainlink is to store your crypto on a hardware wallet. So why do you need a hardware wallet? First, let me explain what a hardware wallet exactly is. To keep your private key safe, there are currently two options: software wallets and hardware wallets. The definition of a hardware wallet:

A hardware wallet is a special type of cryptocurrency wallet which stores the user’s private keys in a secure hardware device. They have major advantages over standard software wallets: private keys are often stored in a protected area of a microcontroller, and cannot be transferred out of the device in plaintext.”

In other words, a hardware wallet stores your private keys offline on a device that is disconnected from the internet. To keep your Chainlink private keys safe I’ll advise you to use the Ledger Nano hardware devices. Below an example of Ledger Nano X.

Store Chainlink on Ledger Nano X

Buy Chainlink with credit card

Finally, if you have decided to make a Chainlink investment, the next step would be actually buying Chainlink with a credit card. At the time of writing acquiring Chainlink with fiat currency is a lot easier compared with the early days of Bitcoin. Also, it totally depends on what kind of investor you are, but in general, there are two options.

Option 1: Buy Chainlink at a cryptocurrency exchange

This is the most common option in the process of buying a new Chainlink as an investment. Moreover, with this option, you don’t need to own a cryptocurrency wallet, because this platform will generate one for you. At first glance, this sounds very tempting because you don’t have to set-up your own wallet and store your private keys(explained above).

However, most cryptocurrency enthusiasts don’t like this option because you don’t really own the Chainlink as the private keys are managed at the platform. This is a very fundamental issue and therefore many crypto investors favor the option to lock down their own private keys. Of course, if you are a trader and want to buy and sell, a centralized platform offers value. In fact, to be safe from hackers I would advise you to use Coinbase(US residents!) because of their trust and liquidity. Also, if you are not from the US and still favor an exchange above setting up your hardware wallet, Binance cryptocurrency exchange will do fine as well.

Option 2: Buy Chainlink without centralized exchange

Another option in buying Chainlink is at a platform that doesn’t store your private keys after the purchase. In other words, buying at these platforms is only possible if you already own a cryptocurrency wallet. As explained above there are a lot of crypto investors that favor this option to be in full control over their assets. Besides, buying at a centralized cryptocurrency exchange could be limited to certain countries.

However, if you want to invest in Chainlink at platforms like Coinmama or Changelly you can do it from anywhere in the world. Additionally, this doesn’t only go for buying Chainlink or any other crypto. For instance, it’s also possible to sell Chainlink and receive money by SEPA or SWIFT. Also, to know more about these kinds of platforms, we wrote an extensive Coinmama review to introduce this platform.

Conclusion

In this exclusive guide about Chainlink, we tried to give you all aspects involved in this large-cap cryptocurrency. One of the most important uses cases; handling off-chain data in a decentralized way will be tackled by this solution. As an investor, it’s hard to predict where prices will go in a year or a few years from now. However, this project has proved to add value to this young and rising blockchain industry.

Disclosure: This post could contain affiliate links. This means I may make a small commission if you make a purchase. This doesn’t cost you any more but it does help me to continue publishing cool and actual content about Bitcoin & Crypto – Thank you for your support!

Jelmer Steenhuis
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Jelmer Steenhuis

Online entrepreneur at uDigitize
Crypto believer and 'Hodler' of Bitcoin since the early days. Spreading the word about this exciting new technology..
Jelmer Steenhuis
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