Finally, the dip is here in the crypto market, and I know a lot of investors and traders are not happy because I know it hurts when you buy the dip and there is another dip that takes your investment below the first purchasing price. But I am always a fan of dips because I take advantage of such scenarios and never regret them. The dips in the crypto market are the best opportunity to buy expensive coins at a cheap price. In the future, we might not see such dips again, we are fortunate to witness the expensive coins at cheap prices. So I have been studying Chainlink tokens for a while, to know if it is worthy of investment or not. During this dip, I have decided to invest in Chainlink. But what is Chainlink and why I am adding it to my portfolio?
What is Chainlink?
Chainlink is a decentralized blockchain network, that links oracles real-world data and hybrid smart contracts that exist on the blockchain. Every oracle within the Chainlink decentralized oracle network is incentivized to provide accurate data with a reputation score assigned to each. When oracles follow the software’s rules and provide useful accurate data, they are rewarded with the Chainlink network native ERC20 token.
Chainlink takes the capabilities of smart contracts to the next level, by enabling access to real-world data, events, payments, and more without sacrificing the security and reliability that are inherent to blockchain technology.
There are tons of definitions out there to understand Chainlink. The easiest way to understand the concept of Chainlink is to understand its working. Chainlink works on three stages:
Oracle Selection.
Data Reporting.
Report Aggregation.
These three stages make this process powerful in how it enables Chainlink to validate data from multiple different sources. Chainlink can determine with relatively high accuracy which sources are trustworthy – greatly increasing the accuracy of the results and protecting smart contracts from various kinds of malicious attacks.
Key Features
Allow secure interaction between smart contracts and off-chain data.
Potential to allow smart contracts that mimic current financial agreements.
Financial reward for feeding reliable data securely into Chainlink.
Partnership with popular companies, such as SWIFT and Google Cloud.
Background Info
Chainlink was created in 2014 and launched in 2017 by Sergey Nazarov, the founder. He joined the cryptocurrency revolution in 2011, and he believes that cryptocurrency has the ability to make the world a better place. Initially, Chainlink was designed to be a centralized oracle system to verify incoming information. However, later it was converted into a decentralized oracle network that pairs with smart contracts to provide secure transactions using external data sources and APIs.
Why I am investing in Chainlink?
In the month of May, the LINK token was around $52 USD per coin. However, the bearish trend in the crypto market and Bitcoin's influence on altcoins resulted in the price fall of LINK token to around $17 USD per coin as of today. Once the Bitcoin recovers soon back to $60k USD per coin, will also raise the LINK tokens back to $52 USD per coin. I am not sure how many months it gonna take to recover the crypto market, but it is sure that Bitcoin will regain its position of $60k and this will also recover the position of altcoins as well. So this dip is an opportunity, to get expensive coins at a cheap price. Don't miss out on this opportunity, as it may not appear again and again.
When to buy Chainlink? Average-Case and Worst-Case.
Average-Case
The current position of Bitcoin is at around $32k. This position of Bitcoin is considered as strong support. You can buy LINK tokens at this position at the rate of $17 USD per coin, which is a quite good deal.
Worst-Case
The worst-case is a position of Bitcoin where it goes with a further downtrend to $29k or more below. This is unlikely to occur until something major event happens, such as if a huge organization sell a large portion of their Bitcoin holdings, which will result in BTC falling to $29k or more below, this movement of Bitcoin will influence altcoins such as LINK to fell below more than the current value. This case is considered the worst-case. And as an investor, this will be a huge opportunity to fill our digital wallets with a large chunk of LINK tokens.
It's up to you either you invest right now on average-case or wait for more incoming dips for the worst-case.
Mining Chainlink Tokens
Chainlink mining is possible like other coins, though ASIC miner.
Chainlink Token Wallet
The Chainlink link coins are ERC20 tokens that exist on the Ethereum network. The best and secure Ethereum friendly wallets to store your Chainlink tokens are the following:
Atomic Wallet
MyEtherWallet
Coinbox Wallet
Ledger Nano S/X
Trezor Wallets
Coinbase Wallet
MetaMask
Coinomi Wallet
Trust Wallet
imToken
Bread Wallet
Chainlink Market Cap
Chainlink has a market cap of $7,443,670,948 USD. It has a total and maximum supply of 1,000,000,000 LINK tokens. The current supply is about 419,009,556 LINK tokens or about 42% of the total supply.
Chainlink Token Current Price
The current price of the Chainlink token is around $17.0 USD per coin.
Chainlink Coin Price Prediction 2021
The price might reach $20.48 USD per coin by the end of 2021.
Chainlink Coin Price Prediction 2025
The price might reach $63.82 USD per coin by the end of 2025.
Advantage
The Chainlink uses a system of distributed oracles and sources. This system makes decentralized blockchain more secure and accurate, in the sense of sending and storing the data through the oracles system.
Disadvantage
In the past, Chainlink cryptocurrency considered to be a scam due to a lack of promotions and communications. However, It took time to gain reputation and trust from the crypto community.
Conclusion
In my opinion, Chainlink is a good investment. Chainlink aims to provide fast and secure transactions with low transaction fees. The developers claim to provide more upgrades in the coming days. Chainlink has some disadvantages like other coins but there are more advantages and it has a promising future in the crypto industry. I always recommend diversifying your portfolio with multi different tokens with a small amount of investment. I have made my first investment in Chainlink with a small amount and it has been added to my portfolio for long term savings. Begin your investment in Chainlink with a few amounts from your monthly savings. This is a good practice to get started risk-free with something new. These small steps will encourage you to explore and invest in more new potential altcoins in the cryptomarket. Soon many international brands will accept LINK tokens as a payment method. I hope you will never regret in the future about your Chainlink investment.
Where to buy Chainlink Coins?
The Chainlink is available for trading on the following crypto exchange platforms:
eToro
SoFi
Coinbase
Gemini
Crypto.com
FTX.US
CEX.IO
Binance
Huobi
Coinbase Pro
Bitstamp
Kraken
KuCoin
disclaimer: I am not a financial advisor. Kindly do your own research before making any decision. I am not responsible for any financial loss. You are solely independent to make your decisions. I do my own research before investing and then share my experience so others might get benefit from my little knowledge. The article is completely written by myself. No part of the article is copied from any source or website.
Share your opinion about Chainlink in the comment section.
Thank You for reading my article.
Resources
Chainlink is ok and I'm also adding AWC token, it is good to know coins like this for the future. I will suggest buy more of AWC token and staking for passive income too. More info about AWC token - https://atomicwallet.io/token