Trading Chainlink to USD
The attractiveness of the LINK to USD currency pair for trading and investing comes from the characteristics of the two currencies.
While the popularity of the fiat currency is well-known, it’s worth understanding the appeal of the Chainlink network, which solves one of the major obstacles of smart contracts. Increased acceptance of the oracle network that connects smart contracts with off-blockchain data might cause the LINK price to appreciate in future.
The growing acceptance of the solution provided by the Chainlink decentralised oracle network can be seen in the movement of the Chainlink to USD value since the introduction of LINK. LINK was trading at $0.11 (£0.08) when it was first introduced, but since then the price has experienced a significant increase.
The Chainlink price chart shows that post-ICO day, the value of LINK moved in a gentle upward trend until 2019, when it recorded more significant upward movements. For instance, in the first half of 2021, the LINK to USD value reached a level of nearly $50 (£35.8), which represents an increase of more than 400 times.
The Chainlink price shows a potential to fluctuate by more than 25% in a single day, making it alluring for different types of investors and traders. Traders can follow the Chainlink price live on the Dzengi.com trading platform to identify potential trading signals.
What is Chainlink?
The Chainlink decentralised oracle network was established in 2017 and its Initial Coin Offering (ICO) was held on 19 September the same year. The roots of the Chainlink network go back to 2014 when its parent company, SmartContract.com, was founded by Sergey Nazarov and Steve Ellis. The company’s objective was to develop a solution that would eliminate existing obstacles in the process of connecting external data sources and public blockchains.
Chainlink was the result, enabling connections between smart contracts and data feeds from different web API and data sources.
The Chainlink network overcomes potential problems that might arise from the dependence of smart contracts on third parties for external data. Chainlink represents a decentralised network that enables access to data and information from off-blockchain sources to smart contracts on the blockchain network.
The connection between the two sources is enabled by applying oracles, which increases the utilisation and capabilities of smart contracts while keeping the high level of security and reliability of blockchain technology. The Chainlink network allows developers to develop different blockchain-related applications and is used in different types of DeFi applications such as Aave, Yearn and Synthetix, which manage funds worth billions of dollars.
LINK tokens or coins are the digital tokens used to pay services executed through the Chainlink decentralised network. The LINK tokens are used to pay Chainlink node operators, the entities that manage the oracle infrastructure and perform activities such as data collection from external sources and data transformation. Through the ICO, Chainlink has raised $32m (£22.86m) from various well-known investors. On ICO day, the price of 1 LINK was roughly $0.11 (£0.08).
Some interesting facts about the LINK token:
The LINK token is an ERC-677 token, considered to be a successor to ERC-20.
The total supply of LINK tokens issued by the company is set at one billion tokens.
35% of the tokens were used as an incentive for node operators.
35% of the tokens were sold during the pre-sale and public sale.
The company reserves 30% of LINK tokens to reward project developers and related staff.
There were 350,000,000 LINK tokens in circulation.
Chainlink or the LINK token is listed on major crypto exchanges.
The Link coin is part of different crypto to fiat currency pairs and crypto-to-crypto pairs.
The LINK ICO was a success and reached the $32m cap in just a few hours.
Being a decentralised network means the LINK price will be under pressure from economic forces. The existence or lack of alternatives might have a negative or positive effect on LINK tokens. LINK tokens can be easily substituted with Ether or a stable coin such as DAI, which could offer higher stability.
LINK has a developed and supportive online community that firmly believes in the Chainlink projects and it could positively affect the value of this token. Also, the implementation of Chainlink technology by some of the well-established global tech companies might cause a bullish run in the Chainlink price. Crypto-related hype might also influence the value of different cryptocurrencies and digital assets such as LINK.
How to invest in Chainlink?
There are numerous ways to invest in Chainlink and profit from changes in LINK to USD value. One of the traditional ways to trade any cryptocurrency or token is the direct purchase of the specific crypto. This method comes with certain complexity for traders because they have to go through the hassle of storing the cryptos and tokens on a dedicated crypto wallet. The process of directly purchasing digital assets imposes the need to find a relevant exchange that lists the desired crypto.
The drawbacks of the traditional buy-and-store process for cryptos and tokens are overcome with some innovative derivative instruments such as tokenised assets offered by the Dzengi.com trading platform. Tokenised assets eliminate the need to directly buy and store cryptocurrencies and simplify the process of trading currency pairs such as the LINK to USD pair. Tokenised assets replicate the price movements in the underlying assets, enabling traders to benefit from trading opportunities with assets such as Chainlink to USD pairs.
Traders can buy tokenised currency pairs with a margin provided by the Dzengi.com tokenised assets platform and augment the potential profit. Not only is Chainlink investing simplified with the tokenisation of real-life assets but traders also stand to make higher profits when using the leverage provided by the trading platform.
Speculating on future movement in Chainlink to USD rate when you trade tokenised crypto pairs is the same as buying the digital asset from a crypto exchange. When traders expect an increase in LINK value they take a long position, while sell orders might be considered if the signals show a potential price decrease.
Why trade LINK to USD with Dzengi.com
- Advanced charts and tools
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