How to Buy Chainlink in 2023 – Beginners Guide

Chainlink delivers data from the outside world for use in blockchain smart contracts. That’s powerful, but Chainlink’s newest innovation, cross-chain interoperability protocol (CCIP), promises to bridge the gap between public blockchains and private blockchains used in traditional finance. In theory, that means a tokenized asset can exist anywhere yet be used anywhere else using CCIP as a communication standard. Is it time to buy Chainlink?

In this guide, we’ll detail the best ways to buy Chainlink and explore what’s ahead for this well-positioned crypto project. Let’s get started.

How to Buy Link in 5 Simple Steps

If you’re new to crypto investing, the best way to buy Chainlink may be a newbie-friendly platform like eToro. We’ll cover some other top choices later in the guide as well, including Coinbase, Kraken, and other platforms.

eToro offers an easy-to-understand flat 1% trading fee paired with an intuitive interface.

To get started on eToro and invest in Chainlink, follow these five steps.

  1. Open a crypto trading account. Visit eToro and make an account. To get started, you’ll need a few basic pieces of information, including your name, address, and email address. Choose a secure password and set up two-factor authentication so you’ll get a text to confirm account logins.
  2. Verify your identity. Much like opening a bank account, you’ll need to provide proof of identity. You can use a current passport or valid driver’s license. Regulations also require that you provide proof of address, such as a utility bill or your driver’s license.
  3. Choose an investment amount. On eToro, you can start trading with as little as $10. Cryptocurrency prices can be volatile, so choose an amount that fits your budget and risk tolerance.
  4. Make a deposit. Connect your trading account a with debit card, PayPal, or bank account. Payment options vary by region. You may have additional options, such as Neteller or Skrill.
  5. Buy LINK. eToro offers over 80 cryptocurrencies for trading, depending on your location. LINK, the token for Chainlink, is available for US traders and in many regions throughout the world. Use eToro’s search bar to find LINK. Tap the TRADE button, set your purchase amount, and open your trade. That’s it. Your new LINK balance will show in your Portfolio.

Where to Buy Chainlink – Reviews of the Best LINK Exchanges

Many consider Chainlink to be a blue-chip crypto asset, so you’ll be able to find LINK on several major trading platforms. We highlight some of the best places to buy Chainlink, including beginner-friendly platforms like eToro and Coinbase, as well as lower-cost advanced platforms like Kraken or Binance.

Some crypto trading platforms are better suited to beginners or casual traders, whereas others may offer more advanced trading features — but possibly at the expense of simplicity.

For example, eToro makes basic trading simple but offers powerful features like TradingView charts with 100+ indicators for those who need precision trading tools. On the other hand, an exchange like Kraken provides advanced trading with exceptionally low trading fees. Wondering where to buy Chainlink? Here are our top picks.

1. eToro – Beginner-Friendly Platform with Recurring Buys and Copy Trading

As a broker, eToro offers both stock trading and crypto trading. You can also trade exchange-traded funds (ETFs) or even commodities and foreign currencies in some regions. But, while jam-packed with ways to trade, eToro still offers one of the easiest-to-use platforms available.

Just search for the asset you want to trade using the search bar, and in a few clicks, you’ve made a purchase. Trading fees for crypto trades are just as simple to understand. You’ll pay 1% of the trade value, whether buying or selling.

eToro is best known for its social trading features. It’s part trading platform and part social media site, with the ability to share your thoughts on the trading market or follow others. But eToro implements another innovative social feature: copy trading.

etoro copy trading

Copy Trading lets you find other successful traders and copy their trades. When they buy, you buy. When they close the position, eToro automatically closes your copy trade position as well. Tools like Copy Trade can reduce the need for technical analysis and make it easier to avoid rookie mistakes. Allocate a fixed amount to the copy trade and set a stop loss if you choose.

Another tool, called a virtual portfolio, lets you trade in a demo account with virtual funds. Learn the ropes without risking real money or test your trading ideas against real-time prices without risk. Every eToro account gets $100,000 in virtual funds to start. LINK is one of the 80-plus cryptocurrencies available on eToro.

etoro buy chainlink

eToro Trading Fees

You’ll pay 1% for trades on eToro, plus a spread. The spread is the difference between the bid and ask price (you’ll pay the ask price on buy orders and the bid price on sell orders) and is included in the quoted price when you trade. Many simple trading platforms use a similar spread. Where eToro differs is in its flat 1% trading fee compared to the often complex fee structures used by other exchanges.

eToro Overview

eToro Fees to Buy Chainlink Top features
1% + spread
  • TradingView charts: eToro offers built-in charts with over 100 indicators and the ability to compare other assets.
  • Copy trading: Make winning trades by copying successful traders on the platform.
  • Demo account: Every account gets a $100,000 virtual portfolio.


  • Beginner-friendly platform
  • Copy trading
  • Simple fee structure
  • $10 minimum trade
  • Diversify with stocks or ETFs


  • $5 withdrawal fee
  • Limited crypto selection in some countries

2. Coinbase – Trusted Publicly Traded Cryptocurrency Exchange With Over 250 Tradable Cryptos

Coinbase is the starting point for many taking the first steps of their crypto journey. As the world’s largest publicly traded crypto exchange, Coinbase offers more transparency compared to many competitors as required SEC filings provide a glimpse into the company’s financial health.

coinbase sign up

You’ll find over 250 cryptocurrencies on Coinbase, including LINK and other popular cryptocurrencies. This compares well with eToro, which offers about 80 cryptocurrencies and much fewer in some trading markets like the US.

You’ll also find more ways to trade LINK on Coinbase. The exchange’s simple trading platform provides an easy way to buy Chainlink with traditional currencies like USD. However, the advanced trading platform offers five different trading pairs.

  • LINK-USD (USDC also supported)

Trading pairs make it easier to reallocate your portfolio. If you want to trade ETH for LINK, there’s no need to sell your ETH first and then buy LINK. You can do it all in one transaction.

Coinbase offers another advantage that you’ll find with full-service exchanges: the ability to move your crypto off the exchange. eToro enables this as well, but unfortunately, not for LINK or other ERC-20 tokens.

As your balance grows, you may want to move some or all of your LINK tokens off the exchange to a crypto wallet you control. Eggs and baskets.

Moving your tokens to your own wallet also opens up the possibility of staking your LINK tokens to earn a yield. Several Chainlink staking platforms offer easy point-and-click staking, or you can set up staking yourself using Chainlink’s community staking pool.

Coinbase has a minimum order size of just $1.99, making it easy to buy Chainlink if you’re on a budget.

Coinbase Trading Fees

How you buy Chainlink on Coinbase can make a big difference in the trading fees you’ll pay, though. The Buy/Sell buttons throughout the app point to Coinbase’s Simple Trades, an easy-to-use buy-sell-convert box that’s quick and intuitive. It’s also a bit costlier than some other options.

You’ll save a significant amount if you can use the Coinbase Advanced trading platform instead.

Here’s how trading fees for the two platforms compare when buying $100 worth of Chainlink:

  • Coinbase Simple Trade (debit card or PayPal): $3.84
  • Coinbase Simple Trade (cash, USDC, or bank transfer): $2.99
  • Coinbase Advanced (limit order): $0.60
  • Coinbase Advanced (market order): $0.80

coinbase order preview chainlink

Coinbase’s trading fees range from 0.6% for limit orders on the advanced trading platform (called Coinbase Advanced) to as high as about 10% for small orders using the simple trading platform, the blue-button trading box found throughout the app.

coinbase advanced trade link

For a $100 Chainlink investment, you’ll pay $2.99 to $3.84 in fees, depending on your payment method when using Coinbase’s simple trades. By comparison, your cost for a limit order trade is just $0.60 on the advanced platform. Market orders on Coinbase Advanced bring trading costs to 0.8%.

Coinbase Overview

Coinbase Fees to Buy Chainlink Top features
  • Simple trades: $0.99 up to $2.99 (trades up to $75), variable fees above $75 + spread
  • Coinbase Advanced: 0.6% maker (limit) orders, 0.8% taker (market) orders
  • Send LINK to a self-custody wallet
  • Advanced trading platform for lower fees
  • TradingView charts with 106 available indicators
  • Multiple trading pairs for LINK
    Staking services for leading proof-of-stake cryptos, including ETH, SOL, and ADA
  • BTC and ETH futures trading for qualified accounts


  • Build a diversified portfolio with over 250 available cryptocurrencies
  • Trade crypto-to-crypto directly for supported trading pairs
  • No withdrawal fee (network fees apply)


  • High fees for simple trades
  • 2.5% fee for PayPal deposits
  • Confusing fee schedule for simple trades

3. Kraken – Security-First Crypto Exchange With 200+ Cryptocurrencies, Advanced Trading, and Futures Trading

Kraken is one of the oldest crypto exchanges still operating and built its reputation on security and transparency. The exchange was among the earliest to share proof of reserves, which is an audited, blockchain-based method of proving the exchange has the crypto it shows in your trading account.

You can trade on Kraken from over 200 countries around the world and choose from nearly 240 assets, including LINK, as well as top cryptos like BTC and ETH.

Kraken, like Coinbase, offers both a simple trading interface and an advanced trading platform. The simple default trading interface, called Kraken, provides an intuitive way to buy, sell, or convert one crypto to another.

kraken simple trade

The simple trading interface also supports recurring buys, although the feature is only available for debit card-funded transactions, which come with higher fees compared to bank transfer-funded purchases. To buy $100 worth of LINK, you’ll pay $1.97 using a bank transfer versus $5.42 for a debit card purchase.

As a cost-saving alternative, you can use Kraken Pro, the advanced trading platform that offers some of the lowest trading fees available.

kraken pro trade chainlink

Kraken Pro is well laid out and offers a more inviting interface compared to many advanced trading platforms. Well-placed help tips make trading jargon easier to understand for beginners. In addition, Kraken offers an extensive help section with tutorials on order types, analytics, and other Pro features.

Kraken Trading Fees

Kraken now uses a display fee for its simple trading platform. You can preview your trading costs before confirming the order. While no longer detailed in black and white in the trade preview, you’ll pay an additional fee for using a debit or credit card, which is included in the display fee.

Of note, Kraken credit card support is not available in all areas.

We saw trading fees on the simple trading platform at about 2% for cash buys and bank transfer-funded trades. That jumped up to over 5% for debit card transactions.

To save money on trades, you’ll want to use Kraken Pro, which offers fees of 0.16% for limit orders and 0.26% for market orders if you’re 30-day trading volume is less than $50,000. Higher-volume traders can earn lower fees.

Kraken Overview

Kraken Fees to Buy Chainlink Top features
  • Simple trades: ~2% for bank transfer or cash balance-based trades.
  • Kraken Pro: 0.16% maker (limit) orders, 0.26% taker (market) orders
  • Easy-to-use market analytics on Kraken Pro
  • Advanced trading with futures and leverage for qualified traders
  • Send crypto to self-custody wallets
  • Proof of reserves to verify balances held by the exchange


  • ~240 cryptocurrencies available
  • Wide range of trading pairs
  • Newbie-friendly advanced trading
  • Staking support for 15+ cryptocurrencies


  • High fees for debit and credit card trades
  • Debit card fees not detailed in trades
  • No credit card support in the US

4. Binance – Crypto Exchange With Low Fees, Crypto Staking, and 350+ Cryptocurrencies

Binance is the world’s largest crypto exchange by trading volume and offers one of the largest selections of cryptocurrencies with over 350 coins and tokens.

Traders in the US can use Binance.US, a crypto-only exchange (USD deposits aren’t supported), whereas people in other parts of the world can access, the main exchange, which supports buying cryptocurrencies like LINK with traditional currencies.

binance instant buy chainlink

Binance offers powerful trading tools with its advanced platform, aptly named Advanced Trade, but the exchange also offers a beginner-friendly trading interface with lower-than-average trading fees, called Instant Buy/Sell. With eToro – and now Binance — as notable exceptions, simpler trading interfaces often translate to much higher fees.

Advanced trading includes features such as TradingView charts with 100+ indicators and help tips or video tutorials just a click away. Binance also offers margin trading, futures and options, and high-yield opportunities through which you can earn more crypto with your holdings.

If you’re comfortable with using an advanced trading platform and already own some crypto to trade, Binance provides 11 trading pairs, meaning you can trade BTC, ETH, or BNB for LINK or you can buy Chainlink with traditional currencies like EUR or GPB.

binance advanced trade link-btc

Trading fees on Binance are among the lowest you’ll find for both simple and advanced trades. Binance uses a tier system based on 30-day trading volume. At the lowest-volume tier, you’ll pay 0.1% for market or limit orders.

Using the Instant Buy/Sell simple trading platform adds 0.5% to the cost of trading. Instant trades also use a spread to lock in the price. This compares well with EToro, which charges a 1% commission (plus a spread) and comes in much lower compared to Coinbase’s simple trades, which can have trading fees of 3% or higher.

As with many crypto trading platforms, bank-funded transactions are easier on the wallet. Debit or credit card transactions can add up to 3% to your trading cost.

Binance Overview

Binance Fees to Buy Chainlink Top Features
  • Instant buy/sell: 0.6% + spread
  • Advanced trade: 0.1% maker (limit) orders, 0.1% taker (market) orders, 25% discount on fees if paid in BNB
  • Low fees for instant buy/sell
  • Trading bots, margin trading, and  futures for advanced traders
  • Support for self-custody wallet transfers


  • 350+ tradable cryptos
  • Wide range of trading pairs for popular cryptocurrencies
  • Low trading fees for simple interface
  • Yield opportunities


  • Cash and bank transfers not supported to recurring buys
  • No USD support for US traders
  • Recurring buys only available for credit/debit transactions (with higher fees)

5. Nexo – Beginner-Friendly Crypto Exchange With No-Fee Trading and Crypto Borrowing

nexo logo

Built for ease of use, Nexo offers no-fee trading using its main platform and the ability to swap any supported asset for any other supported asset. Fee-free trading doesn’t mean no-cost trading, however. Nexo uses a spread. In effect, the spread works like an exchange rate. Based on the quoted rate, you can choose whether to make the swap.

Support for users in the US is limited, though, and now even basic crypto-for-crypto swaps are unavailable on Nexo’s main platform. For users elsewhere in the world, Nexo provides an easy-to-use trading platform with extra features like limited leverage trading and the ability to borrow against your crypto balances easily.

nexo dashboard

Advanced users can use Nexo Pro, which eliminates the spread by allowing you to interact directly with the order book. Trading fees on Nexo Pro compare well against competitors like Coinbase, with market orders on Nexo Pro costing 0.4% and limit orders just 0.3%, both of which halve the trading fees of Coinbase Advanced.

The layout for Nexo Pro is also among the cleanest you’ll find for an advanced trading platform.

nexo pro trade chainlink

Nexo also offers easy-to-use crypto borrowing with its instant credit lines and rates as low as 0%. Use your crypto as collateral without selling your stack.

nexo crypto loan

Take your loan proceeds in 30+ currencies or use your line of credit with your Nexo card. For example, you can borrow against your LINK balance or dozens of other cryptocurrencies.

Nexo Overview

Nexo Fees to Buy Chainlink Top Features
  • No-fee trades for basic trading (variable spread)
  • 0.4% market orders, 0.3% limit orders (Nexo Pro)
  • Smart staking for ETH (nETH)
  • Lend or Borrow crypto
  • Nexo crypto rewards card


  • Borrow against crypto balances
  • Flexible crypto rewards card
  • Advanced trading platform


  • Limited crypto selection
  • Limited functionality in some markets, including the US
  • Variable spread for simple trades

How We Ranked the Best Places to Buy Chainlink

Chainlink is a leading cryptocurrency, often in the top 15 cryptocurrencies by market capitalization. Most major exchanges support trading for LINK, but many didn’t make our list of the best places to buy Chainlink.

We considered a number of factors, ranging from reputation to regulation and trading fees to transferability.

Things to consider before choosing a trading platform:

  • Regulation: A trading platform registered with authorities in major markets may offer a safer trading environment than an unregistered exchange. For example, eToro and Coinbase are registered with the Financial Conduct Authority (FCA) in the UK and licensed by FinSEC in the US. There are limits to how helpful registrations can be to end users, however, and these limitations extend to both crypto exchanges and traditional finance institutions.
  • Account safety: Perhaps of more importance is account safety. Look for platforms that offer two-factor authentication. At a minimum, this includes SMS verification in which the platform sends a code by text to authorize a login. However, platforms that support authentication apps like Google Authenticator offer more security.
  • Ease of use: More powerful trading platforms can be more complex to navigate. Consider exchanges that you’ll feel comfortable using if you need to make a trade. More complicated platforms may offer lower fees, but may also contribute to costly trading mistakes due to their complexity.
  • Trading costs: Some crypto trades can cost 10% or more, depending on the amount of the trade, payment method, and whether you use a simple or advanced interface. Trading costs can create a headwind that hurts gains or even turns a trade negative after trading fees.
  • Transferability: Many exchanges let you move your cryptocurrency off the exchange to another wallet. However, not all platforms support moving your crypto, and some may not support moving specific cryptos off the platform.

The Benefits of Licensing and Regulation

Licensing and regulatory oversight don’t guarantee safety for traders or the solvency of a trading platform. FTX US, the US arm of the FTX exchange that collapsed in 2022, was registered with FinCEN (Financial Crimes Enforcement Network) and the CFTC (Commodity Futures Trading Commission).

As the FTX bankruptcy case continues, traders who held balances still await a resolution.

Still, it can be helpful to have well-trained eyes overseeing the actions of crypto platforms. For example, eToro is regulated by the FCA in the UK, FINRA and the SEC in the US, ASIC in Australia, and CySEC in Europe.

Trading Basics of Buying Chainlink

Simple trading platforms like Coinbase’s simple trades or Kraken’s basic platform offer intuitive ways to trade. Just set a purchase quantity or a dollar amount to buy or sell. But simple platforms also cost more to use in most cases.

It’s helpful to understand trading basics so you have the option to use simple trades when you want or to save money by using the advanced platform.

Let’s examine some of the most significant factors that can affect your cost.

Trading Fees

If you’ve used a stock trading platform before, you’re probably familiar with trading fees. At their simplest, trading fees use a percentage-based formula to calculate the fees for each trade.

For example, Coinbase Advanced charges a 0.6% fee for fixed-price limit orders. Market orders cost 0.8% on the advanced platform. By contrast, eToro charges a fixed 1% fee for all orders, simplifying the buying process compared to Coinbase Advanced but at a slightly higher cost for trading.

etoro open chainlink trade

In the example above, eToro does not explicitly quote the trading commission. Instead, eToro bundles trading costs in the price quote, including its 1% trading commission on cryptocurrencies and a market spread, which we’ll cover shortly.

Coinbase Advanced, however, shows the trading fee on the trading screen, along with a link to a page detailing how trading fees are calculated based on 30-day trading volume.

coinbase advanced trade fees schedule

On simple trading platforms, look for trading costs on the preview page. In the example below illustrating a simple trade on Coinbase, the order preview shows a fee of $2.99.

coinbase simple trade preview cash

However, the screen above doesn’t explicitly show the spread. Clicking on the question mark next to the price reveals a 1% spread.

coinbase simple trade spread


Technically, the spread is the difference between the highest-priced buy order (the bid) and the lowest-priced sell order (the ask) in an order book, which is a list of orders on the exchange.

But many times, trading platforms calculate a “spread” based on other criteria.

In the example above, Coinbase applied a 1% spread. In this case, it’s more accurate to think of the spread as a markup or a buffer to lock in a price quote.

When trading popular cryptos on an advanced platform, the spread is often quite small, perhaps just a penny. For less commonly traded assets, however, spreads can be larger. Spreads can also widen dramatically and suddenly if the existing orders on the exchange execute, leaving only those that are higher or lower priced.

So, in practice, there are two types of spreads: a true spread (the difference between the bid and ask) and an exchange spread, which resembles a markup and may use a fixed percentage calculation.

On an exchange order book, limit sell orders are priced above limit buy orders and the difference between these two price ranges is the spread.

coinbase chainlink order book

In the example above, the spread for LINK is $0.02. The orders on the top of the screen are limit sell orders, while the orders on the bottom are limit buy orders. We’ll discuss these order types briefly next.

Order Types

Advanced platforms use two basic order types: limit orders and market orders.

  • Limit orders are fixed-price buy or sell orders. When you set the price and amount for the trade, the order is added to the order book where it waits for someone to match the order’s price. Limit orders are also called maker orders because you’re making a market by providing trading inventory at a fixed price.
  • Market orders, also known as taker orders, take existing orders off the market by buying or selling at market prices.

coinbase order book spread

Using the example above, if you placed a market buy order for 100 LINK, you would get the following:

  • 0.38 LINK at $12.572
  • 54.96 LINK at $12.573
  • And the balance at $12.574

The trading platform would also collect a percentage of the trade according to the fee schedule.

This change in price is called slippage because the price “slips” into the next limit order to fill your market order. In this case, the price difference is a fraction of a penny, but the price difference can become significant if there’s a larger gap in price between orders or if you’re trading in larger size.

Chainlink DEX Trading

Centralized exchanges and trading platforms like those covered above offer the easiest way to buy Chainlink with traditional currencies like USD or GPB. However, a decentralized exchange (DEX) like Uniswap uses software on the blockchain to allow traders to swap cryptocurrencies.

Fees on decentralized exchanges can rival those of low-cost advanced platforms, often coming in at 0.3% of the trade or lower. However, DEX trading comes with some other price risks because they are designed to provide liquidity at any price. If the trading pool is shallow, prices can spike dramatically for larger trades.

What is Chainlink?

The Chainlink protocol was founded in 2017 by Chainlink Labs. The company, formerly known as SmartContract, lived up to both names by providing a “link” between smart contracts and the outside world.

What Are Smart Contracts?

Smart contracts, like those used in DEXs, are computer programs that live on the blockchain and with which users can interact. Think of smart contracts as switches, but often with complex instructions. If this happens, then do that, or perhaps a whole array of things.

Developers deploy smart contracts to the blockchain where users can interact with them to make swaps, borrow, lend, or whatever the contract supports. In most cases, this interaction happens through an app, but there are often ways to interact with smart contracts directly if you have the right tools or programming ability.

Blockchains are ledgers, an immutable record of who transferred digital assets to whom and how much each has left. Smart contracts give superpowers to blockchains by allowing users to interact with computer programs on the blockchain, but a blockchain still only knows data regarding the goings on on the blockchain itself.

Enter oracles, a way to bring in data from the outside world for use in smart contracts. The Chainlink protocol is at the center of it all, bringing in trusted data from the outside world.

Chainlink’s trading history ranges from pennies in 2018 to an all-time high of over $50 in 2021. In recent months, LINK has outperformed BTC, more than tripling the returns seen for Bitcoin.

chainlink vs btc performance

Why Chainlink Matters

Chainlink enables smart contracts to do more by bringing in data from the outside world.

Blockchains are deterministic, meaning that if you replayed the transactions on the blockchain you’ll get the same result. If you need to bring in outside data, this creates a challenge. An API call (a request for data from an outside source) can bring in data to use in a smart contract, but if you pull that data again even a second later, the data might be different. This means the blockchain network can’t agree on whether a transaction is valid or not; the blockchain is no longer deterministic.

Oracles solve this problem by providing the data as a one-time transaction. This way, the data won’t change. Instead, the data provided by the oracle will always be the value it was at the time of the transaction.

Why do Smart Contracts Need Oracles?

Blockchains are only aware of events that happen on the blockchain. If John sends Sally10 ETH, the transaction is recorded on the blockchain, and each ETH balance is adjusted accordingly.

But what if the payment is dependent on outside data? For example, maybe John and Sally have a bet on who will win the World Cup. They could agree on this wager in person, but to use a smart contract or allow others to participate anonymously, the smart contract needs to know who won.

Enter oracles. Chainlink oracles can go fetch information and provide the smart contract with the data needed. Part of the process is to decentralize this information by requiring an agreement from multiple computers in the Chainlink network. This step prevents a rogue computer from gaming the results.

But oracles bring a new problem to decentralized blockchains: centralized data. One data source can affect millions of dollars or more in transaction value. Chainlink decentralized its oracles by using multiple data sources and aggregating the results of multiple nodes (individual computers in the Chainlink network).

Chainlink is the leading provider of oracle data for use in smart contracts, thus far enabling over $8.5 trillion in transaction value.

But that may just be the beginning. The company is also working on a cross-chain interoperability protocol (CCIP).

Chainlink’s CCIP

At $1.33 trillion, the entire crypto market value is still relatively small compared to traditional finance assets. One single mutual fund, Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX), is about the same size in value as the crypto market cap. Chainlink’s leadership believes that for crypto to thrive, the worlds of traditional finance and decentralized finance need to connect.

Public blockchains like Ethereum host billions in transactions. Traditional finance institutions are building their own private blockchains, isolated ledgers that collectively host trillions in transactions. But currently, these two types of blockchains are islands unto themselves. Private blockchains can’t talk to each other or to public blockchains, which also face the same limitations.

Chainlink’s CCIP solves this problem by connecting all these disparate chains.

How CCIP Works

Chainlink’s abstraction layer connects to banks and financial institutions and then interfaces with Chainlink’s cross-chain interoperability protocol. CCIP then interfaces with hundreds of public and private blockchains – and it does this without needing hundreds of connection solutions.

CCIP does this with existing systems, meaning banks don’t need to build out new tech to access the benefits. It also enables cross-chain communication: bank-to-bank, bank-to-public blockchain, or public blockchain to public blockchain. CCIP promises to bring these together, solving liquidity issues (the ability to transact easily).

Chainlink compares the solution to TCP/IP (Transmission Control Protocol/Internet Protocol), the messaging system that powers the Internet. Today, users can easily navigate from one website to another using TCP/IP.

Consider CCIP as a global messaging standard for blockchains, a way of interacting with another blockchain without needing to tool up for that blockchain or transfer assets. Instead, CCIP does the work – and the ability to verify assets elsewhere means those assets can be used anywhere.

CCIP also promises the ability to bring real-world assets (RWA) onto the blockchain in tokenized form with a set of rules that can be defined.

Chainlink’s Uses

Chainlink’s CCIP opens a world of possibilities:

  • Cross-chain lending: Currently, assets on Chain A can’t easily be used as collateral Chain B. CCIP’s cross-chain abilities solve this, creating instant liquidity by verifying assets across public and private blockchains.
  • Transaction cost savings: A transaction on the Ethereum network can cost several times the cost of the same transaction on Abitrum, Base, or the Polygon network. CCIP can optimize costs by giving transaction computation tasks to less costly chains.
  • Real-world interoperability: CCIP’s ability to connect to both traditional finance and public blockchains lets either type of chain use data or assets from the other in transactions.
  • Tokenized real-world assets: In addition to using the value of real assets anywhere, CCIP allows tokenized assets to come with an instruction set, making real-world assets smart assets.

LINK Staking

Chainlink’s supply is capped at 1 billion LINK tokens. Currently, just north of half the supply (~557 million is in circulation. However, these tokens are used in staking for the Chainlink network. Node operators can earn a 7% annual yield for staking LINK, combined with a delegation fee paid by community stakers. These community stakers can earn about 5% as an annual yield for staking LINK to a node.

What is Staking?

Blockchains are a record of transactions, but to add transactions to a blockchain, the network needs a consensus method, a way to agree on the validity of a transaction.

Proof of stake is one of the most common ways for networks to agree on transactions. Staking refers to pledging cryptocurrency to help ensure accurate results from the validator node. Transactions on which the network agrees typically result in staking rewards for the staked crypto. On the other hand, if the validator breaks protocol, the stoked crypto is at risk.

Staking creates a disincentive to gaming the system while also rewarding proper protocol and results approved by consensus.

Chainlink staking makes the LINK token an essential part of Chainlink’s value chain. As the demand grows for Chainlink’s offerings, demand for LINK may grow as well.

Is Chainlink a Good Investment?

LINK traded sideways or down for much of its recent history, but it’s also important to view price action in the context of the broader crypto market. Most recently, LINK has outperformed market leaders like BTC and ETH, more than tripling the performance of BTC.

Like other cryptos, Chainlink’s value remains speculative. Although Chainlink is working with Swift and traditional finance institutions, the tech is still in development, and there’s no guarantee of adoption.

Chainlink’s market cap of about $7 billion suggests room for growth. Chainlink’s fully diluted market cap of about $13 billion may seem small for a protocol that can connect traditional finance with public blockchains and enable tokenized assets to traverse both worlds. Again, it’s early, which could bring opportunity or risk, depending on Chainlink’s execution and adoption.

What is the Cheapest Way to Buy Chainlink?

Centralized exchanges with advanced trading like Kraken or Binance offer the cheapest way to buy Chainlink. The cheapest source may also depend on your location. For example, Binance’s main exchange is not available in the US. While trading fees for a limit order are just 0.1% on Binance, US traders who chose Kraken instead would pay 0.16% for limit orders on Kraken Pro.

You can choose from several ways to buy LINK, depending on how you prefer to trade.

  • Brokerages: Brokers like eToro and Robinhood offer cryptocurrencies alongside other assets like stocks and exchange-traded funds (ETFs). Spread fees or commissions can make these options pricier compared to advanced platforms like Binance or Kraken.
  • Centralized exchanges: A centralized exchange (CEX) like Coinbase or Binance is run by a company and offers a way to buy crypto with traditional currencies. Because day-to-day transactions on a centralized exchange are governed by a centralized management team, the decisions they make can affect your investment. For example, the exchange might freeze withdrawals.
  • Decentralized exchanges: A DEX, or decentralized exchange is run by software on the blockchain. A DEX uses a supply of tokens other traders provide called a liquidity pool. DEX trading fees are affordable compared to simple trading platforms like Coinbase’s simple trades but typically more costly than advanced trading on Binance or Kraken, for example. With a DEX, you trade directly from your crypto wallet rather than depositing your crypto on an exchange.
  • Crypto wallet applications: Some wallet apps, like Trust Wallet or even Coinbase Wallet provide ways to buy cryptocurrencies like LINK or ETH. However, fees for purchasing through a wallet app often make this option less competitive.

Which Buying Method Should You Choose?

If you’re new to crypto investing, the best way to buy LINK may be an easy-to-use yet low-cost platform like eToro. You’ll pay more in fees compared to an advanced trading platform like Binance, but buying and selling are simple tasks.

For those with a few trades under their belts or traders willing to learn advanced trading, a platform like Coinbase Advanced or Kraken Pro may be a better choice. As an alternative — and if you’re experienced with a crypto wallet, you can also use a decentralized exchange like Uniswap.

Chainlink Investment Risks

All investments bring risks, and crypto risks can be outsized compared to traditional investments. But risk is often a matter of timing and perspective. Since reaching an all-time high of over $50, LINK has lost about 75% of its value. However, since its recent lows, LINK has nearly doubled in price.

Price risk is inescapable, but it’s also important to consider political and regulatory risks. Some countries, including China, Egypt, Iraq, and Morocco, have banned cryptocurrencies at some point. Others may follow suit. In the US, where cryptocurrencies are not banned, crypto exchanges have faced lawsuits from the government alleging the sale of unregistered securities.

Which is the Best Chainlink Wallet?

LINK is an ERC-20 token, meaning it conforms to a token standard for the Ethereum network and can be used on Ethereum-compatible networks. Popular crypto wallets like MetaMask or Coinbase Wallet offer a convenient way to store your LINK and connect to community staking if you decide to stake your LINK.

You’ll need a wallet that supports ERC-20 tokens and, if you want to stake LINK, a wallet that can connect to the community staking portal.

MetaMask and Coinbase Wallet are both well-supported within the Chainlink ecosystem and work well with other popular decentralized finance (DeFi) applications.

wallets for chainlink community staking portal

Both wallets also offer support for hardware wallets, with Ledger hardware wallets being a popular choice. Pairing a Ledger wallet, for example, with a software wallet like MetaMask or Coinbase Wallet lets you store your LINK with a device that’s not connected to the Internet while easily connecting to staking or other applications.

However, using a self-custody crypto wallet is a choice. If you prefer, you can leave your LINK on the exchange you use for trading. This strategy is more straightforward but brings some security concerns because the exchange holds the wallet keys. As your balance grows, consider using a self-custody crypto wallet to store your LINK safely.

How to Buy Chainlink – Beginner’s Tutorial

eToro’s easy setup and simple fee structure make it ideal for beginners and casual traders. Just follow the steps below to get started.

Step 1: Open an account with eToro.

Visit and click on “Join eToro” or “Start Investing.” Next, you’ll choose a username and password and agree to the terms. Next, enter your details like your name and address.

etoro create account

Step 2: Verify your identity.

To comply with Anti-money laundering and know your customer (KYC) regulations, eToro has to verify your address and identity. The process is similar to what you’d follow to open a bank account. In the US, for example, you can send a copy of your driver’s license, state ID, or US passport.

etoro accepted forms of ID

Step 3: Select an investment amount.

Consider how much you want to invest in Chainlink. eToro’s minimum trade is $10, so you’ll need to deposit at least that amount.

etoro fund account

Step 4: Connect a payment method.

Choose a funding method for your deposit. In the US, eToro supports bank transfers, debit cards, and PayPal. In other regions, you may be able to use wallet apps like Neteller or Skill as well.

All deposits must be converted to USD. eToro can do this for you. Conversion fees apply. There is no deposit fee, however.

etoro connect bank account

Step 5: Make your LINK purchase.

Next, use the search bar to find LINK or Chainlink. This brings up the summary page where you can trade or learn more about the asset. Click on TRADE to open the trade box.

The price indicated includes your trading fees (1% buy / 1% sell). If you sell the position later, you won’t pay a selling fee for that position.

Select an amount for your trade and click on “Open trade” if everything looks good.

etoro tutorial buy LINK

You can manage your position from the Portfolio link in the app. Optionally, you can set a stop-loss or take-profit order to protect your investment. These orders execute when LINK reaches a price you define.

etoro set stop loss


Chainlink is already a key pillar in decentralized finance due to its trusted oracles. The addition of CCIP promises to bridge the gap between traditional finance and decentralized blockchains. This move could revolutionize financial markets worldwide, but it isn’t without risk. Always do your own research before investing and invest within your budget.

When you’re ready to invest in LINK, eToro provides an easy-to-use platform with competitive 1% trading fees and innovative trading tools that make investing fun and social. Copy trading lets you follow the moves of successful traders on the platform. Alternatively, eToro smart portfolios let you invest in themed groups of cryptocurrencies, including LINK and many others.



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Eric Huffman

Eric Huffman has a diverse background ranging from business management to insurance and personal finance. In recent years, Eric's interest in finance topics and in making personal finance accessible led to a focus on cryptocurrency topics. Eric specializes in crypto, blockchain, and finance guides that make these important topics easier to understand. Publications include Milk Road, Benzinga,, Motor Trend, CoverWallet, and others. Always learning, Eric holds several certifications related to crypto and finance, including certificates from the Blockchain Council, Duke University, and SUNY. When he's not writing, you might find Eric teaching karate or exploring the woods.