How to Buy Chainlink in 2024 – 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.

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 MEXC and Coinbase, as well as lower-cost advanced platforms like Binance.

1. MEXC – Overall Best Cryptocurrency Exchange For Trading Chainlink

One of the best cryptocurrency exchanges to invest with right now is MEXC. This global crypto exchange has more than 10 million registered users. MEXC supports the trading of more than 1,000 cryptos along with Chainlink. 

Through MEXC’s swap farming mechanism, investors can access more than 2,000 cryptocurrency pairs by connecting with a liquidity pool. Some of the top features of MEXC include the low trading fees. 

The platform charges 0% spot trading fees. Furthermore, futures trading fees start from just 0.02% per transaction. The platform also supports leverage and margin trading for advanced traders. Through the MEXC launchpad – investors can trade new tokens that have recently been launched. 

This secure platform stores over half a billion worth of investor funds in cold storage. Since the funds are stored offline, they are protected against online hacks and scams. MEXC also uses SSL encryption technology and adds an additional security layer by implementing two-factor authentication.

This fast and efficient platform can execute more than 1.4 million transactions per second. The minimum deposit is only $5, and payments can be made via credit/debit cards, SEPA transfers, and SWIFT. 

MEXC also introduces a flexible staking mechanism – through which investors can stake their crypto token and generate high APYs (Annual Percentage Yields). The platform offers 24/7 customer support, and a fully functional mobile app which comes equipped with the same features as the desktop version. 

MEXC Overview

76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

2. OKX – Trade 300+ Cryptos with this Popular Exchange

The next cryptocurrency exchange through which you can trade Chainlink is OKX – used by more than 50 million people.

 On the platform, investors can trade 300 crypto assets – ranging from large-cap tokens such as Cardano, Bitcoin, and Ethereum to meme coins and metaverse cryptos. One of the popular tokens on OKX is OKB – the native cryptocurrency of the exchange. 

Token holders can get discounts on trading fees depending on their OKB holdings. For instance, those holding more than 2,000 OKB tokens can start trading cryptos for just 0.08% per transaction. The typical fee is set at 0.1% per transaction. 

On OKX, investors can engage in spot and margin trading and apply leverage on trades. Through the OKX Loan feature, investors can store their crypto holdings as collateral, and get loans in crypto tokens such as BTC, ETH, and USDT. 

Through the flexible staking option, investors can also generate high annual yields by locking tokens on the exchange. OKX supports payments via credit/debit cards, Apple Pay, and bank transfers. It also accepts third-party platforms such as MoonPay and Simplex. 

The platform can be accessed through a desktop, or the mobile app via iOS and Android. 

OKX Overview

3. 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 Binance.com, the main exchange, which supports buying cryptocurrencies like LINK with traditional currencies.

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.

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 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.

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

4. 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.

You’ll find over 250 cryptocurrencies on Coinbase, including LINK and other popular cryptocurrencies.

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.

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.

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

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’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.

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

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, Coinbase is 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 is always good to have well-trained eyes overseeing the actions of crypto platforms, and that’s why we recommend working with a regulated exchange or broker.

Trading Basics of Buying Chainlink

Simple trading platforms like Coinbase’s simple trades 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, MEXC does not charge any spot trading fees.

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.

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

Spreads

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.

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.

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.

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. Over the past year LINK has largely tracked Bitcoin’s price movements.

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.

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.

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 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.

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

• Brokerages: Brokers like 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.
• 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, 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 MEXC.

For those with a few trades under their belts or traders willing to learn advanced trading, a platform like Coinbase Advanced 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.

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

MEXC’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 MEXC

Visit the MEXC website and click and create an account in two ways. First, you can choose to connect a crypto wallet to the crypto exchange.

Alternatively, you can connect to the platform with a Google account by entering your email address.

Step 2: Verify your identity.

To comply with Anti-money laundering and know your customer (KYC) regulations, MEXC 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.

Step 3: Make a Deposit

Once the account is created, investors can deposit funds. The supported payment options include credit/debit cards, SEPA transfers, and SWIFT.

Select the payment amount and confirm the transaction.

Step 4: Buy LINK

Once the account is funded, search for ‘LINK’ on the MEXC navigation bar. In the order box, enter the purchase amount and confirm the transaction.

Conclusion

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, MEXC provides an easy-to-use platform with competitive trading fees and innovative trading tools.

76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

References

• https://staking.chain.link/
• https://www.sec.gov/news/press-release/2022-219
• https://brokercheck.finra.org/firm/summary/298361
• https://blog.chain.link/levels-of-data-aggregation-in-chainlink-price-feeds/
• https://blog.chain.link/five-levels-cross-chain-security/
• https://www.swift.com/news-events/press-releases/swift-unlocks-potential-tokenisation-successful-blockchain-experiments
• https://www.sec.gov/news/press-release/2023-102

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