The EOS blockchain is an attention grabber and many within the crypto trading circles are curious to learn how to trade EOS, its native coin, because of its promise. Like Ethereum, EOS is built to support the running of smart contracts and the creation of dApps.
Its decentralized blockchain promises free and high-speed transactions and better performance than the Ethereum blockchain. Since its 2017 launch, EOS has developed to become the premier proof-of-stake blockchain increasing the democratization of its processes.
The developers at EOS are striving to make this blockchain function as an operating system that on-boards more developers into the world of dApps, cryptocurrencies, and blockchain. EOS raised a massive $4 billion from its 2017 to 2018 initial con offering process. Its huge developmental war chest makes it a very attractive blockchain project.
How to Trade EOS
Crypto traders are speculators that make profits off the volatile movements of crypto assets in leading exchanges like PrimeXBT. One set of traders buy the tokens from cryptocurrency exchanges and sell them later when they appreciate in value.
Much like the purchase of stocks for long-term investments, these traders are in the trade for the long run, a process known as hodling in crypto circles. While there are massive numbers of Bitcoin HODLers globally, altcoin HODLers are fewer.
Below are some useful EOS trading tips.
- Altcoins have massive levels of volatility. Most traders, therefore, prefer to speculate with them using crypto margin trading or contracts for difference (CFDs) in derivatives platforms like PrimeXBT. They take advantage of the trading platform’s element of leverage, placing small deposits and reaping huge margins in return. They can short or sell the assets or CFDs and make a neat sum from falling markets as well.
- Traders interested in the EOS premise and blockchain can either purchase the EOS tokes on exchanges, then take a long term or short-term position with them. They can alternatively use their EOS assets to trade using margin trading or derivatives. Some speculators simply watch out for price movements when trading EOS based CFDs just as binary options traders do. On PrimeXBT, they can alternatively trade their EOS tokens against the US dollar or bitcoin using the platform’s advanced trading tools.
- When trading EOS, strategy, and goals are vital. Traders should have a trading plan that has daily, weekly, and monthly trading targets from all their positions. The strategy should assess the risk inherent in trading EOS.
- Besides it being one of the largest blockchains today, EOS.IO has been plagued by fears of centralization. Recently the lion’s share of on-chain governance of the EOS blockchain has been in China, so its holders were wary of state intervention. Such factors could easily affect the price of the tokens, but a risk profile can significantly reduce risk exposure by establishing the best trade exit moments. Traders should also place limits and stops to their positions and adequately monitor their trades.
- If you want to trade EOS like many other speculators in the markets, you need to understand how its blockchain operates. This knowledge will help you gauge the asset’s price movements when setting up a trading strategy.
EOS Blockchain Protocol
The EOS.IO protocol is home to the EOS cryptocurrency. This blockchain’s protocol is a product of the private blockchain development company, Block.one whose CTO is Daniel Larimer, one of EOS’s major developers.
Like Windows or Apple, this blockchain is an enterprise operating system for commercial applications. For consensus, all EOS holders have an amount of voting power or stake whose volume is determined by the number of EOS coins that they hold.
Every token holder is a network participant in governance issues or is a node in crypto terms. It is their responsibility to maintain the EOS.IO network via a process known as delegated proof of stake or DPoS.
The EOS holders have to make transactions with the tokens, for approval via the DPoS process, before a record of the transactions is made on EOS’s blockchains. Unlike bitcoin mining that spends a lot of mining power DPoS does not, so transaction costs on the EOS blockchain are free.
EOS Governance Model
Since the EOS governance model is hinged on token ownership, every participant or block producer earns resources proportional to their EOS holdings.
The blockchain can produce a block per every three seconds in a 21 block production round system. This process significantly cuts on-chain transaction costs and speeds.
Since governance is upon its randomly elected users, 21 block producers can edit the whole EOS blockchain, a factor that significantly affects EOS’s decentralized status. One other aspect that makes EOS unique is that it has several blockchains to increase efficiency and speed. These side chains all rely on the EOS token and run on the same prospect as EOS.IO.