How to buy Chainlink (LINK) cryptocurrency?

What is Chainlink

Chainlink is a decentralized network that aims to encourage a global network computer to provide reliable, real-time data to smart contracts running on top of blockchains.

LINK is Chainlink’s native token. This token helps fund the project's growth and is very similar to Bitcoin (BTC), and Ethereum (ETH). Both cryptocurrencies operate on their respective blockchains. LINK acts in the same way as BTC and ETH to encourage users to mine.

While blockchain is excellent at its core function of providing a secure, decentralized ledger for digital transactions, it's not great at receiving input from other entities. Many "off-chain" factors can influence markets. These include fiat currencies and credit cards, as well as the weather and scores. Chainlink, as a decentralized oracle, can provide input into smart contracts.

Smart contracts, if you don't know what they are, are agreements that are programmed to execute when certain conditions are met. Smart contracts have been used to create new crypto-financial products and develop new crypto assets.

One problem that persists is that smart contracts must rely on external data sources to execute their terms.

Smart contracts that seek to duplicate bonds or insurance agreements might need to have access to APIs to report on market prices and internet of things data.

Chainlink was established to address this problem by encouraging data providers, called "oracles", to act as a bridge between external data sources and blockchain smart contracts.

Each oracle in the Chainlink network has a reputation score that is used to reward them for providing accurate data. Chainlink's cryptocurrency, LINK, reward nodes that follow the software's rules and provide useful data.

Chainlink was among a lot of projects in 2017 and has been able to deliver its vision despite expanding efforts beyond Ethereum (ETH), amid increased market activity.

These smart contracts allow the system to respond to many inputs (if X, do you Y). Bitcoin, the first cryptocurrency, and its blockchain can only process a limited range of input. Newer blockchains like Ethereum have a greater range. This includes the support for smart contracts that can be programmed.

In 2017, the LINK token was launched at a cost of fewer than 20 cents. It remained below $1 until 2019. The price started to rise rapidly in 2020. The price of a home rose from less than $2 in 2020 to $36 by 2021.

Despite LINK's rapid rise, however, the price has fallen from $36 and has not yet reached that high again.

As crypto exchanges have become more accessible and the LINKUSD price has risen, more people have begun to invest in cryptocurrency. Chainlink trading is allowing a great transfer of wealth and even new investors can hope to profit from its fast growth and earn higher returns than they would on the stock market.  

With so much attention from the media and financial traders, new cryptocurrency investors are always looking for advantageous ways (platforms) to buy Chainlink (LINK) online. Luckily, there are numerous services and guides on how to buy Chainlink to help you get started in the cryptocurrency market. 

Such multi-asset platforms hand investors many useful financial instruments that can generate a passive income (interest with forex trading or dividend with stock trading). 

Buying Chainlink (LINK) over an exchange 

If you want to participate in a crypto project development and own the digital asset, you can buy Chainlink (LINK) online through a cryptocurrency exchange, such as Binance, Kraken, Bittrex, or Coinbase, and store it in a digital wallet.  

Having an account on a cryptocurrency exchange allows you to send and receive Chainlink (LINK). Transferring Chainlink is like the way traditional bank transfers work, except for the bank account address, which is replaced with a Chainlink address. Because digital currency is transmitted directly between individuals without needing third-party entities, such as banks, transaction fees are cheaper than those charged by traditional institutions. 

If you want to hold your crypto for a longer time, it is advised to transfer them from the crypto exchange to a secure cryptocurrency wallet. Wallets are much safer, and each private crypto wallet has a private key. It is critical to keep your private key safe because you won't be able to access your crypto without it, and if it's easily available, your funds could be stolen. 

The good news is that investors can limit the risks presented by the crypto exchange by trading Chainlink (LINK) with contracts for difference (CFDs). Chainlink (LINK) CFDs allow you to speculate on the price of the cryptocurrency without having to own the digital asset.

Read on if you want to learn to trade Chainlink with capex.com in the most convenient way. 

Buying Chainlink (LINK) with an Online Broker 

Trading Chainlink (LINK) with an online broker like CAPEX means that instead of owning Chainlink outright, you’ll be speculating on its price with CFDs.  

The main difference between buying Chainlink (LINK) from an exchange and buying Chainlink (LINK) from an online broker is that you don’t own Chainlink (LINK) when you use a broker. Owning crypto requires investors to have a crypto wallet, either within the exchange or a private wallet. But when you purchase Chainlink (LINK) CFDs using an online broker, the CFDs are stored in your account and are far more liquid, which makes trading CFDs more popular. Unlike cryptocurrency exchanges, online CFDs brokers are regulated by financial authorities.   

The Alternative Way to Invest in Chainlink (LINK)  

Trading CFDs is a process of buying or selling CFDs and can generate a profit if the value of the asset moves in the direction of the investor’s prediction, or a loss if the market goes against him. 

You can buy Chainlink CFDs (go long) if you believe the value of the digital asset will increase.  

At the same time, you can “go short” if you believe that the price of the underlying asset, in this case, Chainlink (LINK), will decrease, by selling CFDs. 

Trading CFDs provides leverage, and you can open your position by depositing only a margin.  

For example, if a trader wants to buy 100 Chainlink CFD at $20 would only require $1000 of trading capital. 

It’s important to remember that leverage can increase both your profits and your losses, and they will be based on the full exposure of the trade, not just the margin requirement needed to open it. Potential losses, as well as profits, could exceed your margin. 

Concisely, if you choose to trade crypto CFDs, you can profit from the difference between the buying and the selling position.  

With CAPEX, you can trade CFDs on futures or spot prices. Trading CFDs on futures gives you exposure to the futures market, but without requiring you to take on any obligations or worry about any of the other nuances that are associated with futures trading. 

Buy Chainlink LINK CFDs - Go Long

Instead of taking ownership of Chainlink, you can place a ‘long position’ translates to buying Chainlink CFDs. Your position, or Chainlink CFDs, will increase in value according to the increase in the price of the digital asset Chainlink’s price increases. If the price of Chainlink falls, then your position will lose value and can lead to loss. 

Let’s assume that Chainlink is trading at a sell/buy price of 20.20/20.50 USD. You want to buy 500 CFD (units) because you think the price of Chainlink will go up. Chainlink has a 1:2 leverage or a margin rate of 50%, which means that you must deposit only 50% of the position’s value as position margin. 

In this example, your CFD position margin will be $5125 (50% x (500 units x $20.50 buy price)). Losses greater than the margin can occur if the price of Chainlink moves against your position. 

Outcome A: a profitable trade 

If your prediction was correct, and the price of Chainlink surges over the next hours or days, then you have made a profitable trade. If the sell/buy price is 22.50/22.80 USD when you decide to close your position by selling at 22.50 (the new sell price), then your profit will be $1000. 

The price has moved $2 (22.50 - 20.50) in your favor. Multiply this by the size of your position (500 units) to calculate your gross profit which is $1000. 

If the position was closed during the day, there will not be any swap charges and the net profit is $1000. 

Outcome B: a losing trade

If your prediction for the price of Chainlink was wrong, the Chainlink CFD trade will result in a loss. Let’s assume that the price of Chainlink drops over the next hour to a sell/buy price of $19.50/19.80. Because you want to limit the loss in the eventuality that the price continues to drop, you can sell at $19.50 (the new sell price) to close the position. 

The price has moved $1 (20.50-19.50) against you. Multiply this by the size of your position (500 units) to calculate your loss, which is $500. 

Sell Chainlink LINK CFDs - Go Short

In this CFD example, Chainlink is trading at a sell/buy price of 20.20/20.50 USD. Assume you want to sell 200 CFDs (units) because you think the price will go down. Chainlink has a 1:2 leverage or a margin rate of 50%, which means that you only must deposit 50% of the position’s value as position margin. 

In this example, your CFD position margin will be $2020 (50% x (200 units x 20.20 sell price)). Remember that if the price moves against you, it is possible to lose more than your initial position margin of $2020. 

If you are not ready to trade CFDs at spot or futures prices yet, we have also got educational resources like CAPEX Academy with free courses on how to trade. Plus, we offer a demo account – giving you $50,000 in virtual funds to build your confidence in a risk-free environment. 

Investing in Chainlink without actually buying Chainlink  

While buying and day trading cryptocurrency is a major trend right now, it is important to remember that cryptocurrencies are a volatile and risky investment choice. If investing in crypto on an exchange or via a broker does not feel like the right choice for you, here are a few options to indirectly invest in Chainlink and other cryptocurrencies: 

Exchange-Traded Funds - Crypto ETFs 

Exchange-traded funds (ETFs) are popular investment tools that allow investors to buy exposure to hundreds of individual investments in bulk. That is why ETFs are a means of diversification for your portfolio and as less risky than investing in individual investments.  

A crypto ETF allows investors to trade cryptocurrency on a traditional market and eliminates the need to trade the asset on a crypto exchange. Another advantage of trading crypto ETFs is that investors do not have to worry about the security aspects of trading crypto.  

US investors can enter the crypto market by using ProShares Bitcoin Strategy ETF (BITO). The Fund provides capital appreciation through managed exposure to bitcoin futures contracts. 

A Chainlink ETF could come in 2022. The approval of a Bitcoin ETF means a similar offering for Chainlink is imminent.  

>> Learn what is an ETF and how does it work 

Companies Connected to Chainlink and Cryptocurrency - Chainlink Stocks

Another option is to invest in cryptocurrency indirectly by investing and buying shares of companies that offer real-life products and services but still use or own cryptocurrencies as part of their business model (known as Chainlink stocks). With an all-in-one trading account with CAPEX, you can also trade shares CFD of public companies like:  

• Nvidia (NVDA). This technology company builds and sells GPUs, which are the main equipment needed to mine cryptocurrency. Learn how to buy Nvidia shares
• Oracle (ORCL). The company offers Oracle blockchain, which is a collaboration framework that shares reliable data. Oracle provides easy ways to adopt blockchain technology, including an on-premises edition, a cloud service, and a SaaS application that can be used for supply chain management. Learn how to buy Oracle shares
• Intel (INTC). Intel is actively working with Hyperledger, an open-source blockchain project that aims to advance cross-industry Blockchain technology implementations. Learn how to buy Intel shares
• Walmart (WMT). Walmart and IBM have been working together on a food safety blockchain solution that will increase transparency in the decentralized food supply system by digitizing the food supply chain process. It allows the supply chain to be placed on the blockchain. This makes the process transparent and more traceable. Learn how to buy Walmart shares
• Tesla (TSLA). Tesla is an electric vehicle manufacturer, has always been a staunch supporter of digital currencies, and started accepting them as payments in February 2021, when the company purchased $1.5 billion worth of bitcoin. Learn how to buy Tesla shares
• CME Group (CME). CME is a financial derivatives exchange that offers trades in cryptocurrencies as well. In Q3 2021, the company reported a 14% year-over-year increase in its average daily volume (ADV) at 17.8 million contracts. Learn how to buy CME shares

CAPEX Web Trader 

Trade on one of the most complete, fully customizable trading platforms on the market. 
 
Available on desktop (Windows, Mac) and mobile (Android, iOS), it provides intuitive, web-based access to a vast range of tradable instruments, charting tools, analytical tools, and many more features. 

To view Chainlink's real-time price and chart on the trading platform can click on the "Search" icon located in the left panel or by clicking on "Cryptocurrency" and then select the instrument, in this case, Chainlink (LINK). 

>> Launch Web Trader 

MetaTrader 5 

MetaTrader 5, one of the best crypto trading apps, is providing superior tools for comprehensive price analysis, use of algorithmic trading applications (trading robots, Expert Advisor), and copy trading. 

MetaTrader 5 is available on both desktop and mobile.  

>> Download MT5 

Step 3: Pick up a Chainlink trading strategy 

Additionally, you can pre-define Stop Loss and Take profit orders, which are crucial risk management tools – that help you minimize the potential loss and maximize the potential gains. 

How to buy Chainlink with Market Orders 

The simplest type of trade order is a market order. Market orders are usually placed by traders if they want to be certain trade is executed. A market order is instant. Therefore, it is simply an order placed by a trader to buy or sell Chainlink immediately at whatever its current price is.  

I want to buy 200 Chainlink (LINK) right now or as quickly as possible. 

How to buy Chainlink with Limit Orders 

While a market order is simply an order placed by traders to buy or sell an asset immediately at whatever the current price, a limit order in its most basic sense, is an order to buy or sell an asset at a specific price. Buy limit orders are placed above key support levels with the purpose of limiting price risks anticipating the uptrend will resume after a correction (buy the dip).  

The price for LINK/USD is currently at USD 36.00 and you place a buy limit order at USD 32.00, then your order is meant to execute at the price of USD 32.00 as soon as there is a matching sell order at this price or better. 

How to buy Chainlink with Stop Orders 

A stop order is an order that becomes a market order only once a specified price is reached. It can be used to enter a new position or to exit an existing one. Limit orders are placed above key resistance levels anticipating a breakout after a consolidation. 

The price for LINK/USD is currently at USD 36.00 and you place a buy stop order at USD 37.00, then your order is meant to become market at the price of USD 37.00 as soon as the price is reached. 

Step 5: Monitor and close your Chainlink position 

To open a Chainlink trade, you’d buy if you thought that the price was going to rise or sell if you thought the price was going to fall. Once your trade is open, you’ll need to monitor the market to make sure that it’s moving in the way you anticipated. 

The technical indicators available on our trading platform can help you to determine what Chainlink’s price might do next. Indicators can also help you monitor current market conditions like volatility levels or market sentiment. 

CAPEX WebTrader can deliver an in-depth analysis of the charts and offers over 90 indicators (including moving average, MACD, RSI, and Bollinger Bands). The WebTrader platform also supports an interactive trading activity with high-end research tools helping you interpret market data.  

Take Profit & Stop Loss

Traders can close a position immediately to take a profit or to cut a loss. You can use market order or set Stop Loss and Take Profit levels when you set the order to buy Chainlink.  

The platform offers the stop-loss option, which lets you clearly state how much you're willing to risk with your trade. Similarly, the take profit is the exact opposite. It tells your broker how much you expect to make as a profit and when you want to close your position. 

Any profits you make will be paid directly into your trading account. Losses are deducted from your account balance. 

When to buy Chainlink (LINKUSD)

Investors should be aware of the fundamental and technical analysis when deciding when to buy Chainlink. The fundamental analysis considers the news and events about the coins, exchanges, and other crypto businesses. The technical analysis uses the price value history to map the evolution of the supply and demand for Chainlink. 

Chainlink Price Prediction using Fundamentals 

When using the fundamental analysis approach, investors should be aware of the government regulation, latest cryptocurrency updates, and technical issues, as well as cryptocurrency exchanges that affect the supply and demand for cryptocurrencies.  

For instance, when Bitcoin CME was introduced into the government regulations, and it drove the price of Bitcoin to almost $20,000 in December 2017. 

What is the future of Chainlink? 

Chainlink price forecasts are largely optimistic due to its instrumental role within the decentralized financial space - which has been growing steadily since 2020.

Without an oracle, blockchains cannot access market data from outside. Experts believe this technology can be used more extensively to reduce hacks. This has led to millions of dollars being lost due to exploits that could not have been prevented.

Chainlink is the first project to offer oracles, just as Bitcoin was the first cryptocurrency. The opportunities to leverage this project's range of products will increase as new applications for blockchain technology emerge.

There has been a steady stream of Chainlink integrations this year. This includes partnerships with some of the most prominent names in DeFi as well as integration with IBM and Microsoft.

Brad Garlinghouse, Ripple's CEO, believes that cryptocurrency, just like smartphones, is an innovation the whole world should embrace. This is reflected in coin prices. He believes that prices will fluctuate between rising and falling, but there will always be an upward trend despite all the chaos.

TradingBeasts predicts that Chainlink's price will remain stable throughout the year based on their prediction. They expect Chainlink to trade in the $21.52-$29.35 area by 2022. Chainlink's adoption and the price will continue to grow in the years ahead.

WalletInvestor's Chainlink price prediction shows that LINK is a great long-term investment. Their price prediction predicts that LINK will continue to show bullish momentum and could rise to $45 in 2022. Chainlink is expected to grow and may reach $100 by 2025.

LongForecast's Chainlink prediction is positive. Although prices could end in 2021 at a low level, 2022 will be a good year, even though the all-time high is not expected to change. This is expected to occur in 2023 when Chainlink's prices may stabilize at $68.

The most important aspect is Chainlink’s utility. It helps to remove false or incorrect data and clean up the internet. Many companies face data fragmentation, which makes it difficult for them to collect the right data and can lead to inconsistencies. Chainlink is changing the financial landscape. It is rethinking how financial contracts work. Meanwhile, its decentralised Oracle network is moving towards the fourth industrial revolution.

Because is difficult to analyze the intrinsic value of a cryptocurrency, it is recommended you perform a technical analysis before investing in Chainlink CFDs. It might offer some insight into the past movements of Chainlink, helping you predict where it will head in the future. 

Chainlink price prediction using technical analysis 

Some believe the high concentration of retail traders makes cryptos truer to traditional chart patterns and indications of oversold, overbought conditions, etc. 

Technical analysis techniques can be applied to any market where the price can freely fluctuate, and data is available to see those fluctuations. The CAPEX Web Trader has a full suite of all the best-known technical indicators and chart drawing tools. 

>> Chainlink price prediction for today 

Chainlink Forecast 2022  

Technical analysis of LINK/USD chart shows some bearishness. However, LINK began the year optimistically.

In January 2021, Chainlink was trading at $11.45. Surprisingly, the price jumped to $51.17 on May 2nd. The LINK price fell from $36.8 down to $11 after the market crash on May 19. The price has continued to rise steadily after this point.

It has attracted a lot of attention and attracted many new users to their project. Many analysts believe the fundamentals are sound. The altcoin has proven to be proactive in launching new products and developments on time. It is also growing steadily. The LINK price could soar to blow at $37.008 if it partners with Google Cloud.

However, market sentiments and news can play hide and seek and cause major setbacks. Altcoin prices could fall to $15.988 if there are any unanticipated circumstances or competitors' coins.

Chainlink (LINK) trades at $26.27, at the end of November 2021, with substantial gains. RSI and MACD indicators indicate a decrease in sell-off pressure. The altcoin, which has seen a huge inflow of new integrations is now awaiting a breakout of around $30.75.

The asset could soon become its new ATH if buyers outperform sellers by the end of 2021. Its recent partnership with Cardano, Avalanche, and Avalanche did not impact its price action. If it doesn't get to the next level, it can settle down to $20-$24 support levels. With normal buy and sell pressures, the price hit $25 by August's end. $38.44 is possible if the network continues to follow the same trend through 2021. $62.24 would be the currency's price if it follows the same uptrend as in January. If it falls into a bearish trap, the price could slide below $27.08.

If LINK closes this year close to its price ATH, then 2022 could be bullish at $62.24. If a bearish trap is formed, the 2022 trade could resume at $27.08.

The network might increase the reward levels of its nodes to attract new nodes that will stake their tokens. This could lead to an increase in the price. The 2022 end could see the LINK price reach a new high of $111.32.  

In conclusion, should you Buy Chainlink or not? 

As with any investment, make sure you carefully assess your financial situation before investing in cryptocurrency, Chainlink, and the stock market. Chainlink can be extremely volatile—a single tweet can make its price plummet—as cryptocurrencies are still a highly speculative investment. Follow the already famous crypto investment phrase — "invest only what you can afford to lose". 

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