Trading EOS Coins in 2019-2020: What to Expect?

EOS Coins imageEOS coin currently belongs to the world’s top 10 crypto coins with the largest market cap. EOS is also a blockchain platform that claims to be the “Ethereum killer.” The project has been launched not long ago – in June 2017 – and has ambitious plans to become the most powerful and functional platform for the creation of decentralized apps.

What Is EOS?

It is a blockchain platform that uses the delegated proof of stake protocol (DPOS) and owns cryptocurrency, EOS. Both the platform and cryptocurrency are launched by the company, which registered in the Cayman Islands, with Dan Larimer as the leading developer.

At its core, and the associated cryptocurrency is a blockchain based decentralized operating system designed to support commercial-scale decentralized applications that provide all basic functions (including databases, accounts with permissions, scheduling, authentication, and communication between the application and the Internet).

Thus, the developers focused on their own business logic. Simply put, is software that allows companies to create blockchain applications similar to existing web applications by using the architecture similar to that of websites.

EOS vs. Ethereum

The platform has two key advantages as compared with its main competitor Ethereum:

  • No transaction fees. EOS offers the ownership model, in which cryptocurrency owners have the right to use resources that are proportional to their rate, instead of paying for each transaction. In practice, it turns out that in order to use EOS, the developers need to show that they have tokens.
  • Scalability. According to the developers, the platform can handle millions of transactions per second with asynchronous communication and parallel processing.

High transaction costs and poor bandwidth are critical disadvantages of Ethereum, which is why these features give EOS a competitive advantage.

Trading EOS: Benefits and Risks

If you decide to trade EOS, you will get the following benefits:

  • High transaction speed. In January 2019, the company announced to have increased the transaction processing speed by 35%. The platform uses the parallel processing mechanism for greater scalability and thus faster speed.
  • Absence of transaction fees. During trading, you can save extra money because the platform does not charge any transaction fees.
  • No inflation. It is impossible to mine EOS. The coins are already emitted and can be obtained only on exchanges, which significantly reduces the inflation risk.

However, trading these tokens carries risks, such as:

  • Lack of trust. It has been criticized as the most ambiguous cryptocurrency. On the one hand, the project is intended to make positive changes in the development of blockchain technology and bring it to a new level. On the other hand, many experts and critics warn against buying EOS tokens. Many accuse the project of fraud and believe that there is too much hype around it. Founder Dan Larimer is also criticized. It is known that Larimer left the BitShares project immediately after problems with binding to real assets appeared. Therefore, such a lack of trust can impact the price of the coin.
  • Lack of technical insight. Wayne Vaughn, founder, and CEO of Tieron noted that the EOS white paper does not go over any specifics, so nobody can answer any specific technical questions.”

Investing in EOS Coins

EOS is attractive to investors. It developed an innovative system of attracting third-party capital. The potential capabilities of the system are distributed among all network users according to the number of tokens available. So if a user has n% tokens, then they automatically get the right to manage the corresponding nth percentage of the resource, thus opening up a huge amount of opportunities for earning.

Token holders are also provided with such bonuses:

  • Possibility to charge fees for transactions within the system.
  • Access to the storage in the blockchain.
  • Ability to impact system management.
  • Access to applications developed in the system.
  • Dividends from EOS.
  • Airdrops – distribution of cryptocurrencies that exist within the system.

The Future of EOS

When making a forecast for EOS cryptocurrency, it is important to consider the fact that these are not just tokens. It is a demanded project designed to solve the key problems of blockchain technology and create a high-speed platform for transactions and project development.

At the start of token sales, their price was $1 per unit. In early 2018, the rate grew to $14.59. In 2018, experts predicted the growth of the currency to $ 25-50 per unit. However, as of July 2019, its price is only $4.80, and the currency has dropped from the 5th to the 7th position in the coin market cap rating. Maybe it was because of the criticism towards this controversial project. Therefore, now the rate of EOS coins depends only on the overall success of the project.

Source: Monfex Crypto Trading Platform, Analytics Department

Video – What are Cryptocurrencies?

EOS coins, Bitcoins, Ripple, and Ethereum are types of cryptocurrencies. If you are not sure what a cryptocurrency is, watch this Market Business News video.