Expert Tips to Read Before You Buy EOS

Considered a major competitor to Ethereum, EOS stands as one of the biggest cryptocurrencies based on market capitalization.

As with Ethereum, developers have the flexibility to use EOS to build decentralized apps (titled DApps). But, as you might have guessed, EOS is considered something of a complicated cryptocurrency to grasp.

This is why we’ve put the following guide to EOS together. Read on to learn everything you need to know before you buy EOS.

What is EOS?

Basically, EOS is an infrastructure which empowers developers with the means to create, host, and put applications into action on their network, at a commercial level.

EOS runs on EOS.IO software, which was created by a business named This company is located in the Cayman Islands, and its CTO, Daniel Larimer, is an experienced cryptocurrency entrepreneur known for creating well-known ventures like BitShares (launched in 2013). He co-founded the Steem blockchain, too.

Private developers and companies can take advantage of EOS to build applications based on blockchains, as EOS provides such core services as authentication, security, inter-app communication, data hosting, and more.

As EOS includes a web-toolkit interface, it’s a self-sufficient platform for developing and deploying apps in a similar way to the Google Play store or Apple’s world-famous App Store.

How is EOS Different to EOS.IO?

One of the most challenging elements of EOS is recognizing how it differs to EOS.IO. But let’s break it down a little.

EOS.IO is a blockchain protocol, and can be considered the OS responsible for controlling and managing EOS’s blockchain. And let’s remember that EOS refers to both the cryptocurrency and the blockchain network upon which the currency was established.

Only developers in possession of EOS coins can utilize the network — but they don’t actually have to spend them. Fortunately, anyone with coins in their account but no DApps has the option to rent their bandwidth out to another user. That’s a fascinating addition that helps give EOS even more of a competitive edge in a growing marketplace.

What’s the Aim of EOS and What Makes it So Impressive?

Before you buy EOS, you’re probably wondering what its goal is. And that’s always a valid question.

EOS is designed to build on previous blockchains which offer support for smart contracts, by offering users a system that’s flexible and scalable. As a result, EOS has the power to grow and grow until its number of transactions processed per second is well into the millions (in theory, at least).

Furthermore, there are no fees for users to worry about, while apps can be built in a streamlined way too.

It’s believed that EOS can support a huge number of DApps developed to a commercial level without being at risk of crashing. How does it do this? By keeping communications asynchronous (not taking place at the same time) and executing programs in parallel throughout the network.

EOS can accommodate multiple modules at the same time, with hosting undertaken separately from verification (for example).

How is EOS Different to the Ethereum Cryptocurrency?

EOS and Ethereum both do certain things in a similar way, though they have their fair share of differences too.

To start with, Ethereum employs a unique language for its programming, and any developers looking to take advantage of it have to learn this language as new.

EOS, though, supports a number of other languages for programming (including popular options), and developers can build their own apps using one that suits them better.

The team behind Ethereum has made attempts to solve its well-known problems with scalability and flexibility, both of which have made a negative impact on the amount of transactions it can accommodate on a second-by-second basis.

This is in sharp contrast to EOS, which has put a delegated proof of stake (PoS) algorithm into action. A PoS setup determines that users can validate or mine blockchain transactions depending on the number of coins they have in their account, providing those with more coins extra power to mine.

As a result, EOS delivers a more user-friendly, accessible, and flexible system, allowing users to scale faster and with greater ease.

What are the Benefits of Using EOS?

So, before you buy EOS, you have to consider the advantages it offers. These include:

A democratic structure

Anyone who has decided to buy EOS is able to vote on decisions related to the way in which EOS is run, such as proposed changes. Users are allocated bandwidth based on their token ownership, too.

Ideal for development

EOS boasts the key features a developer relies on to create and deploy their own DApps, including the aforementioned web toolkit and native libraries. This means developers can improve their versatility using EOS over time.

Impressive scalability

The parallel processing means EOS can validate transactions with impressive speed, keeping processing times at a competitive level.

Cost-effective fees

EOS is designed with fixed inflation, at a rate of 5 percent each year. The reason for this is that miners validating transactions are paid with this growing overhead, and transaction charges are almost entirely absent.

What are the Drawbacks of EOS?

Of course, EOS has its own disadvantages. These include:

A high level of competition

EOS has a lot of competition from the variety of similar cryptocurrencies out there, including Ethereum (obviously), NEO, and more. That’s worth keeping in mind if you plan to buy EOS for long-term investments.

Leadership issues

As just 21 block producers govern EOS at any one moment and its management hinges on user voting patterns, critics have questioned its leadership style. This may not make much difference to you, but should be known anyway.

Buy EOS: Step by Step

Here are the key steps anyone who wants to buy EOS has to follow:

Choose your marketplace

Various cryptocurrency marketplaces are available, but you should be careful about which you choose. Main factors to consider include:

  • Charges: Transaction fees can vary significantly, even peaking well above 10 percent on each payment. Do your research and try to find a marketplace offering competitive transaction fees.

  • Experience: It’s vital that your marketplace offers a good user experience, with a user-friendly interface that minimizes confusion and mistakes.

  • Payment options: Look into the payment methods available at any cryptocurrency marketplace you’re considering, to make sure your preferred one is included on its list.

  • Security: Check up on the security in place at a marketplace you’re thinking of signing up with. Reviews written by fellow users are your friend here.

Create an account

When you find an exchange you trust, you’ll need to create your own account. This is quick and easy, though the identity verification aspect can take some time.

The exchange will usually ask you to submit a copy of a utility bill with your address on it or your passport, to prove you are who you say you are. In some cases, you may be able to initiate a video chat with an agent to speed the process along.

Use fiat money to buy EOS

You’ll have to put funds into your account before you can buy EOS, through credit cards, bank transfer, or another payment option.

Once your deposit clears, you’ll be able to buy EOS with a couple of clicks.

Keep your EOS stored safely

You can withdraw your EOS after purchase and keep it stored safely in a wallet. Exchanges usually provide their own, but you might prefer to set up an external one for added security.

Options include Exodus or Ledger (which is a hardware wallet).