EOS Crypto Trading Guide: How to Trade the EOSUSD

EOS is a leading blockchain platform designed for the development of decentralised applications. Its enhanced speed, scalability, and developer efficiency make it often considered a superior alternative to Ethereum.

Main points:

• EOS offers a secure environment for dApps that is more user- and business-friendly than traditional blockchains like Ethereum.
• EOS uses a Delegated Proof of Stake (DPoS) consensus mechanism system for efficient transactions and network security.
• In 2017, EOS launched one of the largest initial coin offerings (ICOs) in history, raising $4.2 billion.
• Traders can speculate on EOS's price movements without owning any piece of the token by trading EOSUSD CFDs with Plus500.

What Is EOS Cryptocurrency?

EOS is the native token of the EOS blockchain which offers a secure environment for decentralised applications (dApps) and provides features like authentication, data hosting, usage management, permissions, and seamless communication between dApps, the internet and the entire Web3 ecosystem.

The EOS blockchain's primary aim is to address traditional blockchains' limitations, such as in Bitcoin and Ethereum, by offering a more accessible and business-friendly platform for developers through horizontal scaling. Similar to Google's Play Store and Apple's App Store, the EOS blockchain functions as a centralised platform for decentralised applications.

The blockchain-native token EOS serves as a medium of exchange, a means of purchasing resources (servers, bandwidth, and storage) on the EOS blockchain network, and is also used for trading and investment purposes.

An Overview of the EOS Blockchain Network

The EOS blockchain network was built independently on the EOSIO infrastructure. EOSIO is a public blockchain platform with a layered transaction structure and customisable smart contracts. Its infrastructure enables developers to create, host, and execute commercial-scale decentralised applications (dApps).

The EOSIO website domain "EOS.IO" is like an online hub that houses all the necessary tools and information, including resources, instructional guides, and software details, needed to build decentralised applications (dApps) on the EOSIO platform. This approach enables businesses and individuals to create dApps with a similar level of ease as traditional web applications.

How Does EOS Work?

1. Consensus Mechanism: The EOS blockchain operates primarily through a delegated proof of stake (DPoS) consensus mechanism, where 21 block producers are elected to approve transactions and secure the network.

2. Block Producers & Voting: Token holders elect block producers based on their voting power, which is determined by the number of EOS tokens they hold. Only 21 block producers can create blocks within a period of three seconds, and underperforming producers can be replaced.

3. Resource Allocation: Resources such as RAM for storage, CPU for processing power, and NET for network bandwidth, are essential for transactions to occur on the network. Block producers on the network can gain access to these key resources based on the amount of EOS tokens they own or stake.

4. Multiple Blockchains: The network supports sidechains, which run parallel to the main blockchain. This allows dApps to function smoothly and increases the system's scalability and efficiency. As such, the EOS network achieves a high transaction rate (thousands per second) without on-chain fees.

5. Decentralised Operating System: Unlike Ethereum, which is often described as a decentralised supercomputer, EOS is more akin to a decentralised operating system, providing a platform for scalable and efficient application development.

The History of EOS Cryptocurrency

EOS Development: Block.one, a blockchain software company led by former CTO Daniel Larimer and CEO Brendan Blumer, began developing EOSIO in 2017. The EOSIO platform was released to the public as open-source on 1 June 2018.

EOS ICO: Block.one conducted a year-long initial coin offering (ICO) on 26 June 2017, raising $4.2 billion, one of the largest ICOs in history. The ICO distributed 1 billion EOS tokens over nearly a year:

• 200 million tokens (20%) were released from 26 June to 1 July 2017.
• 700 million tokens (70%) were gradually distributed in 350 batches, with 2 million tokens released every 23 hours, starting 1 July 2017.
• 100 million tokens (10%) were reserved for Block.one.

EOS Price Performance: EOS ICO was priced at $5 on 26 June 2017 and reached an all-time high (ATH) of $22.89 on 29 April 2018 but has since experienced a downward price trajectory.

Legal Issues: Block.one faced a legal settlement in 2019 with the US Securities and Exchange Commission for $24 million over an unregistered ICO, and a 2020 class-action lawsuit settled for $27.5 million.

Post-Legal Developments: In 2021, the EOS Network Foundation was established, and the community voted to suspend token transfers to Block.one.

EOS Tokenomics: In 2024, the EOS community implemented changes to its tokenomics for the long-term stability and growth of the EOS ecosystem. This included limiting the total supply to 2.1 billion tokens and introducing a four-year halving cycle for staking rewards.

Factors Affecting EOS Cryptocurrency

1. Investor Sentiment: Positive news about EOS's adoption and real-world use cases can drive its prices higher, while negative news can lead to EOS declines.

2. Network Adoption: Increased adoption of the EOS network by dApp developers and companies can drive up the value of EOS cryptocurrency. At the same time, a lack of interest or increased regulatory scrutiny can depress prices.

3. Token Supply and Circulation: EOS is an inflationary token with a supply increase of 5% per year. This can deter investors, as assets with capped supplies are often preferred for long-term gains. However, high demand can still drive price growth despite the increasing supply.

4. Competitive Position: EOS competes with other cryptocurrencies, especially Ethereum. EOS's advantages include high scalability and feeless transactions compared to Ethereum's slower speeds and higher gas fees. Gaining traction among DApp developers from competitors can positively impact EOS's value.

How to Trade EOS CFDs

Unlike buying EOS tokens on a cryptocurrency exchange or digital wallet in anticipation that their price will appreciate, Trading EOS Contract for Differences (CFDs) allows you to profit and lose from the rising and falling prices of EOS coins without owning the coin itself. Plus500, for instance, allows you to open either long or short positions on EOS/USD CFDs to potentially profit or lose from either price increases or decreases. Trading EOSUSD CFDs also involves the use of leverage, allowing traders to gain greater exposure to the underlying asset with less capital. However, leverage also increases the risk of greater losses.

EOS Trading Hours

Unlike stocks and forex, the cryptocurrency market operates 24/7, providing continuous opportunities for traders to get exposure on price movements. On CFD platforms like Plus500, EOS CFD trading* is available 24 hours a day, seven days a week, including weekends (except a one-hour break on Sundays).

*Please note that trading hours may vary depending on the platform provider.

Steps to Buy and Sell EOS CFDs

To trade EOSUSD CFDs with Plus500, follow these steps:

• Open a trading account with Plus500.
• Navigate the platform's interface and explore its comprehensive trading tools.
• Search for the "EOS/USD" pair in the list of available cryptocurrencies.
• Assess the EOS/USD price trends using technical indicators and fundamental insights.
• Based on your market analysis, choose the number of CFD contracts to buy or sell.
• Set up your risk management targets, such as stop-loss and take-profit levels.
• Review and confirm your trade.

Conclusion

EOS, a blockchain platform known for its scalability and decentralised applications, has gained substantial adoption and partnerships within the blockchain space. Traders can gain exposure to the price movements of the native token, EOS, without holding the actual coin by trading EOSUSD CFDs. This can be done through CFD trading platforms rather than traditional cryptocurrency exchanges.

Consider opening a demo or live account with Plus500 to start trading EOS CFDs.