Even before Block.one posted the EOS technical white paper in 2017, Dan Larimer’s EOS project was met with both extreme skepticism and enormous excitement. If you’re curious about this controversial but promising new crypto coin, continue on for an overview of EOS as well as a helpful guide that will walk you through several different ways to buy EOS with a debit card.
What is EOS?
EOS’s infrastructure consists of two main elements: EOS.IO and EOS tokens.
- EOS.IO is similar to an operating system. Just as Windows lets you use Windows applications, EOS.IO provides all the necessary code needed to run DApps (Decentralized Applications).
- EOS.IO DApps run on EOS tokens. Developers that wish to run DApps are required to buy and hold EOS. Additionally, people who own EOS tokens can rent bandwidth to anyone who needs it. Also, EOS token holders can trade their EOS tokens in for Bitcoin and other currencies on various digital currency exchanges.
What are DApps?
DApps are decentralized applications that run on top of EOS.IO.
One example of what DApps can do is SFEOS, a decentralized MMOG (Massively Multiplayer Online Game). The unique thing about SFEOS is that game players can become owners of the game’s intellectual property just by playing it and collecting the in-game currency.
Another interesting DApp project is Awoo!, a DAC (Decentralized Autonomous Corporation). Awoo! is a crowdfunding platform that’s similar to Kickstarter. After Awoo! launches on May 13th, Awoo! users will be able to create and contribute to missions. Once a mission is complete, everyone involved in the mission will earn Mutton tokens.
Though the first EOS.IO DApps are either in their early stages or still in development, their potential use case are vast. EOS creator Dan Larimer has made the extraordinary claim that EOS has the power to “decentralize everything” from corporations to governments.
Big name investors have taken notice
Major investors are betting that Larimer’s new project just might deliver on its promise.
Block.one– the company responsible for creating the EOS coin– raised a whopping 1.5 billion dollars in just nine months. (To put that number in perspective, it took social media giant Facebook seven years to raise one billion dollars.)
When Block.one raised $700 million during its ICO (Initial Coin Offering), Business Insider described the event as the “the most mind-blowing cryptocurrency ICO of all time.” Later, Mike Novogratz of Galaxy Investment LP led a group of institutions that invested $30 million in Everipedia on February 8, 2018.
After the EOS coin was officially released in January of this year, it rocketed to record highs and outperformed several major cryptocurrencies in April.
With such ambitious goals, it’s perhaps no surprise that some reactions to EOS have been skeptical.
The Wall Street Journal has characterized Block.one as a “software startup that doesn’t plan to sell any software.”
Other mainstream media skeptics have criticized Block.one for bringing in eccentric former Disney actor Brock Pierce as Chief Strategy Officer. Back in 2003, Pierce fled the US with his business partner Marc Collins-Rector shortly after Collins-Rector pled guilty to five counts of transporting a minor across state lines for illegal activities. Last Week Tonight host John Oliver roasted Block.one in March of 2018 for associating with Pierce. Block.one dropped Pierce just a few days after the segment was broadcast.
What does EOS stand for?
In accordance with EOS’s “decentralize the world” philosophy, the acronym EOS doesn’t have an official definition.
“EOS means different things to different people. We have received numerous amazing interpretations of what EOS stands for or what it should stand for so we have decided not to formally define it ourselves.”
For detailed information about EOS, watch this video from EOS creator Dan Larimer.
How to register EOS
At publication, the EOS.io blockchain was still a work in progress. Though EOS coins are available now, all of the coins being distributed are actually Ethereum-based ERC-20 tokens. Anyone who buys Ethereum-based EOS has to transfer the EOS.IO before June 1, 2018. That’s when the snapshot of Ethereum addresses gets taken and the actual EOS coins will be issued. If you fail to register your tokens, they will disappear.
“If you hold EOS Tokens in an Ethereum account and fail to register your Ethereum address to your EOS public key, then your EOS Tokens may not be part of a Snapshot (as defined below) a third party may wish to create when the EOS Tokens become fixed and non-transferable on the Ethereum blockchain.” – EOS.IO
For further details about how to register EOS, read this detailed unofficial EOS FAQ on Reddit.
How to Buy EOS with a Debit Card
Unfortunately, there’s no way to buy EOS directly. In order to invest in EOS, you have to first buy Bitcoin. Once you have some Bitcoin, you can trade your Bitcoin for EOS.
The quick and easy way
If you just want to purchase a few hundred dollars worth of EOS so that you won’t miss out if the price of EOS spikes, the best way to invest is through Changelly. Changelly charges high fees for large purchases, but if you limit yourself to making a small investment you won’t have to pay more than a few dollars in fees.
The biggest advantage of Changelly is that you can do everything you need to do to get EOS directly on the Changelly site. Other methods involve signing up with multiple sites and transfering Bitcoin from one exchange to another. If you’re not willing or able to go through that process, Changelly provides a more user-friendly option.
Though Changelly’s commission costs seem low, there are hidden costs that you should be aware of before you place a trade. If you want to know more about Changelly’s fees or see what its interface looks like, skip down to the detailed Changelly walkthrough below.
For frequent traders
Most casual cryptocurrency investors are interested in making small, long-term investments. Cryptocurrency enthusiasts, however, place frequent trades in order to earn profits from price fluctuations.
Frequent cryptocurrency investors should avoid Changelly and other retail exchanges because Changelly’s high fees begin to add up if you place trades on a regular basis. Advanced cryptocurrency exchanges offer fee discounts that increase the more you trade as well as customizable order types that let you get better prices when you buy and sell.
The main disadvantage of using advanced exchanges to buy EOS is that you have to go through multiple steps to complete your order using your debit card or credit card. Because most advanced exchanges don’t support US dollars or other fiat currencies, you have to first buy Bitcoin on an exchange that supports debit/credit card purchases. Once you have some Bitcoin, you can transfer your Bitcoin funds into an advanced exchange that supports both Bitcoin and EOS.
In addition to Changelly, Abra, CoinMama, CEX.IO and BitStamp all support debit and credit card buys. Binance and Kraken are two excellent advanced exchanges that do not accept credit cards, but do support Bitcoin-for-EOS trades.
To buy EOS on Changelly, the first step of the process is buying some Bitcoin.
Changelly charges a 5% fee for buying Bitcoin with a credit card– so if you make a $200 Bitcoin purchase, you have to pay $10 in fees. There’s also another 5% fee that you have to pay to Changelly’s processor, Simplex. Once you have some Bitcoin, you can trade your Bitcoin for EOS right on the Changelly site. The price you have to pay for that convenience is yet another 0.5% fee.
Unlike other exchanges that use geographic blocks to keep people from using their services in places where cryptocurrency is forbidden or the laws are unclear, Changelly lets anyone anywhere create an account. With that said, it’s worth noting here that Changelly charges its users with the responsibility of interpreting any applicable local laws.
- 0.5% commission fee
- Variable network processing fee to cover EOS transactions.
Supported debit cards
- Visa and Mastercard
Here’s a quick view of what Changelly’s interface looks like.
The first step of the process is creating an account. Use your Google+, Facebook or Twitter credentials or type in your email address to get started.
After you have an account, click the Buy Bitcoin with Credit Card button.
Next, select USD. Then, click the second drop-down box and select BTC. Finally, copy and paste your Bitcoin address. If you don’t have a Bitcoin wallet, you can create one for free on Freewallet by clicking the don’t have one? link.
Changelly uses Simplex to process Visa and Mastercard payments. Fill in your personal details, then continue on to complete your purchase.
Note: If you’ve never used Simplex before, you may also have to provide a picture ID.
Once you’ve got some Bitcoin, you can trade it in for EOS using the drop-down boxes depicted below. In order to receive your EOS, you’ll need to create an EOS wallet. (If you don’t have an EOS wallet, you can create one for free via Freewallet.)
And that’s pretty much all there is to it. Once you have your EOS, you can hold onto your EOS funds until you’re ready to sell. You can sell using Changelly or any other digital currency exchange that supports EOS.
Unlike centralized exchanges that hold all their funds in one spot, Changelly processes each transaction immediately. Your funds only briefly flow through Changelly’s systems. When the transaction is fully processed, Changelly sends your funds directly into your personal wallet.
Read the in-depth review linked below to learn more about how Changelly works.
Kraken is a well-known advanced digital currency exchange with low fees and a clean security record. Unlike many other cryptocurrency exchanges, Kraken has pursued regulation. Because of this, Kraken is available in most US states. However, Kraken has declined to apply for a New York State BitLicense because the fees for applying are too expensive in their view.
As is the case with most advanced cryptocurrency exchanges, you have to use a roundabout method to move your funds onto Kraken if you plan on making your initial purchase with a debit card. It’s much easier to fund your Kraken account using wire transfers. If wire transfers are not an option for you, you can use the process outlined below to buy with a debit card.
- Fees for trading Bitcoin for EOS start at 0.26% and go all the way down to zero, depending on the frequency of your trading activity and the order type you used. Here’s a table that displays the EOS/Bitcoin fee breakdown:
Supported debit cards
- Kraken doesn’t support debit or credit cards. You have to either fund your Kraken account with wire transfers or make your initial Bitcoin purchase via a different exchange, then transfer your Bitcoin into Kraken and trade it for EOS.
Before you continue, you’ll need Bitcoin. If you don’t have any Bitcoin, read the guide linked below to learn seven ways to buy Bitcoin using a debit card. Otherwise, keep reading to find out how to trade Bitcoin for EOS with Kraken.
First, click the Funding tab and then choose Deposit.
Scroll down to see your Bitcoin address. You can generate more Bitcoin addresses if you want by clicking the green button.
Next, you can trade your Bitcoin for EOS by selecting the EOS/XBT trade pair.
When you’re ready to to place your trade, click the New Order button and type in the amount of EOS that you want to buy.
You can either set your own price by pressing the limit order button, or buy at the market price by clicking the market button.
For more information about Kraken, read our full review linked below.
Binance is somewhat similar to Kraken in that it’s an advanced exchange with features like real-time charts and customizable order types that let you fine tune your trades. However, unlike Kraken, Binance is a pure cryptocurrency exchange. In other words, Binance does not support US dollars or any other fiat currency and you can’t link your bank account to your Binance account.
Like Changelly, Binance puts the burden of figuring out local cryptocurrency laws on its users. Binance does not use geographic blocks to prevent residents of certain states and countries from joining.
Binance’s security record is just as clean as Kraken’s. In March of 2018, Binance’s automated security system stopped an attempted automated hack. In the aftermath of the unsuccessful heist, Binance announced that they would offer a $250,000 USD reward for anyone who could find out who the hackers were. The exchange also set aside $10,000,000 to fund future bounties.
Binance was one of the biggest winners of the Bitcoin price spike of 2017. Binance’s founder and CEO Changpeng Zhao became a billionaire in less than six months and made the cover of Forbes in February 2018.
Unlike Kraken, Binance does not require its users to verify their identities. Anyone can create a Binance account and immediately start trading.
- 0.1% base trading fee (discounts available for trades involving Binance Coin).
Supported credit cards
Before you apply the instructions listed below, you have to use a different exchange to buy Bitcoin. You can either use Changelly or any other exchange that supports Bitcoin-for-debit-card buys.
If you don’t have Bitcoin yet, read the guide linked below to learn about seven Bitcoin exchanges that offer debit card purchases. Otherwise, continue on to learn how to trade Bitcoin for EOS using Binance.
The registration form is standard. Provide your email address and a password, then click Register.
Next, drag the puzzle piece into the hole to confirm that you’re not a robot.
Click the orange boxes on the right to confirm that you understand the safety risk notice.
Unlike Poloniex, Binance lets non-verified users make deposits and withdrawals. Non-verified users can withdrawal the equivalent of 2 BTC every 24 hours. Verified users can withdrawal up to 50 BTC. There are no limits on deposits.
Use the Funds drop-down menu to get to the Deposits page.
Next, type in BTC and then select Bitcoin.
If you want, you can use a QR code instead of a deposit address to make your BTC deposit.
Once you’ve added some BTC to your account, you can buy EOS. Click Exchange to proceed to the trading interface. There are two interface options available: basic and advanced.
This is what the basic version of the interface looks like. Select the BTC button on the right side of the screen, then click EOS/BTC. This will bring up a chart that shows the price of EOS vs. Bitcoin.
If you want Binance to process your order quickly using the standard market price, use the Market tab. Otherwise, you can put in a higher or lower offer via the Limit and Stop-Limit tabs.
When you’re ready to make your purchase, type the amount of EOS you want to buy into the BUY EOS box.
Compared to other exchanges, Binance offers very competitive fees. The base 0.1% rate is extremely low and fee reductions are available.
Read our in-depth review to find out more about how Binance’s fee system works.
If you’re totally new to cryptocurrency, the best way to get started with EOS is via Changelly. Though you do have to go through a multi-step process that includes creating a cryptocurrency wallet and submitting a picture ID, once you clear those hurdles the rest of the process is fairly straightforward. Changelly is one of the only exchanges that supports Bitcoin debit card purchases and lets you trade Bitcoin for EOS.
One potential downside of using Changelly and other retail exchanges is that big money investors and frequent traders will find the fees they charge to be impractical. If you intend on buying a large amount of EOS, the best way to make your order is through an advanced exchange like Binance or Kraken. Advanced exchanges have lower fees and features like limit orders, which allow you to find better deals on the market when you place a trade.
Kraken’s main advantage over Binance is that it supports wire transfers. Binance doesn’t support any fiat currency, but it’s available in almost every country. Though Kraken is available in most US states, residents of New York and other states with strict cryptocurrency regulations may not be able to use it.