The new cryptocurrency EOS was launched in June 2017 and has generated a lot of media attention. The Initial Coin Offering (ICO) has been one of the most successful cybercurrencies in history. EOS became the largest virtual IPO of all time, raising nearly US $4 billion in one year. EOS is a project based on the Ethereum cryptocurrency and aims to address its weaknesses. Like Ethereum, EOS is a blockchain-based cryptocurrency for developing decentralized applications (DApps). This simplifies the development of decentralized applications by providing a range of operating system-like services and functions that decentralized applications can use. EOS uses the WebAssembly programming language, which is considered more powerful on decentralized networks than the programming languages supported by Ethereum. Traders can buy EOS on such exchanges as: Binance, Bitstamp, EXMO, WEX and others, as well as trade CFDs.
How EOS System Works
The idea behind EOS is to combine the best features and promises of various existing smart contract technologies (e.g. Bitcoin security, IT support Ethereum) into an easy-to-use and scalable application platform for casual users to meet the growing acceptance of blockchain and leverage. Unlike Ethereum, EOS is based on a proof of stake algorithm that eliminates horrendous energy consumption. This allows EOS to handle a large number of transactions and run many applications. EOS is also structured differently from Ethereum in some detail. EOS processes up to 50,000 transactions per second, clearly outperforming Ethereum. EOS has been around for a short time and has managed to enter the top ten in a very short time.
There are some important technical developments such as the distribution of consensus among 21 “delegates”, high scalability, no transaction fees for end users, the ability to change codes for smart contracts and “accounts” as an abstraction layer between the “wallet” and the end user which makes the application much more user-friendly.
The platform is based on the algorithm «Proof of Stake», the principle of which is that confirmation of payment transactions is transmitted to the selected users of the site. Thanks to this algorithm, it helps to reduce the time for processing transactions. By using blockchain technology, e-currency EOS is intended to improve decentralization in applications. The project is characterized by the minimum commission for carrying out payment transactions. This makes it possible to scale the system almost indefinitely and increase its throughput without increasing the load on the system. The EOS cryptocurrency has a set of key functions and features that distinguish the system:
- EOS is an open source system, i.e. freely available software;
- EOS is a feature of the unique DPoS protocol;
- Availability of web tools for creating different kinds of interface;
- All transactions made through the platform are free. Instead, the ownership model is used;
- EOS cryptocurrency promises a fast platform that can process over 50,000 transactions per second.
Main Benefits of EOS CFDs
Like many other digital currencies, EOS is subject to fluctuations typical of the cryptocurrency market, traders can speculate on the price through the Forex market. It is not necessary to buy EOS tokens to benefit from the rise in cryptocurrency prices. Many investors trade EOS through CFDs. There are many cryptocurrencies now, but only a few of them are interesting to trade, and most of the best CFD brokers offer the opportunity to speculate with these digital currencies. CFD trading is much more flexible because traders can also take advantage of short price movements. Experts say the market is growing at billions of dollars. Therefore, it should come as no surprise that demand for EOS continues to grow. If you are investing in this cryptocurrency, your approach is correct. There are many opportunities to trade CFDs, but keep in mind that you can lose money here too.
It is advisable to start trading on the hourly chart, in accordance with the trend movement of the market, while it is advisable to use support and resistance lines and various technical indicators that help establish the direction of the trend. You can trade breakout strategies, they are quite effective. For all beginners, it is recommended to start trading cryptocurrency on a demo account, since this asset is quite specific and has many different features.