A step-by-step guide to buying and selling Elastos tokens in Australia.
Elastos is an open-source, blockchain-based Internet operating system developed with the aim of creating a new Internet. This platform for decentralised applications (dapps) will allow users to access content directly, without going through a media player or another platform intermediary.
Elastos tokens (ELA) are the base currency of the Elastos Web. To find out how to buy, sell and store ELA tokens, read on.
Quick guide: How to buy Elastos (ELA) in Australia
Before we go into detail, here’s a quick overview of how to buy ELA, using Huobi as a sample exchange:
- Buy bitcoin (BTC) to pair with ELA. You could also buy Ethereum (ETH) or Tether (USDT).
- Register for an account with Huobi.
- Set up 2-factor authentication.
- Click “Balances”.
- Select your desired currency and click “Deposit”.
- Copy the wallet address.
- Deposit BTC, ETH or USDT into your account.
- Click on “Exchange”.
- Search for and select the currency pair you want to trade.
- Enter the amount of ELA you want to buy.
- Review all transaction details.
- Click “Buy ELA”.
This is our quick guide to just one way to buy Elastos. Compare some other options in the table below.
Where to buy Elastos in Australia
A step-by-step guide to buying Elastos
If you want to buy Elastos tokens, you can do so in three simple steps:
Step 1. Register for an account with an exchange that lists ELA
The first thing you need to do is to compare the exchanges that list ELA in any currency pairs. Consider the features and fees of each platform to decide on the one that’s right for your needs, and you can then register for an account by entering your email address and creating a password.
Depending on the exchange you choose, you may need to provide further personal information (such as your name and full contact details) and proof of ID before you can start trading. This step may be required in order to fulfil Know Your Customer and anti-money laundering requirements (KYC/AML).
Don’t forget to also enable 2-factor authentication if this is supported by your chosen exchange.
Step 2. Deposit funds into your account
At the time of writing (10 May 2018), there’s no way to purchase ELA directly using fiat currency such as Australian or US dollars. Instead, ELA is only available in crypto-to-crypto exchange pairs, so you’ll need to first acquire one of these other digital currencies – either bitcoin (BTC), Ether (ETH) or Tether (USDT) – and then exchange it for ELA.
If you buy one of these other cryptocurrencies on the same exchange, the funds you need will already be in your exchange wallet. However, if your coins or tokens are stored separately in a private wallet, log into your exchange account to scan its QR code or copy the wallet address, and then use these details to transfer the funds over from your private wallet.
Step 3. Buy ELA
Now it’s time to click through to the exchange section on your chosen platform and search for the pair you want to trade, for example ELA/BTC, before looking for the “Buy ELA” field. You can then enter the amount of ELA you want to buy or the amount of BTC you want to spend.
Take a moment to review the full details of the transaction, including any fees that apply and the total cost, before finalising your purchase.
How to sell Elastos
If you want to sell your ELA tokens, the process for doing so is fairly similar to that outlined above. Of course, once you’re on the exchange page you will need to look for the “Sell ELA” box and then enter the details of your transaction. Remember too that you may not be able to directly exchange ELA for the currency you want.
Which wallets can I use to hold Elastos?
While you can store your ELA tokens on an exchange if you wish, doing so will expose you to the risks of hacking and theft. For greater security, we recommend that you transfer your tokens into a wallet that lets you control your own private keys.
Elastos has released an official wallet available online.
Learn more about cryptocurrency wallets in our introductory guide.
How Elastos works
The project’s whitepaper outlines the main goal that Elastos aims to achieve: “Elastos aims to create a new kind of Internet, powered by blockchain technology. On this new Internet, people will be able to own digital assets and generate wealth from them”.
By using blockchain to issue IDs for digital content, Elastos plans to make it possible to know who owns which digital assets. It will also act as a platform for dapps, which people will be able to access from their smartphones without any need to change their operating system.
The project is designed to overcome two problems encountered by the Ethereum Virtual Machine when running dapps:
- Blockchains lack computation speed and flexibility. To tackle this problem, Elastos features a flexible main chain and sidechain blockchain design structure. The main chain is used for basic transactions and transfers, while the sidechain executes smart contracts to support applications and services.
- Current blockchains don’t have enough space to store a large quantity of digital movies and books. Elastos runs applications on Elastos Runtime, an operating system that runs on Android, iOS and PC operating systems, as opposed to on the already congested blockchain. This method is also designed to offer increased security.
The design of the Elastos Smart Web is the brainchild of founder Rong Chen, a former senior software engineer at Microsoft, and features four pillars:
- Elastos Blockchain. This is a decentralised platform, “where each device, individual, web site and digital asset has a trustworthy ID”.
- Elastos Runtime. This is a lightweight operating system that prevents apps and services from directly accessing the Internet.
- Elastos Carrier. This decentralised, peer-to-peer platform takes control of all network traffic between virtual machines and conveys information on behalf of dapps.
- Elastos Software Development Kit (SDK). Applications use the SDK to access their IDs and Elastos Carrier services.
What to consider if buying ELA
Cryptocurrencies are highly volatile and can experience substantial price fluctuations in just a short space of time. They’re also quite complicated assets and there are many factors that can have an impact on their value, so it’s essential to assess all these issues thoroughly before buying.
If you’re thinking of buying any ELA tokens, make sure to take the following into account:
- Supply. According to CoinMarketCap, at time of writing (10 May 2018) the circulating supply of Elastos tokens was 5,146,316 ELA, out of a total supply of 33,500,314 ELA.
- Use. As the base currency of the Elastos network, ELA can be used for trading, investing in digital assets, paying for blockchain processing fees and more.
- Distribution. Elastos held a crowdsale in January 2018 and tokens were distributed as follows:
- 50% to the bitcoin community
- 24% to private and public crowdfunding
- 15% to angel investors
- 11% to support the operation of the Elastos Foundation and investment in the Elastos ecosystem
- Inflation. To compensate for the loss of tokens and to keep pace with slight inflation, the amount of ELA in circulation increases annually at a fixed rate of 4%. Newly minted coins are allocated to the Elastos Foundation (30%) and miners (70%).
- Availability. As ELA is currently only available on two exchanges, you’ll need to consider whether the lack of accessibility could have any impact on public demand for the tokens.
- Whitepaper. If you want to learn more about the technology behind Elastos and the strategic goals of the project, check out the Elastos whitepaper.
- Airdrops. Any dapps developed on the Elastos platform must lock 2-5% of their total token supply in ELA. 20% of all tokens from those dapps must also be used for Elastos Foundation development, with the majority of this allocation airdropped for free to ELA token holders.
- Token lockup. Elastos has also introduced a token lockup program which allows ELA holders to generate an annual return of 4-6% by locking away their tokens for 1-3 years.
- Competitors. The ability of Elastos to compete with other projects operating in a similar or overlapping market area will be an important factor that could influence the value of ELA. Projects to consider include Ethereum, EOS and Blockstack.
- Partners and sponsors. According to the whitepaper, Elastos has been sponsored by investors such as the Tsinghua Science Park, the TD-SCDMA Industrial Alliance and the Foxconn Group for more than 200 million RMB (Chinese renminbi). It’s also part of China’s G3 Alliance alongside NEO and Bitmain.
By analysing these and more factors, you’ll be well placed to decide whether or not you should buy any ELA tokens.
Image: Shutterstock
At the time of writing, the author holds IOTA and XLM.
