What is EOS?
The EOS token is the cryptocurrency associated with the game-changing EOS.IO ecosystem.
EOS tokens have multiple functions. First, EOS.IO supports decentralized app (DApp) development. Developers building on the EOS blockchain use EOS to generate tokens for their applications. EOS tokens are also used in building the EOS.IO blockchain. The blockchain is built using delegated proof-of-stake (DPoS), meaning that the owner of the most tokens validates the most blocks and earns rewards (network fees) for doing so.
Investors may choose the EOS system for its speed, flexibility, and the team behind the project. EOS.IO is a subsidiary of Block.one, a private blockchain firm.
The system and cryptocurrency were founded by well-known crypto specialist Daniel Larimer and released in 2018. The top attribute of EOS.IO is that it’s fast. The blockchain platform was built to handle thousands of transactions per second, putting daily transaction volumes on par with mainstream banking applications like Visa or Mastercard.
In its creation, the developers focused on speed, security,1 and ease of integration, making it useful for almost anyone that interacts with blockchain technology.
Key Concepts of EOS Token
- Speed – EOS uses a DPoS consensus mechanism to fill blocks and conduct transactions. DPoS is much faster and takes less energy than traditional proof-of-work (PoW) protocols. These protocols allow the EOS system to build thousands of transactions per second, at about one block per 0.5 seconds.
- Security – The DPoS consensus system makes it highly unattractive to infiltrate. Bad actors would have to buy a considerable stake in EOS to achieve a minimal short-term gain in the form of network fees.
- Governance – The network is controlled by block producers, or the people holding the most EOS. Because EOS is a platform for DApps that generate their cryptocurrencies using EOS, they make up a large part of the voting stakeholders. In other words, EOS.IO functions as a democratic co-operative, where the main ecosystem players control what happens to the ecosystem.
- Integration – EOS.IO provides DApp developers with cloud storage and other integrations that make DApp development easier. For example, EOS.IO offers developers advanced metrics they can use to evaluate their DApp performance. They also enable users to share data across the platform and store it in their preferred methods.
- Authentication – EOS.IO allows DApp developers to configure their own forms of authentication for users, including tiered authentication and more.
EOS Token vs. Ethereum (ETH)
EOS and Ethereum are often compared because they are both smart contract platforms. Ethereum is much more widely known at the moment, primarily because it was launched in 2015 as the first blockchain system to include smart contracts.
Since its launch, other cryptocurrencies have been developed using similar technology. EOS was launched in the shadow of Ethereum with one major difference: EOS was built to scale. EOS transactions happen faster and at a lower cost than both Ethereum and Bitcoin, and EOS has been nicknamed the “Ethereum Killer.”
How to Buy EOS Token
EOS Crypto IRA and Taxes
Investors can hold crypto within a self-directed traditional or Roth IRA. With a Roth IRA, income taxes are paid before depositing money into the IRA, but one generally doesn’t need to pay taxes when taking the money out of the account after reaching retirement age. 2 With a traditional self-directed IRA, income tax is not paid on the amount put into the account, but taxes are paid at retirement age when money is withdrawn.
In addition, one will not pay capital gains taxes by purchasing EOS in an IRA account. However, as with any IRA account, if one chooses to withdraw before retirement age, a penalty may be owed along with any taxes.
Why Should I Invest in EOS Bitcoin IRA?
EOS is truly exciting for its innovations and leadership. The max supply of tokens is unknown, but its large supply and continued adoption mean that price volatility is not likely to increase as demand rises — making it a potentially profitable long-term investment.
Additionally, EOS.IO serves as an extremely fast smart-contract transaction platform and DApp operating system. These vital attributes contribute significantly to the longevity of the project and its goal of replacing Ethereum.
How to Create a Bitcoin IRA with EOS
It’s easy to invest in EOS with your retirement account. With its 24/7 trading platform, users can buy, sell and trade cryptocurrencies, including EOS, at their convenience. If you already have a Bitcoin IRA account, you can just log in and add EOS to your portfolio. To open an account, visit Bitcoin IRA online or download the mobile app. Click Open Account and enter the requested information. You will designate whether you want to roll an existing IRA or fund the account from scratch. Once you fund your new account, you can start trading EOS.
1Security may vary based on asset chosen and custody solution available.
2Some taxes may apply. We recommend you consult your tax, legal, and investment advisor.