Although Ethereum is home to thousands of decentralized applications, its reliance on the proof-of-work (PoW) consensus algorithm makes it slow and expensive for the regular user.
As a result, layer-2 scaling solutions have been developed to offset the transaction load. One of the most popular is the Optimism rollup blockchain, which bundles transactions and validates them off-chain.
Investors who know how to buy Optimism (OP) can tap into scaling solutions' growth and huge potential. In this guide, we will explore Optimism, exchanges that allow users to purchase Optimism's native token, and how to invest in OP crypto.
Where to Buy Optimism
This section is our top picks of where and how to buy the Optimism OP Crypto token. We chose these based on our experience of using them and considered fees, security, payment options and reputation.
- Binance: Largest Crypto Exchange with Low Fees
- eToro: Easy to Use Platform With Social Trading
- Coinbase: Highly Regarded and Easy to Use for Beginners
- FTX: Great Exchange for Newbies & Advanced Users
What is Optimism?
Optimism is a layer-two scaling solution native to the Ethereum blockchain. The tool makes it easy for developers to build on Ethereum while avoiding scalability problems.
To understand Optimism, it is also important to examine Ethereum. Arguably the most popular blockchain, Ethereum has become a hub for decentralised application (dApp) developers looking to build across multiple fields - from NFTs to decentralised finance (DeFi) to blockchain gaming.
However, with this popularity also comes an issue. The influx of developers and apps has made Ethereum unscalable, with transaction fees rising and latency becoming a more prominent issue. This has led to the rise of alternative blockchains like Solana and Avalanche, many of which have higher performance metrics and can handle even more transactions per second than Ethereum.
Looking to solve this problem, the Ethereum Foundation is working on Ethereum 2.0 - an upgrade to the blockchain that will see it shift to proof-of-stake and introduce concepts like sharding to improve scalability. In the meantime, layer-two blockchain protocols have also been launched. These protocols are essentially blockchains that work on the Ethereum mainnet.
Optimism is a low-cost and lightning-fast Ethereum L2 blockchain.
Optimism is one such protocol. Built on the Ethereum blockchain, Optimism is powered by Optimistic rollups - a technology that bundles large amounts of transaction data into small batches. Optimism handles transactions on its system as a layer-two chain, while transactional data gets posted to the Ethereum mainnet for validation.
Optimism launched its OP token in May 2020 after moving into a fully decentralised working module. The token gives holders the right to participate in The Optimism Collective - a two-tier governance system that houses the Citizens' House and the Token House. The Citizens' House governs most public funding decisions, while the Token House handles technical decisions related to Optimism. OP holders vote in both houses, making the token highly functional.
Optimism Wallets
Digital asset storage is as important as investing in digital assets. To store digital assets, crypto investors use crypto wallets. However, selecting one out of the multiple available options largely depends on the user's needs and portfolio size.
Below, we briefly explain the types of crypto wallets and their use cases:
Best Optimism Wallet
Users often wonder what the best crypto wallet is for storing their digital assets. This is largely a subjective issue. Depending on an investor's unique needs, they can pick any option that suits them.
However, our top pick for storing digital assets is the Binance Wallet. The platform is a crypto wallet solution from the world's largest crypto exchange by trading volume.
The Binance Wallet
Binance Wallet has impressive features, including support for 600+ coins and direct access to the burgeoning Binance ecosystem while storing assets using state-of-the-art security processes. This includes two-factor authentication (2FA), backup recovery phrase, and address whitelisting.
For convenience, Binance Wallet is a great choice as users can easily complete crypto transactions within seconds as against using a hardware wallet.
How To Buy Optimism
After exploring where to buy Optimism and the coin's use cases, the next thing is to explore how to buy Optimism OP. Binance is our top exchange offering Optimism, so we'll explore how to purchase the asset using Binance.
Step 1: Sign Up
Go to the Binance home page and click on "Register".
Binance signup
Binance allows investors to register using their mobile phone, email address, or Google account. Most users choose the first two options and provide their phone numbers, emails, and desired passwords. A link will be sent to their registration channel of choice, and investors can click on it to authenticate their accounts.
Step 2: Verify Your Identity
Like many other regulated brokers, Binance requires that investors verify their identity before commencing their purchase.
To complete the process, visit the "Identification" tab. Investors will have to share personal information, their proof of residence, and a government-verified means of identification. This process should take no more than a few minutes to complete.
Step 3: Deposit Your Funds
Next, investors will have to deposit into their Binance wallets. The exchange makes deposits possible using payment processors, wire transfers, bank deposits, and direct crypto transfers. And its required minimum deposit is $10.
Deposit on Binance
To make a deposit, go to the "Payment" section and click "Add a new payment method" to enter payment details. Alternatively, investors can click the "Buy Crypto" button to select a payment method and complete their transfer.
Step 4: Buy OP
With a funded wallet, investors are ready to make an OP purchase. Head to the "Buy Crypto" section and enter the desired amount. Click on "Continue" after reviewing the terms, and the wallet should be updated immediately.
Conclusion
Ethereum scaling solutions are becoming increasingly important due to the role they play in relieving the PoW network's transaction load. They are fast, low-cost, and more user-centric than Ethereum. In a highly competitive space, Optimism stands head-over-shoulders among its peers and is the most popular scaling solution only behind Polygon.
Binance remains our top choice to buy Optimism OP. The platform offers the lowest trading fee in the industry at 0.1% and offers huge crypto liquidity. It also comes with advanced trading tools and derivatives trading suited for advanced traders.
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