How to Buy Optimism (OP) Tokens • Benzinga Crypto


Want to jump straight to the answer? You can buy Optimism on Coinbase.

Despite being the main blockchain for building decentralized applications (dApps), Ethereum is extremely slow, gas fees are too high when the network is busy, and it is expensive to store data on Ethereum. These serious issues need to be addressed for the widespread adoption of Ethereum as a sustainable and enjoyable platform for building apps. Layer 2 solutions––projects designed to increase the speed and efficiency of specific blockchains––address these issues to some extent.

Optimism is one of the most anticipated Ethereum Layer 2 solutions that can support all Ethereum decentralized applications (Dapps). Instead of running all data and computations on Ethereum’s network, Optimism puts all transaction data on-chain and runs computations off-chain, improving Ethereum’s transactions per second and lowering transaction fees. In fact, tests have shown a 143x decrease in transaction fees on Synthetix Exchange and up to 100x on Uniswap. Additionally, since transaction data always stays on Ethereum, Optimism does not sacrifice Ethereum’s security or decentralization for scalability.

The following article will tell you how you can buy Optimism (OP) today.

What is Optimism?

Optimism is a layer 2 scaling solution for the Ethereum network that supports all Ethereum decentralized applications (Dapps). The goal of optimism is to achieve faster and cheaper Ethereum transactions while maintaining the security of the main Ethereum blockchain. This is achieved by settling transactions on another blockchain using advanced data compression techniques.

Specifically, Optimism uses a technique called optimistic rollups to scale the Ethereum network. In this process, multiple transactions are “bundled” into a single transaction, settled on another blockchain, with receipts sent back to the main Ethereum blockchain. As the name suggests, optimistic rollups are a type of rollup that optimistically assumes that all transactions in the rollup are valid until proven otherwise. This saves time, as individual transactions do not have to be submitted with direct proof of their validity.

OP is the ERC20 governance token for the Optimism Network. The token is intended to alter the structure of Optimism by powering The Optimism Collective, a bicameral governance system for funding. A total of 231,000 addresses can claim 214 million OP tokens (5% of the total supply of 4.29 billion) at an average of 860 tokens per address. The claims process officially began in May 2022.

Optimism is governed by a collaboration between the members of the Optimism Foundation and the Optimism Collective.

  • The Optimism Foundation is a non-profit organization dedicated to the growth of the Optimism Collective.
  • The Optimism Collective is the central governance structure of the Optimism Network. It consists of two equal chambers: the Token House and the Citizen’s House. Both houses are responsible for balancing short-term incentives with long-term vision in pursuit of the vision of optimism.

A brief history of optimism

Optimism is a public benefit corporation founded in 2019 and based in New York. Jinglan Wang is CEO and co-founder of Optimism. The team behind Optimism tries to avoid plutocracy, allowing Optimism Network participants to coordinate without falling prey to the pressures of centralization.

The Optimistic Rollup was first introduced in June 2019, with an EVM-enabled testnet launching in September 2020. In 2021, Optimism released its Alpha Mainnet, later rolling out its Open Mainnet in December 2021.

Optimism has raised $178.5 million at the time of writing, closing its latest funding round on March 17, 2022 from a Series B round. Notable investors include Paradigm and Andreessen Horowitz.

How to buy an OP token

OP is already listed and trades on many major exchanges such as Kucoin, Coinbase, Houbi Global and Gate.io. As of this writing, the Huobi Global exchange has the most liquidity. Liquidity is mostly centered around the OP/USDT trading pair.

  1. Open an account online.

    The first step in buying the OP token is to open an account on a crypto trading platform that supports the token. Currently, Coinbase and Gate.io are the best trading platforms that offer the token. These are known for their security, ease of use, and low fees.

    To open an account, you need to register on the exchange using an email and password. You may need to provide basic personal information to verify your account. You can then fund it by connecting your bank or credit card.

  2. Buy or download a crypto wallet (optional).

    Although storing your crypto on a crypto trading platform is convenient and easy, it is generally not the most secure and does not allow you to use tokens outside of the trading platform. Wallets solve these problems and give individuals full control over their funds.

  3. Make your purchase.

    Once your account is funded, use the search function to find OP on the trading platform. Note that if you are using Kucoin, you may need to go to the spot trading platform first. Then choose the amount of OP you want to buy and execute the trade. From there, your OP tokens will be stored in your wallet and can be accessed at any time.

Trade, sell or convert your OP

Exam in 1 minute

Coinbase is one of the largest cryptocurrency trading platforms on the internet. From Bitcoin to Litecoin or Basic Attention Token to Chainlink, Coinbase makes it exceptionally easy to buy and sell major cryptocurrency pairs.

You can even earn cryptocurrency rewards through Coinbase’s unique Coinbase Earn feature. More advanced traders will love the Coinbase Pro platform, which offers more order types and enhanced functionality.

Although Coinbase doesn’t offer the most affordable prices or the lowest fees, its simple platform is easy enough for complete beginners to master in as little as a single transaction.

Best for

  • New Cryptocurrency Traders
  • Cryptocurrency Traders Interested in Major Pairs
  • Cryptocurrency traders interested in a simple platform
Advantages

  • Simple platform is easy to use
  • Full mobile app mirrors desktop functionality
  • Coinbase Earn feature rewards you with crypto to learn more about available coins
The inconvenients

  • Higher fees than competitors

To sell your OP on Kucoin, you will need to sell it for Tether (USDT) or another stablecoin. This can be done on the spot trading platform. Alternatively, other platforms like Coinbase allow you to convert your OP directly into another cryptocurrency without having to use a spot trading platform. Note that it is important to be aware that OP cannot be converted into many other tokens at this point, as it is relatively new.

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Important!

Coinbase only supports OP tokens on the Optimism network. If you send OP to Ethereum, your funds may be lost.

Current Crypto Prices

The cryptocurrency market is inherently volatile, often fluctuating significantly over a short period of time. Extreme volatility results from prices that are highly dependent on shared beliefs and market sentiment. Refer to the table below to see the latest prices:

Is optimism a good investment?

Like all altcoins, OP is a high-risk investment, driven primarily by speculation. Whether you consider OP a good or bad investment will largely depend on how your goals correlate with the vision for that particular Layer 2 scaling solution.

However, if you believe in the importance of layer 2 solutions, Optimism could be a perfect choice. Optimism’s Layer 2 is highly scalable, fast, and inexpensive compared to Ethereum’s slow and expensive Layer 1. If Optimism continues to execute on its mission while successfully meeting the challenges inherent in Optimistic Rollups, an investment in OP could prove to be a profitable venture. .


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