EOS is a cryptocurrency token, however, what each token represents is a claim on computing resources. Those computing resources can be used to create distributed applications called dAPPS (distributed applications). EOS is a huge, global, distributed computer that can be used by developers to create distributed, global applications.
That is one of the reasons I like EOS, it isn’t just a vehicle for price speculation–it has non-monetary value.
However, true investments pay a return. One way to get a return on EOS is through REX (Resource Exchange). REX allows you to loan out the computing power of your EOS in exchange for a fee.
How to Buy EOS
You can open a Coinbase account and buy one of the cryptocurrencies listed there. Coinbase does not trade EOS yet. You’ll use your coinbase account to buy a crypto that is good for transactions, such as Litecoin (LTC). You can then transfer LTC to an exchange like Binance where you can buy EOS.
How to Loan EOS Using REX
Once you have some EOS on Binance or the exchange of your choice, you’ll need a wallet. I use scatter. Once you have EOS trasnferred to scatter you can go to https://bloks.io/rex, authenticate with Scatter and loan with REX.
Low Returns with the Opportunity for Growth
Right now, the return is very modest, less than 1% per year as of the time this article was written. But it is 1%. If and when more developers use the EOS platform, and demand for computational resources increase, the amount of interest paid should increase as well.
But if you think EOS is a great platform with long term potential that makes sense to speculate on, loaning the EOS is a great way to earn a small return while waiting for price appreciation.
EOS Price Analysis
At $5.50 EOS is still well below the the $21.46 high attained on 29 April 2018. In my view EOS is undervalued. I think the next several years could see great price appreciation as adoption of the platform accelerates.
I also believe that Coinbase will eventually list EOS. EOS on Coinbase would create even more demand as more people will have easy access to purchase the token.
Investments Pay a Return
Geraldine Weiss said, “If an investment doesn’t pay a return, it’s a speculation.” You can make money by purchasing something in 2 ways, 1) You sell it at a higher price 2) It pays some type of interest or dividend while you hold it
Not everything I buy pays a return. Gold and silver do not pay any type of yield, some of the stocks I buy don’t have a dividend.
However, all else equal, I prefer to be able to win in multiple ways. EOS with REX allows for both price appreciate of the asset as well as interest payments.
Lending EOS through REX is a way to have both yield and an opportunity for price appreciation via an alternative investment.