How our EOS calculator works
The EOS calculator is an accurate way to work out the value of your EOS tokens or to work out how much it would cost to purchase a number of EOS. Although the maths is easy to work out exchange rates, the benefit of using our EOS calculator is that it will draw in the most accurate data on exchange rates. You can display the value of a single EOS in your chosen world currency, or you can display the amount of world currency it would take to purchase your EOS.
To work out your EOS you obviously take the amount of tokens you have purchased and then multiply this by the value of EOS at this time. Equally, to work out how much it will cost to purchase your EOS currency, the EOS calculator will multiply the number of tokens you want by their current price. The genius of an EOS converter is not the calculation but the up-to-the-minute information that informs this calculation. With the volatility in price of most cryptocurrency, the use of an EOS calculators keeps you in touch with any investments that you may have made.
The EOS calculator does not take into account any transaction costs. As most exchange sites do not exchange directly from EOS to world currency such as USD, you may be expected to convert to Bitcoin, Litecoin or Ethereum before then converting to your currency of choice.
What does converting EOS mean?
Converting EOS essentially means buying and selling your EOS tokens. Be aware, this is not like buying stocks and bonds. Your tokens will only earn you money if you sell them at a higher price than you bought them. Until the point of converting them back to fiat currency (currency controlled by a government or central bank) you are merely storing your assets digitally as EOS tokens. This is why it is important to keep up to date with the real-time value of your EOS tokens using an EOS calculator – as it will inform your decision when to sell – and hopefully making a killing!
The likely place you will go to buy and sell EOS is an exchange. This is a site that specialised in bringing the buyers and sellers of EOS together.
How can you convert your EOS?
Converting your world currency into EOS tokens is a lot more complicated than it is with other cryptocurrencies. This is because buying the tokens from an exchange does not yet mean you own them. Confused? Well – you have every right to be. There are many forums online that explain how to make sure you own your EOS when the blockchain is created.
You will need to transfer your EOS tokens into your ETH wallet. You then generate an EOS address. You then execute the register function – this is an EOS smart contract that links ETH address to your future EOS address. Then, verify you have done this correctly by executing the keys function from the EOS smart contract. Note that this information is only relevant until mid-2018 – when the EOS blockchain will be created. The important thing to note until this time is that buying EOS on an exchange does not guarantee those tokens will be credited to you when the blockchain is created.
However, you will need to go to an exchange to make the initial purchase of your tokens. Exchange sites took something of a hit in the past, as some suffered significant security breaches and hacks. There were reports of people being stripped of their digital assets. Due to this there is now an incredible emphasis on security, reliability and liquidity when it comes to exchange sites.
What do you check when choosing your exchange site?
First, you need to understand how much of the sites digital assets are put into cold storage. This might seem like a strange concept, but it is crucial for the security of your cryptocurrency. The cold storage is a place offline that the majority of coins will be deposited. Offline makes these tokens out of reach of anyone who seeks to steal them. This can be as 95% of a site’s assets.
With a lot of tokens in cold storage there could be a problem of liquidity. This means that there may not be the active digital assets available to complete a transaction. With billions of tokens in circulation it is hard to imagine the transaction that would trouble a site – so realistically this is only a minor problem – if a problem at all.
The final thing to check with your exchange site is regulation. Yes, altcoins are meant to avoid regulation – but the financial sites that manage them should not. Most US-based cryptocurrency sites will be regulated by a state-level financial body to make sure they are working ethically.
There is also the option of using a EOS converter to exchange your money instantly into your currency of choice. This is essentially like using an exchange but will likely cut out some of the clicks.
When should you convert your EOS?
EOS is a software architecture. What does this mean? It means that the digital currency is only a bi-product – the real value is in the mechanism that is being build. The platform is well-thought of because it solves many of the issues of scalability and transaction times of the earlier blockchain platforms. This means that the reason for buying EOS may be to speculate on whether this technology will take off and therefore the value of the tokens will rise.
This means that the price of EOS may not be dependent on the market cap, like some other digital currencies. It means that the technology may inflate the price because people feel that it will be successful in its goals. Or, the opposite may happen. This is why it is important to continue checking with an EOS calculator to make sure your investment is working for you.