Though most cryptocurrency investors know of Ethereum and its network, many are unaware that there are hundreds of ERC-20 projects that attempt to make the Ethereum network more scalable and faster. The OMG Network hopes to use its Layer-2 solution to improve transaction costs and speeds on the Ethereum network — and investors are taking notice.
Start with our guide to learn more about the OMG Network and how you can add this token to your portfolio.
Brief History of OMG Network
In recent years, Ethereum’s decentralized application (dApp) capabilities have taken center stage in the cryptocurrency realm. The OMG Network is a Layer-2 scaling solution that helps improve the speed of transactions executing on the Ethereum network.
The OMG Network uses a unique scaling solution called MoreViable Plasma, which uses a sidechain architecture that enables Ethereum to execute ERC-20 transactions more quickly and with fewer fees compared to sending the same tokens directly on the Ethereum network. The OMG token powers the network and can be used as a form of currency to fund transaction fees.
OMG is currently the 57th largest cryptocurrency project when measured by total market capitalization with a total market cap of about $443 million. Developers hope that the use of the OMG Network will encourage larger-scale implementation of Ethereum’s smart contract technology by businesses and institutional investors.
Step 1: Open an Online Account
There are multiple major exchanges that offer the OMG token. The broker you choose will provide you with a trading platform that you can use to execute buy and sell orders.
Some of the factors that you might want to consider when you compare brokers include:
- The number and type of investments available
- Any fees and commissions that you’ll pay when you execute your trades
- The types of orders that you can use to buy and sell cryptocurrencies
- Access to additional markets (some brokers also allow you to trade stocks, forex and additional assets from a single platform)
- Mobile app and tablet access
- The broker’s ordering process and average order execution times
- Security features and 2-factor authentication availability
- Educational resources and proprietary newsfeeds
- Signup processes, average signup times and the information needed to open an account
- Account funding options (bank account, credit card, 3rd party payment service)
Your search for the right broker doesn’t need to take forever. Start by comparing a few of our favorite brokers below.
Our favorite options are all friendly for beginners and can help you start investing in the cryptocurrency market with less stress.
Step 2: Buy a Wallet
The next step to buying OMG is to open a wallet where you can store your tokens after purchase. A cryptocurrency wallet provides you with a private, more secure location that keeps your investments off your exchange. This limits the possibility that you’ll lose your crypto if your exchange is hacked or compromised.
There are 2 types of cryptocurrency wallets you might want to use to store your investment:
- Hardware wallet. A hardware wallet is a device that stores your tokens in offline “cold storage.” Though these devices are more of an investment than software wallets, they provide you with the highest possible level of security and privacy.
- Software wallets. A software wallet is a program for your cell phone or desktop that stores your tokens using a private “hot storage” address. Software wallets must be connected to the internet in order to access your investments, which makes them a bit less secure than hardware options. However, they’re also a free and flexible solution for storing a small amount of cryptocurrency without spending hundreds of dollars.
The OMG Network’s token is an ERC-20 token, which means that it’s compatible with almost any wallet that supports Ethereum-based projects. With a wide range of wallet choices, finding the best option for you can be a challenge. Consider our favorite hardware and software wallet for this ERC-20 token below when you start your search.
Best Hardware Wallet: SafePal S1 Cryptocurrency Hardware Wallet
Investors who are searching for a comprehensive wallet solution for all of their cryptocurrency investments will love the SafePal S1 hardware wallet. The SafePal S1 provides you with a comprehensive single location to store upwards of 10,000 cryptocurrencies and crypto projects. From major names like Bitcoin to minor ERC-20 tokens like Uniswap, you can store everything on the S1.
In addition to a wealth of support for tokens and coins, the SafePal S1 also offers top-of-the-line security features. The device uses an air gapped signing mechanism that stores your investments without the need for Wi-Fi or Bluetooth connections, and you can connect directly with the SafePal app when you’re on-the-go.
With a small, portable size and unlimited storage, the SafePal S1 is our recommendation for cryptocurrency investors who are serious about protecting their holdings.
Best Software Wallet: MetaMask
MetaMask is 1 of the world’s most trusted software wallets, with more than 1 million users worldwide. You can use the MetaMask wallet through its intuitive mobile app, or you can work directly from your desktop using its browser extension.
MetaMask provides you with a private set of keys, a key vault, a secure login and more — everything that you need to get started storing your investments. The wallet is also open source, which means that developers are constantly working to patch security issues and provide you with more access to markets and decentralized applications.
Step 3: Make Your Purchase
If you’ve ever bought or sold a share of stock before, you’re likely already familiar with the process that you’ll go through when you place your first buy order to invest in OMG. Though the specific process you’ll go through will vary by broker, here are the basic steps you can expect to follow when you place your first order.
- Step 1: Open your trading platform. Open your broker’s trading platform and be sure that your payment method is linked. Select OMG Network (OMG) as the token you want to purchase and choose how you want to fund your buy order. Depending on your broker, you may be able to buy cryptocurrency with a credit or debit card, bank transfer or through a payment service like PayPal.
- Step 2: Select the type of order you want to place. Most brokers offer you access to a few different order types. You may want to read more about the differences between some of the most common types of buy orders before you trade. Depending on the type of order you select, you may need to choose a price that you want to pay per token as well as a number of tokens that you want to buy.
- Step 3: Submit your order. After submitting your order, your broker will take care of the rest of your needs. If the broker is able to fill your order, you’ll see your investment in your portfolio.
Bonus section: OMG Network is currently the only production-ready scaling solution for the Ethereum blockchain. This means that the price of the OMG token is likely to rise or decline in value as public interest in Ethereum and Ether shifts.
Trade or Sell Your Cryptocurrency
When your broker is able to fill your order, you’ll see your investment in your exchange portfolio. From here, you need to think about how you believe the price of OMG will shift in the future and choose your investment plan.
If you think that the OMG token will increase in value over the course of weeks or months, you may want to hold onto your tokens in a secure hardware or software wallet. We don’t recommend leaving your tokens on your exchange wallet for long periods of time, as this practice increases the possibility that you may lose your investment.
If you believe that OMG will show more volatility in the short-term, you might want to take a more active role in investing. Short-term investors strategically buy and sell OMG when its advantageous to them with the goal of accumulating more tokens and cashing them out for a stablecoin when it’s time to take profits.
If you’re interested in active investing, you might want to consider choosing 1 of our favorite brokers below when choosing where you want to open an account. These brokers offer comprehensive and fast platforms that will help you capitalize on small price movements more effectively.
Current Crypto Prices
The cryptocurrency market is constantly moving and changing. Check out a few of today’s top market movers using the table below.
Create a Custom Crypto Portfolio
As interest in the Ethereum network and its capabilities expand, you might want to consider diversifying your portfolio with a few additional ERC-20 projects. From Chainlink’s oracle connections to Uniswap’s intuitive market features, the OMG Network represents only a small percentage of developers work on the Ethereum network.
Best of all, you can easily store any ERC-20 project on a single wallet — meaning that you won’t need to invest in multiple hardware storage options to store your entire portfolio.
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