A Beginner’s Guide to Terra Luna
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Guide to Terra Luna
Despite widespread mistrust, the cryptocurrency sector has managed to bloom.
Although the market is still turbulent, and many coins have recently lost value, it continues to influence people. It however is contingent on the individual’s knowledge of how to invest in the digital coins.
There are already over 10,000 cryptocurrencies on the market, all of which are battling for market capitalization. Terra, one of the market’s fastest-growing cryptos, is one of them.
It recently surpassed prominent cryptocurrencies such as Shiba Inu, Dogecoin, Litecoin, and others to enter the top ten cryptocurrencies.
If you are considering investing in Terra, it is critical that you do a detailed analysis on the subject. It’s natural that many investors don’t have the time or technical knowledge to thoroughly research a cryptocurrency before investing.
This is one of the main reasons why so many people lose money in the stock market. It’s also the primary reason we’ve arrived to help you. We will begin by defining the crypto, Terra.
What is Terra?
Terra like other cryptocurrencies is a blockchain platform that allows users to make payments. The site’s native cryptocurrency, Luna, stabilizes the crypto algorithmically.
Terra intends to combine the trustworthiness of Stablecoins with the advantages of blockchain technology, such as reduced transaction costs and global reach.
This obligation drives the stability of Terra’s Stablecoins unlike fiat-backed Stablecoins like Tether and USD Coin.
What is Luna and what purpose does it serve?
As mentioned earlier, Luna is the native cryptocurrency of Terra and it mainly serves four functions on the platform:
1. It acts as a means of paying transaction fees in the company’s gas system (utility token).
2. It works as a mechanism to participate in the governance system of the platform. You can create and vote on proposals to improve the Terra protocol by staking your LUNA tokens.
3. Another important function is that it is the volatility absorber for the price of Terra’s Stablecoins.
4. Finally, it acts as a token that helps participate in the DPoS consensus mechanism that allows validators to process network transactions.
The maximum target supply of LUNA tokens is one billion. Terra will burn LUNA until its supply returns to the equilibrium level if the network exceeds one billion LUNA.
The historical record of Terra Luna
The history of Terra Luna begins from the moment when Terra founders Daniel Shin and Do Kwon built an international payment system based on the cryptocurrency market’s rise in 2017.
After a year and a half from its conception, it finally made it to the crypto network.
A group of 15 prominent e-commerce known as Terra Alliance supported the undertaking. Binance, Huobi Capital, and Coinbase Ventures were among the investors in the platform’s first coin offering.
Terraform Labs on its formation hosted the pre-sale and endorsed its future development. Along with Do Kwon, the company’s CEO, other members namely Brian Jung, Nicolas Platias, and Paul Kim are on the board of directors. The Terraform Labs has its headquarters in Seoul, South Korea.
What is the reason behind Terra’s magnification?
It’s not a new tendency in the crypto sector to see huge gains. As a result, Terra’s positive growth should not come as a surprise to investors.
LUNA offers several advantages to the market, which is why it is attracting an increasing number of investors.
The network provides competitive programmable payments, logistics, and infrastructure that focuses on decentralized app usage and Stablecoin development.
Terra also places a strong emphasis on interoperability. The network works across various chains.
LUNA is now operational on Ethereum and Solana, but its creators have stated that they intend to expand the protocol to include more major blockchain networks in the future.
The team’s main goal is to create a transparent ecosystem from the ground up to replace the complex payments value chain.
Is Terra a Sound Financial Investment?
Terra has achieved significant progress in the crypto market thus far. Many analysts anticipate that in 2022, Terra will outperform other major cryptocurrencies.
Although the majority of its prominent projects are DeFi, other metaverse projects are currently in development.
LUNA has a lot going for them right now, with an experienced leadership team, a whitepaper, and a growing community. It has shown amazing growth potential and can interface with a variety of other blockchains.
Comparison with similar crypto coins
Terra Stablecoins and LUNA have a relationship that is extremely similar to DAI and Maker. However, there are a few significant variances.
The DAI Stablecoin has sole ties with the US dollar, whereas Terra has Stablecoins tied to the USD, EUR, Chinese yuan, Japanese yen, British pound, and Korean won.
Another difference is that DAI and Maker are both ERC-20 tokens based on Ethereum.
How to invest in Terra Luna?
Some coins are more difficult to obtain than others, and Terra’s name is one of them.
Although the Coinbase app and Coinbase Wallet are popular platforms for obtaining crypto coins, Terra is not available there.
But don’t worry; we’ve included some helpful hints to help you find a Terra purchase that suits your needs.
CoinMarketCap is a famous cryptocurrency website that provides a list of purchasing options for each coin.
You may look up the different purchase options for Terra on CoinMarketCap. When you click the “Market” button on the site it will show all the possible crypto exchanges.
Under “Pairs,” you’ll find the Terra shorthand, LUNA, as well as a second currency.
The second currency is Terra, which you can buy with it. If you want to buy LUNA with the US Dollar, look for LUNA/USD.
Most importantly, choose the platform on which you will make your purchase.
The level of security and liquidity of a site will determine its reliability. Before you open any type of cryptocurrency account, we recommend that you conduct your research.