What is Terra LUNA?
The LUNA token enables its holders to be able to pay network fees in this platform and also get involved in governance. Moreover, as an active participant, you can as well stake in the Tendermint Delegated Proof of Stake consensus mechanism, which will allow you to be able to peg stablecoins.
As of the time of writing, Terra (LUNA) has a total market cap of over $34 billion and it is recorded among the top 10 largest cryptocurrencies that are rising above Avalanche, Polkadot, and some other popular cryptocurrencies out there, as stated by Coinmarketcap.
Do Kwon who is one of the co-founders of Terra focused on price stability and growth-driven which was culled from the features of fiat cryptocurrencies as well as Bitcoin.
Over the years, LUNA with its growth-driven features has risen to more than 10,000% from the time of its launch till the time of writing.
Terra LUNA History
Terra was launched in January 2018 and its vision was to ease the quantity adoption of cryptocurrencies by creating its digital native assets known as LUNA which will help in price stability over other fiat currencies in the world today.
As the technology keeps advancing, besides some popular payment networks such as PayPal, Alipay, eBay, Taobao, etc. Terra teamed with the Terra Alliance and other large e-commerce companies in Asia to be able to process over 25 billion USD in one year which is made available for over 40 million users out there.
Terra, which was one of the popular projects that were launched in 2018 focused on cryptocurrency adoption as well as user engagement of a large payment network which follows the blockchain protocol for its transactions.
The launching of Terra replaced lots of traditional payment methods such as banks, the use of credit cards, etc. thereby allowing users to transact funds with ease directly from their LUNA token. Meanwhile, users can convert their LUNA token to any currency of their choice.
This allows merchants to enjoy cheaper transaction fees, thereby allowing them to save up money which can further be used for other projects.
How does Terra work?
Terra with its native token LUNA works simply as a distributed ledger which is supervised, monitored, and controlled by approved validators in the Terra network. Those approved validators in the Terra network work directly under the DPoS algorithm which allows the validators to be able to vote on blocks, thereby earning some LUNA token in return.
Hereunder, every individual who is involved in Terra mining plays a vital role when it comes to the security aspect. The core security task that Terra miners do is to get involved in participating in the PoS consensus mechanism. Furthermore, the validators help in stabilizing the prices of LUNA tokens by absorbing short-term volatility when they are in demand.
Over the years Terra has gained stability just like other stablecoins through frequent mining and circulation to its users. Terra always ensures that its price is stable regardless of the pressure that hits the market. They made this possible by also putting pressure on their validators.
The processes involved in this price stability results in either adding or subtracting the LUNA pool or Terra pool from Terra’s supply. This helps to stabilize the price of Terra which aids supply and demand.
How to Buy Terra Luna
Step 1 – Choose Your LUNA Wallet
Compared to other cryptocurrencies, Terra is a new project and that’s why there isn’t a huge variety of wallets available. However, those available are really good and more than enough to store your LUNA coins securely. If you are going for a hardware wallet, Ledger Nano S and Trezor Model T can be used to store LUNA. Get the Nano X for mobile support.
For a desktop wallet, you can’t go wrong with the official Terra Station which you can download off the website. It’s an open source digital currency wallet which is available for both Mac and Windows operating systems. If you are looking to go mobile then Atomic Wallet can store LUNA and 300 more cryptocurrencies for you.
Step 2 – Choose Your Terra LUNA Exchange
In order to purchase LUNA, you will have to pick an exchange and there aren’t many to choose from. If you are just looking to trade then eToro is a good choice as you can make money by speculating on the price and don’t actually have to buy the currency. However, if you want Terra in your possession, then Binance, Bittrex and Coinmama are few great choices. Before making a purchase decision, check out the features of all exchanges including transaction fee, withdrawal charges, and processing time.
Step 3 – Take Precautionary Measures
Prior to buying any cryptocurrency, there are certain rules you should always follow. These include the following:
• Safeguard your exchange account with a strong password and use a distinct email address that’s only reserved for crypto trading
• Inspect all your devices for vulnerabilities and make them safe using firewalls and antivirus software. Don’t open your exchange account or keep your coins on an unsecure device
• Protect your exchange email with a strong password and make sure it’s different from the one you’re using for the exchange
• Always enable two-factor authentication to add an extra layer of safety
Step 4 – Purchase Terra Luna
If you have picked your exchange, wallet, and gone through the precautionary measures, it’s time to purchase the currency. Sign into the selected exchange and go to the marketplace and enter the amount of LUNA you’re looking to buy. Hit the buy button and the exchange will find the best price for you in that moment. The digital currency will show up in your account in few minutes.
Step 5 – Withdraw Cryptocurrency and Store in Your Wallet
And once the LUNA coins are in your account, make sure you transfer them to your digital or cold wallet to keep them accessible and secure. Exchange website can go through outages or any other uncertainty can strike any time. That’s why it’s prudent to keep your coins in your own wallet.