Should You Invest in Terra Luna Explained!

Terra Luna was launched in 2020 at a price lesser than $1 per coin. In 2 years, Terra Luna has been able to provide its investors with more than 100% returns on their investment. The current price of Terra Luna is hovering from $97 to $103. Over the last seven days, the coin has been providing more than 23% returns to its investors.

Should You Invest in Terra Luna Explained!

What is Terra Luna?

Similar to all cryptos in the market or any digital euro or currency, Terra also works on the blockchain protocol. Terra deploys the decentralized finance model. It uses unique theories and protocols to complete a transaction. Terra’s native coin Luna deploys a simple algorithm to track transactions. This algorithm retains an asset value by continuously altering its monetary supply. This algorithm enables its users with low transaction fees. There is an exchange of multiple assets in one go. Users can buy financial assets with better value.

What real-life problems can Terra solve?

Terra Luna aims to solve common problems faced by other stable coins. An example of this is the centralized network philosophy adopted by most stable coins. Terra aims at alleviating this issue by adopting a decentralized network. This will also help reduce technical limitations involved in a user transaction. The protocol so deployed in Terra also allows you to undertake transactions on many blockchain networks.

What are the key benefits of using Terra Luna?

Now that we have understood Terra’s working model and its operations capabilities, let us take a close look at its key benefits.

Ability to interoperate

The network design of Terra Luna allows it to run multiple network chains. This stable coin network is easily available on other altcoins including Ethereum. Also, Terra developers announced their plans to make its network available on other coins as well.

Transparent financial system

This was the primary goal of Terra Luna. Developing a financial transaction system that is independent and transparent. The complicated payment gateways were replaced by simpler networks. This allowed users to undertake simple payment options.

Programmable to execute dApps and Smart Contracts

Terra Luna’s network is user-friendly. It allows developers to build decentralized apps on their networks. Additionally, users can also execute smart contracts without any third-party intervention.

Working model of Terra Luna

Terra deploys a programmable infrastructure. This program enables the supply of self-stabilizing coins. The platform automatically analyzes stable coins supply and adjusts the same. This will allow ensuring stable coin values are always aligned to its assets as applicable.

One primary advantage of Terra Luna is its staking capability. Users and investors can stake their existing Luna to earn rewards. There is an internal program developed to compute these rewards to users.

There is a community of developers aligned with developing the governance model for Terra Luna. The community validators receive timely inputs on any network updates. These updates may range from technical upgrades, changes in fee structure, or other network changes. Validators assigned with voting capabilities start the changes as recommended.

How can you buy a Terra Luna?

Considering the various advantages and security measures, it is good to invest in Terra Luna.

Now that you have made your investment decision, let us understand how to invest in Terra.

• Uphold: Top exchange in the US and allows you to easily invest in Terra. However, there is a restriction on UK & European residents.

• Binance: Another popular exchange suitable for residents from Australia, the UK, Singapore, and Canada. However, US citizens are restricted to trade on Luna.

• Bitpanda: Popular exchange for residents from the European region.

Ascertaining investment risks

The popular philosophy of cryptos holds good here as well. Only Invest that much money that you can afford to lose. This means you need to first arrive at your risk appetite. Choose your investment option and money that you are ready to lose in case the market crashes.

Despite Luna’s growing market presence, it is important to note that Terra is also subjected to market risks and price volatility. Terra may lose its market value if it fails to hold pegs. Regulations are another factor that needs detailed study. The SEC is currently carrying out a study to understand whether Terra is upholding any unregistered securities.

Terra’s growth seems promising in the coming years.