In today’s time, there are many stablecoins in the market, among them is Terra Luna. But, the question arises, should I buy Terra Luna? Is Terra coin a good investment? Well, you’re on the right path. This article will give you a detailed guide about the Terra ecosystem, answer your question of whether Terra coin is a stablecoin, where can you buy Terra coins, along the pros and cons of investing in Terra. Let’s check it out.
What Is Terra (Luna) Coin?
Terra means a blockchain platform that allows users to make payments using stablecoins. Stablecoins are coins where their value is connected to another asset. For eg, Terra(UST) is one of the stablecoins. If The value of USD rises, the price of Terra(UST) will also rise. These stablecoins are algorithmically stabilized by Luna. Luna is a native cryptocurrency of Terra that is traded in the crypto market.
Besides that, Terra has few stablecoins linked to other currencies like Won, Euro, USD, etc. One of them is Terra(UST). Basically, Terra tries to combine the benefits of stablecoins and blockchain technology into one. This ensures low transaction costs in the process.
According to CoinmarketCap, Terra Luna bagged the 7th position among the other cryptos. Till now, the total supply of LUNA coins in the market is 772,635,692 LUNA coins. As of March 12, 2022, the market value of Terra Luna is $34,200,003,899.
Luna Coin History
Now that you know briefly about Terra, let’s dive deep into the times when this coin entered the market. The history states back to the year 2018. Daniel Shin and Do Kwon are the Terra Luna coin founders. Daniel Shin was a budding entrepreneur in his college days. Before Terra, that had also created Ticket Monster, an e-commerce platform. But, he noticed that they were wasting a lot of money on the transaction fees. Eventually, Shin developed an interest in the payments industry. He started learning about the payments system and ways how to make this system more efficient.
One fine day, he met the co-founder Do Kwon and shared this idea. Do Kwon was a computer science graduate and had good knowledge about cryptos. Likewise, both started learning about the possibilities of blockchain and cryptos. Thus, when they saw the boom of the crypto market in 2017, they thought of launching Terra. Hence, in 2018, Terra Luna was launched. This was the introduction of fiat currency-backed stablecoins in the market.
How Terra Luna Works?
Terra’s functioning is a bit different from other crypto coins. Now the question arises, how does Terra work? Basically, Terra works on the Proof-of-Stake system. Imagine the whole Terra “economy” as a Terra pool and a Luna pool to understand how Terra functions. The Terra protocol tries to maintain a balance between the demand and supply of Terra stablecoins. And Luna plays a very important role in determining the price of terra stablecoins.
As you know that Terra stablecoin (UST) is backed by real USD dollar. So assume if the USD >Terra UST, Luna will try to balance the price of Terra UST with USD dollar. The system will basically tell the users to mint more of Luna and burn the Terra(UST) coins. This will help the price reaches that of USD dollar. Similarly, if Terra(UST)>USD dollar, the system will tell users to mint more Terra(UST) and burn Luna coins. And those, users who help in this process of minting and burning are given certain rewards.
Luna Coin Price Chart History
Terra has become the second-largest decentralized platform in the world after Bitcoin. In recent years, the Terra Luna coin charts have surged the prices to rise high. When the coin got listed in 2019, the Price of Terra was ranging between $0.5 to $1. It was in 2021 when the real rally of prices started. Till the mid-2021, the market conditions took the Luna coin ranking to the price of $6.3857.
Slowly and steadily, the prices also started moving upward. On December 26, 2021, the price was $99.72. As per the price charts, the Luna coin highest price of $101.59 was recorded on March 10, 2022. Likewise, Terra Luna current price as of March 12, 2022, is $90.28.
Pros And Cons Of Investing In Terra Luna ?
Terra Luna coin can turn out to be a good investment option for many. But, before that, you need to learn about the pros and cons of investing in Terra Luna. Let’s check it out.
Many Crypto based exchanges and platforms support the Terra Luna coin.
Stablecoins can turn out to be a failure.
Terra has many special projects like Mirror, Anchor, Terraswap, Chai, Luna, and UST.
Terra Stablecoins can be risky as the regulators are opposing other stablecoins.
The transaction fees are basically as low as 0.1 to 1%.
Their user interface(UI) is far better than other crypto apps.
Is Terra Coin A Good Investment?
Now, you might be wondering whether Terra crypto coin is a good investment or not? Will it yield good returns in the future or not? Well, the answer is Yes. Terra is one of those coins that doesn’t have a fear of volatility. In other words, in spite of any market ups and downs, the price will remain stable. So, you will be basically making profits out of it. Thanks to Terra stablecoins in the market.
The successful launch of Colombus-5 has already expanded the Terra ecosystem. Thus, they have at least 160 projects they are thinking to launch in 2022. This will increase the value of Terra and simultaneously increase your investment value in the future. However, Terra was involved in a dispute with SEC. Besides that, even if you’re making good profits, there are also huge risks involved. Thus, taking into account all the facts, Terra is a good investment for those who wish to hold it for the long term.
Should I Buy Terra (Luna) Coin?
Now your mind might be leading to questions like should I buy Terra Luna? Is Luna coin good investment? Well, the answer is Yes. There are certain reasons for stating this fact. Firstly, if we look at the Pros of Terra Luna, they are far ahead of the Cons. In the past 3 months, Terra has given 50% returns. Even the transaction fees are very less as compared to other altcoins. Besides that, the userbase of Terra is increasing day by day. Terra stablecoin(Won) is used by more than 2 million people in South Korea.
However, there are some risks you also need to consider before investing. While some investors feel how long will founders keep on burning and minting the coins. It will stop at some point and drop the coin price. Moreover, the success of Terra depends upon the evolution of the payment system. If banking system regulators decide on the adoption of this payment system, the prices of Terra Luna will go high. In the past, the crash of Titan stablecoin indicated even the crash of Terra stablecoin. But that is yet not possible. Apart from all these flaws, Terra is worth buying, you can consider this one.
Where Can I Buy Terra (Luna) Coin?
Now that you know whether you should buy Terra Luna or not, let’s see from where you can buy the Terra luna coins. If you wish to buy Terra coins, you just need to visit their site. The next step is to open an account and fill in your details along with the payment details. You can either deposit some money or buy directly using a debit/credit card. The following are the exchanges from where you can buy Terra Luna coins.
If you’re wondering about whether or not it’s worth investing in Terra Luna Coin, we hope this article has helped you. In this article, we have given reasons as to whether you should buy Terra Luna coin. Besides that, we have also stated whether you should consider Terra coin as a good investment or not. We believe that the future of Terra Luna Coin looks very bright, and we encourage you to buy Terra Luna Coin as soon as you can to benefit from the upcoming price surge. But, again, this information is just for educational purposes. Before investing, we advise you to research the latest trends in the market and invest wisely. Likewise, if you have any queries or doubts, you can comment down below.
The process of mining Terra crypto Lunna coin is similar to that of Bitcoin and Ethereum. You can perform the mining process through either GPU mining or cloud mining. In GPU mining, you basically try to place various GPUs in computers. These highly efficient computers will try to solve complex mathematical problems and the reward you get is Terra coins.
Wrapped Luna is basically an Ethereum token used to represent Terra(Luna) on Ethereum blockchain. Actually, it is an ERC-20 token that is used to track Luna’s value. This wrapped Luna was created because the Terra blockchain did not support DeFi apps. Therefore, Wrapped Luna was created so that users can trade, hold and participate in DeFi apps on Ethereum.