Since the inception of blockchain technology, numerous crypto applications and networks have emerged and quickly become successful. Terra is one of such cryptocurrencies that became instantly popular among investors since its inception in 2018. Thankfully, for its decentralized digital payments systems, Terra launched their crypto coin LUNA in 2019. Since then, Terra (LUNA) has been rapidly inching towards more value with each coming day. If you plan to buy LUNA coins, you must understand how it works. Here are four essential things you need to know before buying LUNA.
Key Things to Know Before Buying LUNA
Terra Offers Multiple Stablecoins
One of the significant highlights of Terra is its stablecoins. These stablecoins are pegged to other assets, and several stablecoins are pegged to the US dollar. You get to see TerraUSD(UST) along with other coins that are pegged with different currencies like South Korean Won, Canadian Dollar (CAD), Euro (EUR), Japanese Yen (JPY) etc.
Stablecoins have the best potential to be used as a currency to buy goods and services mainly because they can maintain the same price. Most crypto coins are highly volatile, which hinders their usability. Many people also hold on to them, hoping that the prices will go up. As their price can also decrease, many businesses do not accept cryptocurrencies as legal tender. Stablecoins overcome all these problems.
LUNA Helps in Staking & Project Governance
One of the most sought-after benefits of LUNA is it allows the holders to stake their tokens. When the holder stakes LUNA, the tokens are pledged to the network. These tokens then verify transactions, and it marginally decreases the involved risk. You can also unstake the tickets, which takes around 21 days. After staking Luna, the holder receives the cut from Terra’s transaction fees to use its stablecoins. As Luna is a governance token, the holders can also play a key role in deciding the future of LUNA. The holders are provided with voting rights in the future of the project.
Terra is a Native Token
Terra is wildly popular in its home country, South Korea. In May 2021, Terra was used by more than 2 million people per year and reached $1 billion in spending when it was pegged to Won, the South Korean currency. Terra already has a wide native customer base in South Korea. Though there’s no promise that Terra will receive the same recognition as South Korea in the United States, it’s currently providing good incentives to buy their stablecoin (UST), which is pegged to the US dollar.
Terra is One of the Top 5 Revenue-Generating Blockchains
Though the Luna crypto coin hasn’t yet reached the top 20 market cap coins, the blockchain Terra is already one of the biggest ones. It stands proudly among the top 5 revenue-generating blockchains behind the Binance Smart Chain, Ethereum, and Bitcoin and is currently competing with Polygon (MATIC). Even though many of the Terra projects aren’t launched yet, it is still one of the best moneymakers.
There’s no doubt that Terra (LUNA) has a promising future. With the right strategy, you can invest in Terra and diversify your crypto portfolio to reduce the risk and gain maximum returns.