How to Buy Terra in the UK
A Beginner’s Guide to Buying Terra Cryptocurrency in the UK
Terra is a blockchain protocol that leverages its various stablecoins pegged on different fiat currencies in order to build a stable cryptocurrency for the global payment system. Terra has its native token, the LUNA coin, and relies on its elastic monetary policy to stabilize its coins without collateral.
This guide intends to introduce you to Terra, what it is created for, what problems it aims to solve, and how its technology works. We also discuss its price history, its price predictions, and explain the step-by-step process on how to buy Terra LUNA in the UK.
What is in this guide?
- QUICK GUIDE: HOW TO BUY TERRA IN THE UK
- What Is Terra?
- Should You Buy Terra
- How To Buy Terra Online In The UK - A Step By Step Guide
- How To Trade Terra In The UK - A Step By Step Guide
- Terra Pros and Cons
- Is Terra A Good Long Term Investment?
- What Will Be Terra Worth In 2025?
- What’s The Purpose Of Terra?
- Is Terra Mining Profitable?
- Buying Or Trading Terra: Things To Take Into Consideration
QUICK GUIDE: HOW TO BUY TERRA IN THE UK
- Open an account with a cryptocurrency exchange.
- Verify your account.
- Go to the deposit section
- Go to the platform and select Terra.
- Enter how many Terra LUNA tokens you want to buy.
- Check the details and confirm your purchase.
What Is Terra?
One of the biggest problems with cryptocurrencies is that most of us use them for investment or trading and thus make a profit from their price fluctuations. Only a few people use it in their daily lives for the buy or sell of goods and services. The main problem with this is that crypto prices are therefore highly volatile.
A bunch of stablecoins emerged to solve this problem. These are cryptocurrencies pegged to another asset to keep their value stable. There are different kinds of stablecoins depending on the asset they are pegged to. Commodity-backed stablecoins, for instance, stabilize their value with the help of such hard assets as gold or real estate. Then there are fiat-backed stablecoins that use fiat currencies as collateral. These include Tether, Gemini Dollar, True USD, etc. There is also a group of stablecoins pegged on cryptocurrencies. An example of a crypto-pegged stablecoin is DAI, which is equal to 1 USD and uses ETH as collateral.
On top of these groups, there can also be stablecoins that use a sophisticated algorithm in order to keep their reserve. These stablecoins are known as seigniorage style stablecoins, and Terra is among them. Terra’s stablecoin called Terra USD or UST is equal to one USD and is backed by an algorithm to stabilize its price. This is how it works: when there is a high demand for UST, its prices rise, so to bring its value back to one dollar, the algorithm increases the supply of UST. And vice versa, if there is a low demand for UST and the prices fall down, the protocol reduces the supply and brings prices back up.
The development of the Terra project began in January 2018 by the Korean-based blockchain company Terraform Labs, and it officially launched in September 2019. Terraform Labs is among the 15 e-commerce companies included in the group of Terra Alliance and was founded by Daniel Shin and Do Kwon in 2018. Both of them had a significant career in finance and e-commerce and founded some successful companies in the related fields before the project of Terra.
Besides UST, several other types of stablecoins are available on Terra, including KRT, pegged on the South Korean won; MNT pegged on Mongolian tugrik, and SDT pegged to the IMF’s SDR unit of account. Terra also has a native token, LUNA, that is used for stabilizing the price of UST. This harmonious relationship between LUNA and UST is compared to the relationship of our Earth and Moon. Those who hold LUNA tokens can burn it and get UST instead at profitable rates. As well, they are also able to submit and vote on the governance proposals.
Should You Buy Terra
As we see, Terra is a promising project with a lot of unique ideas to offer and backed by two professionals with incredible careers. And what is most important, the team has established several partnerships with different payment companies primarily based in the Asia-Pacific region. One of those companies is Seoul-based payment tech startup Chai, which became Terra’s partner in 2019.
Another significant success is the number of protocols built by Terraform Labs and based on the Terra blockchain, including Anchor protocol, Mirror protocol, et al. All these factors draw a lot of attention and interest to the Terra project and its native token, LUNA, that exploded in price in the last 3 months.
With that in mind, let’s take a look at Terra LUNA's price history to understand how it changed in the last two years. Terra coin entered the crypto market with an average trading price and for the first months, the Terra coin was traded slightly above $1. The prices started to drop below the $1 level in late September 2019. And, there was no significant growth in 2020 for Terra coin as well.
The only attempt to rise was made in August 2020, when Terra prices crossed the border of $0.50, but the growth was temporary, and the Luna prices again dropped to $0.3. So, all in all, 2020 was not a good year for Terra. But, its prices saw a good rise in late 2020, so on January 1, the coin was traded above $0.6. Then, 2021 was not like 2020 and brought significant success for Terra, mostly associated with the Bitcoin that struck its all-time high. Other crypto prices were also affected by Bitcoin prices growth, and Terra was among them too.
Terra LUNA price history, source: coinmarketcap.com
So, Terra had a sudden growth and reached its all-time high of $21 on March 21. In April 2021, Terra prices fluctuated between $13-$18.Then, it started May with a cost of $16 and at the time of writing, the Luna coin is trading at $17 per coin. Crypto analysts consider Terra LUNA a good long-term investment with room for further growth.
Read Also: 10 Cryptocurrencies with Strong Buy Ratings
How To Buy Terra Online In The UK - A Step By Step Guide
This part of the article introduces a step-by-step guide on how to buy Terra LUNA in the UK. So, if you have decided to invest in this crypto project, here is how you can do it.
Find A UK Crypto Exchange That Supports Terra
The first step in this process is to find an exchange platform that supports Terra LUNA and accepts UK residents. Below are two of the most popular and reliable platforms that support buying Terra LUNA in the UK.
Binance: Binance is one of the most well-known cryptocurrency exchange platforms that supports UK residents. On this exchange, you can trade among various cryptocurrencies, including Terra LUNA. Binance stands out with its lower exchange fees, quick buy-and-sell process, and the huge variety of advanced trading tools and features.
Coinbase: Coinbase is another large cryptocurrency exchange platform with 25 million users from 32 different countries. Coinbase helps you to securely buy, sell and exchange cryptos (including Terra) and has an easy-to-use platform.
Register For An Online Account And Deposit Funds
In this process, you also must verify your account through uploading a picture of your Passport or any other national ID, providing phone number and then add a payment method to deposit funds on your account.
So, finally, when you have a verified account and deposited your funds, you can start buying Terra LUNA. However, you can't buy Terra LUNA directly with fiat currency; and thus, you need to purchase other cryptos like BTC or ETH and then exchange it with Terra LUNA.
Transfer Your Funds To A Cold Storage Wallet
Though this is not mandatory but in order to keep your coins more secure, you had better register for an online wallet and transfer your crypto on it. Some crypto exchange platforms have their official wallets. Binance, for instance, offers its wallet called Trust Wallet, which you can use to keep your coins outside of Binance. Coinsbase also has a mobile wallet known as Coinbase Wallet.
How To Trade Terra In The UK - A Step By Step Guide
Essentially, you have two strategy options - You can buy Terra LUNA and keep it as a long-term investment, or you can trade it to profit from its price fluctuations. So, here is a short guide explaining how to trade Terra LUNA in the UK.
Find An Online Trading Platform That Supports Terra
First, you need to choose a trading platform that supports Terra in the UK to start trading your Terra LUNA. While selecting the appropriate trading platform, consider if it charges lower fees and if the platform is easy and quick to use, especially when you plan to do fast and frequent buy-and-sells.
Fund Your Account
The next thing you need to do in this process is to fund your account with some fiat currency. There can be some different fees depending on the platform you choose. This may include commission fees, trading fees, withdrawal and deposit fees.
Develop A Trading Strategy - Scalping/Day Trading/Swing, etc
The technical part is over, so you need to think of a trading strategy before you start trading. Some popular techniques include scalping, day trading and swing trading. Day trading allows you to make a profit from the crypto price fluctuations during the same trading day. Scalping will enable you to speculate on small price changes, so the buy and sell process usually takes seconds or minutes. And finally, swing allows you to trade cryptos from the period of some days to some weeks.
Regardless, it is highly recommended to use a risk-reward ratio in crypto trading. This is a method used by investors to define the potential profit in relation to each dollar you decide to risk.
Start Trading Terra
Now, when you have a funded account and have decided how you want to trade, you can start trading Terra LUNA. However, if you are still suspicious about investing in this crypto, let’s go ahead and discover some other things about Terra and its price predictions.
Terra Pros and Cons
Here are some pros and cons about Terra and its platform that will help you better decide whether you want to invest in it or not.
- Terra is established by a team with incredible careers in finance and e-commerce, so the project has an exciting perspective and aims to bring a lot of change to the market.
- Terra’s UST stablecoin is pegged to the fiat currency, but its price is stabilized by an incredibly sophisticated algorithm.
- Terra brings less volatility to the crypto market, allowing it to get into the mainstream.
- Terra provides its users with lower fees and frees them from paying the hidden fees.
- Terra has rivals in the market, so there are lots of things they need to do to accomplish and outperform them.
- Terra is partially centralized, which is not typical to the crypto “rules”.
Is Terra A Good Long Term Investment?
Crypto analysts consider Terra LUNA an excellent long term investment; at least, its price predictions are promising. But there are some things to consider before making the final decision about investing in it.
One thing to pay attention to is the goals and perspective that the project sets for itself. From this point of view, Terra is a fascinating investment as it offers several unique concepts and aims to bring lots of changes into the market. Essentially, it has created an all-in-one solution for global payments to enable individuals and businesses using the blockchain technology to transfer and accept payment without intermediaries.
But, on the other hand, it has rivals in the market, including such famous stablecoins as Tether, USD coin, Binance USD, etc. As such, Terra project leaders still have a lot of work to do to outperform the rivals. If this happens, Terra can gain colossal interest, and the value of its Terra token will rise.
What Will Be Terra Worth In 2025?
Let’s take a look at Terra LUNA price predictions according to various crypto analysts. As already mentioned, Terra prices are pretty promising, as all of the three forecast platforms introduced below predict a price growth for LUNA.
According to Long Forecast, Terra prices will keep growing, and in 2025 they will be traded at above $50 on average, while the maximum can reach up to $97 in June 2025.
Terra LUNA price predictions according to Long Forecast
Wallet Investor also considers Terra quite a profitable investment, and according to them, Terra prices can reach up to $165 in 5 years.
Digital Coin Price also foresees significant growth for Terra LUNA, with the highest price of $82 in future.
Terra LUNA price predictions, according to Digital Coin Price
What’s The Purpose Of Terra?
One of the most significant changes that Terra aims to bring is to make cryptocurrencies less volatile and bring them to the mainstream so we can use them to buy or sell services and goods. Also, Terra creates stablecoins to free its users from paying hidden fees and relies on a unique algorithm to keep the coins stable without collateral.
Is Terra Mining Profitable?
Terra has good rewards for its miners and for those who stake LUNA. Terra Protocol uses a Proof of Stake consensus mechanism, so its users stake LUNA to mine transactions for the Terra project. They are paid with long-term stable fees from every transaction and also seigniorage.
Buying Or Trading Terra: Things To Take Into Consideration
From this guide, you already have basic information about Terra LUNA, its price history and price predictions and can make a decision whether you want to invest in it or not. There are some things to consider if you wish to buy it as a long-term or short-term investment.
Terra is considered an excellent long-term investment. Crypto analysts predict considerable growth for Terra prices, and the project team has several unique ideas to bring into the market, so it does not seem that Terra will crash in the near future. Thus, if you want to buy and store Terra LUNA, find an appropriate exchange platform that allows you to buy Terra in the UK, and choose a crypto wallet to keep your coins more secure.
Otherwise, if you want to take a short-term trading strategy and profit from its price fluctuations, consider finding a broker platform that supports Terra trading in the UK, charges relatively lower fees and operates quickly. After this, choose a strategy and start trading Terra LUNA.
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