Terra is a blockchain platform that leverages its family of stablecoins. Each coin on its network is pegged to various fiat currencies, aiming to lower the crypto volatility so that they can be more included in the global payment system in the future. Terra uses an algorithmic protocol to keep its coin prices stable and also has a native token, LUNA, which acts as collateral for the stablecoins.
This guide will introduce you to Terra and its native LUNA token. We'll explain how it works and what problem it tries to solve. We’ll also discuss its price history and price predictions, and present a step-by-step guide on how to buy Terra LUNA in the US.
What is in this guide?
- QUICK GUIDE: HOW TO BUY TERRA IN THE US
- What is Terra?
- How Terra Works and What Affects its Price?
- Is Terra A Buy Right Now?
- How to Buy Terra LUNA online in the US - A Step by Step Guide
- How to Trade Terra in the US - A Step by Step Guide
- Terra Advantages and Disadvantages
- What is Terra Price Prediction?
- How Do I Mine Terra in the US?
- What is the Total Supply of Terra?
- Things to Consider Before You Invest in Terra in the US
QUICK GUIDE: HOW TO BUY TERRA IN THE USA
- 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?
Terra is a blockchain-based project launched in September 2019 by Seoul-based company Terraform Labs, which started to develop the project in 2018. Terraform Labs is led by Daniel Shin and Do Kwonis, and it is included in the Terra Alliance group, which consists of 15 companies all specialized in e-commerce and finance. Both Daniel and Do have a significant career in those fields and have successfully established several companies before the project of Terra LUNA.
One of the major contributions of the Terra project is its family of stablecoins, each of which is backed by a different fiat currency. So far, Terra has launched UST coin, pegged to USD; KRW pegged to the South Korean won; MNT pegged to Mongolian tugrik, and SDT pegged to the IMF’s SDR unit of account. Looking ahead, it is expected that Terra will launch more stablecoins in the future.
How Terra Works and What Affects its Price?
Nowadays, cryptocurrencies are usually being used for short-term speculation or for long-term investments. As such, the number of people who use them in order to buy goods and services is not too high. One problem is that crypto coins are highly volatile, and their price fluctuations did not allow them to be included in the global payment system, as evident in Janet Yellen's recent comment about Bitcoin and the crypto market.
To solve this problem, a kind of cryptos called stablecoins emerged. The group contains such cryptos as Tether, True USD, Binance USD, USD coin, Terra, etc. These cryptos are pegged to collateral to keep their value stable so that it can be possible to use them for buying goods and services, much like other original fiat currencies that are relatively stable.
Depending on what collateral they use, stablecoins can be of different kinds. For example, they can be pegged to such hard assets as gold or real estate. In this case, they are called commodity-backed stablecoins. When they are pegged to a fiat currency, they are called fiat-backed stablecoins. This group includes one of the most well-known stablecoins - Tether that is backed by the US Dollar, and one Tether is equal to $1. Then there is a group of other stablecoins pegged to another crypto, and this group is called cryptocurrency pegged stablecoins. DAI is one such crypto that is collateralized by Ethereum.
Then, there is the fourth type of stablecoin known as seigniorage style that is not backed by anything but uses a unique algorithm to control the coin’s money supply and thus stabilize its price. Terra is a seigniorage-style stablecoin, and it uses its native token LUNA, burning or swapping it to increase or decrease the supply of its coin. This process is pretty much similar to how banks work when they print money.
Is Terra A Buy Right Now?
Before you make a significant investment in any cryptocurrency, it is better to gather as much information as possible about that crypto project. There are some major factors to consider, including who the project owners are, what goals and further objectives this crypto has, or what problem it tries to solve in the market. These factors will allow you to partially guess if that project can succeed or it will crash in the near future. Another factor to consider is its competitors in the market.
In the case of Terra, we see that the project is created by a team with a great vision that has set incredible goals for the future progress of the crypto market. Terra also managed to establish good partnerships with lots of companies, particularly based in the Asia-Pacific region.
On the other hand, Terra also has a lot of rivals in the market. And, though Terra offers some new revolutionary changes in this field, the idea of stablecoins is not new to the crypto market, and there are such projects as Tether, Binance USD, and others that are already very popular in the crypto market. But, if Terra can outperform them and accomplish its goals, then it has the potential of becoming a hot cryptocurrency in the future. Until that, the Terra team has a lot of work to do.
With that in mind, Let’s take a closer look at Terra LUNA's price history in order to help you get a better idea about its achievements so far.
When we look at the Terra price charts, we see that it was relatively stable at all. Terra LUNA entered the market at a price of $1.27 and was trading at a range of $1-1.5 for the first months. Then, Terra prices started to drop, and in late September 2019, Terra was trading above $1 for the last time until early 2021.
Terra LUNA price history, source: coinmarketcap.com
In late December 2020, Terra started to grow significantly and finally experienced a price boom in the first months of 2021. In February, it was traded at $3-$7, and in March, its prices exploded to $21. This is mainly associated with the growth of Bitcoin price at the beginning of the year, which also positively impacted other cryptos.
How to Buy Terra LUNA online in the USA - A Step by Step Guide
Now, when you have some information about the Terra project and you are ready to invest in this crypto, here is a step-by-step guide on how to buy Terra LUNA in the USA.
1. Find a US Regulated Crypto Exchange that Supports Terra
The first thing you need to do in this process is to find an online exchange platform that accepts US residents and supports Terra LUNA. One problem here is that Terra is not supported by major crypto exchanges so you'll have to dig in to find one in the US.
2. Register for an Online Account and Fund Your Account
The second step is creating an account and verifying it with a copy of your passport or other similar documents. After you finish the registration process, you need to deposit some funds into your account to begin trading.
3. Buy Terra
As long as you have a verified account and deposited money on it, you can then start buying Terra LUNA. One problem is that you cannot buy it directly with fiat currency, so you need to purchase another available crypto, for example, ETH or BTC, and then exchange it with Terra LUNA.
4. Transfer Your Funds to a Hardware Wallet
If you finally made your purchase and want to store your LUNA tokens, it is recommended to find a hardware wallet and transfer your cryptos. For those unaware, a hardware wallet is a physical device that is not connected to the internet and is the safest method to store digital assets. This is particularly recommended if you are planning to buy a large amount of Terra coins.
How to Trade Terra in the USA - A Step by Step Guide
This part of the article will provide a step-by-step guide on how to find the best platform to trade Terra LUNA in the USA.
1. Find an Online Trading Platform that Supports Terra
To start trading Terra LUNA in the US, first of all, you need to find a trading platform that accepts US residents and supports Terra LUNA. For short-term trading, you need to take into account some factors to select the most appropriate platform. So you should pay attention to the fees the platform charges and how fast and easy-usable it is.
2. Fund Your Account
After finding the best platform for trading LUNA in the US, open an account and make a deposit by using the platform's supported payment methods.
3. Set Your Trading Goals
The next step is about finding a perfect trading strategy for you and the best type of instrument form to trade digital assets. First, you need to find a trading strategy. There are some famous trading strategies to choose from, and the best of all is most likely the combination of technical and fundamental analysis. In the case of short-term trading, it would also be best to use stop-loss and take profit orders and to always utilize a risk-reward ratio.
Then, you need to decide if you want to trade digital assets outright directly on the exchange or via derivatives (futures or CFDs). Many investors often prefer to trade derivatives as they are cost-effective and have lots of other advantages.
4. Start Trading Terra
Now, when you have an account, deposited money on it, and have a trading strategy, you can start trading Terra LUNA in the US.
Terra Advantages and Disadvantages
If by now, you are still unsure about investing in Terra LUNA, here is more information about the project and its price predictions. In this part of our guide, we outline some advantages and disadvantages of the Terra project.
- Terra is established by a team of crypto enthusiasts who set unique goals for the project. So, if it achieves the objectives, it can become a hot crypto coin in the future.
- Terra stands out with its seigniorage-style stablecoin, using a special algorithm to keep the UST price stable.
- Terra also has a family of stablecoins pegged to different fiat currencies to make the buy-and-sell process more accessible and help the crypto be included in the global payment system.
- Along with lowering the volatility in the crypto market, Terra also charges lower fees and makes its users free from hidden costs.
- Terra is partially centralized, which is not typical of the crypto market.
- Terra has many competitors in the market, including such well-known stablecoins as Tether, Binance USD, USDT, etc.
What is Terra Price Prediction?
Generally, cryptocurrency analysts believe Terra is a good long-term investment, and the LUNA coin has promising price predictions. Wallet Investor considers Terra a profitable investment with a huge potential to keep growing. According to them, its prices can go up to $53 in one year and $198 in five years.
According to Digital Coin Price predictions, Terra LUNA's price will also rise in the following years to $28 in one year and $57 in five years.
Terra LUNA price predictions, according to Digital Coin Price
Long Forecast also predicts that Terra LUNA prices will rise in the future; however, according to them, they will not go as high as the two previous analysts consider. These predictions show that Terra prices will fluctuate between $10-20 this year, and won't get higher than $44 in the upcoming four years.
Terra LUNA price predictions, according to Long Forecast
How Do I Mine Terra in the US?
The Terra Protocol is based on the Proof-of-Stake blockchain. This means that in order to mine Terra in the US, you must stake LUNA and provide stability and security for the Terra network. For doing this, Terra users get good long-term rewards from transactions and seigniorage.
What is the Total Supply of Terra?
Terra has a maximum supply of 1 billion LUNA tokens.
Things to Consider Before You Invest in Terra in the US
To conclude, Terra is a family of stablecoins that uses a unique protocol instead of collateral to keep its coin value stable. It has a native token, LUNA, which plays a significant role in this process.
When we look ahead, Terra is a project with lots of unique ideas that the team still needs to accomplish, and as such, Terra LUNA still has room for growth. From this perspective, crypto analysts consider Terra a good long-term investment that can be profitable in the future.
Otherwise, as Terra LUNA is the 32nd largest crypto coin in the world, it is fairly liquid and volatile. As such, you can also use this coin for short-term trading strategy and make small profits from its price fluctuations. For this, you need to find a trading platform that operates quickly, charges lower fees, and allows you to buy Terra in the US. After this, you need to develop a trading strategy and start trading Terra LUNA in the US.
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