Usually, in order to be able to transfer or receive cryptocurrencies, you need what is known as a public key. This is similar to a bank account number and is your unique identifier on the blockchain. In most cases, public keys come in the form of random characters. This can make them difficult to remember, which is why some people choose to create a mnemonic seed phrase for their keys.
Celo, like other cryptocurrencies, operates on the blockchain and therefore has its own public key system. However, it takes things one step further by allowing you to use your phone number as an identifier instead.
This means that someone wanting to send, for example, cUSD or cBTC to you via Celo would need just your phone number. You then receive the funds in your Celo wallet.
But what exactly is Celo, and how does this wallet work?
Contents:
- What Is Celo?
- How Does Celo Work?
- CELO Price History
- CELO Price Predictions For 2022 And 2023
- How To Invest In Celo (CELO)
- Is CELO A Good Investment?
- Conclusion: So, Should I Buy CELO Tokens?
What Is Celo?
Celo is a global, decentralized payment infrastructure that enables anyone to transact or save cryptocurrency with a phone number. It has its own native tokens: CELO (a governance token for voting on protocol changes on the network) and Celo Dollars (cUSD). cUSD is pegged 1:1 with the US Dollar.
According to their official website, Celo is crypto for mobile. This means that it is designed to specifically work on mobile devices and can, therefore, be used by anyone with a smartphone.
This eliminates a major barrier for entry into the cryptocurrency market for many people and could potentially help to boost global adoption.
According to reports, there were close to 6.5 billion mobile phone users worldwide in 2021. Most of these people do not use crypto yet because they cannot conveniently transact it on their phones and find the idea of a public key complicated. By tapping into this market, Celo could potentially play a major role in the global adoption of cryptocurrencies.
At the core of this platform is the Celo Wallet. This is a mobile-based application that allows anyone to transact cryptocurrency with just their phone number. It requires no mnemonic seed phrases or public keys, which makes it much easier for all users to get started.
Celo also allows the development of dApps on its platform. dApps are decentralized applications that use smart contracts. Through this, Celo allows anyone to develop their own decentralized applications, which could boost its adoption and use cases in the long run.
Celo was co-founded in 2017 by Rene Reinsberg and Marek Olszewski, both of who were executives at GoDaddy. Sep Kamvar, a former executive at Google, is also said to have been among the founders.
The platform is currently backed by top-tier firms and individuals, including Coinbase, T-mobile, a16z, Jack Dorsey, Polychain Capital, Reid Hoffman, Social Capital and many more.
Check Out: What Is Celo? Should You Invest In CELO And Where To Buy It?
How Does Celo Work?
Smartphones are at the epicentre of Celo's operation. The platform wants to make it easy to transact crypto on your phone, just like fiat money.
It utilizes the Proof-of-Stake Consensus Algorithm, which is the most widely used algorithm for blockchains. This means that rather than miners, users who have a certain amount of Celo Tokens can help validate transactions and be rewarded.
Specifically, Celo is based on the Byzantine Fault Tolerance (BFT) which is a method that helps blockchains work together. It is used to form a consensus among nodes (or voting members) that help run blockchain networks.
This means that Celo can be integrated with other blockchain platforms because it works with different systems. This provides opportunities for cross-platform development and could potentially be the start of an all-inclusive blockchain ecosystem.
Celo is also open-source and EVM-compatible, which means that it can also run Ethereum smart contracts. This makes it a scalable and flexible blockchain that aims to keep up with the rapidly evolving market.
The platform has three main types of users. These are:
- Light clients, which include the Celo mobile wallet that runs on user's mobile devices
- Validator nodes that validate and confirm transactions. They are voted in by users who hold CELO tokens. In order to become a validator node, you will need to stake a minimum of 10,000 CELO tokens
- Full Nodes that ensure smooth cooperation between light clients and validator nodes. They do this by forwarding requests from light clients (mobile wallets) to validator nodes.
Key to the operation of the network is the CELO token. This is a utility token that can be used to vote on changes being made to the network.
It also allows users to stake their tokens in order to become validator nodes and gain access to voting rights over proposed protocol changes.
The tokens are capped at 1,000,000,000 CELO, which means there will only be 1 billion tokens ever in existence. This creates scarcity and could see the price of tokens rise over time.
Celo Dollar (cUSD) is a stablecoin that is pegged to the value of the US dollar. This means it has all the benefits of blockchain technology but also retains stability which many other cryptocurrencies lack.
It's useful for dApps due to its ability to remain stable even as other cryptocurrencies fluctuate in price. This firm backing means that it's a good medium of exchange as people can be confident it will retain its value.
CELO Price History
CELO has its roots as back as 2017, but according to historical price data from CoinMarketCap, the coin began trading around May 2020, with the earliest know price being around $2.5 per coin. This is pretty good compared to most other coins that started at pretty humbling prices.
CELO must have crashed during the first few days of trading because we also see an early price of around $1.5 just after two days in the market.
This was followed by a stiff uptrend that took CELO to as high as $1.9 per coin in early July. Towards the end of August 2020, CELO had a sudden price spike and went as high as $4.5 per coin.
This was quite a sharp rise considering that at the beginning of that month, CELO was trading at as low as $1.76. The spike must have, however, been caused by hype and speculations because it came tumbling down, and about two weeks later, it bottomed out at just above $2.
It then suddenly rose again to around $3.9 in late September before adopting a downtrend that took it to a humbling low price of $1.3 per coin by the end of the year.
This means that CELO started 2021 on a rather bearish note. However, as you probably know, 2021 was an interesting year for cryptocurrencies because of the market-wide bull run that ended in May.
CELO took advantage of the bull market and began to parabolically grow. By mid-February 2021, the coin had crossed $5. It then crashed again to just above $3 towards the end of February.
Another uptrend followed, and in late April, CELO crossed $6 before going back down to $4.5 in mid-May and then back up to over $6.
As the market-wide bull run was signing out towards the end of May, CELO was adversely affected by the preceding bear market, and the price slumped to as low as $2.7.
The coin struggled to fight its ground but only dropped further, and by late June, it was down to $1.9.
It then surprisingly shot back to $4.4 that same month before dropping again to close the month at around $3.1.
By mid-July 2021, CELO had dropped to $2.2, and on August 23rd, it crossed $3 again.
Between August 24th and 30th, 2021, CELO rose from $3.0 to as high as $7.16, representing a more than 138% growth in just a week. This was followed by another dip to a humbling low of $4.3 in early September before the coin rose to attain its current all-time high price of $10.66.
A wild price swing followed, and soon CELO was thrown into another downtrend that escalated to as low as $3.4 in mid-December. The coin is still trying to recover from the continuous bear market.
It is currently trading at $3.09 with a market cap of $1.2 billion and a fully diluted market cap of $3 billion.
CELO Price Predictions For 2022 And 2023
CELO is down by more than 70% from its all-time high price. However, the coin has been trying to rebound, and some experts believe we might see better numbers in the next few months.
2021 began well for most cryptocurrencies. That is why most people are curious to see how 2022 will be. As usual, there are a lot of mixed predictions, with some predicting that CELO is going to thrive while others think it will slump.
For instance, although Wallet Investor’s predictions are a tad leisurely, they indicate that CELO might rise through the months to close the year at around $6.39. According to the site, the coin will first cross $5 in early May before going to $6 per coin in early November.
As you can see, the trajectory is pretty stretched and does not show much growth for the rest of the year. There is also not much volatility which contradicts what we have seen from CELO’s price history.
The coin is capable of wild price swings, and we don’t think 2022 is going to be any different.
Wallet Investor, however, sticks to the same trajectory in 2023, with the coin only trading between $6.3 and $8.6 per coin for the rest of the year. It will start at around $6.34 and then cross $7 in mid-April before going to $8 towards the end of September.
Again, this is pretty drudgy, and we hope we will see something more flexible.
Priceprediction.net is a bit more hopeful and predicts that CELO will end 2022 and 2023 at $7.9 and $11.5 per coin, respectively. On the other hand, Long Forecast predicts $11.3 by the end of 2022 and $13.7 by the end of 2023.
Gov Capital gives a more flexible prediction with some healthy elements of volatility. The site predicts that CELO might go to as high as $10.45 in 2022 and $29.64 in 2023. As you can see, this is a fairly bullish prediction when compared to the others we have seen.
Coin Price Forecast is also fairly bullish and predicts that CELO will end 2022 at around $15.06 and 2023 at $17.19. It will then jump to $24.77 per coin in 2024 and $27.85 in 2025.
From these predictions, we can say that CELO might generally go up in 2022 and 2023. Even though the growth might be slow, the coin might still be profitable in the next five years if you buy now and hold.
However, keep in mind that these are mere speculations, and you shouldn’t use them to make important investment decisions. These predictions should serve as a rough sketch of what you might expect and not necessarily the reality.
That is why it is important to do your own research and talk to some experts before making any crucial decisions.
Don't Miss: Celo Price Predictions
How To Invest In Celo (CELO)
You can buy and sell the CELO token on a number of exchanges, just like any other cryptocurrency. So, if you are looking to invest in this token, there are three main ways that you can do so.
These include:
- Holding for the long term
- Trading for the short term
- Staking
Let's quickly go through each of these methods below:
Method 1: Holding
Holding, also known as HODLing, is the process of buying a cryptocurrency with the aim of holding it in your wallet for an extended period of time. The idea is to buy low and then wait until the price of a token rises before selling it.
The benefit of this is that you don’t have to watch the cryptocurrency market closely and can just simply buy up tokens without having to engage in daily trading.
This is generally seen as a way of entering into cryptocurrencies for new investors or those with a small amount of money to invest.
You can buy CELO tokens on exchanges, which means you will need to sign up to one (like eToro) and purchase them using fiat or another cryptocurrency like Bitcoin (BTC) or Ethereum (ETH). Once purchased, you will need to transfer them to a wallet where they can be securely stored.
You could hold the tokens in a hardware wallet for ultimate security or use an online-based option or an app on your phone. When holding cryptocurrencies, you will need to make sure you have a private key that is only accessible by you. This is needed as it gives full access to your investment.
There are a number of mobile-friendly wallets that support CELO. They include:
- Valora
- CeloWallet
- Celo Terminal
- Celo Extension Wallet
- Steakwallet
- Metamask
So, if you are looking to invest in this token, HODLing is a great way to do so.
Method 2: Trading
Trading is where you buy a cryptocurrency with the intention of selling it for profit at some point in the future. This can be done for short or long-term returns. Short-term trading, also known as day trading, involves buying and selling tokens within 24 hours to take advantage of price fluctuations that happen during this time period.
Long-term trading, as the name suggests, is where you look to buy and hold a token for weeks or months with the hope it will increase in price and generate profits. Keep in mind that holding usually takes many years, not months or weeks. So, don’t confuse long-term trading with holding.
While it can be profitable, trading is trickier than just buying and holding a token. There are several factors that you need to take into account, including:
- Market trends
- Currency fluctuations
- Exchange rates
- Government regulations
- Political uncertainty.
To make money from trading, you need to be aware of changes in the market and events that could affect cryptocurrencies. This includes such things as Brexit, tax regulations, government policy changes and much more. It's essential to stay up-to-date with current affairs as they affect the price of tokens and long-term trends.
An easy way to get started with trading is using eToro. This social trading platform allows you to copy the investments made by experienced traders and thus benefit from their trades.
So, if you are looking for a shorter-term investment that can be done without too much research and education, then trading may be the best option for you.
Method 3: Staking
Staking is another way to invest in CELO and involves holding tokens in a wallet and using them as collateral so that you can receive newly generated coins as dividends.
Essentially, stakers are simply owners of CELO tokens who lend their coins in return for some interest on the deposit. This has the benefit of increasing the number of tokens held and not requiring constant payment to store them.
This payment is known as ‘staking reward’, which incentivizes stakers for their support of the network.
To stake tokens, you will need to run a staking node on your computer and download software. Most wallets, including the CELO wallet, have this option.
You can also stake coins on exchanges, but it is not recommended as you will need to leave your computer running and sync with the blockchain 24/7. It won’t be very profitable, and it may even cost more than what you earn.
To receive a staking reward for your tokens, you will need to hold a specific number of coins. This varies according to the blockchain and the price of CELO at that time.
If you are looking for a more long-term investment that is likely to be profitable, then you might want to try staking.
Is CELO A Good Investment?
The price of CELO tokens may go up and down over time. This is something that happens with all cryptocurrencies. The long-term trend, however, has been consistently upwards.
Whilst this crypto is still in the early stages, if it succeeds in integrating into global mobile services, then it could be a very profitable investment opportunity for you.
Celo is taking advantage of a market with massive potential. If just a small percentage of the world’s smartphone users adopt the CELO platform, then this cryptocurrency could be very valuable.
What does this mean for you as an investor? It means that the potential gains are also high. The risk is relatively low, too, when compared to other cryptocurrencies in their early stages, so this investment may well prove to be profitable in the long term.
So, if you buy CELO at its current low-price stake or hold for the long term, you could make good returns.
However, there is no guarantee that the price will increase, so it is important to do your own research into this cryptocurrency and weigh up whether or not you should buy it.
There are factors like competition and harsh government regulations that could hamper the future growth of CELO, however, for now, its prospects look bright.
Remember that cryptocurrency investments are risky. Do enough research and seek advice before deciding whether to buy CELO or not. And remember, you can always use more than one of the methods mentioned here.
Read Also: Why Celo Will Skyrocket
Conclusion: So, Should I Buy CELO Tokens?
While it’s not a guarantee that CELO will succeed, there are reasons to be optimistic about this cryptocurrency. It has the potential to grow exponentially due to its unique model, which is focused on mobile phone users.,
Few cryptocurrencies are mobile-friendly, and those that still target specific geographic regions. Celo is uniquely positioned to capitalise on the huge potential of the smartphone market, which is expected to grow rapidly over the next few years.
CELO has a strong team behind it, with more developers being added each month. The community is also active, and there are already some successful projects being launched on the platform. If this type of growth continues, then Celo could be a good investment opportunity for you.
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