Celo's ecosystem revolves around smartphone technology. The Celo network set out to create a fast, lightweight and user-friendly payment protocol for mobile devices.
With most blockchains, your public key and private key address is a series of complex strings of letters and numbers. If you lose your address, you could potentially lose your cryptocurrencies.
Imagine if your blockchain address is your phone number, and you could send payments to other phone numbers via your smartphone. Great, yes? Well, that's what Celo is all about. You can send crypto payments with your mobile phone and never worry about losing your public or private key address.
Some parts of the world are without internet or landline cables for phones. But, almost everyone across the globe has access to a mobile phone. Across the world, there are billions of people using smartphones, but not many of them use cryptocurrency. With Celo, anyone with a mobile phone has access to crypto payments.
Crypto critics may argue that we can already send cash with our smartphones using apps like Cash App and Venmo. But, the most significant difference is that centralised organisation's control these apps. At any time, they have total power over your account. They can set transaction limitations and restrict your buying power.
As Celo is a decentralized application, you have total power over your account, restricted only by how much crypto you have available to spend.
As the crypto market grows exponentially, one problem new users experience is the difficulty of blockchain transactions. Complex processes mean it's easy to make mistakes, which can be costly when buying cryptos.
Another benefit of using mobiles as crypto addresses is a blockchain requiring fewer resources compared with other blockchains, such as Bitcoin, which is a massive drain on resources.
The Celo platform uses EigenTrust, a decentralised algorithm that measures reputation, much like a credit score for centralised finance.
So, this information about Celo all sounds great, but how does this apply if you want to buy CELO tokens? If you're going to invest in Celo, what are the pros and cons of buying Celo?
Should you buy Celo? The 4 pros and 4 cons in this post will help you decide whether to buy Celo for investment.
The Pros Of Buying Celo
Pro #1: The Celo App is Reliable and User-friendly
Deposits and withdrawals are quick and easy on the Celo App. It's easy to download the app, buy CELO and either stake it, invest it or trade CELO.
Ease of use has always been an issue for early cryptos to the market. Now, with so many crypto beginners wanting to buy crypto, blockchains that are user-friendly have more appeal.
Pro #2: The Celo Native Stablecoin CUSD Pegs to the US dollar
What are Celo dollars?
CUSD is a Celo native stablecoin that follows the US dollar. One CUSD is equal to the value of $1 using the Celo reserve system, a portfolio of cryptos, like Ethereum (ETH) and others, to help balance out the price of CUSD.
As the value of CUSD ties to the value of the US dollar and other stable assets, there's no reason to invest in CUSD. Primarily, it is for payment transactions rather than storing and holding value.
Celo also tracks to the EURO via CEUR, and Celo has plans to add more stablecoins in the future.
Pro #3: The Celo Blockchain Has Alliances with Trusted Partners
If well-known organisations have confidence in the Celo network, it helps inspire trust from crypto investors and enthusiasts.
On the Celo Alliance page, the list of over 100 companies shows a history of working with Celo. For instance, Coinbase Ventures, a16z and Polychain capital list Celo. And the well known Ledn is one of the dozens of crypto lending platforms with Celo Alliance.
Pro #4: Celo Has a Broad Range of Tools Available for Developers
Celo makes it easy for developers to build for smartphones.
Celo is EVM (Ethereum Virtual Machine) compatible, so it is easy for developers to "build and port dApps over."
The Optics standard enables developers to build bridges with cross-chain communications. The Celo website has developer tutorials and documentation to learn how to programme smartphones using the Celo SDK (Software Development Kit).
Check Out: Could Celo Be A Millionaire-Maker Coin?
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
The Cons of Buying Celo
Con #1. Celo Could Struggle with Scalability
There are over 6 billion global smartphone users. It may seem like a massively captive audience for Celo. There is, however, a lot of competition in the field of mobile payments.
Millions of people do not understand or trust cryptocurrencies and may never adopt a crypto payment method. Unless crypto becomes mainstream, outpacing centralised payment options, this sector of society is unavailable to Celo.
There's also competition within the crypto industry with similar technology. Though the concept of using the mobile phone number as a crypto key is appealing, many crypto apps enable crypto payment, fast, low-cost transactions that are as user-friendly as Celo.
Celo must differentiate its technology from trusted competitors and give smartphone users a logical reason to switch to Celo technology.
Con #2. Celo Focuses on Developing Countries More than Top-tier Countries
Many blockchains focus on global adoption, but Celo targets developing countries that may not have the connectivity of top-tier countries with Internet and landline cabling.
The decision by Celo may seem logical to target users with poor access to technologies, but developing countries typically have less disposable income than top-tier countries.
For the Celo blockchain to survive, it needs user uptake, people downloading the app and buying CELO. Only time will tell if Celo can succeed in their current targeting, and perhaps they will refocus on tier 1 and tier 2 countries as they gain uptake. But it seems a wasted opportunity when users with disposable income would welcome the ease of using the Celo protocols eager to buy Celo on their smartphones.
Con #3. Celo does not Have High Liquidity
Lack of liquidity equals increased volatility and can result in slower transaction speeds. Liquidity can be an issue for many cryptos, so this concern is not unique to Celo.
Low liquidity in crypto markets increases the risks of trading cryptos. It's easier to buy and sell cryptos in a liquid market because it means your order gets filled, and there's less risk of unexpected price spikes.
Many people have centralised payment apps on their smartphones and may not yet realise the benefits of a decentralised payment app. With exposure to the Celo technology, Celo anticipates more users will switch to the Celo app for payment transactions.
As mainstream adoption of CELO increases and more crypto traders start trading CELO, liquidity should improve.
Con #4. Celo is Not Available on All Leading Crypto Exchanges
It can take time for emerging cryptos to achieve mainstream adoption by leading cryptocurrency exchanges.
Some cryptocurrency exchanges have only recently added Dogecoin (DOGE), the #11 listed crypto. Shiba Inu (another popular dog-themed meme coin) is also unavailable on some crypto exchanges.
We've added a list of where to buy CELO in the FAQs below because it is available with a few leading crypto platforms that you can trust.
Don't Miss: How To Trade Celo With $100
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Recap of Should you Buy Celo? 4 Pros, 4 Cons
The Celo network provides a valuable service for smartphone users who may not have access to the Internet or a landline.
The reduced complexity of using a phone number for crypto transactions is a bonus of using a decentralised app for sending payments. Users across the globe can now take part in the crypto explosion and do so without fear of censorship from centralised organisations.
Before buying cryptocurrencies, it's essential to weigh up the pros and cons of buying crypto.
Let's take a quick reminder of the pros and cons of buying Celo:
The 4 pros of buying Celo:
✅ Pro #1 – The Celo app is reliable and user-friendly
✅ Pro #2 – The Celo native stablecoin CUSD pegs to the US dollar
✅ Pro #3 – The Celo blockchain has alliances with trusted partners
✅ Pro #4 – Ceko has a broad range of tools available for developers
The 4 cons of buying Celo:
❌ Celo could struggle with scalability
❌ Celo focuses on developing countries more than top-tier countries
❌ Celo does not have high liquidity
❌ Celo is not available on all leading crypto exchanges
One in three adults globally does not have a bank account, which means they are excluded from the simple daily transactions most of us take for granted. Celo states, "We believe that to create a truly inclusive financial system, we must begin by serving those who need it most."
Celo's primary motivation, therefore, is to create an inclusive financial system by building an infrastructure to help the people without access to the current economic system.
Is Celo's motivation to help under-developed countries achieve financial inclusivity an altruistic or financial decision? Targeting countries with less spending power is an interesting strategy with extensive competition from decentralised and centralised apps. Only time will tell if this decision can increase the widespread adoption of Celo.
Celo already has around 100 partnership projects and provides various development tools for building DApps and smart contracts. The CELO token is for payment transactions, and the CUSD and CEUR stabilise price volatility.
You can currently buy CELO tokens for under $4, making it an affordable crypto token for small investors. Crypto experts predict that CELO adoption will increase during the year, and prices could be as high as $6.
As more crypto exchanges list CELO for trading and investing, more mainstream adoption will help increase exposure to the user-friendly Celo app for sending crypto payments.
You can stake CELO for rewards and, if you want to become a Celo network validator, the minimum requirement is 10,000 CELO.
So, should you buy Celo? The 4 pros and cons of buying Celo are reasonably equally balanced, and, as a result, crypto experts suggest that there may be better cryptos for investment where the pros heavily outweigh the cons.
Please note that the above information is not providing advice on tax, investment, or financial services. We provide the above information without considering risk tolerance and a specific investor's financial circumstances.
Trading or investing in financial instruments such as cryptos may not be suitable for all investors. It does involve risk and the possibility of a loss of capital. There are no guarantees for profiting from cryptocurrencies, and it's advisable only to risk what you can comfortably afford to lose.
eToro — The Top Platform To Buy Celo
eToro have proven themselves trustworthy within the crypto industry over many years – we recommend you try them out.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
FAQs
Should I buy Celo?
Investing in cryptos is speculative, which means it is risky. Though Celo has utility, it has yet to gain mainstream acceptance by crypto enthusiasts and traders. Only a tiny percentage are staking CELO, and not all leading crypto exchanges list Celo. The Celo project has support from over 100 companies, which is encouraging. But, realistically, it's early days for Celo, and many crypto experts suggest there are crypto tokens with more growth potential. The upside for Celo is it's under $5, so if you want to invest in Celo, you can do so with a small investment.
Is Celo legit?
Yes, Celo is a legitimate platform.
Does Celo have its own blockchain?
Yes, the Celo network has its own blockchain.
Where can I buy Celo (CELO)?
You can buy CELO from a few crypto platforms, such as eToro – the world's leading social trading platform. You can also buy CELO from a few established crypto exchanges, such as Binance, Coinbase, Coinbase Pro and Gate.io
How do I stake CELO?
It's easy to stake CELO by finding an exchange that lists CELO tokens and has the option to stake your CELO tokens. 1. Open a CELO wallet to store and stake your CELO tokens 2. Lock in your CELO tokens 3. Vote for a validator group 4. Enter the amount of CELO you wish to stake 5. Confirm and activate 6. Monitor your rewards, usually paid daily 7. Review and activate You can choose the CELO phone wallet, terminal wallet, or other wallets listed on the Celo website.
Can CELO reach $100?
Celo is currently less than $5 and has a cap of 1 billion CELO tokens with a circulating supply of only 37% with 367 million coins. Right now, CELO may struggle to reach $100 or even $10 because there's so much supply available. By comparison, Bitcoin capped BTC supply at 21 million. The currently circulating BTC supply is 90%, with almost 19 million BTC. Supply and demand determine prices that typically rise with reduced supply. If you buy CELO expecting the price to rise to $100, you may be in for a long wait. Crypto experts predict that the price of CELO could increase to $6 by the end of 2022, which is a more realistic expectation than $100.
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