Terra is a protocol designed to create cryptocurrencies with stable prices. Launched in 2018, its value has grown to become one of the successful cryptos out there. Terra boasts of a market cap of $27 billion with millions of users across the globe accentuating its projects.
As fascinating as Terra could be in the crypto space, there is a need to have forehand knowledge on things to put into consideration while mulling on investing in Terra.
1. Terra Tokens Enable Staking And Governance Project
Terra token holders can easily stake their tokens while pledging the tokens to the Terra network. This is used in the transaction verification process. This practice comes with zero risk as staking and unstaking are at your prerogative. But you will receive a cut of the transaction fees by Terra when its stable coins are used in the event of you staking.
Also, Terra token holders are enfranchised in the decisions for the future of the token. Notable as a governance token, its holders have voting rights in implementing its projects.
2. Terra Has Its Most Popularity In South Korea
It could be recalled that South Korea is the home country of Terra, and as such garnered it with huge success in the Asian country. According to a video released by Terra in May 2021, Terra’s stablecoin in the equivalent of the South Korean won has had over 2 million people per year with a spending of over $1 billion.
Following the market ground, Terra is trying to gain, having an expansion to the United States is not a guaranty, but time will tell.
3. Terra Protocol Offers Multiple Stablecoins Used By Different Currencies
The focal point of Terra is stablecoins, which are cryptocurrencies used for another asset. Most stablecoins are equivalent to the U.S. dollar. However, Terra also offers TerraUSD (UST), although it has stablecoins equivalent to the Euro, South Korean won, and the Mongolian tugrig.
On a lighter note, the same-price feature that comes with stablecoins enables them to be used in fund transfer and the purchase of goods and services.
4. Buying Terra Can Be Challenging
Finding an exchange that lists Terra’s Luna token for purchase is not an easy thing to see. This is because most of the top crypto exchanges don’t have Terra tokens on their platform. But a few exchanges where you can buy or trade Luna includes Voyager, Binance, etc.
In 2021, Terra has been able to gain some traction by keeping its growth at a remarkable pace.
Conclusion
Investing in Terra might seem like a Yes, but preparation for its volatility and the likelihood of losing your money must be put in mind while making the decision. An investment in Terra is worth adding to your portfolio if you are on good terms with what Terra offers.
