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If you’re looking for a stablecoin backed by real-world assets, Terra (LUNA) could be an excellent choice. Terra is a blockchain-based initiative that aspires to bring economic stability and liquidity on a worldwide scale.
In this Terra cryptocurrency mini-guide, we’ll examine some of the most important characteristics you should be aware of before investing in it.
Terra LUNA protocol explained
Stablecoins are Terra’s primary focus. Terra LUNA offers one of them in the form of TerraUSD (USDT), in addition to stablecoins tied to numerous other currencies, such as the South Korean won, the Euro, and the Mongolian tugrik.
As a means of moving money and making purchases, stablecoins have a better chance of catching on because of their relatively stable value.
Volatility limits the usefulness of most cryptocurrencies. A lot of people keep them with the expectation that their value would rise. It’s difficult for businesses to accept them because the price may also fall. Stablecoins have no trouble in either case.
The price balancing effect
For the stablecoin, Terra Luna tokens are a stabilizing force. Staking and project management are two further uses for Luna tokens.
A hypothetical situation: Terra’s dollar-pegged stablecoin, UST, is in high demand. As a result of these changes, the item now costs $1.05 instead of $1. Terra’s response is to increase the total supply of UST tokens.
LUNA and staking
Tokens owned by Luna holders can be used as collateral for bets. To use Luna tokens for transaction verification, you must stake them.
There is absolutely no danger in this. Unstaking your tokens is always an option as unstaking can take up to 21 days. The transaction fees Terra receives when Terra’s stablecoins are used will go to you if you stake Luna.
It is possible for Terra’s token holders to have an impact on the company’s future. As a governance token, those who own Luna have a say in how the project is run.
South Korea and Terra LUNA
Terra is best known in South Korea. However, it is accessible to everybody in the world, including those in the US and UK.
The initiative focuses heavily on the Asian market. Currently, Terra’s stablecoins are tied to the US dollar (USD), the Korean won (KRW), the Chinese yuan (CNYT), the Japanese yen (JYNT), and the Singapore dollar (SGD).
The group intends to introduce additional assets in the future, including but not limited to the Hong Kong dollar (HKDT), the British pound (BPT), and the Euro (EUT).
Terra stablecoins are available for purchase on various exchanges.
Buying Terra LUNA
Buying BTC, ETH, and USD with a credit card is always the first step. Afterward, they can be reborn as Terra.
The first step is to sign up for an account with one of the several exchanges that facilitate the transfer of fiat currency to virtual currency. On exchanges and peer-to-peer networks, you can buy cryptocurrencies.
Once you confirm your account, select USDT and enter the amount of money you wish to spend or the number of coins you wish to purchase. Click the Buy button when you’ve completed these steps.
The majority of cryptocurrencies and tokens on the market may be purchased using USDT.
It’s easy to send USDT to one of the US-friendly cryptocurrency exchanges. Convert USDT to BNB for example, and then send BNB to your own wallet and swap it for LUNA using PancakeSwap.
The next step is to create an account. A simple operation that should take no more than five minutes is all that is required.
Now it’s time to convert some USDT to BUSD. Go to “Funds” and then “Deposits & Withdrawals” to see which coins you may deposit and withdraw. After finding USDT in the list by scrolling down, click the Deposit button to make a deposit.
Copy and paste the unique address into your Coinbase wallet after you’ve received it.
The platform will make your USDT available for trade within 10 to 15 minutes after receiving your deposit. Once you’ve got it, you can trade your USDT for BUSD.
To find the LUNA/BUSD trading pair, go to Market and search for LUNA. Click Buy LUNA after deciding on a trading pair. Then enter the amount of BUSD you want to be converted to $LUNA in the first field and that’s it.
Exciting times for Terra are around the corner. Terra is about to skyrocket and you should make sure that you too are there to ride out the wave and make a profit. If you’re having trouble figuring out how to purchase Terra, refer to our guide to help you out.