LUNA can be a unique investment opportunity as it provides exposure to the stablecoin adoption story and to decentralized apps (dApps) within the Terra ecosystem. But before you jump in and buy yourself some LUNA, here’s an overview of what it is and how you can earn rewards by staking it. We also tell you where and how to buy LUNA in Canadian dollars.

What is LUNA?

LUNA is the native token of the Terra blockchain, a decentralized and open-source protocol known for its stablecoins, including UST, its own US dollar-denominated stablecoin.

Founded in 2018 by Daniel Shin and Do Kwon, Terra is one of the largest blockchains in terms of revenue and caters to users around the world, with stablecoins pegged to the US dollar, South Korean won, euro and UK, among others. lb. † Moreover, Terra is a smart contract platform for blockchain-powered dApps that offer loans, loans, insurance and other services.

Unlike the price of bitcoin or ether, the price of a stablecoin remains constant against a particular asset or currency, for example the US dollar. So 1 UST equals US$1. This stability facilitates frictionless global payments and makes cross-border trading more efficient, making stablecoins an attractive use case for cryptocurrencies. UST is unique among stablecoins in that it does not rely on dollar-denominated reserves to maintain its peg to the US dollar; rather, it does this by automatically adjusting UST’s supply based on demand.

LUNA is not a stablecoin – it is the Terra blockchain governance token, which allows LUNA strikers to submit proposals for Terra and vote on it. LUNA holders are incentivized to participate in maintaining the Terra protocol by staking their tokens (more on this below) to receive rewards.

Is LUNA a good investment?

LUNA can be an attractive investment because it combines the practicality of price stability with the benefits of blockchain technology. In the long run, the price of LUNA is likely to rise or fall based on the adoption of Terra stablecoins and the Terra protocol. The more widespread the use of UST, the higher the price of LUNA could be. Since LUNA is essential to the Terra blockchain, greater Terra adoption could create more demand for LUNA, leading to higher prices.

As of early April 2022, LUNA is valued at over $110 per coin (all figures in US dollars), up 17% from the beginning of the year. But that’s minuscule compared to the 14,000% gain in 2021. If you had invested $1,000 in LUNA on January 1, 2021, you’d be sitting at over $140,000 now. The winnings would be even higher if you had wagered your LUNA to earn rewards. But will the Terra protocol continue to grow? Two of the top 10 cryptocurrencies are stablecoins (USD coin and tether USD), and Terra is gaining ground as a blockchain platform for non-replaceable tokens (NFTs), decentralized finance (DeFi), and Web3. This bodes well for UST and LUNA.

Where to buy LUNA in Canada

You can buy LUNA in Canadian dollars on a crypto trading platform such as NDAX, which is a very secure and fully compliant platform with a low transaction fee of 0.2%. It offers a large selection of cryptocurrencies, robust security standards, and multiple deposit and withdrawal options. It also offers customer service via live chat, email and telephone, with an expected response time of 24 hours for messages received outside office hours.


This post How to buy Terra (LUNA) in Canada was original published at “https://www.moneysense.ca/save/investing/crypto/how-to-buy-terra-luna-in-canada/”

admin

Leave a Reply

Your email address will not be published.