Terra is a relatively new crypto protocol aiming to create stability in digital asset prices. The project is gaining success fast, and this has increased the value of its native coin, the LUNA token. Additionally, Terra has several projects coming up and millions of users across the world.
Whether you are new to Terra or not, you will want to know more about the LUNA token before buying it. Here are the insights that you should know. They will help you to make the right decisions.
LUNA Token Helps in Stabilizing Prices
The Terra protocol has other stablecoins such as UST. Their native coin, the LUNA token, is responsible for keeping all the prices where they should be. But how does this happen?
When the protocol wants to regulate the supply of stablecoins, they incentivize trading using LUNA. The increase and decrease in supply balance the prices as needed. This means users of the Terra protocol can trade LUNA for other stablecoins and vice versa.
You Can Stake LUNA Token
Here is the good news for investment-oriented crypto enthusiasts; you can stake any LUNA tokens that you have. Also, you can directly buy the coins on Terra to stake if you have not purchased them yet or want more.
The Loop finance platform will help you stake LUNA tokens and earn for doing this. Staking means pledging your tokens to be used for the project and getting paid for it. So, Terra pays through part of the fees that investors pay for transactions.
You Can Trade LUNA Token
Well, we have already mentioned that you can trade any LUNA token that you have for other stablecoins. Fortunately, many exchange brokers have access to LUNA and have listed it on their platforms.
Before buying or selling your LUNA, use the price chart and crypto calculator provided by the platform to understand the rates, fees, and any other information. This will help you buy at the right time.
Terra LUNA Is Especially Popular in South Korea
The Terra protocol originated in South Korea, and most of its successful projects are here. The native stablecoin is pegged on the South Korean won, and all the people who use it spend over $1 billion every year. According to this information, the largest customer base is in South Korea, but its popularity is growing very fast around the world.
Therefore, you can still access it from any part of the world and enjoy trading or earning through the staking process that we have mentioned.
LUNA Token Offers the Right to Vote
The LUNA token provides a governance right as well to all users on the Terra protocol. As mentioned, the platform undertakes several projects that help it to grow. For transparency and democracy, users of Terra have a right to vote on various decisions.
So, when you buy LUNA, you should stay updated on projects and vote for what you think will take the projects forward and improve your chance of getting more profit from your investment.
Last, buying, trading, and staking LUNA require preparation. Holders should take the precautions necessary to be successful in the crypto world. It is highly recommended that you read more tips on handling LUNA tokens from their official website or consult with those who have used it before.