Terra is a blockchain platform that uses specialized digital payment systems, one that strikes a balance between free and decentralized options and stable fiat currencies. Similar to the concept of ‘stablecoins,’ Terra allows many stablecoins to be created, all pegged to real-world currencies.
How does Terra work?
Terra keeps the prices of its coins stable by adjusting the supply based on the demand. This means that the supply will always be appropriate for the current buyer demand, allowing the coins to remain as stable as their associated currencies do.
All of the nodes on Terra have to stake in the Terra-specific currency, LUNA, to approve the transactions involved. This also means that LUNA plays a core role in keeping the price stable and is involved in the general operation of the blockchain.
Like many networks, Terra is still expanding and being developed, meaning that a lot can change and improve over time. In their current state, both Terra and LUNA are fully usable, but the blockchain is still being worked on in the background.
Why Use LUNA?
LUNA is involved in the entire Terra blockchain, and holding it allows you to stake your tokens so that you can validate transactions. However, it also works like your typical cryptocurrency – it can still be bought, sold, and traded at will.
Trading LUNA for a profit is completely possible, and the current global rank of the currency is actually quite high. With a high total market cap and an attempt at keeping a stable price, this means that it can become a good currency to use for a range of different reasons.
While it should not fluctuate quite as far as some other currencies, LUNA can still have dips and rises, which means that it is definitely possible to turn a profit on each individual coin.
Should I Trade LUNA?
LUNA is meant to help the Terra blockchain, but trading it will not make that any less true. If you are interested in helping out Terra, then you can stake your coins to help process transactions, which allows the blockchain network to improve and grow.
On the other hand, you can also sell LUNA for yourself. This is not a bad option either and can easily turn a profit in the short-term and the long-term. Since LUNA is meant to be stable, it should not change that dramatically from day to day, so potential losses are not very high.
When you buy Terra LUNA, you are able to either contribute to the blockchain itself or use the currency like regular cryptocurrency. Neither option is going to hurt the blockchain itself, and the crypto can be easily traded for other crypto types or simply sold to turn a profit for yourself.
Remember that you will want to find a good crypto exchange before you get started. This is the easiest way to buy and sell LUNA without having to track down trades yourself and can also offer a good way to see the current value of LUNA while you are trading it. Once you are set up, you can buy it straight away.
