How to Buy Terra (LUNA)

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Terra is part of the decentralized finance (DeFi) industry, which seeks to replace traditional financial services with a decentralized alternative on the blockchain. DeFi has attracted crypto investors as a more efficient and less expensive option to send money globally.

Ready to be part of the DeFi industry? Learn how you can buy Terra (LUNA) today. 

What is Terra?

Terra is a decentralized global payment system made specifically for transferring stablecoins. Stablecoins are pegged to other currencies like USD, so payments on Terra don’t fluctuate with the cryptocurrency markets. This limits the risk of buying volatile cryptocurrency while still providing all the benefits of a decentralized payment system. 

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Unlike most DeFi protocols that operate on Ethereum’s network, Terra operates on the Cosmos blockchain. Cosmos has many operational benefits over Ethereum’s network, such as quicker transactions and less expensive transaction fees. 

However, there are downsides to Terra on the Cosmos network. Ethereum has the most applications built on its platform, and only other applications built on Ethereum can directly interact with these programs. Because Terra isn’t built on Ethereum yet, the platform has less liquidity and a smaller user base than many of its competitors.

Terra has recently developed its own stablecoin, Terra USD (UST) that can be used on more than one blockchain platform. This is a valuable upgrade to Terra’s platform because it allows users to send stablecoins to Ethereum and Solana’s blockchains. 

Brief History of Terra

Terra was made with a focus on price stability and user experience. Daniel Shin and Do Kwon founded Terra in January 2018 when the cryptocurrency market bubble popped.

Institutional investors that purchased LUNA during its initial coin offering include Binance, OKEx and Huobi. Terra raised $32 million from its ICO in 2018, minting 385,245,974 LUNA, and the total market has grown to over $2.8 billion at the time of writing.

However, in early May 2022, the Terra ecosystem faced significant downwards pressure as its native stablecoin (UST) depegged from the U.S. dollar. To learn more about this catastrophic event click here.

Luna: Terra’s Native Cryptocurrency

Luna is the native cryptocurrency to Terra’s platform. Luna is used to provide liquidity to the platform, as decentralized finance programs need its users to provide liquidity in its smart contracts. Smart contracts are code on the blockchain that is capable of performing financial functions with cryptocurrencies. 

Terra offers rewards to incentivize users to stake Luna on its platform. Users can earn interest from transaction fees and arbitrage on Terra’s platform. Staking is necessary not only for liquidity, but to adjust the prices of stablecoins through the smart contract’s rebalancing algorithms. 

Luna has a maximum supply of 1 billion tokens, but technically more than 1 billion tokens can be minted. If more than 1 billion tokens are available in the ecosystem, the program will burn extra supply in its treasury. At the time of writing, Luna is $1.09 per coin.

How to Buy Terra (LUNA)

  1. Open an online account.

    To get started investing you need to open an account with a crypto brokerage that supports Luna. The 2 most prominent cryptocurrency exchanges that support Terra in the U.S are Voyager and Gemini.

    Like an account with a stock brokerage, you’ll have to provide personal identification information for tax purposes. To make an account with these exchanges, you’ll need to provide your name, Social Security number, address, email and birthdate. 

  2. Buy or download a crypto wallet.

    In order to hold your cryptocurrency securely you need to store your assets on a cryptocurrency wallet. Storing your cryptocurrencies on exchanges makes your crypto at risk of being hacked –– many exchanges that claim to be secure have been breached in the past. 

    Cryptocurrency wallets can be software wallets or hardware wallets. Software wallets are mobile apps or computer programs that store cryptocurrencies, and hardware wallets are physical devices that store your cryptocurrency offline. Hardware wallets are the most secure way to store your crypto, as it’s impossible to access your funds without the physical device.

    If you plan on trading your crypto regularly, you’ll need to keep your funds on the exchange to do so. Binance is the most secure exchange to use for trading because it has a reserve account to insure your assets against security breaches. 

  3. Make your purchase.

    Once you’ve chosen a crypto wallet to store your funds on, you’re ready to make your purchase. You can place your buy order for Luna  as either a limit or market order. 

    Market orders will purchase Luna at the current market price, while Limit orders will execute at a specified price you set. If the market price of Luna never reaches the price specified in your limit order, it won’t be filled.

Best Crypto Exchanges For LUNA

Not all cryptocurrency exchanges are created equal. Some platforms offer dozens of cryptocurrencies to invest in, while others only offer a select few altcoins and bitcoin. Also, it’s important to consider the security and reputability of the crypto exchange you choose to use. The 2 most reputable exchanges that support the trading of LUNA are Gemini and Voyager.

Unlike Robinhood and SoFi, these exchanges let users send and receive cryptocurrency from their exchange wallets. This way, you’re able to stake and earn interest on cryptocurrencies through decentralized applications (dApps).

claim free Bitcoin securely through Voyager’s website
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Best For
Mobile Traders
N/A
1 Minute Review

Voyager is a leading name in the sphere of cryptocurrency investing, giving you access to over 50 tokens and coins. Buy, sell and swap assets using Voyager Crypto’s simple mobile platform available as a free download for iOS and Android users. 

When you invest through Voyager, you’ll pay nothing in commissions, which is a major benefit when compared to other cryptocurrency brokers. Voyager is also one of the only brokers we’ve seen that allows users to earn interest on their crypto investments. 

Though the broker could do more to improve its customer service, it’s an excellent option for beginner investors and seasoned professionals alike.

Best For
  • Cryptocurrency investors looking for a wide selection of supported projects.
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  • Anyone interested in earning interest on their crypto investments.
Pros
  • Simple, straightforward and intuitive mobile platform
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Cons
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Invest In Crypto securely through Gemini Crypto’s website
Best For
New Investors
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1 Minute Review

Gemini is a cryptocurrency exchange and custodian that offers investors access to over 100 coins and tokens. Founded in the US, Gemini is expanding globally, in particular into Europe and Asia. Offerings include both major cryptocurrency projects like Bitcoin and Ethereum, and smaller altcoins like Orchid and 0x.

Gemini is 1 of the only brokers with multiple platform options based on skill level. New investors will love the streamlined interface of Gemini’s mobile and web apps, while advanced investors might appreciate all the tools that come with ActiveTrader. 

In addition to a host of platform choices, Gemini users also have access to insured hot wallets to store tokens without worrying about digital asset theft. Learn more about what Gemini can do for you in our review.

Best For
  • New investors looking for a simple mobile and web app
  • Day traders looking to use technical analysis tools
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Pros
  • Easy and quick signups — can get started in as little as a 5 minutes
  • Multitude of platforms to accommodate traders of all skill levels
  • Hot wallets include insurance to protect your from theft and hacking attempts
Cons
  • Charges both a commission and a convenience fee for users buying and selling through the desktop or mobile app

Best Crypto Wallets

Here are the best software and hardware wallets for Terra (LUNA).

Best For
ERC-20 tokens

Best Hardware Wallet: Ledger Nano S

There aren’t many choices when it comes to hardware wallets that support Luna. Most multi-coin wallets support major cryptos like Ethereum and Bitcoin, but few support smaller cryptocurrencies like Luna.

The Ledger Nano S is your best bet for storing your Luna in a hardware wallet. Out of the package, the Ledger Nano S doesn’t support Luna. You need to use the Ledger Live application to download Terra Station on your hardware wallet. Once the program is installed, you can send Luna to your Ledger wallet. 

The Ledger Nano S comes in at an affordable $51 on Amazon. Ledger also offers a premium version called the Ledger Nano X for just over $100, but it’s currently out of stock on Amazon. No matter what Ledger wallet you choose, they all offer great security features to keep your crypto safe. 

Trade or Sell Your Cryptocurrency

Soon after your buy order for Luna is fulfilled, you should see your Luna coins credited on your brokerage account. It’s not recommended you keep your Luna, or any other crypto, on an exchange unless you are actively trading. 

In most cases, you can’t trade crypto you store on your wallet. In order to sell your Luna you’ll need to transfer it back to a supported crypto exchange. Alternatively, you can use ZenGo to trade your digital assets directly from your cryptocurrency wallet.

Current Crypto Prices

It’s a good idea to watch the cryptocurrency markets to get an idea of how the prices are moving. Cryptocurrencies are very volatile assets and can move up or down 20% in a single day. 

With Bitcoin in a bear market, many altcoins are plummeting. It is important to keep a close eye on the market to identify if LUNA or any other altcoin appears severely oversold. 

Is Terra a Good Investment?

Terra offers a unique approach to decentralized payment solutions. There’s a clear benefit for users to be able to transact stablecoins globally in a quick and secure way, and Terra has many competitors with more daily users on their platforms. However, it is important to note that the Terra ecosystem is extremely risky and should be taken with extreme caution.

Overall Terra may be a good long-term investment for you if you believe that the Cosmos blockchain is a better platform for DeFi than Ethereum. Cosmos has more efficient transactions and is far more scalable than Ethereum, but the platform suffers from a small user base. 

Terra is working hard to integrate their tokens on the Ethereum network and regain trust from members of their ecosystem following the UST depeg. If trust is regained, Terra may be able to expand its user base significantly over the next few years.

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