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Following a brief hiatus after its involvement in the collapse of the Terra blockchain in 2022, Luna returned on a new blockchain.
Not to be confused with Terra Classic and Luna Classic, the chain from which the new Terra blockchain hard forked and its native currency, the new Luna is no longer associated with the Terra US (UST) stablecoin. Here’s some more about the Luna cryptocurrency .
What is Terra (Luna)?
Luna is the native cryptocurrency of the Terra blockchain, which was created in 2019. The blockchain was designed to create stablecoins – cryptocurrencies whose values keep parity with fiat currencies such as – but not exclusively – the US dollar.
Users of the Terra network spend Luna tokens to validate transactions, and to have a say in the future direction of the project. For example, choosing which stablecoins will be minted next. When people spend Terra stablecoins, Luna holders receive a small fee.
If an investor wants to buy Terra (Luna) and is fully aware of the high risks, here’s how to go about buying the new Luna token.
How to buy Terra (LUNA)
1. Choose an exchange
Investors will need to use a crypto exchange to swap fiat currency (pounds sterling) for Luna. When choosing an exchange, there are a few important things to look out for, such as:
- Payment methods: Most exchanges accept bank transfer, credit and debit cards. Bank transfers are the most cost-effective and most widely accepted payment method. Some exchanges charge fees for card payments. PayPal isn’t widely accepted
- Wallets: Most exchanges offer integrated wallets in which to store Luna. If an investor prefers to store their crypto in a third party hot wallet or a cold wallet, they’ll need to check if the exchange allows transfers out and whether there are any fees to pay.
2. Choose a way to pay
Exchanges generally don’t charge fees on direct bank transfers, making them the cheapest and simplest way to pay. Fees for credit and debit card payments are common, plus not all card issuers allow investors to pay by credit card.
For example, TSB, Virgin Money and Tesco Bank block transactions with crypto exchanges. Here’s how some of the other card issuers handle crypto transactions.
3. Place an order
Once a payment method has been chosen, investors can navigate to the Luna page in their chosen exchange (being careful not to choose Luna Classic) and tap in the amount they’d like to invest.
4. Choose a storage method
Many exchanges offer an integrated wallet in which to store the keys required to access the Luna, but investors may want to store their crypto in a third party wallet, or offline in a cold wallet.
Online ‘hot’ wallets are a target for hackers. Tokens held in them can and have been stolen, but the upshot is that if an investor were to lose their wallet credentials and couldn’t access their tokens, the exchange could help to recover them.
Offline, ‘cold’ wallets are harder for hackers to access because of the ‘air gap’ between the hardware and the connection to the internet. However, if an investor lost access to their wallet (for example, if they lost the credentials), they could be locked out of their own wallet with nobody to help recover it.
How to sell Terra (Luna)
Luna holders can sell their tokens in exchange for either fiat currencies or other tokens using a crypto exchange. Each exchange has a different interface, but generally investors can either visit the page of the token they’d like to buy or go to their account and choose from the buy, sell and convert options.
Investors will get a conversion rate that’ll show how much they’ll get in return for their Luna, minus any fees. Once happy, investors can execute the trade and sell their Luna.
