How to Buy Terra Luna: A Step-by-Step Guide
Investing can be a risky endeavor, and it’s important to fully understand the potential for losses before making any investment decisions. The Financial Conduct Authority (FCA) considers certain investments to be high risk due to their potential for losses. As such, it’s crucial to consult with an authorized financial adviser before investing.
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What are the key risks?
Investing in cryptoassets comes with several risks that investors should be aware of. The following are some of the key risks associated with investing in cryptoassets:
The performance of most cryptoassets can be highly volatile, with their value dropping as quickly as it can rise. There is a risk of losing all the money invested in cryptoassets. The cryptoasset market is generally unregulated, and there is a risk of losing money or any cryptoassets purchased due to risks such as cyber-attacks, financial crime, and firm failure.
Investors should not expect to be protected if something goes wrong. The Financial Services Compensation Scheme (FSCS) does not protect this type of investment because it’s not a ‘specified investment’ under the UK regulatory regime. Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance.
There is no guarantee that investments in cryptoassets can be easily sold at any given time. The ability to sell a cryptoasset depends on various factors, including the supply and demand in the market at that time. Operational failings such as technology outages, cyber-attacks, and comingling of funds could cause unwanted delay, and investors may be unable to sell their cryptoassets at the time they want.
Investments in cryptoassets can be complex, making it difficult to understand the risks associated with the investment. Investors should do their own research before investing and should be cautious of any investment that sounds too good to be true.
Putting all the money into a single type of investment is risky. Spreading the money across different investments makes investors less dependent on any one to do well. A good rule of thumb is not to invest more than 10% of the money in high-risk investments.
It is important for investors to protect themselves and their investments. They can visit the FCA’s website for more information on how to protect themselves. Additionally, investors should obtain appropriate financial advice and only invest what they can afford to lose.
What is Terra (Luna)?
Terra (Luna) is a native cryptocurrency of the Terra blockchain, which was launched in 2019. The blockchain was created specifically to generate stablecoins that maintain parity with fiat currencies, such as the US dollar.
To validate transactions on the Terra network, users spend Luna tokens and have a say in the project’s future direction. Luna holders receive a small fee when Terra stablecoins are spent.
Investors interested in purchasing Terra (Luna) should be aware of the high risks involved. However, they can buy the new Luna token by following the appropriate steps.
How to Buy Terra (LUNA)
1. Choose an Exchange
To buy Terra (LUNA), investors will need to use a cryptocurrency exchange to swap fiat currency for LUNA. When choosing an exchange, it is important to consider the following:
Payment methods: Most exchanges accept bank transfer, credit, and debit cards. Bank transfers are the most cost-effective and widely accepted payment method. However, some exchanges charge fees for card payments. PayPal is not 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 should check if the exchange allows transfers out and whether there are any fees to pay.
2. Choose a Way to Pay
Exchanges generally do not charge fees on direct bank transfers, making them the cheapest and simplest way to pay. Fees for credit and debit card payments are common, and not all card issuers allow investors to pay by credit card.
Some card issuers, such as TSB, Virgin Money, and Tesco Bank, block transactions with crypto exchanges. Investors should check with their card issuer to see if they allow transactions with crypto exchanges.
3. Place an Order
Once a payment method has been chosen, investors can navigate to the LUNA page in their chosen exchange and enter the amount they would like to invest.
4. Choose a Storage Method
Many exchanges offer an integrated wallet in which to store the keys required to access LUNA. However, 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, and tokens held in them can be stolen. However, 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)
To sell Terra (Luna), investors can use a cryptocurrency exchange to exchange their tokens for fiat currencies or other tokens. Each exchange has a unique interface, but generally investors can either visit the page of the token they want to buy or go to their account and choose from the buy, sell, and convert options.
Investors will be shown a conversion rate that indicates how much they will receive in exchange for their Luna, minus any fees. Once satisfied with the conversion rate, investors can execute the trade and sell their Luna.
It is important to note that cryptocurrency is unregulated in the UK, and the Financial Conduct Authority has warned investors that they risk losing all their money if they buy cryptocurrency, with no possibility of compensation. Therefore, investors should carefully consider their options before selling their Luna.
Frequently Asked Questions
Is Terra (Luna) safe?
Terra (Luna) is a cryptocurrency and like all cryptocurrencies, it is volatile. However, the underlying principles and technology on which it is built tend to be sound. The only safety concerns to be aware of are related to crypto exchanges and wallet security. Crypto exchanges can collapse, and there is no regulation in place to protect investors, so there is no compensation or recourse if things go bad. Similarly, an investor’s assets are only as secure as their wallet is from cybercriminals.
Is Terra (Luna) a good investment?
As with all cryptocurrencies, Terra (Luna) is volatile and the Financial Conduct Authority (FCA) has repeatedly warned potential investors to be prepared to lose everything. An investment could go up or down in value, and there is no reliable way to predict which way it might go.
Where can I buy Terra (Luna) in the UK?
Terra (Luna) is available from many crypto exchanges, both large and small. It is essential to do your research and choose a reputable exchange that offers robust security measures to protect your investment. It is also important to note that the information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique, and the products and services reviewed may not be suitable for your circumstances. Forbes Advisor does not provide financial advice, advisory or brokerage services, nor does it recommend or advise individuals to buy or sell particular stocks or securities. Performance information may have changed since the time of publication, and past performance is not indicative of future results.
Forbes adheres to strict editorial integrity standards, and the opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by partners. The Financial Promotion has been approved for the purposes of section 21 of the Financial Services and Market Act 2000 by Richdale Brokers & Financial Services Ltd (FRN 769876). The date of approval is 23/05/2023.
In conclusion, Terra (Luna) is a cryptocurrency that offers potential investment opportunities, but like all cryptocurrencies, it is volatile. It is essential to do your research and choose a reputable exchange that offers robust security measures to protect your investment. Remember that your financial situation is unique, and the products and services reviewed may not be suitable for your circumstances. Forbes Advisor does not provide financial advice, advisory or brokerage services, nor does it recommend or advise individuals to buy or sell particular stocks or securities.