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How to Buy Algorand Online in 2024
Algorand is a conglomerate of projects created to expand how cryptocurrency can be used in the modern world. By accelerating transaction speeds and reducing the time it takes for transactions to occur, it hopes to improve the ease of using cryptocurrency.
If you are looking to buy cryptocurrencies such as Algorand, this guide will explain Algorand, its pros, and cons, and how you can buy Algorand online in 2024.
Best Platforms to Buy Algorand 2024
| Exchange | Why we like it | Best for |
|---|---|---|
| Coinbase | – User-friendly interface – Native crypto wallet – Earn interest on your crypto – Low account minimum | Beginners looking to trade large-cap coins. |
| eToro | – Access stocks and crypto in one place – Copy the trades of experts – Regulated by global bodies – Access Bitcoin Spot ETF | Investors who want to buy crypto and stocks. |
| Kraken | – Cold wallet storage – Trade with leverage up to 5x – Advanced traders can access – Kraken Pro with sophisticated trading tools – Over 200 cryptocurrencies available | Advanced traders who are interested in margin trading. |
| Crypto.com | – Excellent mobile app – Users can receive trading discounts by holding CRO – Native decentralized wallet – Over 250 cryptocurrencies available | Traders who want to manage their portfolio on their mobile phones. |
| Binance | – Over 500 cryptocurrencies available – Extensive range of educational materials – Automated trading | Users who are looking to build a diverse portfolio with lots of different cryptos. |
What Is Algorand?
Algorand (ALGO) is a new public blockchain, aiming to expand the uses of cryptocurrency in daily life. It’s a relatively new technology and has not experienced much testing under real-world market conditions. Therefore, it’s hard to determine whether or not its technology will be a success.
The currency was launched in 2019 by professor Silvio Micali. Micali is a renowned computer scientist and a professor at the Massachusetts Institute of Technology (MIT). Unlike many other crypto founders, he already has a distinguished career as an academic. In 2012 he won the Turing Award for a project he worked on with Shafi Goldwasser. He was praised for his work on cryptography, making it a more ‘precise science’. To create the white paper for Algorand, Micali worked with several academics and cryptographers.
Algorand is funded both internally and externally. Initially, several investors were invited to private early sales of ALGO, which helped fund its development. Algorand today is funded by the Algorand Foundation. The foundation, based in Singapore, continuously funds the cryptocurrency in exchange for ALGO tokens.
Algorand has two features that help it stand out in the market. ALGO cryptocurrency is introduced to everyone who holds a certain amount of the currency with each new block. This allows holders to generate a passive income. Algorand also allows users to create smart contracts and smart tokens. Both of these can be used for new and existing assets.
Should individuals believe in the technical specifics of the token, Algorand could become the go-to choice for developers who want to launch their own decentralized applications. ALGO has also become a part of many investors who believe in proof-of-stake blockchains.
Though it has its own coin, the main aim of the Algorand blockchain is to aid the development of applications fuelled by cryptocurrency. Should cryptocurrency be adopted by governments, Algorand will likely be involved in the development of apps. It’s already been used in microfinance, property, and copyright.
In August 2021, the market cap of ALGO was $2,980,408,230, with 3.23 billion tokens in circulation. It has a maximum supply of 10 billion tokens and a fully diluted valuation of $9,222,709,687. It’s valued at $0.9222 and reached highs of $2.5 in July 2019. The token has been steadily rising throughout the third quarter of 2021, after reaching a high of $1.7 in May.
Algorand investors have predicted that the price will reach $6.5 at the start of 2022, reaching highs of $10 by the end of the year. This could make the token extremely valuable for holders.
- The development team behind ALGO is one of the best in the crypto industry. Micali has a significant experience advantage over many developers, as well as a pool of academics to support him. This in itself makes ALGO one of the most exciting upcoming cryptocurrencies.
- Should Algorand accelerate transaction speeds and transaction complexities, it could be adopted on a mass scale. Both these issues are common amongst most cryptocurrencies and therefore ALGO would have a huge competitive advantage.
- The biggest fallback of ALGO is that it’s relatively untested in real-world scenarios. Whilst many popular cryptocurrencies have been in circulation for years, ALGO still needs further testing. This could make it a risky investment for new investors, or those that don’t understand the technology used.
- It’s currently hard to determine whether or not Algorand will be adopted in the future. Current investors seem hopeful in the technology and the token, however with innovation being a foundation of cryptocurrency, it is hard to predict its success.
How Does Algorand Work?
The Algorand Foundation, which funds the development of the protocol, has announced that only 10 billion ALGO tokens will ever be created. It uses a block explorer, which keeps a count of every coin in circulation. They have released an official distribution schedule, with the aim of distributing 3 billion tokens in the next five years. Here’s what they plan to do.
In the next 5 years, 3 billion tokens will be released into circulation. This started in June 2019.
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1.75 billion tokens will be awarded for participation.
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2.5 billion tokens will be released by relay node runners. As of Jan 2021, there are over 100 relay nodes.
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2.5 billion tokens will go to the Algorand Foundation & Algorand, Inc.
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0.25 billion will go to end-user grants.
Algorand itself continues to support the development of cryptocurrency-based applications, making cryptocurrency more accessible to the average person.
Now that you know what Algorand is and how it works, you can use one of the brokers above to buy Algorand online. However, if you’re still unsure on how to get started, continue reading!
How to Buy Algorand Online
Algorand can be purchased using fiat currencies on several cryptocurrency exchanges. This can be done via Credit/Debit card or Bank Transfer directly on the exchange.
Here’s how you can buy Algorand online:
Step 1: Sign Up for an Account
Sign up (or sign in) to a popular exchange. Binance and CoinBase Pro both sell Algorand.
Step 2: Verify Your Account and Fund It
Validate your account and fund it with fiat currency. Search for ALGO on the exchange.
Step 3: Confirm the Purchase
Use the currency you deposited to make a purchase. Check your account and confirm that the purchase has gone through.
Congratulations, you’ve just bought your first Algorand!
How to Trade Algorand
Algorand is commonly traded on several crypto exchanges against several coin pairs. Holders also have the option to stake their ALGO, earning a % from their stake. Rewards for this range from 5-10%. The most popular options for Algorand staking are Binance, Kucoin, and Coinbase Pro.
ALGO is commonly traded against 3 major cryptocurrencies- USDT, BTC, and ETH. In general, BTC and USDT trades appear to be the most popular with trading volumes being lower with ETH.
With ALGO still being a new token, it’s not traded on the scale we see with other popular options (DOGE, ETH, BTC). However, it could become a popular trade should it reach its predicted value at the end of 2024.
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