Despite the collapse of the original Terra blockchain earlier in the year, Luna 2.0 is proving a popular cryptocurrency.
At its peak in May, the altcoin was worth £9.30. Today, a Terra (LUNA) token can be bought for £4.21. The coin’s value started trending upwards this month following a slump through July and August.
The Financial Conduct Authority (FCA) says anyone who invests in crypto should be prepared to lose their entire investment. But, If you’re aware of the risks but you’re still interested in buying Terra (LUNA) 2.0, here’s how to do it.
Choose an exchange
You’ll need to swap your fiat currency (for example, pounds sterling) for Luna 2.0 using a crypto exchange. An exchange is a website or app that traders use to buy and sell tokens.
LUNA 2.0 can be bought from exchanges such as Kraken, Crypto.com and Coinbase, among others.
There are a couple of things to look out for when choosing a crypto exchange to make sure you make the most of your money.
Most importantly, check that the exchange you’re interested in actually offers LUNA 2.0. If it isn’t on the exchange’s shelves, you can’t buy it.
Also, most crypto exchanges offer integrated wallets in which to store your private and public keys, which you’ll need to make trades. If you’d prefer to store your crypto in a third party hot wallet or a cold wallet, be aware that some exchanges may charge a fee for withdrawals.
Choose a payment method
Most crypto exchanges accept bank transfers as well as debit card payments. Bank transfers are universally accepted and usually fee-free.
It is generally accepted that credit cards or other credit sources should not be used to fund crypto transactions.
Some credit card issuers such as Virgin Money, TSB and Tesco Bank block their cardholders from buying crypto, while debit card payments tend to attract a fee of around 2.99%.
Place an order
Once you’ve chosen an exchange and a payment method, go to the Luna 2.0 page in your chosen exchange (be careful not to choose the much less valuable Luna Classic) and enter the amount you’d like to invest.
Once you’ve confirmed the payment you should, after a short period of time and a confirmation email, see the LUNA 2.0 in your account.
Choose a storage method
Many (if not most) exchanges offer an integrated wallet to keep your private and public keys in. If someone were to get access to your keys, they’d have access to your LUNA 2.0 tokens to either spend or trade.
Exchanges are big targets for hackers, so some people choose to store their keys in a third party wallet, or offline in a cold wallet.
But while they’re a magnet for criminals, the big advantage of online ‘hot’ wallets is that you were to lose your credentials and couldn’t access your keys, the exchange could help you recover them.
Offline, ‘cold’ wallets are much more difficult for hackers to breach because they’re not connected to the internet - at least not while they’re unplugged from your computer.
However, if you lost your access to your hardware wallet (for example, you lost your seed phrase), you could be locked out of your own wallet with nobody to help you get your keys back.
