Algorand (ALGO) is considered to be one of the most scalable blockchain networks available. Encryption investors are looking for ways to buy Algorand (ALGO). This guide focuses on how and where new investors can buy Algorand (ALGO). By not requiring users to spend computing power or actual power costs to obtain a new cryptocurrency, Algorand (ALGO) developers claim that their blockchain can verify transactions faster, while avoiding the technical problem of extending the confirmation time in other designs.
Want more than just to buy ALGO? Access dozens of different cryptocurrencies buying guides 2022 here.
What is Algorand (ALGO)?
Algorand was born out of the ambition to solve the so-called “blockchain trilemma”, which posits that one cannot have full-blown decentralization, scalability and security on a single blockchain platform, unless at least one component is toned down to accommodate for the others. In other words, building strong decentralized platform, for example, should make it unavoidable to harm its security and scalability potential. The proposed answer to this challenge came in the form of the Algorand platform, which was launched in June 2019 as a global project seeking to promote the decentralization of digital economy based on open and permissionless access, instant verifiability, internally developed Pure Proof-of-Stake protocol, and transaction management system capable of scaling custom blockchain projects.
Algorand is a decentralized network built to solve the Blockchain Trilemma of achieving speed, security, and decentralization simultaneously. Launched in June 2019 by computer scientist and MIT professor Silvio Micali, Algorand is a permissionless, open-source blockchain network upon which anyone can build. Algorand is designed to be a payments-focused network with rapid transactions and a strong focus on achieving near-instant finality — that means processing over 1,000 transactions per second (TPS) and achieving transaction finality in less than five seconds.
Algorand uses a Proof-of-Stake (PoS) consensus mechanism, and distributes validator rewards to all holders of its native ALGO cryptocurrency. Through strong throughput capacity and equitable community incentivization, Algorand is capable of managing the high-throughput requirements of widespread global usage and a variety of use cases.
As a public smart contract blockchain that relies on staking, Algorand is currently capable of hosting decentralized application (dApp) development and providing scalability. Rising gas fees on Ethereum have led many dApp developers and decentralized finance (DeFi) traders to look for alternative blockchain solutions. Some have turned to Algorand as an Ethereum-alternative for dApp development and DeFi applications.
Algorand also allows developers to use the Algorand Standard Asset (ASA) protocol to create new tokens or to transfer existing tokens to the Algorand ecosystem. For example, stablecoins like USDT and USDC also exist as ASAs on the Algorand blockchain and enjoy much higher throughput and much lower transaction fees than what is typical on Ethereum. Further, as central banks continue to research networks to host their central bank digital currencies (CBDCs), Algorand has become a viable option and has been chosen to host the Marshall Islands CBDC.
Read More: What is Algorand (ALGO)?
How Does Algorand (ALGO) Work?
The Algorand network achieves security, scalability, and decentralization in one place by using a Pure Proof-of-Stake consensus mechanism that employs a Byzantine agreement protocol. Thanks to the protocol, even if a node were to be compromised, the staked ALGO balances owned by the network participants would be protected with unique keys created through automation.
What sets Algorand apart from other blockchains is its use of PPoS, a consensus algorithm that employs a Byzantine agreement protocol. Should a node be compromised, staked the native token ALGO owned by participants in the network would automatically be protected with unique keys.
Bitcoin’s consensus mechanism, proof-of-work (PoW), requires large amounts of energy and computing power to create and validate new blocks. PPoS, on the other hand, allows the creation and validation of new blocks in a faster and more efficient manner. This is done by randomly selecting ALGO holders to validate and approve each block in the chain. A new group, or committee, is selected for each new block.
Through the PPoS protocol, only users with large holdings of ALGO can theoretically engage in malicious activities that could potentially compromise other users’ security. However, since the system is based on codependency among participants, malicious activities would also result in a deterioration of their ALGO. Hence, such malicious activity would not be rewarding for any majority holder.
Naturally, a small holder will have lower chances of being selected than a big holder. But unlike PoS blockchains, Algorand doesn’t require a minimum stake, which is a significant barrier to entry for the average user. With every staker who runs a node being a possible validator, the network’s security is more decentralized than with a chosen set of validators, such as in Delegated Proof of Stake (DPoS).
Why Buy Algorand (ALGO)?
Algorand (ALGO) is one of the best yielding cryptocurrencies you should consider investing in according to Coin Price Forecast. As per the experts, ALGO could command prices of $0.87 by the end of 2023 and $1.52 on the last day of 2027. With such a price forecast, we can deduce that ALGO is worth investing in, in the short and long term.
Algorand is making a big effort to develop new projects that will expand the possible use cases of Algorand logocryptocurrency. The key driver of this innovation is by making transaction speeds extremely fast and making it faster to deem a transaction as being final. Whilst relatively new and untested in the real world, this could potentially be a competitor to the likes of Visa and MasterCard.
Algorand has a lot of things going for it, which could bode well in both its future price and the likelihood of mass adoption. Beyond just the fast transactions and low fees, Algorand is an interoperable blockchain with a growing ecosystem. It’s listed on many great exchanges in which users are able to gain governance, as well as being a crypto that is easy to use. It also has a rapidly growing NFT market, which alone could be enough to sway many people to invest in Algorand. All of these promising attributes have led to some handsome price forecasts from expert analysts.
Whilst the crypto market at large – along with crypto sentiment – is a large factor in most coins’ success, ALGO only has a 0.2 correlation with Bitcoin over the past 3 months (a very weak correlation, compared to 0.91 for ETH-BTC). This shows that Algorand could possibly hold its own during a Bitcoin crash, and may even be a useful tool of diversification within your portfolio.
How to Buy Algorand (ALGO) in 4 Simple Steps
- Step 1: Decide where to buy Algorand (ALGO).
- Step 2: Think about how to store your Algorand (ALGO).
- Step 3: Make your purchase.
- Step 4: Manage your investment.
How to Buy Algorand (ALGO) on a Crypto Exchange
1. Coinbase
- Step 1. Create a Coinbase account
Download the Coinbase app and start the sign up process. You will need a valid ID and may be asked for proof of address in order to transact, so be sure to have those ready. Verifying your ID may take longer than a few minutes, depending on where you live.
- Step 2. Add a payment method
Tap on the payment method box and connect a payment method. You can use a bank account, debit card or initiate a wire.
- Step 3. Start a trade
Press button then select “Buy” from the list of options.
- Step 4. Select Algorand (ALGO) from the list of assets
Search for Algorand (ALGO) by typing “Algorand (ALGO)” into the search bar. When you see Algorand (ALGO) show up in the results, tap it to open up the purchase screen.
- Step 5. Enter the amount you want to buy
Use the number pad to input the amount you want to spend in your local currency. The app will automatically convert that into a Algorand (ALGO) amount.
- Step 6. Finalize your purchase
Tap “Preview buy” when ready. You’ll be shown the details of your purchase. Make sure everything looks good and then confirm your purchase. That’s it, you’ve bought Algorand (ALGO).
2. eToro
- Step 1: Find a crypto exchange or trading platform that offers Algorand (ALGO)
There are a number of exchanges that will let you trade your funds for Algorand (ALGO). One of them is the eToro trading platform.
- Step 2: Sign up
If you’d like to buy Algorand (ALGO) through eToro, all you need to do is sign up, verify your account and make a deposit. From there, you’ll be able to buy and sell Algorand (ALGO) easily.
- Step 3: Buy Algorand (ALGO)
Algorand (ALGO) can be purchased fractionally, so you don’t need to buy a full Algorand (ALGO) to own some. For example, if Algorand (ALGO)’s price is $10,000, you can purchase 0.1 Algorand (ALGO) for $1,000.
3. Bitfinex
- Step 1. Log in to your account or sign up to Bitfinex.
- Step 2. Go to Deposit, choose Payment Cards.
- Step 3. Select the payment processors.
- Step 4. Choose the crypto and enter the amount.
- Step 5. Select the destination wallet and proceed payment
4. Binance
- Step 1: Create your Binance Account
Sign up with your email address or mobile phone number, and choose a strong password. Or, download the Binance crypto trading app from the App Store or Google Play store and open an account there.
- Step 2: Start Buying Algorand (ALGO)
There are two main ways to buy Algorand (ALGO) on Binance using cash: you can link your debit/credit card or bank account, or buy crypto directly from other users on Binance P2P.
Linking your debit card, credit card, or bank account (available in many regions) is one of the easiest ways to buy Algorand (ALGO). Through this method, you can buy Algorand (ALGO) for a minimum. (This amount varies depending on the currency you use.)
Buy Algorand (ALGO) directly from other Binance users with your local fiat currency via Binance P2P. Browse a variety of Algorand (ALGO) listings to shop the best offers on Algorand (ALGO) from other users. With thousands of merchants and hundreds of payment methods available, Binance P2P caters to many regions in the world right now.
5. KuCoin
- Step 1. Sign Up for KuCoin Account
- Step 2. Secure Your KuCoin Account
- Step 3. Verify Your Identity
- Step 4. Connect Your Account to Funds Fund Your Account
- Step 5. Start Trading on KuCoin
How to Buy Algorand (ALGO) With PayPal
- Step 1. Login to Paypal and Select Cryptocurrency
In Paypal website, you should see the option for cryptocurrency in the top right of the dashboard, next to ‘Send’ and ‘Request’.
- Step 2. Select ‘Algorand (ALGO)’
Or choose any of the other coins listed.
- Step 3. Select ‘Buy’
- Step 4. Choose How Much You Want to Buy
Enter an amount of dollars you want to spend on Algorand (ALGO) or choose a pre-set amount below.
- Step 5. Select Payment Method
You likely already have you bank account linked to you Paypal account, but you can also hook up another method if you don’t want to use your bank account.
- Step 6. Hit the ‘Buy’ button
After finalizing your purchase, you will be taken to a confirmation screen and you should see your coins reflected in your Paypal account dashboard.
How to Buy Algorand (ALGO) With a Credit Card
Not all platforms will allow you to use a credit card to make your cryptocurrency purchases. If you do choose a platform allowing such transactions, keep in mind that there may be extra fees associated with the purchase. Many credit card companies process cryptocurrency purchases via credit card as cash advances, which can incur high interest rates, among other fees.
Some credit card companies allowing cardholders to make crypto purchases treat the purchases as a cash advance (cash advances usually involve a cardholder using a credit card to withdraw money from an ATM). This has several critical disadvantages.
- Cash Advance Fees: Some cards treat a cryptocurrency purchase as a cash advance. This means each crypto purchase is subject to a cash advance fee. A typical fee of either $10 or 5% (whichever is greater) would be charged. These fees are in addition to fees charged by the vendor or exchange.
- Cash Advance Interest Rates: Most cards have a higher Annual Percentage Rate (APR) for cash advances—often over 25%. This is a variable interest that changes with the market. Interest will start to accrue on the day the purchase is made and will continue to accrue until the credit is paid off. By comparison, cardholders have up to 25 days to pay off a regular credit card charge before accruing any interest.
- No Credit Toward Rewards orBonuses: Credit used to purchase crypto (and thus make a cash advance) typically doesn’t qualify for any purchase rewards nor toward spending that would normally apply to a welcome bonus.
- Lower Credit Limits: Cash advances often have a lower credit limit than the cardholder’s overall credit limit that applies to the card itself. Cardholders hoping to make big crypto buys may find themselves limited by the cash advance terms and limitations.
Buying Algorand (ALGO) FAQs
What is a Algorand (ALGO) Wallet?
Pera Wallet takes the first spot as the best wallet for Algo. It is the official wallet for Algo, built by the Algorand development team. Being a product of Algorand, this wallet always enjoys steady development and updates. Hence, all Pera wallet users will always be up to date. Investors using other wallets will have delays in receiving updates connected to Algorand.
The best features defining the Pera wallet include top speed, security and simplicity. It supports top speeds of about 4 seconds. This wallet offers many features to ensure your funds remain safe.
One of the features is the support for hardware wallets. Pera wallet supports Ledger Nano X wallet for the offline storage of keys. If you want to trade or stake ALGO, the Pera Wallet is your best tool. It is the most compatible with ALGO, thus reducing risk levels.
Can You Sell Algorand (ALGO)?
Whatever your reason, there may come a time when you’ll want to sell your Algorand (ALGO) for another cryptocurrency (or just plain-old dollars or euros).
The good news is that if you’ve decided to sell your ALGO, Kraken is now one of the first major exchanges to offer an active market. This means that, depending on when you sell your ALGO, you’ll be likely to find a buyer on exchange.
Before you begin, make sure you understand the implications of your sale. Depending on when you bought Algorand, you may be selling it at a profit (or loss), which could have implications for your portfolio and tax filings.
What is a Algorand (ALGO) Address?
An Algorand Address is the identifier for an Algorand account. After generating a private key and corresponding address, sending Algos to the address on Algorand will initialize its state on the Algorand blockchain.
The public key is transformed into an Algorand address, by adding a 4-byte checksum to the end of the public key and then encoding it in base32. The result is what both the developer and end-user recognize as an Algorand address. The address is 58 characters long.
How to Accept Algorand (ALGO) Payments?
Algorand payment allows consumers to use the ALGO cryptocurrency for getting goods or services. Algorand is a high-tech blockchain platform that allows users to build and launch decentralized applications, issue digital assets, use ALGO as an ideal payment instrument, and much more.
Algorand is among the top 20 cryptocurrencies according to CoinMarketCap and has every chance of becoming a universal means of payment. The Algorand network has all the necessary characteristics: almost instant transactions, low transaction fees, the ability to make micropayments, as well as a high level of security.
- First, you need to sign up for a NOWPayments account. The process shouldn’t take more than a minute!
- Go to Store settings. Add your Algorand wallet and create a new API key.
- Choose the tool to add to your checkout.
- The integration will be active on your website, and you’re ready to accept payments in Algorand!
