Where to Buy Terra Classic (LUNC) Crypto: Beginner’s Guide 2022

Volatility is a major issue in the cryptocurrency space. The price of Bitcoin, the most important crypto asset, frequently rises and falls. The Terra blockchain was designed to improve this situation. Terra’s goal is to achieve the price stability found in fiat currencies while ensuring that the cryptocurrency is resistant to censorship.

Even though Terra blockchain has since been renamed Terra Classic, investors remain enthusiastic about the protocol’s vision. This guide will explore how to buy Terra Classic and how the project maintains price and censorship stability.

What Is Terra Classic? 

Terra Classic is a blockchain protocol founded in 2018 by Daniel Shin and Do Kwon of Terraform Labs. The project aimed to speed up the adoption of blockchain technology and cryptocurrency by addressing volatility.

To achieve this price stability vision, the Terraform Labs team launched UST, the industry’s first algorithmic stablecoin. Other algorithmic stablecoins created include the South Korean Won, Mongolian Turik, and the International Monetary Fund’s Special Drawing Rights (SDR).

UST was designed to be pegged, one-to-one, to the US dollar. The Terra blockchain also created the infamous network token, LUNA, to keep its peg. When UST prices fall below one dollar, a certain amount of LUNA is minted to ensure it repegs.

The Avalanche of Troubles

Terra’s innovative price stability mantra could only last so long….

Everything came down to TerraUSD, an algorithmic stablecoin (UST). Because there is no physical fiat reserve backing UST, it is unlike any other stablecoin on the market.

To maintain its stability, it relies on arbitrage mechanisms. When it depegs or loses its dollar valuation, a certain amount of its LUNA token is sold, resulting in a demand contraction for the UST peg.

The blockchain began to fall in May 2021, when the UST stablecoin’s value dropped from $1 to $0.96 in a one-week period, providing traders with a lucrative arbitrage opportunity.

Terraform Labs launched the Luna Foundation Guard to prevent a future occurrence (LFG). As a reserve for its UST stablecoin, LFG purchased a then-record amount of $3.5 billion in Bitcoin and the AVAX token.

However, during the May 2022 bear market, the UST token and LUNA fell significantly.

After learning that its yield-generating protocol, Anchor, was reversing its promised 20% annual percentage yield (APY), UST depegged from $1. To stanch the fall, billions of LUNA tokens were minted, resulting in hyperinflation and market saturation. Furthermore, the LFG liquidated all of its crypto holdings, precipitating a much steeper decline in the emerging industry.

Terra blockchain decided to create a hardfork similar to the infamous Ethereum split due to the shortfall. Terra 2.0 would be the name of the new smart contract network, while Terra Classic and Luna Classic would be the names of the failed experiments.

Use Cases

Does Terra Classic’s tumultuous history make it any less useful? Absolutely not. Terra Classic maintains its position as a smart contract network while also resisting censorship. Developers can use it to create decentralised applications (dApps) to meet the market’s rising demand.

While its stablecoin is nowhere near its $1 peg, the LUNC remains one of the market’s most well-known cryptocurrencies.

The native token still has a market cap of more than $3 billion.

Partnerships

Terra Classic was once a cryptocurrency darling. Several traditional tech companies and crypto companies were collaborating on projects.

Terra announced a partnership with Chia, a South Korean mobile payments company, in July 2019. In the same year, Terra announced that its Terra Alliance group of companies was working to seize a significant share of the rapidly expanding cryptocurrency market. The alliance included ten major corporations with a combined net worth of $25 billion.

How Does Terra Classic Work?

Terra Classic is not different from its split second. It is primarily a smart contract network platform that serves as a testing ground for dApps and other decentralised ecosystems.

How do its stablecoin and native token interact with one another? As previously stated, TerraUSD is an algorithmic stablecoin that requires a secondary token to keep its peg. This is accomplished by minting and burning LUNA tokens using arbitrage mechanisms.

To purchase one UST, an investor must mint it, and the purchase rate is then added to the LUNA token. The Terra Classic blockchain then burns or permanently removes the addition from circulation. This repeated burning of LUNA reduces the amount of it available on the open market, causing its price to rise.

To purchase or mint LUNA, a user must first convert the UST stablecoin. This creates a counter-balance for both digital assets.

Arbitrageurs, or traders who profit from small price changes, are essential to the Terra Classic network’s operation. They ensure that the equilibrium is maintained. If the price of UST falls below $1, they sell LUNA for the stablecoin, and if it rises above $1, they buy UST for LUNA. They introduce a kind of forced scarcity of cryptocurrencies by doing so.

Is Terra Classic a Good Investment?

So much has happened in the Terra ecosystem. Is Terra Classic still a good buy?

Code is law

The current standoff between Terra Classic and Terra blockchain is reminiscent of the 2016 Ethereum split. Since then, a few die-hard code maximalists have kept the Ethereum Classic running; it still commands a significant percentage of the crypto market.

Investing in Terra Classic may be a viable way for users who believe in the code’s supremacy to ensure its continued survival.

Potential Supply Reduction

Since the debacle in May 2022, the Terra Classic community has not been idle. While Do Kwon has left Terra Classic to focus on Terra 2.0, the Terra Classic community has remained strong.

There is a growing belief that Terra Classic’s LUNC will reclaim some of its former glory. This comes in response to a community proposal submitted on September 1. The author advocates for a 1.2% tax parameter change in it.

The plan is to reduce the number of LUNC tokens in circulation to create a supply crunch and increase the token’s value. If this passes the community vote, investors may be in possession of a crypto gem.

How to Buy Terra Classic on eToro

We recommend that traders invest in Terra Classic through the eToro platform. Why? The multi-asset brokerage firm has a communal nature. eToro was founded in 2007 to promote investment in stocks, bonds, commodities, FX currency pairs, and various other assets.

Since then, the broker has shifted its focus to the crypto space, commanding a sizable library of 75+ cryptocurrencies.

Its social climate has helped it become one of the top destinations for its 23.3 million users. Because eToro is a social trading platform, investors can communicate, interact, and learn from one another. CopyTrader is also available on eToro. This means that users can mimic their counterparts’ trading strategies and positions while only paying a small fee. This enables inexperienced investors to learn about the underlying asset and financial market while still making a reasonable profit.

eToro also has a CopyPortfolio feature. This allows users to spread their investments among top-performing companies. This feature automatically balances the investor’s investment portfolio.

eToro has one of the lowest fees in the crypto space, charging users only a 1% bid-ask spread. All of its payment channels have no deposit fees. On the other hand, withdrawals are charged $5 across all payment methods.

eToro offers the well-known two-factor authentication (2FA) and masking technology to protect users’ funds. The Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investment Commission (ASIC), and the Financial Industry Regulatory Authority (FINRA) all regulate eToro.

Because Binance has announced the discontinuation of the Shuttle Bridge between the Ethereum network and the Binance Smart Chain (BSC), only a few exchanges support the LUNC token. As a result, eToro is a viable option for those interested in investing in LUNC.

Traders seeking how to buy Terra Classic can follow these detailed steps to purchase Terra Classic on eToro:

Register on eToro

First, open an eToro account. Go to the official eToro website and click the ‘Start Investing’ button on the homepage. Insert the necessary information: full name, email address, and password.

eToro allows users to sign up using their Google, Apple, or Facebook accounts for a more streamlined sign-up process.

Verify ID

Because eToro is regulated, all new accounts must verify their identity before trading on the platform. To verify, tap the profile icon and select ‘Verify’. Submit or upload a copy of a recent driver’s license that includes the full name as it appears on the eToro platform, or upload an official passport. A document containing a residential address should also be uploaded. This can be a bank statement or a recent utility bill that includes the address. This is referred to as proof of address.

Deposit

The following step is to fund the new eToro account. Tap the action tab and select ‘Deposit Funds’ from the list of functions. Then, choose a payment method. eToro does not charge fees for deposits made through any of its payment channels, and users can fund their accounts via bank wire transfer, credit/debit cards, PayPal, Skrill, Neteller, and various other methods.

Enter the amount to invest. eToro has a regional minimum deposit requirement. eToro allows investors in the United States and the United Kingdom to get started with as little as $20.

Buy Terra Classic

The last step is to buy Terra Classic. The quickest way is to type ‘LUNC’ into the search bar at the top of the dashboard and click on the appropriate result.

Tap ‘Trade’ in the upper right-hand corner and enter the amount of the token to buy. Then, click ‘Open Trade’ to finish the process.

Conclusion

Terra Classic remains one of the top crypto dogs despite its historical decline. Investors who are code maximalists can still buy Terra Classic to preserve its code base. Investors looking for an undervalued crypto gem can also buy the asset.

We recommend that investors seeking how to buy Terra Classic use eToro. The social trading platform provides mirror trading capabilities, allowing investors to mimic the trades of more experienced traders. The CopyPortfolio functionality, which automatically diversifies one’s investment, is even more unique. With a competitive trading fee of 1% and a zero deposit fee structure, eToro is a popular choice for many.

Luna Classic FAQs

Where can I buy Terra Crypto?

Terra crypto is available on several cryptocurrency exchanges. Binance, Coinbase, and eToro are some popular examples. To get started, newly opened accounts must verify their ID and fund with the stipulated minimum amount.

Can you buy Terra Classic on Binance?

Binance accepts LUNC purchases on its platform. However, investors who rely on the Shuttle Bridge can no longer access Terra Classic on Binance.

Can I buy Luna on Coinbase?

Yes, the Terra 2.0 token, LUNA, is available to trade on Coinbase. New users need to verify their Coinbase account by uploading either a driver’s license or a government-issued ID card. A small minimum deposit of $2 is required to get started on the Coinbase platform.

How do I get LUNC Crypto?

Investors must create a new account on the chosen platform. Then they must verify their driver’s license or official passport and fund their account with a predetermined amount. After that, investors can trade the LUNC cryptocurrency.