How to Buy Luna on PancakeSwap: Beginners Guide

Terra network and its CEO, Do Kwon, ascended to stardom in the cryptocurrency industry over four years, only to crash and burn. The Luna crypto network fell in what is considered the worst crypto meltdown ever, wiping away an estimated $60 billion and shaking the worldwide digital currency market.

You may have heard about Luna; here is a brief explanation of what they are.

What Is Luna?

Luna is the Terra program’s staking currency, which absorbs the price fluctuation of Terra stablecoins. It is used for governance and mining. Users stake Luna to Terra blockchain miners (dubbed “validators”), who monitor and validate transactions on the blockchain and are compensated with transaction fees. Luna’s value rises in tandem with Terra’s utilization.

Terraform Labs, a crypto developer launched in 2018 by South Korean businessmen Do Kwon and Daniel Shin, invented the Luna coin, or LUNA. Terraform also designed the Terra blockchain technology, which LUNA uses.

LUNA debuted in 2019 and quickly became one of the most successful decentralized financial coins. CoinMarketCap formerly placed eighth in terms of market capitalization. Since the latest crash, it has fallen to 214th place as of 1 June 2022.

How Does Luna Work?

The LUNA protocol functions as a distributed ledger managed by network validators. Validators use the DPoS algorithm to vote on blocks, receiving LUNA tokens as a reward. Terra miners contribute to security by taking part in the PoS consensus protocol. They aid in price stabilization by absorbing short-term fluctuations in demand.

As a result, by mining rewards with a shrinking and rising money supply, the network achieves stability. Terra applies pressure to adjust prices whenever they vary somewhat. The LUNA pool and Terra pool are continually adding to and subtracting from Terra’s supply. Miners burn LUNA to mint Terra, and vice versa. The procedure provides consistent incentives for contractions and expansions. As a result, using the fundamental supply and demand rule.

The blockchain uses a dual token system consisting of the stablecoin TerraUSD (UST) and LUNA to achieve this purpose. USTs might be swapped for LUNA after being made by burning LUNA.

The concept was that if the UST value were above $1, the same amount of LUNA would be burnt, resulting in additional UST being issued, making it less valuable. If the price of UST fell below $1, they were exchanged for LUNA, making UST more valuable.

Because they rely on each other for stability, their connection has been compared to that of the Moon and the Earth. Burning LUNA coins was critical to this dynamic because it incentivized users by giving LUNA value and, in theory, stability to UST.

There was a threshold of one billion LUNA circulating coins before the crash in May 2022, and if this quantity were surpassed, LUNA would be destroyed. According to CoinMarketCap, the initial LUNA, now rebranded as LUNC, seems to have a circulating supply of 6.5 trillion as of 1 June.

Is Luna a Good Investment?

When making a LUNA coin price forecast, please remember that crypto is still very unpredictable, making it impossible to precisely anticipate what a coin or token’s price will be after a few hours. It is even more difficult to make long-term predictions. As a result, analysts and algorithm-based predictors can and do make incorrect forecasts.

LUNA may be a beneficial investment, according to the Digital Coin Price source. The Terra cryptocurrency may be worth $204.73 in 2023. The rate should not significantly change in 2025; nevertheless, LUNA’s price might rise to $307 if market conditions are good.

How to Buy Luna on PancakeSwap

LUNA is available for trading against fiat currencies, stablecoins, and other cryptocurrencies on several cryptocurrency exchanges, including Huobi, Bitfinex, and Upbit.

It cannot be bought directly with fiat money, unlike the other major cryptocurrencies. However, you may still purchase this currency by first purchasing Bitcoin from another fiat-to-crypto exchange platform and then transferring it to an exchange that trades this coin.

Step 1: Register for the Fiat-to-Crypto Exchange

You must first purchase one of the major cryptos, in our example, Bitcoin (BTC). In this post, we will go through one of the most renowned fiat-to-crypto exchanges, Uphold.com, in-depth. This exchange platform contains its own fee rules and features, which we shall go over in depth.

UpHold, which is one of the most popular and simple fiat-to-crypto swaps, offers the following benefits:

• Numerous assets, more than 50, are simple to acquire and exchange.
• There are currently around 7 million users globally.
• You may apply for an UpHold Debit card, which allows you to spend the cryptos on your account just like a regular debit card!
• A simple smartphone app that allows you to withdraw funds to a bank or other cryptocurrency exchangers effortlessly.
• There are no hidden fees or additional account costs.
• There are just a few buy/sell orders available for sophisticated users.
• If you want to store cryptos for a long time, you may easily set up periodic deposits for Dollar Cost Averaging (DCA).

Step 2: Purchase BTC with fiat currency

Once you’ve completed the KYC procedure, you will be prompted to provide a payment method. You may submit a debit/credit card or utilize a bank transfer here. You may be charged greater costs based on your credit card provider and the unpredictable nature of card charges, but you will also make a quick transaction.

Now that you’re ready, on the ‘Transact’ screen, under the ‘From’ area, choose your fiat money, and then choose Bitcoin under the ‘To’ field, click preview to evaluate your transaction, and then click accept if everything appears fine… and congratulations! You have just made your first cryptocurrency purchase.

Step 3: Send BTC to a cryptocurrency exchange

Because LUNA is an altcoin, we must move our BTC to an exchange where LUNA can be exchanged; in this case, we will utilize KuCoin as our platform. KuCoin is a prominent cryptocurrency exchange with various tradable altcoin pairings. To create a new account, click the link below.

KuCoin, also known as the People’s Exchange, currently provides crypto-related services such as crypto-to-crypto and fiat-to-crypto. With over 250 supported currencies and 440 trading pairs, the exchange boasts one of the most amazing trading pair choices in the world.

If it is the first time making a cryptocurrency deposit, the screen may appear intimidating. But don’t worry. It’s essentially the same as making a bank transfer. In the box on the right, you’ll notice a string of random numbers reading ‘BTC address’; this is a public address unique to your BTC wallet at KuCoin, and then you will receive BTC by showing this address to the person sending you the coins. Because we are now transferring previously acquired BTC from UpHold to this wallet, tap ‘Copy Address’ or right-click on the entire address and choose ‘copy’ to duplicate this address to your clipboard.

Return to UpHold, go through the Transact page, and click on BTC in the “From” area. Enter the amount you want to transfer, and in the “To” field, enter BTC under “Crypto Network,” then tap “Preview withdraw.”

On the following page, paste the wallet address on your clipboard; always double-check that both addresses match for security. Certain computer viruses have been reported to convert the contents of your clipboard into another wallet address, allowing you to transport funds to another person. To proceed, click ‘Confirm’ after assessing. You should receive a confirmation email immediately; simply click the validation link in the email, and your coins will be on their way to KuCoin!

Return to KuCoin and go to your exchange wallets; don’t be concerned if you haven’t noticed your deposit here. It is most likely still being validated in the blockchain network, and your coins should appear in a few minutes. It may take much longer at busy times, depending on the Bitcoin network’s network traffic condition. KuCoin should send you a confirmation email once the BTC has arrived. And you are finally ready to buy LUNA!

Step 5: Purchase LUNA

There is a search box in the right column; make sure “BTC” is chosen because we are exchanging BTC for altcoin pair. Click on it and enter “LUNA” you will see LUNA/BTC. Choose that pair, and a price chart of LUNA/BTC should appear in the middle of the page.

Below is a bubble with a green button reading “Buy LUNA.” Inside the box, select the “Market” option, as this is the most straightforward sort of purchase order. You may enter your amount or select a proportion of your deposit to spend on purchasing by tapping the percent buttons. When you have validated everything, tap “Buy LUNA .”You’ve finally purchased LUNA!

Conclusion

Aside from the exchanges mentioned above, there are a few major crypto exchanges with high daily sales volumes and a large user base. This ensures that you may sell your coins at any moment, and the costs are generally reduced. It is recommended that you join these exchanges as well since once LUNA is listed there, it will draw a big amount of trading volume from the customers there, which means you will have some excellent trading possibilities!