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How To Buy Algorand (Algo)

A complete guide on how to Buy Algorand (Algo) on different exchanges and brokers. Also, learn how to Buy Algorand (Algo) on many platforms using different methods like credit cards, debit cards, and ATMs.

Author: Usman Ahmed Last updated: 20/10/2021
Header Logo Algo

Introduction

In this guide, we’ll explain Algorand in detail. We will let you know how and where to buy Algorand conveniently? We will review some of the best platforms listing Algorand and provide you with a step-by-step guide on how to buy the altcoin on either platform. We will also explore the different Algorand investment strategies and what to look for when vetting ALGO trading platforms.

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Algorand is a decentralized blockchain technology that is on a mission to create a platform where any can create and share value in an efficient, transparent, and secure manner. It is a peer-to-peer technology that seeks to usher the world to the future of finance by accelerating the transition from traditional finance models to modern blockchain-based finance and economic models.

Launched in June 2019, Algorand has attracted the attention of the crypto community with its ultra-fast transaction processing speeds. Its fast-paced value growth has also caught the attention of crypto traders looking to create wealth by leveraging its volatile price action and investors interested in riding its value growth as it aims for unprecedented price levels.

You too want to make money investing in or trading Algorand. But you probably aren’t sure of the best places to buy Algorand or need a little guidance on ways to buy Algo.

Top 5 Platforms Where You can Buy Algorand (ALGO)

  • Min Deposit: $200
  • Number of Coins: 20+
  • Supports Multiple Languages
  • Regulated by FCA, ASIC & CySEC
  • Paypal, Debit & Credit Card Accepted
BankCard CashGiro PayMastercardNetellerPayPalSkrillUnionPayVisaWire CardYandex
Visit eToro

Capital At Risk

  • Min Deposit: 20 $£€
  • Number of Coins: 12+
  • Regulated by FCA & CySEC
  • Place Buy & Sell CFDs Orders
  • Low Minimum Deposit
MastercardNetellerPayPalSkrillUnionPayVisaWire Card
Visit Capital.com

78.77% of retail cfd accounts lose money

  • Min Deposit: 1 $£€
  • Number of Coins: 50+
  • Regulated by SEC, & FinCEN
  • Place Buy & Sell CFDs Orders
  • Low Minimum Deposit
Giro PayMastercardNetellerSkrillUnionPayVisaYandex
Visit Coinbase

Capital At Risk

  • Min Deposit: 1 $£€
  • Number of Coins: 1500+
  • High Number of Coins
  • Accepts Fiat Deposits
  • Trade on Spot and Futures
Card CashMastercardSkrillWire Card
Visit Binance

Capital At Risk

  • Min Deposit: 1 $£€
  • Number of Coins: 50+
  • Highly transparent exchange
  • Competitive Bitcoin trading fees
  • Highly secure
Card CashGiro PayMastercardUnionPayVisa
Visit Kraken

Capital At Risk

A Three-step Guide on How to Buy Algorand (ALGO) Instantly

Step 1: Create an account

You need to set up a trading account with a platform listing Algorand (Algo). Depending on whether you wish to invest or trade Algorand, it can either be a crypto exchange or a brokerage firm. Brokerages typically offer crypto derivatives like CFDs suitable for active traders while n exchanges offer actual coins – best suited for investors.

The registration process on both exchanges and brokerages is rather straightforward and doesn’t take more than a few minutes.  Note, however, that most platforms will require you to verify your identity, whose approval often takes a few days.

Step 2: Fund account

Essentially, there should be some funds available in your account to buy Algorand coins. Therefore, add some funds to your account. Your selected broker/exchange will present you with multiple payment options, such as debit cards, credit cards, bank transfers, PayPal, Skrill, Neteller, Web money, Swift transfers, etc. You can choose the one that suits you more.

Step 3: Buy Algorand (with or without leverage)

After adding funds to your account successfully, you can start buying Algorand. Depending on your preferred trading strategy and chosen trading platform, you will have the option of trading Algorand derivatives or buying actual Algorandtokens and getting their private keys.

When using a crypto brokerage, you have the option of buying Algorand with leverage(borrowed funds). This allows you to maximize your take-home by allowing you to open large trades with relatively small trading capital. Crypto experts, however, caution that leverage trading is risky and ask traders to use it selectively because just as it maximizes possible profits, it also maximizes possible losses.

What is Algorand (ALGO)?

Algorand is a blockchain-based network that aims to create a decentralized ecosystem for borderless financial transactions. In other words, the network endeavors to build a secured and scalable platform without compromising decentralization.

The crypto network attempts to resolve the blockchain trilemma. The trilemma is a technical term used by Vittalik Buterin (founder of Ethereum) to explain the limitations behind the slow transactional rate of blockchain networks.

According to Vitalik Buterin, a blockchain can have a maximum of two features out of the following three properties.

  1. Scalability
  2. Security
  3. Decentralization

Buterin believes that it becomes too laborious for a blockchain-based project to have all three features available up to a satisfactory level. For instance, if a network employs high-security standards while being decentralized, it won’t be scalable. Similarly, a scalable and decentralized blockchain will typically have some security concerns.

Not to mention, scalability is the prime concern for most blockchain networks. Essentially, they are unable to handle large numbers or transactions securely without overriding network decentralization.

How does Algorand Work?

Algorand employs a pure Proof-of-Stake (P-o-S) consensus mechanism to address the limitation of the blockchain trilemma. Notably, unlike other P-o-S consensus alterations, Algorand adopts a different approach.

Algorand doesn’t require 100% consensus of all the validating parties. Instead, an approval from a two-thirds majority works fine for it. That means anyone wishing to hack the network needs to acquire more than one-third of the total Algorand supply. Doing so would be highly expensive. Further, holding such an outrageous stake would be illogical for anyone who wishes to destabilize the network.

Algorand tends to enable fast transactions through cryptographic sortition. The network confirms new blocks in two stages; proposal and voting. The proposal stage involves the random selection of a token and the owner of the selected token then proposes the block to be confirmed next. On the voting stage, a committee of 1000 randomly selected token owners approves the suggested blocks.

A brief history

Algorand was created in 2017 by MIT professor Silvio Micali but the network only went live in June 2019. Its prime focus was establishing a blockchain-based payment protocol that could finalize the transactions within seconds and today, Algorand can process 1000+ transactions per second.

Algorand has a non-for-profit organization at its back support called Algorand Foundation. The foundation uses most of its funds on educating new developers about the crypto space at renowned universities, including the Massachusetts Institute of Technology (MIT). Further, the foundation keeps sponsoring hackathons regularly to get more developers interested in using the technology for the first time.

The foundation initiated various accelerator programs last year across Europe and Asia. Several prestigious organizations, such as “Union Square Ventures” are also known to be supporting the foundation. Being a relatively new cryptocurrency in the crypto space, Algorand understands that it needs to lap many miles ahead. However, its technical achievements have already turned the heads of many potential investors from the crypto industry.

How Is Algorand (ALGO) Different From Or Similar To Bitcoin?

Both Algorand (ALGO) and Bitcoin (BTC) are blockchain-based and share the vision f revolutionizing the future of the global finance industry. They, however, assume different approaches to the realization of this mission. In addition, to this, the two have several fundamental differences primarily because Algorand was designed to solve much of the inherent problems facing earlier blockchains like Bitcoins.

Consensus Mechanism

Algorand incorporates a pure proof-of-stake mechanism that targets to resolve the scalability problem inherent to Bitcoin. The network only needs a one-third majority to approve and validate a transaction. It is also more energy-efficient.

On the other hand, Bitcoin uses the energy-intensive proof-of-work mechanism that requires approval from all participating nodes before a transaction can be validated.

Network Speed

Another significant difference between Algorand and the Bitcoin blockchain is the speed of both networks to process transactions. Algorand can process up to 1000 transactions a second.

Bitcoin, on the other hand, can only handle a maximum of  7 transactions per second.

Token Disbursement

Like other altcoins, Algorand also underwent issues concerning the fair distribution of its tokens. It distributed its token amongst founding members and the early participants to bootstrap the Algorand network.

On the other hand, Bitcoin ensures the fair distribution of new tokens via the proof-of-work mining protocol.

Market Capitalization

Bitcoin continues enjoying the highest market capitalization (currently valued at $836 Billion), making it the largest and most valuable cryptocurrency project.

With a market cap of $10.69 Billion, Algorand is currently ranked 18th on CoinMarketCap’s list of the largest cryptocurrencies.

Historical Performance of Algorand (ALGO)

Algorand’s token sale took place on June 19, 2019. At the time of its launch, the price of each Algorand token was $2.40. less than 48 hours after the launch, however, the token prices had dipped to $2.15 and kept losing value to reach $1.15 by the end of that month.

Following the bearish momentum, the price of the Algorand token declined by 60% within a month. It was being traded for $0.568, as of July 30, 2019. The next quarter was also painful for the coin as it slumped to $0.222 by the end of October 2019.

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Although Algorand Foundation launched various accelerator programs in 2020, they had little to no impact on the token prices. Algo, therefore, carried on with its free fall and hit an all-time low on 3rd March 2021 when one Algo token sold for $0.1024 (according to the CoinMarketCap).

It was not until February 03, 2021, when the token price started rallying, breaking above $1 a week later and peaking at $1.712 on February 12. However, the coin couldn’t sustain this uptrend and fell to $0.976 by February 25, 2021. In the two months that followed, Algorand prices attempted multiple rallies but only managed to reach $1.75 on 18th April.

For the last five months, the coin has been ranging between $0.6 and $1.2 as it adjusted to the crypto market crisis brought about by Bitcoin’s price crash in mid-May. At the moment, the coin’s performance is at its peak, as evidenced by the fact that it recently broke above $2 for the first time in 4 years. At the time of writing, Algorand is trading at $2.07 on CoinDesk and has been trading within the $1.04 and $2.54 ranges for the last 7 days.

What Factors Influence Algorand (ALGO) Price?

How to Invest in Algorand (ALGO)

After looking at what is Algorand blockchain is, understanding its purpose, how it works, and the factors influencing Algo token prices, we now need to look at the different ways you can invest in which you can invest in Algorand. Here are the four most common.

Buy and Hold (Long-term)

Buying digital assets like Algorand at the current market price and holding on to them waiting to sell for a higher price in the future is a common investment strategy. Algorand exhibited a massive surge in its price this year. Experts believe it could witness exponential growth in the future. At present, Algorand tokens are trading at relatively low prices. Therefore, buying a few Algo coins now and holding them on a long-term basis anticipating their prices to rise, could be a worthwhile decision.

Algorand CFD Trading

Another popular method to invest in Algorand is trading them as CFDs. Instead of buying actual Algo coins, you could speculate on their prices and make some quick profits. The best part is that you only need little trading capital to get started. Additionally, CFD trading enables you to make profits in any direction and since CFD positions are leverage-based, your profit-earning potential gets increased by many folds. However, you need o to be cautious with the use of leverage as it also magnifies the risk of loss.

Day Trade Algorand

Day trading is an effective trading strategy to generate quick returns. Instead of holding onto Algo trades for days or years in the case of Hodlers, day trading involves opening and closing as many Algorand trades throughout the day. Depending upon your interest, you can either buy and sell actual Algorand coins or trade CFD positions. In any case, you have to close all your trades before the end of a trading session.

Stake Algorand tokens

Last but not least, you can also consider staking your Algo coins to earn interest and other rewards. The best part is that you don’t have to monitor your position actively. Instead, you commit to stake your ALgo tokens for a fixed period with a decentralized platform and receive interest/rewards on maturity, usually in the form of more Algo coins.

How to Buy Algorand (ALGO) Guide

Since now you know different ways of investing in Algorand (ALGO), let us quickly mention some of the payment methods you can use to buy Algorand conveniently.

How to Buy Algorand (ALGO) With Credit/Debit Card

Debit and credit cards are quite versatile and accepted anywhere in the world. Besides being rather inexpensive, it is one of the quickest methods to buy Algorands on eToro. The broker doesn’t charge a deposit fee on funds transfers using a debit or credit card. However, you should check with the card provider for any transactional fees in place.

Please note that clients can fund their accounts in USD, GBP, AUD, and EUR. However, it is best to transfer funds in USD if you wish to avoid the 2%currency conversion fee charged by the broker. The minimum deposit via card on eToro is $200 and the maximum deposit limit for payments made via debit/credit cards is $40,000.

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How to Buy Algorand (ALGO) With PayPal

You can also choose to buy  Algorand with PayPal on eToro. PayPal payments are not only affordable but instantaneous as well. However, this deposit option is only available in select countries where both eToro and PayPal are supported.

You can visit the link available on eToro’s website under the FAQs section to check if PayPal is available in your country. eToro sets the maximum deposit limit for PayPal payments as $10,000. The broker allows clients to deposit funds in USD, GBP, EUR, and AUD. Clients using PayPal can fund their accounts free of cost. However, transfers made in currencies other than your account’s base currency i-e, U.S. Dollars, will attract a 2% currency conversion charge.

Please note that you need to have an active PayPal account with some funds in it before you could use it to buy Algo coins on eToro. Alternatively, you can link a debit or credit card to your PayPal account for the same.

How to Buy Algorand (ALGO) With eWallets (Skrill, Neteller)

e-Wallets are also a popular means of payment all over the world. Fortunately, eToro also allows clients to fund their accounts using e-wallets, such as Skrill and Neteller. Clients can add a maximum of $10,000 in their eToro accounts with either of the payment network. Supported currencies for payments via Skrill and Neteller include USD, GBP, and EUR.

Like PayPal, a live funded account with Skrill or Neteller is essential to buy Algorand coins on eToro. The company doesn’t maintain a deposit processing fee on funds transferred via e-wallets. However, the 2% currency conversion fee may apply if the transactional currency is different from the base currency (USD) of your eToro account.

How to Buy Algorand (ALGO) with Bank Wire

Bank Wire is yet another available option to buy Algorand coins. It is undoubtedly the most accessible method for funds transfers. eToro encourages traders to buy Algorand and other cryptocurrencies using wire transfers and allows clients to deposit unlimited funds.

Unlike other payment methods, the minimum deposit amount for wire transfers on eToro is $500. Not to mention, wire transfers take more time before they can reflect in your trading account compared to other payment methods. Usually, the lead time for funds transfers varies between 3 to 7 working days.

How to Buy Algorand (ALGO) Anonymously (Without ID Verification)

Lastly, you can also buy Algorand anonymously (without ID verification) on eToro.  However, the maximum amount you can add to your unverified account is $2250. Since eToro is compliant with the rules and regulations of respective regulatory authorities, it needs you to verify your account as soon as possible. Not to mention, you can’t withdraw your gains unless your account is verified.

What are the Pros and Cons of Buying Algorand (ALGO)?

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Cons

What do You Need before You Buy Algorand (ALGO)?

The first thing you need when buying Algorand is to gather as much information about the blockchain and itc token performance as possible. Familiarise yourself with the different benefits and risks of investing in cryptocurrency and let these help you decide if an Algorand investment aligns with your investing goals. If it does, go ahead and get the following:

Trader account: A live trading account with a crypto exchange or a brokerage firm is the first thing you need to have in hand well before you start buying Algorand or any other cryptocurrency. Sign up with a crypto exchange to buy actual Algorand coins. Alternatively, you can also open an account with a broker that supports Algorand if you wish to trade crypto CFDs.

Investment capital: Next, deposit funds into the approved crypto trading account. When making the deposit, remember that purchasing actual Algorand tokens calls for more capital investment than required for opening CFD positions which expose you to leverage (borrowed funds).

Algorand wallets: To keep your Algorand coins safe and secure, you also need a crypto wallet. There are two main types of wallets available these days, including software wallets and hardware wallets. Most software wallets are online-based and store your crypto assets on your desktop or mobile phone. They are typically exchange-based wallets or third-party non-custodial wallets.

Hardware wallets, on the other hand, are devices that encrypt and store your digital assets offline. From a security perspective, hardware wallets are considered safer than software wallets.

How Much do You Need to Buy Algorand (ALGO)?

There is no standard minimum or maximum amount you need to buy Algorand. Usually, your selected platform determines the amount you need to invest. For instance, while some brokers allow you to get started as low as $20, such as capital.com, others may require you to deposit a minimum of $200 like eToro.

On the other hand, crypto exchanges like Kraken and Coinbase could take you on board for a minimum investment of $1 only. Other factors, such as availability of funds, target returns, and risk tolerance level, can also help you find the appropriate level of investment.

Where Can You Buy Algorand (ALGO) Today?

Since Algorand is one of the popular cryptocurrencies, it is available on nearly all major crypto exchanges and brokerages. Crypto exchanges, such as Kraken and Binance, sell actual Algo coins. On the other hand, you can buy crypto derivates from brokerage firms, like capital.com and eToro. Not to mention, eToro being a hybrid platform, allows you to either purchase actual Alogorand coins or buy a CFD contract.

What to Look for in an Algorand (ALGO) Trading Platform?

Since there have been plenty of brokerage firms and crypto exchanges offering crypto trading services, selecting the most legitimate platform could be a challenging task to do. Shared below are some tips that you may consider while finding the best crypto trading platform.z

1. eToro – Best for Social Trading

Number of Coins: 20+
Margin Trading: YES
Minimum Deposit: $200
Visit eToro

Capital At Risk

eToro is the world’s leading social trading platform founded in 2007. Though it has its headquarter in Israel, the brokerage company has currently extended its services to 140+ countries around the world. The company offers trading services featuring multiple financial instruments, including forex, metals, indices, commodities, shares, and cryptocurrencies. The company holds regulations from the world’s most reputable regulatory authorities, including Cyprus Securities and Exchange Commission (CySEC) and the Financial Conduct Authority (FCA).

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Buying Algorand and other cryptocurrencies on eToro is extremely simple. After signing up with the platform and depositing funds, you only need to decide if you wish to buy t actual Algorand tokens or trade Algo CFD contracts. eToro’s social trading services then make it easier for novice traders to start making money immediately. It allows them to copy the Algo trade settings for their PRO crypto traders and start making money even as they learn how to trade.

While the broker asks for a minimum deposit of $200 ($50 for US residents and $500 for bank deposits), the minimum tradable amount is $25. Clients can fund their accounts using multiple payment methods, such as debit/credit cards, bank wire, e-wallets (PayPal, Skrill, Neteller), etc. The company doesn’t charge any fee on deposits. However, clients need to pay $5 on each withdrawal.

Pros and Cons of Buying Algorand (ALGO) on eToro

Pros

Cons

Step by Step Process of Buying Algorand (ALGO) on eToro

  1. Go to the official website of eToro and click the join now button available on the top right corner of the homepage.
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  2. Enter your details, such as email and password. Read terms and conditions and then click on the create an account button.
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  3. Access the dashboard and click on the deposit button. Select the preferred payment method from the list of available options, such as debit/credit cards, PayPal, Neteller, Skrill, wire transfers, etc.
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  4. Enter the amount you wish to deposit and authenticate your payment details. For instance, credit or debit card payments need you to enter your name, card number, card expiry date, and the three-digit pin code available on the backside of your card. You also need to enter the payment verification code sent from the card issuer on your registered mobile phone or email address.
  5. On the navigation panel, click trade markets and find Algorand using the search bar. Select Algorand and enter your desired tradable amount on the pop-up window. Click the open trade button to complete the purchase.
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2. Capital.com – Best for CFD Trading

Number of Coins: 12+
Margin Trading: YES
Minimum Deposit: 20 $£€
Visit Capital.com

78.77% of retail cfd accounts lose money

Capital.com is a multi-asset brokerage firm best known for cost-effective CFD trading. The brokerage started its operations in 2016 and gradually evolved to become the preferred choice of newbies and Skilled professionals in over 180 countries. As far as the broker’s regulation is concerned, it holds licenses from CySEC and FCA.

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Capital.com’s user-friendly trading platform makes it extremely easy for traders to interact with their favorite crypto assets, including Algorand. Besides maintaining competitive spreads, the broker does not employ any trading commission or hidden charges. While the account opening process is easy, the broker is fast to process deposit and withdrawal requests. Available payment methods include debit/credit cards, Apple Pay, World Pay, Trustly, Bankwire, etc.

Capital.com offers excellent research and educational resources to enhance customers learning exposure. The brokerage firms provide access to advanced trading and risk management tools. Clients can also use demo accounts to practice unlimited trading and money management strategies without risking their real funds. Overall the broker maintains an excellent standard of services.

What are the Pros and Cons Of Buying Algorand (ALGO) On Capital.Com

Pros

Cons

Step by Step Process of Buying Algorand (ALGO) on Capital.com

  1. Sign up with the broker by clicking the trade now button available on the homepage of the broker’s official website.
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  2. Enter your details on the registration page, i-e email address, and password. Click continue to access the dashboard.
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  3. Complete the KYC process and verify your trading account by submitting supporting documents, such as a government-issued ID card/passport/driving license. You also need to submit a copy of your bank statement or utility bill.
  4. On the dashboard, tap o the fund account button and select your preferred payment method, such as debit card, credit card, Bank Wire Transfer, iDeal, 2c2p, Sofort, Trustly, and ApplePay, etc.
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  5. Enter the amount you wish to deposit and verify your payment details to complete the transaction.
  6. Find Algorand using the dedicated search bar on the watchlist tab. Enter your desired tradable amount and click the buy button to open the position.
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3. Coinbase – Best for Beginners

Number of Coins: 50+
Margin Trading: No
Minimum Deposit: 1 $£€
Visit Coinbase

Capital At Risk

Coinbase is one of the most user-friendly crypto exchanges available today. It is also one of the oldest and most reputable crypto exchanges and has its head office in the United States. The company has recently become listed on the Nasdaq exchange.

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The exchange stands out for providing detailed market insights and availing the advanced research tools that help clients trade efficiently. In addition to trading Algorand, clients can buy and sell more than 50 cryptocurrencies at Coinbase. Coinbase accepts clients from 100+ countries.

With the user-friendly trading interface, buying Algorand coins on Coinbase becomes quite convenient. After verifying your account, it doesn’t take more than a couple of minutes to buy Algorand or other cryptocurrencies at Coinbase. The exchange’s minim deposit requirement allows even the less privileged crypto enthusiasts to get started with it instantly.

You only need $1 to open an account with the Algorand trading platform. The crypto exchange offers multiple payment methods to add funds to your account, including debit cards, PayPal, Apple Pay, wire transfers, etc. Clients can also choose to buy Algorand tokens with supported cryptocurrencies.

What are the Pros and Cons of Buying Algorand (ALGO) on Coinbase

Pros

Cons

Step by Step Process of Buying Algorand (ALGO) on Coinbase

  1. Type www.coinbase.com in your browser and access the exchange’s homepage. Click on the get started button from the top right corner to open the sign-up page.
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  2. Enter your details on the registration page and click on create an account.
  3. Verify your email address by clicking the link received on your email id.
  4. On the portfolio tab, click the deposit funds button and select your preferred payment method from the available options, i-e debit cards, Apple Pay, wire transfers, PayPal, bank account. Enter your desired deposit amount and verify the payment details.
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  5. On the watchlist tab, select Algorand and indicate your desired volume and click the buy button to finish the purchase.
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4. Binance – Best for Low Fees

Number of Coins: 1500+
Margin Trading: YES
Minimum Deposit: 1 $£€
Visit Binance

Capital At Risk

Binance is the largest crypto exchange in the world. Binance has only been in the industry for just four  years and it has already built a reputation as one of the most affordable and most liquid crypto trading platforms.  Other equally attractive features that make the exchange stand out include its  quick and straightforward onboarding process, low deposit requirements, and access to the widest range of crypto trading pairs.

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In addition to providing access to a wide range of financial instruments, Binance accepts payment through more than 100 alternative channels on the P2P platform. Clients can also choose to pay via third-party payment networks, including Simplex and Banxa.

Clients can buy Algorand coins using the exchange’s web-based platform. However, the mobile trading app is also available to facilitate on-the-go customers. Signing up with the crypto exchange is pretty simple. However, the verification process could take a little more time than most crypto exchanges do. Binance employs a competitive pricing structure and doesn’t charge any commissions. There are no charges on deposit or withdrawal either.

What are the Pros and Cons of Buying Algorand (ALGO) on Binance

Pros

Cons

Step By Step Process Of Buying Algorand (ALGO) On Binance

  1. Visit the Kraken official page and click on the register now button.
  2.  Enter your email address and choose a password. Clients can also use their mobile phone numbers to sign up with the company.
  3. Upload the supporting documents to verify your account. You can use your national ID card, driving license, or passport for the same. You also need to submit a copy of your bank statement or utility bill to verify your address.
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  4.  Access the deposit fund button available on the dashboard. Click on the fiat deposit option and select the preferred payment method on the pop-up screen.
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  5.  Enter the amount you wish to deposit and authenticate your payment details.
  6. On the markets tab, click spot trading and find Algorand using the designated area. Since you can’t directly buy Algorand on Binance, you can select BTC or ETC instead.
  7. Enter the required quantity of the selected coin and click the trade button to complete the purchase.
  8. Once you have BTC or ETC in your wallet, you can then use them to trade against the Algorand.
  9. Please note that you won’t be able to buy Algorand or any other cryptocurrency on Binance until you get your account verified.

5. Kraken – Best for Safe Algorand (ALGO) Storage

Number of Coins: 50+
Margin Trading: YES
Minimum Deposit: 1 $£€
Visit Kraken

Capital At Risk

Kraken is yet another famous exchange in the crypto space. Founded in 2011, the company has completed a decade serving clients all around the world. Kraken lists over 50 digital assets, including Algorand. The crypto exchange is known to be a well-secured platform for buying cryptocurrencies. Besides maintaining audited accounts, the company employs fool-proof security measures to protect clients’ financial and confidential data.

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With easy-to-use trading platforms, clients can buy Algorand or any other cryptocurrency on Kraken quite conveniently. The exchange provides multiple options to fund your accounts, such as debit/credit cards, Etana Custody, Fedwire, Silvergate Exchange Network (SEN), Swift, etc.

Clients can also make fiat deposits in USD, CAD, and EUR. However, a nominal fee on fiat deposits may apply. Other products offered at Kraken include indices and futures. Clients can also stake their coins and fiat currencies for a fixed period with Kraken to receive compounded rewards on maturity.

What are the Pros and Cons of Buying Algorand (ALGO) On Kraken

Pros

Cons

Step by Step Process of Buying Algorand (ALGO) on Kraken

  1. Visit www.kraken.com and click on the sign-up button.
  2. Fill up the registration form and click on create an account.
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  3. Open your email inbox and click on the link received from Kraken to verify your email and complete the registration process.
  4. Submit the supporting documents to verify your account.
  5. Click the funding tab from the dashboard. Select your preferred payment method and follow the instructions.
  6. Once you have successfully added funds to your account, find the Algorand using the search bar available beside the market tab.
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  7. Select your desired pair, indicate your required volume, and click the trade button to complete the purchase.

Other Ways of Getting Algorand (ALGO)

Besides buying your favorite cryptocurrencies on crypto exchanges, there are some other ways that you may consider getting Algorand conveniently. Let’s share a few of them below.

Gift or tip

Being a crypto enthusiast, receiving cryptocurrencies as a gift or tip can be exciting. For businesses, setting up a tip jar isn’t a big deal. You could start accepting Algorand coins as a tip from your customers against your services. Additionally, your friend’s circle or family members could surprise you by giving Algorand coins as a gift. Therefore, you need to have a supported wallet available anytime.

Through Algorand Faucet Website

Faucet websites distribute a small amount of Algorand amongst individuals who complete different micro-tasks on their platform. . These typically include sharing a video, posting an advertisement, or playing a video game. A few could even ask you to complete a survey, complete puzzles, solve captchas, or participate in a focus group.

Through staking Algorand coins

As we had explained earlier in this post, you could stake some coins in an Algorand wallet to receive a reward in the form of more Algo coins. In this case, you have the option of staking within the Alg network or through third-party apps on the DeFi protocol.

How Can You Use Algorand (ALGO)?

Now that you have learned how to buy Algorand cryptocurrency, it now is time to learn the different ways in which you can put it to use. Here are the three most common. an

“HODL”

HODLing your Algorand coins anticipating a rise in their value is more like an investment than putting them to use. However, what can even be a better use than having their value increased over time. Note, however, cryptocurrencies are synonymous with untamed volatilities, which says that there is an equal chance of this investment losing value over time. There is an equal chance for them to lose their worth at once. You, therefore, must only invest what you can afford to lose.

Pay for Goods and Services

You can also spend your Algorand coins against purchases on supported merchant outlets and websites. Retailers and Suppliers that accept Algorand coins may vary from Gaming websites to Defi apps and some insurance companies.

Multiple human welfare societies and non-governmental organizations (NGOs) accept crypto donations these days. You can also consider donating your Algorand coins to such charity funds. Undoubtedly, expanding your arms to help the ones in need is a cheerful deed.

What do Reddit & Quora Users Say About Buying Algorand (ALGO)?

Quora

Quora is one of the world’s most renowned public platforms to seek user’s opinions on almost every niche of life. We tried reading people’s views on investment in Algorand and found the community supports investment in the digital currency all by heart. The majority of members believe Algorand holds massive potential to excel. According to a senior member on Quora, Algorand is still way cheap than other altcoins based on a proof-of-stake mechanism, such as Tezos. Given the interest rates on Algorand, it is worth investing, he added.

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Another member expressed his views concerning the future of Altcoin and seemed quite optimistic. He seemed to admire that the Algorand resolves the network scalability issues while keeping security and decentralization elements intact. Some members also think, Algorand being the only blockchain-based cryptocurrency to address blockchain trilemma for lower cost, could make Ethereum less attractive. Undoubtedly, Ethereum employs a high gas fee when it comes to the scalability of the network. In short, the Quora community appraises Algorand and foresee a bright future for it.

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Reddit

Like Quora, Reddit is yet another famous platform to discuss anything and provide personal feedback. As far as the public view on investment in Algorand is concerned, the Reddit community seems to hold mixed opinions. Some members on Reddit tie hopes with Algorand and anticipate a surge in its price. All such people believe that the enterprise marketing team’s endeavors to integrate with fortune 500 companies will surely drive the crypto price to new heights.

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On the other hand, some people seemed to have various concerns over the network’s transparency amid the token distribution approach of the Algorand. According to them, the majority of the stake is held by the founding members, leaving nearly 20% of the total supply to be taken up by the general users. However, a few believe that the Algorand 6% annual yield makes it unique from many other altcoins available around. Conclusively, Algorand has more votes in favor from the Reddit community either.

Conclusion

Despite the increased competition between projects focusing on smart contracts in the crypto space, Algorand managed to secure investors’ attention dominantly. Not to mention, Algorand’s unique properties make it an interesting technical experiment to many crypto enthusiasts. ALGO – the network’s native utility token can bring healthy returns on investment when staked.

Further, traders can find it listed across all major exchanges of the world, including Coinbase, Kraken, and Binance. In short, Algorand is all set to give some hard time to well-reputed cryptocurrencies like Ethereum and alike. If you also wish to stake your interest in it, this could be the right time to go ahead since the coin is available at cheap rates.

 

Frequently Asked Questions (FAQs)

Yes, Algorand is undoubtedly worth your investment. It is one of the newest cryptocurrencies based on blockchain. Given its finite supply, scalability, and technical features, it has massive potential to become a valuable asset in the coming months.

Well, it depends on individual perceptions. For instance, some people see Ethereum have more potential amid its current adoption metrics. According to them, Ethereum has more potential to become a key player in smart contracts technology in the future. 

On the other hand, many would argue that Algorand being nascent and having a lower market capitalization, has more chances to outclass Ethereum (ETH) in the years to come. Not to mention, the greater the reward is for betting on a specific crypto asset, the higher the risk it will have bestowed upon by the market. 

Although the Algorand uses the Proof-of-Stake consensus mechanism, its unique features differentiate it from existing proof-of-stake blockchain-based cryptocurrencies, such as Cardano. Algorand employs Pure Proof-of-Stake (PPOS) consensus mechanism. The key difference is the substantially low requirement of the Algorand network for staking purposes. Traders can even stake only 1 Algorand at times. 

The feature received much appreciation from the crypto community. However, critics argued that it might make the whole network less secure. 

Yes, it does. Algorand follows a multi-layered approach concerning Smart Contracts. While the base layer involves the simple construction of smart contracts, the advanced Smart Contracts are dealt with in the second layer via off-chain methodology. That’s how the network ensures acceptable tradeoffs relevant to the scalability of Smart Contracts. 

Yes, it is indeed environment-friendly crypto due to being based on the Pure Proof-of-Stake consensus mechanism. Crypto assets that employ Proof-of-Work (PoW) mechanism, such as Bitcoin, produce waste harmful to the environment. Not to mention the negative impact of proof-of-work cryptocurrencies have overblown to a large extent.

Yes, it is. Since the Algorand works upon proof-of-stake, it allows you to earn a yield on your Algorand holdings against the participation in the network consensus. You can get started by staking 01 Algorand. At times, you can expect an APR between 5 to 6 percent. 

Yes, it is perfectly suitable for small transactions. Algorand’s base layer process 1000 transaction per second which only takes a few seconds to get confirmed. Algorand network is also viable for building cheaper and robust payment systems on the secondary layers.