How to buy Terra (Luna) – Forbes Advisor UK

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After a brief hiatus following its involvement in the collapse of the Terra blockchain, Luna is back on a new blockchain and is once again available for purchase.

Not to be confused with Terra Classic and Luna Classic, the chain from which the new Terra blockchain was forced and its native currency, the new Luna is no longer associated with the stablecoin Terra US (UST).

When the original Terra started issuing more Luna to support the UST, the token lost almost all of its value. It is this kind of crypto volatility that has led to repeated warnings from the UK’s financial watchdog.

The Financial Conduct Authority (FCA) says that anyone who invests in crypto should be prepared to lose their entire investment.

If you are aware of the risks but are still interested in buying the new Luna token, here is how to do it.

Choose an exchange

You will need to use a crypto exchange to exchange your fiat currency (pounds) for Luna.

Since Luna is reviving after being pulled from exchanges earlier this month, the token has yet to return to all exchanges.

At the time of writing, Luna was available from Binance, KuCoin, eToro, and a handful of other exchanges.

When choosing an exchange, there are a few important things to look out for, such as:

  • Payment Methods: Most exchanges accept bank transfers, credit and debit cards. Bank transfers are the most cost effective and widely accepted method of payment. Some exchanges charge fees for card payments. PayPal is not widely accepted.
  • Wallets: Most exchanges offer built-in wallets to store your Luna in. If you prefer to store your crypto in a third-party hot wallet or cold wallet, check if the exchange allows outbound transfers and if there are any fees to pay.

Choose a way to pay

Exchanges generally don’t charge fees on direct bank transfers, making it the cheapest and easiest way to pay. Fees for credit and debit card payments are common, and not all card issuers allow you to pay by credit card.

For example, TSB, Virgin Money, and Tesco Bank block transactions with crypto exchanges. Here is how some of the other card issuers handle crypto transactions.

Order

Once you have chosen a payment method, go to the Luna page of the exchange you have chosen (be careful not to choose Luna Classic) and press the amount you wish to invest.

Choose a storage method

Many exchanges offer a built-in wallet in which to store your Luna, but you may want to store your crypto in a third-party wallet or offline in a cold wallet.

Online “hot” wallets are a target for hackers. The tokens they contain can and have been stolen, but the upshot is that if you were to lose your wallet credentials and couldn’t access your tokens, the exchange could help you get them back.

Offline “cold” wallets are more difficult for hackers to access due to the “air gap” between the hardware and your connection to the internet. However, if you have lost access to your wallet (for example, you have lost your credentials), you could be locked out of your own wallet with no one to help you.

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