After a short break following its involvement in the downfall of the Terra blockchain, Luna has made a comeback on a fresh blockchain, offering itself once again for purchase.
It’s important to note that Luna should not be mistaken for Terra Classic and Luna Classic. While the new Terra blockchain emerged as a result of a hard fork from the previous chain, and Luna remains its native currency, it is now independent from the Terra US (UST) stablecoin.
When Terra initially increased the issuance of Luna to support UST, the token suffered a significant loss in its value. This kind of volatility in the cryptocurrency market has prompted repeated warnings from India’s Reserve Bank of India (RBI).
The RBI emphasizes that individuals investing in cryptocurrencies must be prepared for the possibility of losing their entire investment.
If you acknowledge the risks involved but remain interested in purchasing the new Luna token, here’s a step-by-step guide on how to proceed.
Selecting an Exchange
To acquire Luna, you’ll need to utilize a cryptocurrency exchange where you can convert your Indian rupees into Luna.
As Luna is relaunching and has not yet returned to all exchanges following its temporary withdrawal earlier this month, there are a limited number of platforms where you can currently find it. At the time of writing, CoinDCX, WazirX, and a few other exchanges were offering Luna.
When choosing an exchange, there are several crucial factors to consider, including:
Payment methods
Most exchanges accept bank transfers and debit cards. Bank transfers are typically the most cost-effective and widely accepted option. However, it’s worth noting that certain exchanges may impose fees for card payments.
Wallets
Many exchanges provide integrated wallets for storing your Luna. If you prefer to use a third-party hot wallet or a cold wallet to store your cryptocurrency, check if the exchange allows transfers out and if there are any associated fees.
It’s essential to weigh these considerations before making a decision on which exchange to use for your Luna purchase.
Selecting a Payment Method
When it comes to paying for your Luna purchase, direct bank transfers are generally the most cost-effective and straightforward option. Exchanges typically do not charge fees for bank transfers. On the other hand, it’s common for debit card payments to incur fees.
Placing an Order
Once you have determined your preferred payment method, proceed to the Luna page on your selected exchange (ensure you are not selecting Luna Classic). Enter the desired investment amount and proceed with the following steps:
- Carefully navigate to the Luna page on your chosen exchange.
- Double-check that you are not selecting Luna Classic.
- Enter the amount you wish to invest in Luna.
By following these steps, you’ll be on your way to placing an order and acquiring Luna on the exchange of your choice.
Choosing a Storage Method
When it comes to storing your Luna, you have a few options to consider. Most exchanges provide integrated wallets for your convenience, but you might also prefer to store your cryptocurrency in a third-party wallet or opt for an offline “cold” wallet.
Online “Hot” Wallets
Integrated wallets offered by exchanges are convenient but can be targeted by hackers. There have been cases of tokens stored in these wallets being stolen. However, one advantage is that if you were to lose your wallet credentials and couldn’t access your tokens, the exchange might be able to assist you in recovering them.
Offline “Cold” Wallets
Cold wallets provide increased security against hackers due to the “air gap” between the hardware and your internet connection. Tokens stored in offline wallets are less vulnerable. However, it’s important to note that if you lose access to your wallet (e.g., misplacing your credentials), you may find yourself locked out without anyone to assist you.
Consider your preferences and the level of security you desire when deciding between online “hot” wallets and offline “cold” wallets for storing your Luna tokens.
Also Read
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- What is NFT and How Does NFT Works – A Detailed Guide
FAQs
Direct bank transfers are typically the cheapest and simplest method. Debit card payments may incur fees.
Look for payment methods accepted (bank transfers, debit cards), fees associated with payment methods, and wallet options for storing Luna.
You can use an integrated wallet provided by the exchange, store it in a third-party wallet, or opt for an offline “cold” wallet for enhanced security.
Online “hot” wallets are convenient but can be targeted by hackers. However, exchanges may assist in recovering lost credentials.
Offline “cold” wallets provide increased security due to the lack of direct internet connection. However, losing access to your credentials may result in being locked out without assistance.
