Cryptocurrency is now a major factor when it comes to the world of finance. Ever since the crypto boom of the 2010s, a lot of people have started to trade and invest in the matter. While there are known cryptos such as Ethereum and Bitcoin, another one is worth checking out. Enter Algorand or more commonly known as Algo. Today we will discuss what Algo is and how it works.
Interested in entering the crypto world, check out our Crypto day trading guide today.
When Did Algorand Start?
Algorand (ALGO) started trading on April 8th, 2017. It has a market capitalization of ƒ2.95 billion, and its price is ƒ0.00565. The Algorand project is an open source blockchain that improves the private incentives by making them more efficient through a proof-of-stake algorithm oracle voting system and providing an economically fair proof for node operators who contribute toward securing the network.
What Is Algorand and The Algorand Network?
The network participants on the Algorand network will share equally in the block rewards depending on the number of tokens staked and their rank in the consensus process. The Algorand network is secure and scalable without any forks or turns. It is well optimized for energy consumption and computational power. The network is secured by an end-to-end cryptographic proof of stake algorithm. Each staked token is equivalent to a vote on the network, also known as an oracle. When you buy algorand, you are buying at the early stage of the project, meaning you expect a bigger return in the future, but for now, you are willing to sell your tokens for a lower price.
Algorand gives its users great financial freedom by letting them transfer value without trusting other parties. They also earn a staking reward by participating in the consensus process and securing the network. This is based on their dedication to ensuring they vote with their stake and perform this task immutably with each network transaction. The Algorand network has the unique ability to feel the network effect and provide a positive feedback loop by creating an exponential increase in value.
The Algorand project builds an efficient, strong, private blockchain that uses a proof of stake algorithm. Its goal is to allow all participants to transfer their digital assets without having to trust third parties or feel an unfair advantage. You buy algorand tokens because they will give you a chance to gain more tokens, and to get this profit, you are willing to sell them in the future.
How Does Algorand Work?
Most Altcoins can have access to easy trading or conversion. However, with algorand, you can only trade it for another digital currency or sell it at a higher price. The staking process also ensures that nodes perform their tasks immutably with each network transaction. Therefore, the algorithm rewards their dedication by letting them have access to a portion of the block reward.
What Does Algorand Offer?
The Algorand Network provides its users with a more decentralized, secure, and stable cryptocurrency with more high-performance nodes in the blockchain leading to better security. It allows businesses to benefit from a secure, fast and efficient method of transactions at a fraction of the cost incurred by traditional payment methods. The Algorand network is impervious to hacking or altering by any person, group, or organization.
The Algorand network can overcome the limitations of blockchain platforms like Bitcoin and Ethereum. It can handle larger transaction volumes without slowing the network or increasing costs. The Algorand network is designed to allow optimal scaling of transaction volumes while providing a vast improvement in terms of security, efficiency, and stability.
The monetization model of the Algorand network has been designed to operate so that it can sustain itself. Therefore, it does not depend on any form of advertising or sponsorship activities common in other platforms like Bitcoin. The Algorand platform is manageable without the need for any governing authority or government. Each node operator acts as a validator on the network, and their participation is rewarded by receiving ALGO tokens.
What Makes Algorand (ALGO) Unique?
The Algorand platform is unique in many ways. Its features include a proof-of-stake algorithm, decentralized consensus, and a voting system. The latter provides an economic-fair voting mechanism for network participants. The platform uses the proof-of-stake algorithm oracle voting system to allow network participants to participate in securing the network. This also provides incentives to operate a node on the network.
How to Purchase Algorand (ALGO)?
Buying algorand is easy, but you need some wallets first and a cryptocurrency exchange that allows you to buy ALGO using cash or bank transfer. ALGO can be traded on Gate.io and KuCoin.io. You can only buy ALGO on these two exchanges, which are the only ones allowing users to withdraw ALGOs.
The first step is to go to Gate.io or KuCoin.io and set up an account using a payment method that allows you to transfer money to your bank account, like cash or bank transfer. When you complete this process, you will be able to receive funds in your wallet and start trading on any of the exchanges which support ALGO trading.
If you do not have money, you can go to any exchange that allows deposits using just a cryptocurrency. You will have to buy BTC and then exchange it for ALGO on the exchange that lists ALGO.
How to Store Algorand (ALGO)?
Algorand is an ERC20 token and is storable on MyEtherWallet.com or MEW for short. MEW is not just for Algorand but all ERC20 tokens. You can also download a MEW wallet from their website.
The easiest way to store your ALGO is to go to the MEW website, download the wallet, and store it on your hard drive. This will allow you to receive, hold, send and even track your ALGO tokens. All ERC20 tokens are compatible with MEW, which makes it a great way to store and manage all your tokens.
How to Stake Algorand (ALGO)?
The staking ALGO is dead simple and can be done in just a few minutes. You need to download the MEW wallet and create an account, head over to Gate.io or KuCoin.io and register to trade ALGOs.
As rewards for participating in the consensus process and securing the network, ALGO will be released stickers. The Algorand blockchain uses an on-chain voting mechanism that allows every stakeholder to vote using their tokens to make decisions. Therefore, if you have ALGOs in your wallet, you can begin staking it by selecting “vote” from the menu option on MEW or your ALGO wallet.
Final Word
The Algorand is a scalable, private, and secure token that does not rely on crypto-mining. Therefore it is usable as a currency to trade. The staking feature allows the platform to transition to a decentralized system that protects the platform’s participants. Algorand is an ideal investment option for advanced traders looking for high-return altcoins with unique features.
