I'll tell you how I came across Algorand as an uninitiated crypto-investor, what Algorand or ALGO is, and why I love it so much, but before I do that, let me issue a disclaimer.
This is not investment advice. I will urge that any crypto investment you make is based on your own in-depth research.
Now, to my story.
This is how I learned to HODL and why, among the projects I support, I chose to invest in Algorand.
I got involved in cryptocurrency quite accidentally during the pandemic, while playing a game on my phone that paid nominal cryptocurrency rewards. To receive my rewards, I had to open an account on an exchange and this led me to learn about cryptocurrency exchanges and the wide variety of coins available to trade there.
Now, full disclosure, if someone, a few months earlier, had said to me, hey, you need to invest in a cold wallet, get on a cryptocurrency exchange and HODL some coins, I would not understand the first thing they were talking about. So, for the uninitiated like myself, if you stumble across this article, please refer to my crypto-lexicon list below.
At first, I focused on the two largest coins by market cap, Bitcoin and Ethereum, but I knew that my tiny bag could hardly make a dent in either two and it would be a lifetime before I could presume to hold a reasonable fraction of either at the rate the game paid. Additionally, in my country, while it is not illegal to trade in cryptocurrency, there was no easy way to invest directly. And so, I began searching for cheaper Alt coins with a lower market cap, and I fell headlong into the world of meme coins, transferred my money onto a decentralized exchange, and began an outright ill-conceived gamble.
This was quite an adventure, of course, but, a buon intenditor, poche parole, a word to the wise: I'd say leaping naked into a river full of hungry piranha is a pretty big adventure too. Doesn't mean you should do it.
In my case, I was always in search of the new and hottest thing on the market, but could never quite time a peak to take profits, or I usually FOMO'd into a project when it was too late, each effort ending in rug pull after rug pull. Eventually, I ended my foray into memes with little more than bruised knees and egg on my face.
It is then I began to research and turned my attention to more serious projects.
And here is where I stumbled across the ALGO coin when looking for a coin with low transfer fees and a fast transaction time. I came across a few coins that are great projects and which could facilitate micro-transactions at low costs with great staking and advantageous returns. I'll tell you about those in another post, but I fell in love with ALGO above the rest.
And this time, coincidentally, I got in on ALGO before the hype this season. So, for the uninitiated:
WHAT IS ALGO?
According to the Algorand Foundation, ALGO is the cryptocurrency of the Algorand blockchain, a brilliant, carbon friendly project founded by computer scientist and Massachusetts Institute of Technology professor, Silvio Micali, to create an open, borderless economy where everybody could participate.
ALGO functions like regular fiat currency (paper money, credit cards, debit cards, etc., but it is instant, and the cost of transaction is extremely negligible ($0.02)
ADVANTAGES OF ALGO TO A NEWBIE INVESTOR
There are many advantages to the Algorand project including security and scalability, but as a simple newbie investor, just learning about cryptocurrency transactions, these are the features I fell in love with:
- Facilitates micro-transactions
- Low transfer costs
- Speedy transfers
- Easy staking
Staking and earning interest on ALGO coins is extremely easy.
You need only to hold ALGO in an ALGO compatible wallet, such as the Algorand or Atomic wallet to be eligible for up to 7% APY on your coins, beginning with a minimum of one ALGO. To put that in context, again, one ALGO, at this time, is trading just above US$2. There is no complicated process for staking, simply HODL in your wallet, and your ALGO grows automatically.
Of course, there is much to be said about the return on investment HODLing Algorand as compared to other crypto-coins which may be deemed to be more profitable, at least in the short term.
There is also much to be said of the tokenomics associated with the ALGO coin which has been a deterrent for many short term investors. I'll discuss these in depth in future posts, but suffice to say, I am still all in with ALGO. I love the project and I expect a lot of positive returns as a HODLer in the future.
Interestingly, I note that ALGO has also captured the positive interest of governments and institutions as well.
Now, for some crypto terms.
Altcoins: Crypto coins that are alternative to Bitcoin.
Blockchain: The distributed ledger that serves as the traditional technology behind cryptocurrencies. Other technologies that have since been evolved from blockchain include Dag and holochain.
Cold Wallet: A secure method to store your cryptocurrency offline, e.g. hardware wallets which resemble a USB memory key. These serve to reduce the risk of exposure to hacking.
Hot Wallet: A wallet that is connected to the Internet., e.g., the Algorand wallet.
Cryptocurrency exchange: An online marketplace where you can buy and trade and sometimes stake cryptocurrencies.
Tokenomics: The supply and demand characteristics of a token that would affect its value.
That's it for now guys. I hope you enjoyed this post. Until next time, arrivederci!