Is Algorand (ALGO) a Good Investment?

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Algorand is a smart-contract focused blockchain that seeks to provide a novel infrastructure to scale and create everything from decentralized apps (dApps) to DeFi platforms. The project was founded in 2017 by an accomplished team spearheaded by Silvio Micali, a renowned computer scientist specializing in cryptography. The platform's pure proof-of-stake (PoS) consensus mechanism, or PPoS, is a unique approach to a POS protocol that enables the networks to focus on speed, security and decentralization simultaneously. This results in near instant transaction completion with up to 1,000 transactions per second and transaction finalization in less than 5 seconds. You might be wondering, “don’t other, more popular platforms do the same thing?” Read on to see how Algorand differs from the competition and where its token, ALGO, is headed. 

What is ALGO?

ALGO is the native currency of Algorand that is used to make transactions on the network. A maximum supply of 10 billion minted coins with a current circulating supply of about 6.6 billion coins exists, and the firm’s website details the distribution schedule of the remaining coins. More interesting than the tokenomics of ALGO, however, is how the coin ties into the network’s proprietary PPoS consensus mechanism. Holders of ALGO may receive validator rewards as each holder with at least one ALGO can choose to participate in the consensus mechanism. Additionally, holders don't have to stake tokens to earn more and instead receive 4% to 6% APR just by holding their coins. 

ALGO Price History

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ALGO had an initial coin offering of $3 and a current market cap of over $2.2 billion. In fact, the token boasts the fastest time from launch to getting a listing on Coinbase Global Inc. (NASDAQ: COIN). Unsurprisingly, this accomplishment boosted the price of the coin for a short period of time after which the price fell to and hovered around 23 cents. 

The coin saw a favorable boost in price amid general positive sentiments in crypto last year but has since fallen alongside other coins in 2022 because of heightened volatility in the markets. Investors are hopeful, however, for upward price movements given the variety of use cases and ongoing developments. 

Algorand Competition

Algorand’s notable competition includes Ethereum, Cardano and Solana. The functionalities of these platforms seem to offer the same higher-order benefits, so why is Algorand worth considering? 

One fundamental point is the advantages offered by the PPoS consensus mechanism, namely security and decentralization. Since transaction validators are chosen at random from all holders of ALGO, it is very unlikely that hackers can pinpoint who to attack beforehand. The PPoS mechanism also means that unlike Bitcoin and other proof-of-work (POW) currencies, ALGO requires no complex calculations. As a result anyone can participate in the validating process without expensive equipment or high-energy usage, which promotes true decentralization. 

Another key differentiating point about Argoland is its carbon negative footprint, something out of the norm in the crypto space. Since the network’s consensus mechanism is a form of POS, carbon emissions are already very low. On top of this, the company actively donates money to ClimateTrade, a company that is a leader in finding ways of offsetting carbon emissions. This kind of robust positive PR campaign is always a plus when looking for tokens to invest in. 

How to Buy ALGO

ALGO is an established token that is available on most well-known exchanges. If this is your first time opening an exchange account, here are some things to consider:

• Security features (two-factor authentication and encryption)
• Account maintenance and transaction fees
• Intuitive and user-friendly interface 

Some great exchanges that include the above features are SoFi, eToro, Coinbase, Crypto.com, WeBull and Voyager. After choosing your exchange, you’ll want to fund your account through a direct deposit from your bank or another funding method. 

Finally, all that’s left to do is choose the amount of ALGO you wish to buy and place your order. When placing your order it’s important to note the different order types (stop loss, limit orders) that your exchange offers so you can choose the one that suits your needs best. 

Best Hardware Wallet for ALGO

If you plan on holding your ALGO, getting a wallet is a worthwhile investment. A wallet is a storage device or application that protects your coins should your account be subject to a hacking attempt. The best hardware wallets, or cold wallets, offer higher security than their software counterparts through robust in-built security measures. 

Best Hardware Wallet: Ledger Nano X

The Ledger Nano X is a hardware wallet that enables investors to efficiently manage their digital assets. Through Bluetooth, the Ledger Nano X is able to connect to your phone, allowing you to manage your crypto on the go. The Ledger Nano X also comes with a 100 mAh battery that can last several hours when in use and a few months when idle on a full charge. 

The Ledger Nano X provides robust security measures for investors storing their digital assets. The wallet integrates a certified chip that securely preserves data to protect user’s assets in the event of a hack. Additionally, the Ledger Live app allows users to actively manage up to 27 coins and 1,500+ tokens including ALGO. 

Since a key feature of ALGO is the rewards users receive from holding the coin, it's important to choose a wallet that allows investors to reap these rewards. Fortunately, the Ledger Live app allows investors to store their ALGO while earning passive income. You can’t buy ALGO through Ledger Live, but you can manage and control your ALGO investments through the app. 

Cryptocurrency Market Outlook

The crypto markets have been on a decline since late 2021 with Bitcoin down significantly from its $67,000 high in November of last year. Numerous other coins have also followed suit, trending down amid market volatility. Despite sustained innovations in the blockchain space, uncertainty regarding Fed interest rate policies and instability around the Russia-Ukraine conflict partly explains the volatility seen in the markets. Check out Benzinga’s price table below for up-to-date crypto prices.

Is ALGO a Good Investment?

If you are looking to invest in a platform with solid development goals and a proven track record, consider picking up ALGO. Not only are you investing in the platform’s growth, but the rewards you get from holding ALGO are added rewards to take into account. As continued adoption of the Algorand platform increases across a variety of use cases, investors looking for a long-term investment vehicle backed by unique technology should look to ALGO as a potential investment. 

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