How to buy Algorand online
This beginner’s guide gives you a background on the Algorand platform and how it all works. Learn where to buy Algorand, the best way to buy, and everything else you need to decide if now is the best time to buy ALGO.
Compare where to buy Algorand, and open an account
You can buy ALGO straight away using one of our trusted brokers below. We have assessed all the top cryptocurrency brokers to help you decide which one is best for you. Otherwise, keep reading to learn more about Algorand before you buy.
What is Algorand?
Algorand is a decentralised alternative to the internet. Fuelled by its native cryptocurrency, ALGO, it was created as a competitor to the Ethereum blockchain. The ALGO coin is used to process transactions on the platform and can be held in a wallet to earn rewards.
Anyone who holds ALGO in a cryptocurrency wallet earns interest on their coins every time a new block is added to the Algorand blockchain. There is a central store of tokens used to pay these rewards, fund innovation, and attract new developers to build on the platform.
Algorand was formed by MIT professor Silvio Micali in 2017. Micali has won the Turing Award for his contributions to cryptography and computer science, and his involvement adds a level of gravitas to the Algorand project.
How does Algorand work?
Algorand works by using a consensus mechanism to add new ‘blocks’ to its blockchain. This just means that new transactions are approved so long as a majority votes in favour. The ALGO coin acts as a governance token to fuel the whole process, as the majority is determined by the amount of ALGO tokens in circulation.
Adding new blocks in this way is the main difference between Algorand and energy-intensive blockchains like Bitcoin. Using tokens to vote stands in contrast to Bitcoin’s mining process, which requires a lot of computer power and energy to create new blocks. Thus Algorand is a lot faster and more democratic, as it spreads the power out among coin holders rather than focusing it in the hands of those with the most powerful hardware.
If you invest in ALGO you have a few options of what to do with it. You can be an active holder and put it to work as a governance token, you can store it in a wallet and earn interest, or you can trade it on a cryptocurrency exchange.
How to buy Algorand online – a step-by-step guide
Step 1. Find an exchange to buy Algorand
Once you’ve decided to invest in Algorand, you need to find an exchange that offers ALGO. Often you’ll find that you can’t buy ALGO directly with fiat currency (like GBP, USD or EUR) and need to transfer your cash into Bitcoin first, before using that to buy Algorand.
If you’re looking for where to buy Algorand immediately, here are two of the top exchanges that offer ALGO:
- Binance: One of the biggest names in the cryptocurrency trading space, Binance allows users to trade hundreds of different cryptocurrencies, including Algorand. Open an account right now >
- ChangeNow: Integrated with other prominent trading platforms, it enables instant trading of cryptocurrency, and supports nearly 200 crypto coins. Open a ChangeNow account today >
Step 2. Sign up and fund your account
Once you’ve chosen an exchange, you need to sign up for an account before you start trading. Most exchanges require some form of photo ID, like a passport or driving licence, although this can vary from platform to platform.
When you have an account, you just need to deposit your fiat currency or buy another cryptocurrency to fund it, and then you’re ready to buy Algorand.
Step 3. Buy Algorand
This step is simple – once your account is funded, you just need to find the current price of Algorand and execute the trade. If you’ve used Bitcoin to fund your account, you should search for the ALGO/BTC crypto pair on the exchange and click ‘buy’.
Step 4. (Optional) Get a suitable wallet
You don’t have to get your own wallet when you buy cryptocurrency, as most exchanges will let you hold your coins in your account with them. However, in Algorand’s case that might prevent you from earning rewards so you should check the exchange’s terms and conditions and consider getting your own.
There are a number different wallet options available. Here are a couple of the best ones:
- Freewallet: An online crypto wallet that offers storage for over 100 of the most popular cryptocurrencies, including Algorand. Sign up for a Freewallet now >
- Ledger Nano S: The most popular hardware wallet available, it offers storage for more cryptocurrencies than other leading competitors. Get a Ledger Nano S today >
How to trade Algorand – a step-by-step guide
Step 1. Find a broker
To trade ALGO you need to find a broker that lets you buy and sell quickly. You should consider one with low fees, to avoid having too much of your money eaten away every time you trade.
It’s also important to check that your broker offers ALGO trading. As Algorand is a new cryptocurrency, it isn’t available to trade with many brokers yet. Two of the most popular brokers are eToro and FXTB, so it’s worth having a look there first.
Step 2. Deposit money
You can normally use a fiat currency like GBP, USD, or EUR to fund your broker account. For smaller cryptocurrencies like ALGO, you often need to transfer your money into Bitcoin or Ether first, then search for the BTC/ALGO or ETH/ALGO price.
Step 3. Decide how you’d like to trade
Two of the most common ways of trading are spread betting and contracts for difference (CFDs). These aren’t the only methods for trading cryptocurrency, but in both cases, you can speculate on whether the price of your chosen coin will go up or down.
Step 4. Start trading
Once you’ve set up a broker account, you’re ready to go! For beginners it’s usually a good idea to start trading with a demo account to get to grips with the basics and understand how the market works without the risk of losing money.
When it comes to trading, you can decide to go long or go short. If you’re positive about the coin and you think it’s going to go up, you can take a long position. Otherwise, you can take a short position and back it to fall. ‘Shorting’ an asset just means you’re selling it now and hoping to buy it back later at a lower price. If you do it successfully, you can make a profit on the difference.
More experienced traders can decide to trade with leverage. By using leverage you can make much larger trades with only a fraction of the trade value, which is known as the ‘margin’.
It’s always a good idea to take time to think over any investment, particularly cryptocurrency. Here are some of the pros and cons to think about before investing in Algorand, and some questions to think about below.
- Algorand is ideal for beginners as an inexpensive starter coin
- You can earn interest by storing ALGO in a wallet
- It was founded by respected MIT professor Silvio Micali
- Algorand owns a significant chunk of ALGO coins and holds power over the platform
- Lots of competition to be the leading platform for the decentralised economy
Still not sure? Here are three more things to consider before you decide to invest in Algorand.
1. Is now a good time to buy Algorand?
It depends on whether you have a long or short term outlook. In the long term, investing in ALGO could be a good move if you believe in its aim of decentralising the internet. If it succeeds and becomes the platform that brings the best developers on board then ALGO’s value is only likely to increase.
If you want to trade ALGO in the short term then its big plans for decentralisation are less important. In that case, you want to get to grips with technical indicators that might help you predict price moves. You’ll want to track any developments that might cause a bump in ALGO’s price, and you can follow the latest market analysis below:
Up or down? Algorand (ALGO) price prediction for March
Zilliqa, Algorand, Sushiswap price analysis roundup
Algorand (ALGO) price plunges and the move towards the downside will probably continue
2. What problem does Algorand solve, and what are the coin’s investment prospects?
Algorand offers a platform for building a decentralised internet. It can process transactions faster than its leading competitor, Ethereum, and has many more possible uses than pure cryptocurrencies like Bitcoin.
ALGO’s long term investment prospects are complicated by the number of competitors trying to do a similar thing. There has been an explosion of new cryptocurrencies in recent years, and the likes of Polkadot are trying to solve the same problems in a similar way.
Algorand has been active in taking on the competition. It’s kept back a significant chunk of the total coin supply, with some specifically earmarked as a fund to sign up the best developers. Similarly, that supply pays the rewards you can earn just by holding ALGO in a wallet.
That means there are a few factors to consider before you jump in and buy Algorand. You need to think about how long you intend to hold ALGO, or whether you want to try to trade it quickly. Either way, you should always follow the latest developments, especially in cryptocurrency where things tend to change fast. You can track all the news that might affect ALGO’s value below.
A new platform will bring music to DeFi via Algorand (ALGO)
Fintech platform Instimatch and Algorand (ALGO) partner up
3. Do you want to hold Algorand for the long term?
As a stable currency that pays rewards for holding it, ALGO lends itself to a more long term investment view. But that’s not to say it’s the only way to go. It depends on your goals and how quickly you want to see results. Here are the last couple of things to consider before you decide whether to buy.
Considerations for a long term investment strategy
If you believe in the Algorand project or want to hold ALGO for the long term to earn rewards, you can sign up with a crypto exchange to buy coins immediately. Keep in mind that you’ll need to keep your ALGO in a wallet to earn the Algorand rewards.
Considerations for a short term trading strategy
If you want to trade Algorand quickly and benefit from short-term price moves, the long term rewards aren’t so important. If you want to do this, you should familiarise yourself with technical indicators and analysis. Reading charts accurately gives you the best chance of taking advantage of price movements and being a successful trader. As for where to buy ALGO, be sure to choose a broker with low trading fees.