How to Buy LUNA in 2 Minutes | Step-by-Step

In May 2022, following the collapse of the original Terra blockchain ecosystem, Terra (LUNA) returned on a new blockchain. Not to be confused with Terra Classic (LUNC), the current LUNA is no longer connected with the TerraUSD (UST) stablecoin. For those interested in buying LUNA, we recommend opting for a regulated cryptocurrency exchange like BYDFi.

In this guide, you’ll find the step-by-step process for buying LUNA with BYDFi. 

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What is Terra (LUNA)?

LUNA emerged from the original chain Terra Classic after the collapse of Terraform Labs’ stablecoin TerraUSD and its original native token LUNA. The original LUNA token, now LUNC, was used to collateralize UST, which crashed in a bank run in May 2022. 

This event caused a significant devaluation of the LUNA token, i.e., its value plummeting to virtually zero and causing the Terra network to undergo a split — resulting in Terra Classic and Terra.

LUNA 2.0 was officially launched on May 25, 2022, after the conclusion of a voting exercise by community members with the new token launched as part of Terra founder Do Kwon’s revival plan. 

The new Terra blockchain continues the legacy of Terra Classic without the UST stablecoin and was released under Phoenix-1, the Terra 2.0 mainnet.

Once you have fully comprehended the risks, here are the steps to buy the new LUNA token. 

Where to buy LUNA? 

You’ll need to use a crypto exchange to buy or trade LUNA. We recommend using a regulated crypto exchange like BYDFi. 

BYDFi is a cryptocurrency exchange that offers a broad range of cryptocurrency trading pairs, from popular coins like Bitcoin (BTC) and Ethereum (ETH) to more niche altcoins. The platform also provides various financial tools, including spot transactions, crypto derivatives like contracts for differences (CFDs), and leveraged tokens, as well as margin trading and copy trading.

To learn more, read our in-depth BYDFi review here. 

All-in-One Crypto Exchange - Get Your First Coins in 2 Minutes

• Multiple Licenses - Reliable and Regulated

• Service Diversification - One-Stop Trading Platform

• Copy Trading - Get Copied, Get Paid

• Easy Deposit & Withdrawal - From Fiat to Crypto, Fast and Easy

500,000+ Users

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How to buy LUNA in 2 minutes: Step-by-step

Now, let’s walk through the step-by-step process of buying Terra with BYDFi. 

Step 1: Create a free account on the BYDFi website or app 

You can create an account with BYDFi through the BYDFi mobile application or through your web browser. There are two options for registering with BYDFi: 

Email registration:

1. Input your email address;
2. Click on “Send” to receive the verification code delivered to your registered email address;
3. Enter the email verification code sent to you;
4. Create a password;
5. Click on “Get Started” to finalize your registration.

Mobile registration:

1. Choose your country/region and provide your mobile number;
2. Click on “Send” to obtain the verification code;
3. Input the SMS code sent to you;
4. Create a password;
5. Click on “Get Started” to finalize your registration.

Step 2: Fund your account with USDT

Because you cannot buy LUNA directly with fiat currency on BYDFi, you’ll need to first top up your account with Tether (USDT) stablecoin. 

To do this, navigate to “Buy Crypto” on BYDFi’s main page. Note that fiat deposits are provided by third-party service providers and not processed by BYDFi. 

Then, select the fiat currency you want to pay with and how much you wish to deposit. You can enter the deposit amount based on the cash or USDT amount you’re comfortable with (provided that the service provider’s purchase limit conditions are met).

Choose the service provider you want to deposit with. Visa, Mastercard, SEPA, as well as Apple Pay and Google Pay transactions are supported. 

After selecting “Buy Now,” you will be directed to the service provider’s page, where you will need to complete the KYC process with them (BYDFi’s KYC record cannot be directly used for the service provider’s KYC). 

Step 3: Use USDT to buy LUNA

Once you’ve deposited USDT into your account, head to the “Spot” section on BYDFi’s main page. While BYDFi has an advanced version of their spot trading platform, we will stick to the classic version as most users will likely be more comfortable with it.

There are two types of orders available to you:

1. Limit order: Opt for this if you wish to initiate a position at a designated price. Once placed, the order will get executed as soon as it hits the specified price (provided there’s sufficient liquidity). Note that limit orders may also be filled partially;
2. Market order: The order will execute immediately at the best available market price. 

For instance, say you place a market order to buy LUNA. You enter the USDT amount you want to spend, e.g., 100 USDT. The order will fulfill immediately when you press the ‘Buy LUNA’ button, after which you will receive LUNA equivalent of 100 USDT. 

Step 4: Review the fees and confirm your order to buy LUNA

Purchasing crypto with BYDFi via fiat currency will incur transaction fees from service providers. You will need to check the official website of the respective provider for the actual cost.

BYDFi offers straightforward and competitive fees. Depending on the cryptocurrency, spot trading fees vary between 0.1% and 0.3%. 

Step 5: Set up storage

After purchasing LUNA, you can either store it in your personal crypto wallet or keep it in your BYDFi account.

Your digital assets held with BYDFi are securely stored in offline, deep cold storage wallets, eliminating any risk of a single point of failure.

Moreover, BYDFi employs multi-signature technology for deposits and withdrawals, defending against potential attacks and losing access to keys or facilities.

Even in a worst-case scenario where the entire system, including the web server, transaction engine, and database, is hacked, the intruder would not have sufficient keys to steal the funds as no private keys are stored on any of the cloud servers.

LUNA price today

Pros and cons of buying LUNA

Pros

• Utility: Terra has a growing ecosystem with various decentralized finance (DeFi) applications;
• Potential for high returns: Given LUNA’s notably smaller market capitalization compared to giants like Bitcoin, it could theoretically offer a higher potential for doubling your investment. For example, it’s much easier for a company valued at $1 million to grow to $2 million than for a company worth $500 billion to reach a $1 trillion valuation. This principle, known as the law of large numbers, implies that larger-cap assets, unlike smaller ones, have their growth potentials inherently restricted. Typically, as companies mature and expand, their growth rates are likely to decelerate.

Cons

• Volatility: Like all cryptocurrencies, LUNA is subject to extreme volatility, leading to potential losses, particularly for those who invest without understanding the market;
• Regulatory uncertainty: Governments worldwide are still figuring out how to regulate cryptocurrencies. Unfavorable regulations or outright bans could affect the value of LUNA;
• Not readily available: Still somewhat hard to find on crypto exchanges;
• Bad reputation: The Terra network went through one of the most spectacular collapses in crypto history. What’s to say it won’t happen again?

Mistakes to avoid when investing in cryptocurrencies

As a relatively new asset class, cryptocurrencies are inherently more volatile than traditional investments like stocks or bonds. Furthermore, coupled with less stringent regulatory supervision, these digital assets are also more vulnerable to fraud, including pump-and-dump schemes or rug pulls, presenting considerable risks to both inexperienced and seasoned investors.

Additionally, while cryptocurrency exchanges in the United States are need to register with the Financial Industry Regulatory Authority (FINRA), which imposes certain requirements, including the implementation and upkeep of anti-money laundering (AML) and customer identification programs (CIPs), the cryptocurrency assets themselves are not subject to regulation.

Tips when starting out with crypto

There are measures that you can adopt to mitigate risks when purchasing cryptocurrencies. Here are some common pitfalls to dodge when investing in digital currencies to better safeguard your assets and finances:

• Not researching the crypto token you want to buy: Make sure you understand how your chosen cryptocurrency works and what the risks are; 
• Not using a safe device: Avoid public computers and Wi-Fi networks. Always use your personal computer with a VPN, which helps establish a secure connection between you and the web, keeping your sensitive information safe;
• Using a sketchy exchange: Ensure the exchange has a license from appropriate regulators in your country and has a solid track record. Study the exchange’s user terms and agreements carefully to learn more about where they’ll keep your money and what happens to your funds if the business goes bankrupt. You may also want to scour through user reviews to catch any red flags;
• Not securing your account: Use two-factor authentication and a strong password to protect your account;
• Not using a secure wallet: Store your cryptocurrency in a secure wallet to protect it from hackers. You can opt for either a hot (online) or cold (offline) wallet. To choose the right one for you, make sure to check out our in-depth guide on crypto wallets;
• Investing money you can’t afford to lose: Because the crypto market can be so volatile, you need to be conservative with your investments, particularly when starting out. For more investing tips, have a look at our guide on investing mistakes to avoid;
• Forgetting your investments: Because of the extreme volatility of crypto markets, monitoring your investment is crucial. Keep an eye on the market and be aware of any changes in the price of the cryptocurrency you’re investing in. 

Crypto trading tips

The volatile nature of cryptocurrencies presents various trading opportunities. Essentially, this unpredictability enables traders to utilize strategies such as cryptocurrency day trading or scalping, potentially capitalizing on the frequent fluctuations any single cryptocurrency might experience. 

As a result and given the unpredictable nature of the cryptocurrency market, it is vital to not only carry out thorough research on current market trends but also to familiarize yourself with a range of advanced trading strategies to enhance your potential for profit. These may include:

• Studying technical analysis; 
• Leveraging the various technical analysis tools such as oscillators, moving averages, Bollinger bands, support and resistance, and so on; 
• Acquainting yourself with chart patterns such as the golden cross or the double bottom pattern;
• Learning day and swing trading, as well as scalping techniques.

Additionally, avoiding emotional trading driven by FOMO, and diversifying your portfolio can further position you for success in the crypto trading landscape. Always remember to approach these strategies with caution and a well-informed perspective.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk. 

FAQs about how to buy LUNA instantly