With so many different cryptocurrencies out there, it’s important to know about the ones you’re considering investing in. Algo is a well-established cryptocurrency that’s been in the top 50 cryptocurrencies for a while now. At the time of writing, it is valued at $0.69.
If you’re wondering what is Algo, then you’ve come to the right place. In this short guide, we’ll a look at everything you need to about Algorand before you consider investing.
What Is Algo?
The main Algorand network launched in June 2019. Algo is the native cryptocurrency of the Algorand decentralized blockchain network.
Algorand was created to boost the positive features of pre-existing and popular cryptocurrencies, such as:
- Transactions that don’t require a central authority
- Tokens that are easy to divide
But the team behind Algorand also wanted it to improve the transaction speed and reduce the amount of computer power that was needed to keep the blockchain up and running.
Since its inception, Algo has seen a peak price of $3.56. The lowest it has ever been valued at is ten cents. It is currently ranked on CoinMarketCap as the 29th largest cryptocurrency with the total value amount of all the issued tokens on the network being worth over $4.7 billion.
How Does Algo Work?
Whereas Bitcoin uses “proof of work” for transactions on the blockchain, Algorand uses “pure proof of stake.” Proof of work takes a lot of computing power and time because it relies on the computers solving complicated problems to confirm transactions and create new blocks.
Proof of work is known for its security, but it has recently come under a lot of scrutiny from environmentalists due to the power consumption required. Pure proof of stake, on the other hand, uses a random selection approach.
Transactions and new blocks happen when Algo holders are randomly selected. They then validate and approve the blocks in the chain. This means that the blockchain is spread across the globe and is completely decentralized. This type of process means that transactions on the Algorand blockchain take seconds as supposed to the minutes it might take with Bitcoin.
The main advantage of Algorand is the speed at which transactions can be carried out on the blockchain. It also benefits from requiring a fraction of the computing power of proof of work networks. Finally, it is entirely decentralized, which holds true to the ethos behind cryptocurrency.
The only real disadvantage with Algo is its level of adoption. Unfortunately, there are now a lot of cryptocurrencies out there that similarly do similar things. This means that the more well-established cryptocurrencies such as Ethereum and Solana have stolen the show.
The price of Algorand, like with all cryptocurrencies, is dependent on how many people use it. So, hopefully, the Algorand team will incorporate some new features that make the cryptocurrency more appealing.
Where to Buy Algo
Algorand is one of the more popular cryptocurrencies meaning that it can be bought from almost any exchange. There are even some online banks such as Revolut that allow the purchase of Algorand. If you want to know more about buying Algo, check out this page.
You Now Know What Is Algo Crypto
Hopefully, this has answered all your questions about what is Algo, and you can decide whether or not it’s time to invest. Remember, as with any investment, the markets go down as well as up. Only invest an amount that you’re prepared to lose should the worst occur.
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