Algorand, also known as ALGO, is an open-source blockchain network that aims to be the most secure and friendly platform. It’s an innovative contract platform that uses the Algorand Virtual Machine (AVM), which offers a lot of possibilities for growing projects.
This blockchain network can process countless transactions quickly without affecting network security or decentralization. According to Algorand’s website, the network system can handle roughly 1,000 transactions per second. This alone is a convincing reason to invest in Algorand. However, there are other numerous reasons why it’s a good idea to purchase this digital currency. Here are nine main reasons why you should invest in Algorand.
1. Algorand Is Widely Available
Almost all brokers and exchanges extensively offer Algorand. It’s available on centralized exchanges, including Crypto.com, Binance, and Coinbase, some of the most prominent exchanges in the world. In addition, you can buy Algorand on major decentralized exchanges such as PancakeSwap and Uniswap.
2. Algorand Has Impressive Growth Potential
ALGO has witnessed a positive price momentum of late. It has shown to be a profitable investment since the start of the year, increasing by more than 600% in one year alone. Algorand is predicted to continue to rise, with the price movements expected to be bullish over the next few years.
This kind of growth has ranked Algorand higher in the cryptocurrency market. Being a relatively young token, it has the sort of momentum that investors banking on future bottom-up approaches should appreciate. As more investors look to create a more varied cryptocurrency holdings portfolio, Algorand stands as a high-end option for those interested in what is offered by the decentralized finance (DeFi) world.
3. It’s a Proof-of-Stake (PPoS) Platform
Algorand was developed using pure proof-of-stake consensus, which is another reason its price has performed well. PPoS is a protocol that enables the creation of new coins by validators. This varies from the proof of work method, which allows a user to create cash by solving complicated mathematical solutions.
Being a PoS platform, Algorand offers some great benefits. First, it allows investors to earn profits just by holding the coin, a process known as staking. This enables customers to earn up to a 12% annual percentage yield (APY). The second advantage is that it makes Algorand relatively fast. It can enable over 1,000 transaction processes in a second.
4. Smart Contracts and Use Cases
Algorand is one of the cryptocurrency networks gaining popularity for their smart contracts and use cases. The Algorand networks apply two kinds of smart contracts to enable transactions without a centralized mediator: stateful smart contracts and stateless smart contracts.
Stateless smart contractors are the most common among investors, and they enable various transactions to be authorized after meeting certain conditions agreed upon. On the other hand, stateful smart contracts are where data can be stored permanently and used for general purposes.
5. It Has a Functional Wallet
A functional wallet is a vital element in a crypto project. It’s what can attract or put off potential long-term investors. A functional wallet also shows the seriousness of a crypto developer team and indicates they are serious about the project.
In addition, a functional wallet invalidates most of the security risks posed by holding crypto. If a crypto platform doesn’t have an active wallet, investors must leave their holdings in wallets or exchanges that they might not be certain about.
In this regard, Algorand stands out as the best crypto to hold. It has a functional and very secure wallet that is also incredibly easy to use. You only need to download it on your phone, and you are good to go.
6. Algorand Is an Interoperable Blockchain
Cryptocurrency networks have focused on developing exceptional blockchains that offer special benefits to investors and users. The arrival of relatively ‘blocked’ cryptocurrency ecosystems has made investors choose one specific cryptocurrency or blockchain network over another.
Algorand has come up with a way to launch multichain projects. Anything built on Algorand can easily connect with other blockchains, a feature known as interoperability. This feature is the heart of Algorand blockchain growth and wide adoption as it allows for a level of connectivity most other blockchains don’t have. External collaboration seems to be the future of blockchain networks, and in this regard, Algorand looks to be a step ahead of the competition.
7. Algorand Has a Strong Community
Algorand is among the largest communities in the blockchain market. Its primary Twitter account has approximately 250,000 followers, greater than most cryptocurrencies. In addition, Algorand owns millions of wallets and has launched a $250 million grant program to motivate developers.
8. It Has a Growing Ecosystem
Another reason Algorand is a great investment is its fast-growing ecosystem. Like Avalanche and Solana, Algorand has been embraced by many developers building apps across all the industries, including analytics, NTFs, Automated Market Makers, and decentralized autonomous organizations (DAO).
The list of applications developed in Algorand has seen rapid growth in the last few months. AlgoFund, Choice Coin, Flex NBA, AlgoLaunch, and Folks Finance are some blockchains developed using Algorand. Although most of these projects are in their initiation stages, there is a possibility they will continue to grow in the coming years.
9. Invest in Algorand: It Is Easy to Use
Algorand has great expectations going into the future. Among the key advantages is that Algorand uses Python, one of the most popular and easy-to-learn programming languages. This means developers won’t experience a difficult time building on Algorand.
Apart from using a popular programming language, Algorand gives developers some tips on how to build on the platform. These two combinations have led to an increase in the number of developments happening on the Algorand blockchain.
Looking at its core basics and general market dynamics, Algorand is a project worth investing in. The project has impressive growth potential and is quite strategic in its approach to decentralized finance, one of the fastest-growing markets in cryptocurrency.
The Algorand crypto price is expected to reach $3.68 per share by 2030, as of March 2022. However, that could be too long to wait if you are looking for considerable returns within weeks, months, or three to five years. Algorand could be most suitable for those who want to develop a digital currency portfolio that gains value over time.