Is Algorand a Good Investment? Why choose Algorand to invest?

What Is The Algorand Coin

Algorand Incorporated is the firm that created the Algorand coin. The firm also released the Algorand coin in April 2019. The developers set up the blockchain technology to promote scalability, security, and decentralization. Consequently, the main aim of cryptocurrencies is to promote decentralization. Although the coin had a circulating supply of 6.13 billion coins, the currency will achieve the supply limit soon. In this article, we’ll talk about is Algorand a good investment for traders.

Algorand Inc is a private corporation based in Boston. Despite launching the test network in April 2019, developers waited until June 2019 to establish the leading network. This coin always uses a decentralized Byzantine Agreement protocol. As a result, this protocol leverages pure proof of stake (PPoS). Thus, a large part of the stake falls into malicious hands. The entire protocol can tolerate malicious users. The protocol so achieves consensus without any specified central authority.

Is Algorand a good investment

Algorand Coin’s Price History

1st October 2019 – 31st December 2019

The first month of its start, the coin experienced a drop in price from $0.2511 to close the month at $0.2221. Decline during the first month, the coin’s price rose from $0.2225 at the beginning to $0.2690 at the end of November. The currency experienced the highest volume in trades throughout the year on that month too.

But the coin continued to drop in price, closing the year at $0.2175. Its performance in the year can attribute to its popularity and increased investments. Thus, the costs attributed to the fact that it was still new in the market. The coin reached its highest price in 2019 on 28th November. The price stood at $0.3135 at this moment, depicting a very encouraging trend for the currency and the developers. Yet, the price hit its yearly lowest on November 26. The coin’s price stood at $0.1640.

Algorand Coin’s Price History in 2020

The year started well because the coin rose in value. However, Algorand went through a steady rise in price from January to February. It grew from $0.2175 on 1st January to $0.3341 at the end of February. Although we started the year on a steady trend, we closed the month at a steady rise in the price of Algorand.

But, the coin traded on lower than 0.3341 since February. Moreover, the trend ended when the currency broke the resistance and reached $0.3946 in July. After this slight growth, the coin reached a new high of $0.6910 in August. Despite the steady price rise, the currency continued to drop. It, therefore, closed the year at $0.3340.

We should also consider that every coin experiences its highs and lows. So, Algorand, the currency, registered a new high of $0.6910 in August. It also reported a new low of 0.1024 in March.

It is undisputed that 2020 was a particularly unique year due to the Covid-19 pandemic. In this regard, the coin started the year at $0.2175 and later closed it at $0.3340. Therefore, the coin’s stability throughout the year is very commendable.

1st January-12th December 2021

Around the beginning of the year, Algorand’s price was a relatively reasonable $0.3342. The coin later reached a new all-time high of $1.8246 in March. The price, however, was reduced to $0.8412 at the end of July.

At this point, the coin had a low opening price of $0.3342 on 1st January. However, it went ahead to record its highest price, which stood at $2.8298 in November.

Moreover, the coin’s stability has been commendable over the last few months. At the beginning of December, the coin’s price stood at $1.8096. In barely two weeks, the price had dropped to $1.5204 due to activity in the market. Additionally, the currency has shown good trends in its progress. Investors can also choose it for investment and diversification of the portfolio.

The chart below displays the price history of Algorand for the past few years. It clearly indicates that Algorand is a good investment for mid-term traders.

YEARMaximum PriceMinimum Price
2019$0.3135$0.1094
2020$0.6910$0.1024
Jan. 1st – Oct 27th 2021$1.8246$0.3324

Comparison Between Algorand Coin And Other Cryptocurrencies

Is Algorand a Good Investment vs. Is Bitcoin a Good Investment

The new Algorand Smart Chain uses 5 seconds to make 1000 transactions. The coin, therefore, has a block creation time of fewer than 5 seconds. Indeed, this will blow Bitcoin’s ten-minute block time out. But, it is essential to note that faster time is achieved through innovation. So, innovation means the two-chain system and the faster proof-of-stake consensus mechanism.

Additionally, all transactions reach finality with immediate effect. We need to understand that block time is necessary for efficient transactions. In particular, Algorand block time gives it a very high advantage over Bitcoin transactions.

Besides, it is essential to know that the total supply of Bitcoin is limited to 21 million coins. The metered reward to the miners of BTC is constantly reduced by half. The halving process is done at regular intervals, thus the name halving. This process is meant to make Bitcoin scarce. Therefore, it is set to increase the price of Bitcoin in the coming years.

AlgorandBitcoin
Barely more than 5 seconds block time.Almost 10 minutes block time.
Has a maximum cap of 10 billion Algo coins.Has a maximum cap of 21 million coins.
Always relies on the proof-of-stake protocol.Always relies on proof-of-work protocol.

Is Algorand a Good Investment vs. Is Ethereum a Good Investment

Moreover, the utility of Ethereum is indeed unrivaled for the most part. The Ethereum ecosystem offers a range of utilities outside of direct payments. Even so, Algorand heavily rivals Ethereum.

On the other hand, Algorand is a cryptocurrency that aims to knock of Ethereum. Algorand is open-source. It is also permissionless, and Aside from this, it is also the first coin to use pure proof-of-stake protocol.

Algorand coinEthereum
Minimal utilities.A range of utilities.
Handles 17 million transactions per day.    It can only handle up to 1.75 million transactions per day.
Average block time of 3s.Has an average block time of 13s.

Is Algorand a Good Investment vs. Is Cardano a Good Investment

Algorand and Cardano have many similarities. Still, we will find out that their native token distinguishes them significantly. The most distinguishing factor between Algorand and Cardano is their native token. Cardano works with ADA, while Algorand is affiliated with the native token Algo. Algo also goes through the Proof of Stake (POS) protocol, while Cardano does not use the Proof of Stake protocol. It follows POSA protocol, the Proof of Stake Alliance mechanism.

Consequently, block time is an important consideration. For Instance, if we base our arguments on block time, Algorand is faster than Cardano. For example, the transactions process in Algorand is six times more immediate than in Cardano.

In fact, on average, Cardano takes about 5 to 7 minutes to complete a transaction. On the other hand, Algorand only requires a maximum of three seconds.

Conducting 1000 transactions in one second is very commendable. Therefore, Algorand is one of the fastest blockchains in the crypto markets. It is also essential to be one of the fastest cryptocurrencies in the market.

Algorand coinCardano
Has 4.5 second block time.    A total of 20 seconds block time.
The supply of BNB is capped at 20 billion coins.    The maximum supply is 45 billion coins.
It cannot be mined.Does not support mining.

Is Algorand a Good Investment vs. Is Litecoin a Good Investment

Both Litecoin and Algorand are known for their quick transaction speeds. Precisely 2.5 minutes for Litecoin vs. 4.5 seconds for Algorand. It is also important to remember that Algorand is much faster than Litecoin. However, both of them are very quick when you compare the transaction speed of Bitcoin. For example, Bitcoin has a block time of over 10 minutes while Algorand has just 4.5 seconds.

Additionally, Litecoin and Algorand have a limited supply of coins.

Algorand coinLitecoin
The coin has a market cap of $9.863 billionHas 84 million coins available.
Has 4.5 seconds block time.The block time is 2.5 seconds.  
Does not support mining.Mining happens in three different ways.

Is Algorand a Good Investment vs Is Binance a Good Investment

Indeed, Algorand is a coin created to battle Ethereum. Binance coin, on the other hand, is a cryptocurrency that was designed to be used to pay for goods and services.

Interestingly, the Algorand coin supply 100 billion coins, whereas the Binance coin has a complete collection of 200 million cash.

Binance coinAlgorand coin
The maximum supply of coins is 200 million.Has a max collection of 10 billion coins.
Can process up to 100 transactions per second.The processing speed of 1000 transactions per second.
Has 1 second block time.The block time is 3-5 seconds.

What Do Other People Think of The Algorand Coin?

I believe that Alogrand as a coin has the potential to grow. Therefore, investors and other key stakeholders believe that Algorand is and will be a good investment in their portfolio. A constant increase in price based on the predictions made over time. Stakeholders in the world of cryptocurrency believe in price prediction. The Algorand coin will break a new high. As a result, Algorand can be exchanged across many networks gives it a lot of growth potential.

Moreover, due to its low block time, it can handle more transactions within a second. Hence, this makes it very efficient for investors as well as traders. Since September 2019, the coin has grown significantly. Furthermore, the currency has maintained a very steady trend. This factor makes it a perfect investment opportunity.

Algorand is a perfect addition to the portfolio because of its stability in the market. To increase the diversity of their portfolios, investors should buy stable coins. They should also promote utilities for the cash in their portfolios. Utilities will therefore increase the coin’s value. It will only happen when they come together with the developers of Algorand. Utilities are a significant boost for cryptocurrencies. As a result, many cryptocurrencies increase their value when buying and selling things. For Instance, Bitcoin has grown in a big way since it was introduced to the market.

Is Algorand a Good Coin

Algorand is a good coin because it has maintained stability since its development. Its unique blockchain has eliminated the mediators and intermediaries have been eliminated. The currency has also reduced the fees incurred when dealing with Algorand coins. Moreover, cash has constantly shown promise as an investment. Still, it is necessary to understand more about cryptocurrencies before investing.

FAQs

How to Buy an Algorand Coin

Credit and debit cards on a crypto exchange like Coinmama are essential. This method requires the creation of an active account. Once their account is created and verified, transactions can proceed. To buy Algorand, you need a brokerage account. The report completes the trades for most types of crypto, including Algorand. Binance, OKEx, Coinbase, and Huobi Global are a few exchange platforms. With an active account, it is possible to buy and sell crypto.

Should I Buy Algorand Coin?

The world’s largest crypto exchange platform allows Algorand transactions. The Algorand coin is also very stable, hence, makes it a good investment for novice buyers.

The trend seen in Algorand’s growth has been very commendable over the past two years. It is also important to consider past trends before buying any cryptocurrency.

What is the Future Trend of The Algorand Coin?

Predictions made by LongForecast show that the price of the coin will change. The currency will reach some new highs and lows in the coming years. In this regard, we have summarized the prediction for the Algorand coin for the next five years. Below are the projections for the next five years. We expect that Algorand will hit $1.75 before the end of the year. The coin will also be at $5 before the beginning of 2025.

YearMaximum PriceMinimum Price
12th October- 31st December 2021$0.88$1.75
2022$2.54$3.20
2023$3.50$4.13
2024$4.75$5.36
2025$5.10$4.98

Summary

As has been noted, the coin has high potential. Although the coin has a unique blockchain, it has also shown a very stable uptrend. The currency has made very significant growth globally. Still, the coin developers have not developed the utilities for Algorand. Therefore, we need to use the coin in retail to buy and sell things. Developers will create the utilities for Algorand. It will also increase the coins used in the real world and promote a rise in prices. Just like we saw Bitcoin shoot from $25 to $5,654, there is a high chance that we will eventually witness the same again with Algorand.

When we look at the long-term predictions, the coin’s value will surpass the $8 mark. The currency will grow by more than 250% within four years. Algorand has very fast compared to other coins in the market. It is essential to acknowledge the advantages of Algorand. The coin has many benefits. It is necessary to recognize the advantages of Algorand because they are numerous. It is also essential to consider the effects of block time. Understanding the price trend before you choose to invest is also very important. After comparing the block time of different cryptocurrencies, we realize that block time is essential.