Have you ever wished that cryptocurrency was easier or more inviting to use? Celo, an active project, hopes to make it easier for everyone to connect using cryptocurrency. Our guide to Celo makes it easy to get started.
What is Celo?
New cryptocurrency investors might find it challenging to understand Celo’s infrastructure because the Celo network uses 2 native assets to manage and stabilize the network. You can use the first, Celo Dollars (CUSD), a stablecoin, to transfer value to one another. The value of CUSD is pegged to the dollar, which means that it will very rarely move away from a value of $1.
When you buy and sell Celo on crypto exchanges, you’re likely investing in the cryptocurrency’s native Celo Gold (CGLD) token. Celo Gold is an ERC-20 token, which means that it’s built on the Ethereum network and uses Ethereum’s basic infrastructure to function. When you buy and sell Celo on platforms like Coinbase, you buy the CGLD token. Unlike CUSD, CGLD varies on a day-to-day and minute-to-minute basis, depending on the current market demand for the tokens. Celo Gold has no type of connection or correlation to gold as an asset. CGLD is used as a validator token and a governance token, which can be used in future staking endeavors.
Brief History of Celo
Celo, a mobile-first blockchain platform, allows you to transfer value in crypto quickly from your smartphone. The goal behind the Celo network and its token is simple — make cryptocurrency payments more accessible for the everyday investor, less expensive and less intimidating for those who aren’t already invested in the crypto market. Sending CUSD is even possible if you don’t have the Celo app, though you will need to download it at some point to claim your funds.
Celo works by linking your phone number to a cryptocurrency wallet that supports CUSD and CGLD. A hash of the phone number gets stored on the blockchain, which ensures that any payments made to your phone number only go to you. Celo verifies your phone number using a series of authentication methods to finalize account creation. Celo charges a small fee to verify the phone number and you can connect multiple phone numbers to a single wallet address. Polychain Capital CEO once described Celo as “the WhatsApp for money.”
Celo was introduced to the cryptocurrency market in May of 2020. Since this time, its CGLD token has been adopted by a number of major cryptocurrency exchanges, including Coinbase. CGLD, currently the 98th largest cryptocurrency token in the world when measured by total market capitalization, has an overall market cap of more than $453 million and an average daily trading volume of about $59 million.
Step 1: Open an online account.
The first step to investing in cryptocurrencies like Celo is to open an account with a cryptocurrency broker. A cryptocurrency broker is similar to a stockbroker. It allows you to buy and sell supported coins and tokens using a unique investing platform. Most brokers charge a small fee or commission in exchange for executing your trades, but more and more brokers reduce their commissions based on trading volume.
Not sure where to start searching for a broker? Consider a few of our top choices below.
Step 2: Buy a wallet (optional).
If you plan to store your Celo long term, you’ll want to invest in a cryptocurrency wallet. A cryptocurrency wallet provides you with an additional layer of security for your investments. You can use either a hardware (physical device) or a software (computer or mobile application) wallet to secure your crypto. Cryptocurrency wallets allow you to store your investments off your exchange of choice, which leaves you less susceptible to hacks.
Let’s take a look at a few of our favorite wallet options that you can use to store CGLD.
Best Hardware Wallet: SecuX W10
Though hardware cryptocurrency wallets provide you with the highest level of security, they can often cost up to $100, which might not be feasible for all investors.
The SecuX W10 combines an affordable price point with a host of features and plenty of compatibility. The SecuX W10 allows you to store Bitcoin, ERC-20 tokens, Ripple, Litecoin and a host of additional projects as well. The wallet offers a full-color touchscreen, which makes it easier to manage your coins no matter where you are.
Best Software Wallet: Coinbase Wallet
Though you might already have a Coinbase account to buy and sell some of the most popular cryptocurrencies, you can also use Coinbase’s independent and free software wallet.
The Coinbase Wallet allows you to safely store ERC-20 tokens, Bitcoin and additional projects all in a single place. You can also send cryptocurrencies to other users with just a name — no more memorizing endless strings of numbers and letters before you transfer your funds.
Step 3: Make your purchase.
After you’ve opened your account and you’ve chosen where you want to store your tokens, you can finally place your order to buy CGLD. Though the specific process that you’ll go through to buy Celo will vary depending on the specific trading platform you’re using, here are the steps you can expect to take when you buy.
- Step 1: Fund your account. Like any type of brokerage account, you’ll need to add trading funds or a source of funding to your crypto trading account before you can buy or sell assets. Link your bank account and schedule a fund transfer. Many crypto brokers also allow you to buy and sell crypto with a credit card as well.
- Step 2: Look at the current market price of CGLD. The market price of a cryptocurrency is the current trading price. Market prices are constantly changing, and the amount that you’ll pay for each CGLD token will vary depending on current demand conditions. First, decide how much money you want to invest in Celo and base the number of tokens you purchase off the current market price. Don’t worry if your purchase doesn’t round to an even number of tokens. Your broker will calculate this on your behalf and provide you with a fraction of a token if needed.
- Step 3: Check your account. After submitting your order to your broker, you can relax. The broker will execute the order according to your instructions. If your broker is not able to fill your order, it may remain open or it may be canceled at the end of the trading day.
Investor sentiment toward Celo has been positive in the past week. Celo raised $20 million in sales of its native token to jumpstart the platform. This surge in value can allow the company more flexibility to branch into new services, which may cause a rise in the price of CGLD.
Trade or Sell Your Cryptocurrency
When your order closes and you can see your tokens in your exchange account, you’ll need to decide how you want to earn a return on your investment. The first way that you can earn a return on your investment is by holding your CGLD long-term and selling it when it reaches a sufficient profit. If you plan to hold your tokens for more than a few weeks, be sure to transfer it to a wallet for safekeeping.
You can also actively trade CGLD like any other type of crypto. Active traders strategically buy and sell their coins and tokens when the price is most beneficial to the asset they’re holding. Though active trading requires more of a time commitment than long-term investing and selling, it may allow you to start seeing profits immediately.
Current Crypto Prices
The cryptocurrency market is always open and prices always change. Check out a few of today’s top market movers using the chart below.
Consider Cryptocurrency for the Future
From the technology set in place by Bitcoin to new and exciting projects like Celo, you can find tons of new technology to get excited about in the realm of cryptocurrency. You may want to research a few competing cryptocurrency projects before investing to diversify your portfolio. Exploring multiple cryptocurrencies can help ensure you choose a secure initial investment.
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