The cryptocurrency market has seen a sharp decline over the past week, led by the Bitcoin (BTC) which has lost 6% of its value over the past week, according to CoinMarketCap. During this time, Elrond (EGLD) experienced the opposite, with its price climbing 33% over this period. This is quite perplexing, but it becomes clear once you consider some of the benefits that investors are starting to appreciate about Elrond.
What is Elrond and what does he do?
Elrond is a blockchain network founded in 2018 with the noble goal of creating a “new internet economy”. It aims to achieve this by making transaction speeds much faster and fees much lower compared to most other popular blockchain networks. These qualities, the Elrond team hopes, will be enough to persuade more users to join the Elrond community. So far, she has achieved that, as she is ranked 36th on CMC.
The network uses eGold (EGLD) as its native token. The EGLD is used within the network for all activities, including transactions, governance, staking, validator rewards, and smart contracts. Speaking of which, Elrond also supports smart contracts, which allows developers to build decentralized applications (dApps) on the network. Given the network’s fast performance and low fees, developers should also be attracted to the network.
Features that distinguish Elrond from Bitcoin
There are several key reasons why Elrond outperformed Bitcoin last week, but the two main ones are:
Staking to get higher rewards
The Elrond network uses a proof-of-stake (PoS) consensus mechanism. This is why you block part of your EGLD holdings in the Elrond network to become a validator. In return, you earn rewards for validating new blocks, similar to how miners earn rewards on a proof-of-work (PoW) network like Bitcoin.
However, PoS is not too resource intensive and can be run from your own hardware at home. All you need is a minimum of 10 EGLD to stake on Elrond and away you go. The network distributes 5,000 EGLD weekly to validators based on the amount wagered, and it is possible to earn up to $0.35 per day, yielding an annual return of 21.45%.
It is therefore not surprising that the EGLD course is increasing as more and more investors recognize the value of Elrond.
Faster transactions at lower cost
According to Blockchain.com, last week the average fee for transactions on the Bitcoin network was $1.69. In comparison, the average fee on the Elrond network is $0.001, much lower than the former. As cryptocurrency transactions become more common, finding the most affordable solution is essential and Elrond has become that alternative to Bitcoin.
Additionally, Elrond is more scalable, which allows for faster transactions. It takes an average of 10 minutes for a Bitcoin transaction to be verified, and sometimes longer when the network is highly coveted. On the other hand, Elrond uses theAdaptive State Sharding to make transactions 1000x faster, which everyone appreciates.
How can you buy EGLD?
If you want to buy the EGLD to enjoy of this recent price spike, there are a number of cryptocurrency exchanges and DEXs you can use. However, we recommend using KuCoin due to the deep liquidity essential to receive the most accurate price quotes.
All you have to do is go to the Kucoin website and create an account. The process is simple and should take you a few minutes. You will then be asked to verify your account by providing a photo of an identification document such as a national ID card, passport or driver’s license.
Once your account is verified by the KuCoin team, you can buy cryptocurrency directly using a credit card, bank deposit, or over 70 other deposit options. Unfortunately, you cannot buy EGLD using any of these methods, but you can buy Bitcoins and later exchange them for EGLD.
Once you have Bitcoins in your Kucoin account, go to the tab Markets where the list of cryptocurrencies is presented and search for EGLD in the text box provided.
Click on EGLD/BTC to view the price chart of the crypto pair. From there, enter the amount of BTC you wish to trade and place the order. It can be traded at current market prices or in the future at a price specified as a limit order.
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Why has Elrond been superforming Bitcoin since last week? — YubiGeek
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