Buying Zilliqa: how to invest in Zilliqa?
Are you considering buying Zilliqa? This is certainly an interesting choice. Zilliqa is in fact the first blockchain cryptocurrency to benefit from the advantages of sharding. Its scalability makes it a compelling and fascinating crypto project. Are you curious about what Zilliqa exactly is, what its functions are and what its advantages and disadvantages are? In this article we will answer those questions!
How to buy Zilliqa?
Do you want to buy the Zilliqa cryptocurrency? The best way to do that is online! At Bitvavo, you can buy Zilliqa at unprecedentedly low fees: you never pay more than 0.25% in transaction costs when buying cryptocurrencies at Bitvavo. Moreover, you won’t pay any transaction fee at all on the first €1000. Use the button below to open an account with Bitvavo right away:
How can you actively trade in Zilliqa?
Do you want to actively trade in Ziliqqa cryptocurrencies? This is possible with an online broker! At an online broker, you can use CFDs to bet on both falling and rising Ziliqqa prices. At Plus500 you can try CFD trading completely free and risk-free with a demo. Use the button below to open an account at Plus500 instantly:
What is Zilliqa?
Zilliqa is a public, permissionless blockchain platform that focuses on the scalability and speed of blockchain. The crypo coin has the ambition to offer high throughput with the ability to process thousands of transactions per second. Zilliqa has much better scalability than Ethereum, for example.
Zilliqa has the potential to offer the highest data throughput of any existing blockchain. This means that the Zilliqa network will always be fast, reliable and cheap, no matter how many people use it. More importantly, this will not be at the expense of decentralization. The platform offers numerous decentralized applications.
How did the Zilliqa crypto coin originate?
Zilliqa was born from the idea of sharding. Sharding was further developed and this eventually led to Zilliqa’s ICO. This raised 22 million USD. Officially, Zilliqa has its origins in June 2017. The test network went live about a year later in March 2018. A year and a few months on, the platform launched the mainnet in June 2019.
What are the goals of Zilliqa?
Zilliqa aims to make the blockchain scalable by means of “sharding”. In sharding, the work is not done by all the nodes individually, but is done in groups. A node is an individual computer that participates in the blockchain network. A node checks the reliability of a transaction. This makes it possible to make payments for and with cryptocurrency anonymous and secure.
How does sharding work?
Imagine a network consisting of 600 different nodes and four transactions being made on this network. In a traditional blockchain, each node, so 600 in total, would check all four of these transactions. In the case of sharding, this work is distributed.
It may be that the first 150 nodes check the first transaction, the other 150 nodes check the second transaction, the third group of 150 nodes check the third transaction and the last group checks the fourth transaction. In this case, the network is divided into 4 “shards”. Thus, they finish four times faster.
Every time a shard has validated a transaction, it is packed into a block. Via a protocol, this block is added to the blockchain. As the blockchain grows, more nodes and groups are added. When a Zilliqa’s blockchain grows, the speed of the transaction will increase. The more groups, the greater the transaction capacity.
Sharding is an interesting technique that can make Zilliqa an extra interesting investment. Before investing in Zilliqa, research the pros & cons of investing in this cryptocurrency.
What are the advantages of Zilliqa cryptocoin?
There are many advantages to Zilliqa. It can therefore be interesting to invest in the Zilliqa cryptocurrency. We have listed the main advantages for you below.
- What makes Zilliqa unique is that its blockchain uses the new protocol called “Sharding”.
- The more nodes used on the network, the faster the transactions.
- Scalability does not come at the expense of full decentralization.
- Currently, it is the fastest and most scalable blockchain.
- Linear scaling ensures constant and low-energy costs.
- Zilliqa offers optimum transparency, security, immutability and affordability at the highest speed.
What are the disadvantages of Zilliqa?
- Strength as a weakness: If we look at the strength of Zilliqa (currently the fastest and most scalable blockchain), it can also become a weakness. This is because it creates considerable reputational pressure. As soon as a better option comes along, Zilliqa’s popularity could be over pretty quickly.
- Lack of good marketers: the current management team consists of people with excellent programming knowledge. However, there is still a lack of good marketers. It may be that the technology will sell itself. This was also the case with NANO, for example. Nevertheless, in the current crypto market, where there are many innovative and promising projects, it is important to make yourself heard regularly.
- The planned adoption of sharding technology by Ethereum: Once this happens, Zilliqa will no longer be the only party focused on solving the scalability problem.
What should you look out for when investing in Zilliqa?
After its launch in June 2018, the Zilliqa price went up and down significantly. After having had a rather flat price for a while, the price increased in value by almost 200% in 30 days in 2020. Strong fluctuations make it interesting to keep an eye on the cryptocurrency. The price is still quite volatile.
If you want to invest in Zilliqa, it is definitely a good option for a long-term investment. If you want to invest in Zilliqa for the short term and intend to profit from the fluctuations in its price, then this is possible by speculating on a rise or fall.
To invest in Zilliqa or not?
It is certainly interesting to invest in Zilliqa in moderation and thus diversify your portfolio. Zilliqa’s unique features may cause the price to rise further in the future. But as with any investment, investing comes with risks.
It is wise to first familiarize yourself with the price development of the bitcoin price and make a good price analysis. In addition, draw up an investment strategy for yourself, as you would do with a traditional investment. This way you can maximize your potential price gains and reduce your investment risk.