What Is Celo?
Celo is a mobile-focused platform that lets anyone with a smartphone access crypto payments and financial decentralised applications (dApps). Users can easily and cheaply transfer, spend, and earn crypto from their mobile, as well as access a range of decentralised financial (DeFi) services through user-friendly dApps.
Sending crypto can be daunting as if the long string of characters that constitutes a wallet address is entered incorrectly the coins will be lost. Celo, however, simplifies the process so that users can send crypto to anyone in their contact list. Other services accessible with Celo include a decentralised exchange (DEX), lending and borrowing platform, and projects supporting charitable causes.
Developers can take advantage of Celo’s tools to build dApps, while they can also port dApps over from Ethereum. The benefits of doing this include using a more environmentally friendly blockchain where transactions are faster and cheaper.
Celo provides a number of stablecoins for everyday use, while its CELO token helps stabilise their value, as well as being used in governance and staking.
Ways to Invest in Celo
Celo can lend itself to both short and long-term strategies. Both of these approaches have the potential to be profitable and which you follow will depend on your own skills, aims, and preferences.
Buy and hold Celo
As the name suggests, this strategy involves purchasing CELO and holding onto it. This is the easiest strategy to execute as no special skills are required to make a profit and it barely takes up any of your time.
What’s more, your CELO balance doesn’t have to sit idle while you’re holding it. CELO holders who stake their tokens with network validators are rewarded with even more CELO tokens.
Best Celo wallets
If you want to keep your CELO safe while holding onto it for the long term, it could be a good idea to set up a private wallet. This can be more secure and means you don’t need to rely on centralised services to access your tokens.
Software wallets, such as Valora, Celo Wallet, and Celo Terminal, can be downloaded for free onto desktops or mobile devices and tend to be the easiest to use. Hardware wallets like Trezor, BitBox, and Ledger can be expensive but also provide the best security.
You can also take advantage of CELO’s price volatility by trading it. This involves buying and selling it over much shorter timeframes to generate returns more frequently. This requires more time and effort as technical analysis is important.
As traders need to access their tokens more regularly a private wallet is less convenient for them. Instead, many traders prefer to store their tokens in a web wallet, such as the one provided for free by their trading platform.
Should I Buy Celo Now?
This is a personal choice that you will have to make for yourself, based on Celo’s fundamentals and future potential. The token’s scarce supply could make it a good long-term store of value, while the governance rights and staking rewards it provides could drive demand.
CELO’s role as a stability mechanism means that when there is more market demand for the Celo Dollar stablecoin cUSD, more cUSD is minted and sold for CELO, which is likely to be positive for CELO’s price.
If Celo’s services and stablecoins gain more traction, CELO could become more valuable as a result. The speed, low cost, and efficiency of Celo have already seen the project attract strong backers and partners. The accessibility the project offers could see Celo become a key facilitator of a new, open financial system.