What Is Harmony?
Harmony is a fast and open blockchain that enables developers to create dApps, as well as run applications that already exist on Ethereum. While Ethereum users can be plagued with high transaction fees when the network gets congested, dApps on Harmony can cope with many more users, who enjoy fees that are 1,000 times lower.
Harmony is also built to support governance, identity, assets, and collectibles, while its cross-chain bridges mean assets can be securely transferred between Harmony and other blockchains such as Ethereum and Binance Smart Chain.
The speed and scalability of Harmony is facilitated by a process called sharding, which involves splitting the network into pieces called “shards” so that lots of transactions can be processed in parallel at the same time.
ONE is the native cryptocurrency on Harmony and is used to pay transaction fees, participate in governance, and secure the network through staking.
Ways to Invest in Harmony
Some people prefer to invest in Harmony for the long term while others prefer to sell their ONE for a profit as quickly as possible. These strategies may best suit different types of investors, so your experience level and goals could determine which you choose.
Buy and hold Harmony
This is the easiest strategy to follow as it simply involves buying ONE and keeping hold of it for a period of time. You don’t need to be a technical analyst to employ this strategy and it barely takes up any of your time.
As well as the possibility that your tokens will appreciate in value, this strategy enables you to grow the number of tokens you hold if you combine it with staking. This involves delegating your ONE tokens to a validator to help secure the network, for which you are rewarded with more ONE tokens.
Best Harmony wallets
When holding onto ONE for any period of time, it may be beneficial to store them in a private wallet. This can be a more secure option as only you will be able to access it. Private wallets tend to come in the form of either hardware or software.
Hardware wallets like Trezor, BitBox, and Ledger can be a bit technical to use and cost money but you are paying for the best possible security. Software wallets, although not quite as secure, are easier to use and can be downloaded onto a computer or mobile for free.
Trading ONE means buying and selling it much faster than investors so as to generate profits more frequently. You may have to spend some time and effort analysing the market to find the best times to buy and sell.
A private wallet is less useful to a trader as they would regularly have to transfer tokens out of it when they want to sell them. Instead, many traders opt to use the free web wallet provided by their exchange. Although less secure than a private wallet, this is the most convenient option for trading.
Should I Buy Harmony Now?
We can provide you with information about Harmony but this is a decision you will have to make for yourself. The supply of ONE is subject to inflation of about 3% per year, meaning the value of ONE isn’t driven by scarcity, but as this inflation is used to pay staking rewards, it could also drive demand from those wishing to stake the token.
The governance rights ONE provides and the need to pay transaction fees with it could fuel further demand for the token, while transaction fees are burned to offset issuance. The more dApps and users there are on Harmony, the more ONE will be needed to cover fees and the more ONE will be burned, which could lead to a rise in price.
The improvements Harmony provides over other blockchains such as Ethereum in terms of speed and scalability have already garnered the project a lot of attention. As Harmony bridges to other blockchains and continues to fund promising projects in the Harmony Ecosystem, it could prove to be a vital piece of blockchain infrastructure in the long term.