What Is Zilliqa?
Zilliqa is a low-cost, scalable, and developer-friendly blockchain for building decentralised applications (dApps)—apps that run on the blockchain. The project aims to enable dApps that are user-friendly and secure, providing access to decentralised finance (DeFi) services and non-fungible tokens (NFTs).
Ethereum also provides these services, but its design means that transactions become slow and expensive when lots of people use the network at once. Zilliqa tackles this issue with an innovation known as “sharding”, which involves splitting the network into pieces so that more transactions can be processed at the same time.
This makes Zilliqa capable of scaling to facilitate large-scale enterprise use in sectors such as finance, gaming, advertising, and entertainment. In fact, Zilliqa aims to rival global payment networks such as Visa.
Zilliqa is powered by its native token, ZIL, which enables holders to engage with all Zilliqa-based dApps and services. ZIL can also be used to buy products and NFTs, and secure the network through staking.
Ways to Invest in Zilliqa
Whatever your skills and investment goals, ZIL may be a suitable purchase as it can be bought for either the long term or short term. We’ll look at the benefits of each below.
Buy and Hold Zilliqa
This is the simplest strategy you can find—it just involves buying ZIL and keeping hold of it for a while. It doesn’t matter if you don’t have any analysis skills; it takes minimal time and effort to potentially profit from this strategy.
The good thing about holding ZIL for the long term is that you have the opportunity to generate a passive income in the meantime. If you stake your ZIL, you will be rewarded with more tokens.
Best Zilliqa Wallets
Long-term holders often decide to self-custody their tokens in a private wallet for a bit of extra security. This also means that you don’t have to rely on a centralised service for access to your tokens.
For those who are happy to pay for the best security, hardware wallets like Trezor, BitBox, and Ledger may be the best choice. Software wallets provide a free and user-friendly alternative that can be downloaded to your computer or mobile device.
Like the rest of the cryptocurrency market, the price of ZIL is liable to experience significant volatility. This has the benefit of enabling traders to generate frequent profits by buying and selling ZIL much more often than investors. For more information on price predictions, read our Zilliqa price prediction here.
As making regular token transfers between a private wallet and an exchange can be time-consuming and costly, many traders prefer to use web wallets. These are less secure but more convenient and each exchange tends to provide one for free.
Should I Buy Zilliqa Now?
Only you can make this decision when it comes to investing your own money, but make sure to do the necessary research first. The maximum supply of ZIL is limited, which has the potential to make it a good store of value in the long term.
The staking rewards Zilliqa offers create demand for the token from those wishing to stake, while more tokens being staked results in less supply available on the market. These factors could prove to be positive for ZIL’s price.
There is also demand for ZIL from users of the Zilliqa network, as it is used to pay transaction fees, access dApps, and purchase products and NFTs. As more dApps and users join the network, this demand should increase, which could boost the value of ZIL.
Zilliqa’s innovative sharding technology means that it is capable of scaling to meet the needs of a growing number of users. If Zilliqa achieves its goals of serving large-scale enterprises and rivaling global payments networks, the project and its native token could become very valuable in the future.