What you could do instead, is buying and selling terra directly. The value of your investment will then follow the rate of the currency. It’s similar to investing in regular stocks in that sense, but crypto purchases are not regulated in the same way, and you won’t get the same protection as you would get trading stocks.

You can buy and sell terra via Lunar Block - Probably Denmark’s easiest platform for cryptocurrency trading.

Once you’re signed up to Lunar Block, you can buy and sell terra and other popular cryptocurrencies directly from your Lunar app.

Download the Lunar app and sign up to Lunar Block now

When you trade cryptocurrencies, you need to be aware that it carries a large risk . The value of your cryptocurrency can both rise and fall , and you can risk losing the entire amount you’ve invested in cryptocurrencies.

Do you insist on trading terra like regular stocks?

There can be different reasons as to why you’d rather buy terra like regular stocks.

For example, the tax regulations for stocks are better for you than the tax regulations for cryptocurrency, because cryptocurrencies are regulated as speculation, and the tax regulations for stocks would typically be better for you.

Tip: Learn more about the tax regulations on cryptocurrency here .

Even though you can’t invest directly in crypto as if it were regular stocks, you have other options.

You could choose to buy your way into funds - ETFs or ETNs - who follow terra’s rate.

Instead of investing directly in the cryptocurrency, you’re then investing in a fund that follows the rate developments of terra.

Follow terra’s rate

What are ETFs and ETNs?

ETF stands for Exchange Traded Fund, while ETN stands for Exchange Traded Note. Both types try to follow the rate developments of a certain market – such as the terra market.

So, when terra sees a 35% increase in value, a successful ETF or ETN will then also see a 35% increase in value. 

The difference between ETFs and ETNs

An ETF owns the stocks it tries to follow. That means that when you invest in a terra ETF, you’re investing in a fund that also owns terra. An ETN doesn’t own the stocks it tries to follow. An ETN works similarly to a bond of debt. If you purchase a terra ETN, the issuer of the ETN will then be indebted to you. The debt is then of the same value as the rise in value there has been on the market the ETN follows.

Example:

You buy your way into an ETN who follows terra. Let’s say you invest 100 DKK.

Between March and September, the value of terra goes up 60% - that’s why the ETN now owes you 60% of your investment, equal to 160 DKK.

But since these are bonds of debt, where there’s no real ownership over actual assets, you could risk that the issuer goes bankrupt. This would mean that you could lose all the money you’ve invested.

With an ETF, the situation would rarely go this sideways. Because the ETF actually owns the assets - such as terra - the ETF can then choose to sell their terra coins, in order to raise capital to pay back their investors.

On the other hand, one of the big advantages of an ETN is that they typically have a lower tracking error.

Tracking error covers how well a fund manages to follow a certain index.

If terra increases by 60% and delivers 60% to the fund, there’s a 0% tracking error. 

If terra increases by 70% and delivers 40% to the fund, there’s a -30% tracking error. 

A -30% tracking error could happen because the fund chose to invest a little more or a little less in a certain asset in the index.

Example:

You’re investing money in an ETF who follows the index of cryptocurrencies. The index is made up of an array of different cryptocurrencies - but the ETF then chooses to bet a bit more on bitcoin, than what the index is actually made up of.

Let’s say that the crypto index consists of 60% bitcoin , 30% ethereum and 10% terra . That’s the actual diversification of assets across the index.

Your ETF chooses to go a different route when it comes to investment strategies. The board has their faith set on bitcoin, which is why they choose to weigh their inventory with 70% bitcoin, 20% ethereum and 10% terra.

If there then is a period, where bitcoin is doing badly compared to ethereum and terra, it would result in a tracking error.

On the other hand, bitcoin could turn out to do significantly better than the other coins, and then you’re benefiting from a positive tracking error through your ETF.

With ETNs there’s rarely any tracking errors. This is because the ETN doesn’t invest in actual assets. It’s more like a promise that they will pay out the rate developments in a certain index.

The concrete promise would be described in more detail in the ETN’s prospect. Here, you also need to remember the running costs and fees which are connected to both ETFs and ETNs.

There are pros and cons to both types of funds, which you need to consider before you invest.

How do terra ETFs and ETNs work?

When you invest in ETFs or ETNs it works kind of like a stock. This means that gains and losses are taxed after existing taxation laws for stocks. Your investments can either be taxed as income on equity or as capital income, and further after the asset liquidation principle or inventory principle. Exactly as you know it from the regular stock world.

When you’re trading terra as a currency, you don’t have access to income on equity. Here, certain taxation rules apply, which you can get more information on here .

Tip: Read more about the special tax regulations for crypto, that also apply to terra

Please note that you’re not able to use your terra tokens or coins for staking with ETFs and ETNs. In short, terra staking is using your own terra holdings to “work” for the blockchain network - a work which is compensated in the form of more terra tokens or coins.

Because ETFs and ETNs do not give you any direct ownership of terra coins or tokens, you can’t use them for staking, which would be an option if you’ve invested directly in terra tokens or coins.

Cryptocurrencies can rise and fall

When you trade cryptocurrencies, you need to be aware that it carries a large risk. The value of your cryptocurrency can both rise and fall, and you can risk losing the entire amount you’ve invested in cryptocurrencies.

Cryptocurrency trading is done through Lunar Block. Lunar Block is not regulated by the Danish Financial Supervisory Authority (Finanstilsynet). That means you won’t have the same protection as when trading e.g. stocks or other regulated assets.

Buy terra ETFs and ETNs through Invest

Do you want to invest in terra ETFs and ETNs?

You can handle it all directly in your Lunar app. Log in to the app and sign up for Invest to get started in a matter of minutes. And remember, all stock investing is connected to risks.

Lunar cooperates with Saxo. You’re investing through Saxo Bank when you sign up to Invest - it’s all just happening through your Lunar app. Easy and convenient. 

Read more about Saxo’s work with crypto ETFs and ETNs here .

Once you’ve signed up, you can find all the exciting terra ETFs and ETNs.

Download Lunar now

You can also trade terra directly via Lunar Block

ETFs and ETNs aren’t the only things Lunar can help you with.

From your app, you can also sign up to Lunar Block , which is probably Denmark’s easiest platform for buying and selling terra and other cryptocurrencies. 

Here, you’re not investing in stocks, bonds of debt or funds - you’re trading with terra coins and other cryptocurrencies.

Download Lunar free now - and sign up to Lunar Block

What you’re getting

• The world’s leading cryptocurrencies
• Everything in one app. Buy and sell without a wallet
• Simple trading platform without buzzwords
• A low, set trading price of 2,5% for Standard users, 1,5% for Premium users, and just 1% if you have Pro
• No pointless fees
• Best crypto prices across three of the largest exchanges
• Guide to tax reporting to Skat - Easier tax reporting
• Track price developments and set price alerts on currencies you follow

Cryptocurrencies can rise and fall

When you trade cryptocurrencies, you need to be aware that it carries a large risk. The value of your cryptocurrency can both rise and fall, and you can risk losing the entire amount you’ve invested in cryptocurrencies.

Cryptocurrency trading is done through Lunar Block. Lunar Block is not regulated by the Danish Financial Supervisory Authority (Finanstilsynet). That means you won’t have the same protection as when trading e.g. stocks or other regulated assets.

We do not counsel

We do not advise on currencies and do not make recommendations for either buying or selling. We can provide factual information about the different currencies, but past price developments are not an indication of future developments.

No information from Lunar Block should therefore be considered as recommendations and all decisions are up to you alone.