How to Use Algorand (ALGO): Complete Beginner’s Guide [2025 Update]

AI summary

Algorand (ALGO) is a leading Layer-1 blockchain known for its speed, security, and sustainability, utilizing a Pure Proof-of-Stake consensus to solve the blockchain trilemma of scalability, decentralization, and security. The article explains Algorand’s technology, features, and real-world use cases, and provides a guide on safely buying, storing, and managing ALGO with the Tangem Wallet. Its eco-friendly design, low fees, and broad enterprise adoption make it a strong choice for both developers and everyday users.

Algorand (ALGO) has established a reputation as one of the most efficient, secure, and environmentally friendly blockchains in the industry. By solving the “blockchain trilemma,” the balance between speed, scalability, and decentralization, it has become a favorite among developers, enterprises, and crypto enthusiasts alike. In this guide, you’ll learn what Algorand is, how it works, and how to safely buy, send, and store ALGO using Tangem Wallet, a next-generation cold wallet built for simplicity and security.

What Is Algorand (ALGO)?

Algorand is a Layer 1 blockchain created by Silvio Micali, a professor at MIT and a Turing Award-winning cryptographer. The project was launched in 2019 with a bold vision: to overcome the performance and decentralization challenges that early blockchains, such as Bitcoin and Ethereum, face. At its core, Algorand combines speed, scalability, and security, three goals that are often difficult to achieve simultaneously.

The Blockchain Trilemma

Most blockchains trade off between:

• Decentralization: allowing anyone to participate.
• Scalability: processing thousands of transactions per second.
• Security: preventing attacks or manipulation.

Algorand’s answer to this challenge is Pure Proof-of-Stake (PPoS) — a consensus mechanism that selects validators randomly and fairly based on their stake, ensuring speed without sacrificing decentralization. For more on other efficient blockchains, check out our guide: What Is Hedera (HBAR)?

How Does Algorand Work?

Algorand’s architecture focuses on speed, reliability, and sustainability. Its PPoS consensus allows the network to finalize transactions in seconds without mining, waiting, or wasting energy.

Pure Proof-of-Stake (PPoS)

Here’s how it works:

1. Validators are randomly selected using a cryptographic lottery called the Verifiable Random Function (VRF).
2. Every ALGO holder can participate in the validation process by holding and staking their coins.
3. Blocks finalize in under 5 seconds; there are no forks or rollbacks.

Unlike traditional Proof-of-Stake systems that favor large stakers, Algorand ensures fairness through randomness and a flat reward system.

Two-Layer Architecture

Algorand separates network functions into two layers:

• Layer 1: Handles basic transactions, smart contracts, and the creation of Algorand Standard Assets (ASAs) — tokens built directly on the main chain.
• Layer 2: Supports complex smart contracts, DApps, and DeFi applications without clogging the base layer.

This structure enables Algorand to be fast and flexible, making it ideal for financial applications, NFTs, and large-scale enterprise use.

Key Features and Benefits of Algorand

• Speed and Finality

Algorand processes up to 6,000 transactions per second (TPS), with block finality in 4–5 seconds. Once a transaction is confirmed, it becomes irreversible, eliminating the risk of double-spending and the need for multiple confirmations.

• Sustainability

Algorand is carbon-negative. Through partnerships with ClimateTrade, it automatically offsets its minimal energy consumption, making it one of the most sustainable blockchains.

• Smart Contracts and ASA Tokens

Developers can natively issue Algorand Standard Assets (ASAs), which are tokens for stablecoins, NFTs, or project-specific currencies, on Layer 1. The network architecture ensures faster execution and lower gas fees than traditional smart contract platforms.

• Low Fees and Scalability

Transaction fees average around $0.001, making Algorand ideal for microtransactions and DeFi.

• Enterprise Partnerships

Algorand powers real-world projects, including:

• El Salvador’s blockchain infrastructure
• FIFA’s NFT platform
• Central Bank Digital Currency (CBDC) pilots in various countries

These collaborations highlight Algorand’s reputation for reliability and innovation in enterprise settings.

How to Buy Algorand (ALGO)

Buying ALGO in 2025 is straightforward, but choosing where and how to store it safely is crucial. Follow these steps to purchase and transfer ALGO securely to your Tangem Wallet.

Step 1: Choose a Trusted Exchange

Popular exchanges include:

• Binance
• Coinbase
• Kraken
• KuCoin

Always use exchanges with solid reputations, two-factor authentication, and regulated operations.

Step 2: Complete KYC and Fund Your Account

Create an account, verify your identity, and fund it using fiat (USD, EUR, etc.) or another cryptocurrency.

Step 3: Buy ALGO

Search for the ALGO trading pair (e.g., ALGO/USDT, ALGO/USD) and place a buy order.

Step 4: Withdraw to Tangem Wallet

Once your purchase is complete:

1. Open your Tangem Wallet app.
2. Tap “Receive” → select Algorand (ALGO).
3. Copy your Tangem ALGO address.
4. Paste it into your exchange withdrawal field and confirm.

Tip: Always withdraw a small test amount to verify the address before sending your full balance.

How to Store Algorand (ALGO) Safely with Tangem Wallet

Tangem Wallet offers cold storage security with mobile-first simplicity. There are no batteries, seed phrases, or cables — just a secure chip and NFC connection.

Here’s how to set it up and start storing your ALGO safely.

Setting Up Tangem Wallet for ALGO

1. Download the Tangem App (available on iOS and Android).
2. To activate your Tangem card, tap the card in your phone’s NFC area when prompted. Then, follow the on-screen instructions to create your wallet.
3. Backup (optional but recommended): Use your second or third Tangem card (included in the pack) to instantly back up access instantly.
4. Once your wallet is ready, tap “Add Token” → “Algorand (ALGO)” to activate ALGO support.

Tangem automatically generates and stores your private keys inside the card’s secure chip, never exposing them to your phone or the internet.

Sending and Receiving ALGO

• To receive ALGO: Open the Tangem App → Select Algorand → Tap “Receive” → Share your address or QR code.
• To send ALGO: Tap “Send”, enter the recipient’s address and amount, then hold your Tangem card to your phone to sign the transaction via NFC.

Transactions confirm within 5 seconds — no waiting, no seed phrases, and no risk of online hacking.

Tangem Security Benefits

• Chip-level protection: EAL6+ certified security chip (same grade used in passports).
• No seed phrase risk: Your private key never leaves the card.
• NFC convenience: Works seamlessly with smartphones.
• Multi-card backup: Protects against loss or theft.
• Offline security: Immune to malware, phishing, and exchange hacks.

Tangem also supports Algorand Standard Assets (ASAs), so you can manage ALGO-based tokens directly in your wallet. Learn more about how Send via Swap Works in Tangem Wallet.

How to Stake ALGO

Staking in Algorand is low-maintenance and straightforward, thanks to its Pure Proof-of-Stake model.

How Staking Works

Every ALGO holder can participate in the consensus process by holding coins in a non-custodial wallet. Unlike traditional staking systems, there’s no need to lock up or delegate tokens; rewards are distributed automatically to active wallets.

However, as of 2025, direct staking inside Tangem Wallet is not yet available. You can:

• Hold ALGO in Tangem for safekeeping.
• Stake through exchanges (Binance Earn, Coinbase Staking).
• Or use DeFi platforms on Algorand when you’re ready for higher yields.

Tangem is exploring integrated staking options. Stay tuned for updates in future app versions.

Algorand vs Ripple vs Hedera

Each network serves different niches, but Algorand stands out for its balance of sustainability, speed, and decentralization, which makes it ideal for both individual users and global-scale applications.

Use Cases and Ecosystem

Algorand powers various applications across finance, art, and governance.

1. DeFi and Stablecoins: Algorand hosts major stablecoins like USDC and USDT, fueling a robust decentralized finance ecosystem with low fees and instant settlements.
2. CBDCs and Government Projects: Due to its compliance-friendly design, governments and financial institutions use Algorand for central bank digital currencies, identity systems, and cross-border payments.
3. NFTs and Gaming: Algorand’s low fees and fast finality make it ideal for NFTs and blockchain gaming, enabling creators to mint and trade assets efficiently.
4. Enterprise Blockchain: Real-world industries, from supply chain tracking to ticketing and loyalty systems, integrate Algorand’s scalable Layer-1 solutions.

FAQs about Algorand (ALGO)

What is Algorand (ALGO)?

A decentralized Layer-1 blockchain using Pure Proof-of-Stake for fast, secure, and energy-efficient transactions.

How does Algorand achieve decentralization?

It uses cryptographic randomness (VRF) to select validators from all ALGO holders, ensuring fairness and security.

Is ALGO a good investment in 2025?

Algorand remains one of the most stable and eco-friendly blockchains. While not financial advice, its strong fundamentals and enterprise adoption give it long-term potential.

How fast are ALGO transactions?

Typically 4–5 seconds, with finality guaranteed on the first confirmation.

How do I stake ALGO?

You can stake via exchanges or Algorand-based DeFi platforms. Direct staking in Tangem may arrive in future updates.

Can I store ALGO in Tangem Wallet?

Yes. Tangem fully supports ALGO and Algorand Standard Assets (ASAs) with secure, NFC-enabled hardware.

What are Algorand Standard Assets (ASAs)?

Tokens built directly on Algorand’s Layer-1 for assets like stablecoins, NFTs, or utility tokens.

Conclusion

Algorand remains one of the fastest, most scalable, and eco-friendly blockchains in 2025, trusted by governments, developers, and everyday crypto users. Its Pure Proof-of-Stake model delivers fairness and efficiency while maintaining a carbon-negative footprint that leads the way for sustainable blockchain innovation. To protect your ALGO with the same level of innovation, Tangem Wallet is the best option for storing, sending, and managing ALGO safely in seconds, allowing you to take complete control of your crypto.