Buy Stellar (XLM)
Cryptocurrency has already become a full-fledged part of the new financial world, attracting many private investors and big businesses. The game rules in this booming market are becoming more evident every year, and the processes are becoming more transparent. But the volatility and specific risks associated with digital currencies have not gone away, and to make money in this market, you need to learn all its specifics. So let's try to learn about Stellar cryptocurrency (XLM), and understand why you should buy XLM.
What is Stellar (XLM)?
Stellar is an open network that allows you to move and store money. When it was launched on July 7, one of Stellar's goals was to promote financial inclusion by reaching out to the unbanked world. Still, soon afterwards, its priority became Stellar to help financial companies connect with each other using blockchain technology.
The network's token, lumens, acts as a bridge that lowers the cost of cross-border asset transactions. This aims to challenge existing payment service providers, which often charge high fees for similar services.
If this all sounds familiar, it should be noted that Stellar was initially based on the Ripple Labs protocol. The blockchain was created due to a hard fork, and the code was subsequently rewritten.
Who is the founder of Stellar?
Of course, before buying Stellar, anyone wonders, "Can this cryptocurrency be trusted?" To remove any doubt, let's take a closer look at the founders of Stellar.
Jed McCaleb founded Stellar with attorney Joyce Kim after leaving Ripple in 2013 due to a disagreement over the company's future direction.
Explaining the purpose of creating Stellar on September 9, McCaleb told CoinMarketCap, "The whole initial design of Stellar was to have fiat currency and other forms of value work in tandem with each other and with crypto-assets. This is extremely important to make this coin popular."
McCaleb's goal is to make sure that Stellar can enable people to convert their paper money into cryptocurrency - and solve the problems people often have when they send money around the world.
McCaleb is currently Stellar's CTO and co-founder of the Stellar Development Foundation. The non-profit organisation aims to "unlock global economic potential by making money more flexible, markets more open and people more empowered".
What makes Stellar unique?
According to Coinmarketcap's ranking, Stellar ranks 25th among all cryptocurrencies. So what makes it unique? Why do so many people choose to buy XLM?
Fees are the deciding factor for many people. However, the high costs of cross-border payments exist not only in fiat-based payment solutions such as PayPal, but transaction fees have also been known to skyrocket in bitcoin and bitcoin blockchains. Ethereum due to congestion.
Stellar is different in that each transaction costs as little as 0.00001 XLM. Since one unit of this cryptocurrency is only worth a few cents at the time of writing, this helps ensure that users save more of their money.
Few blockchain projects have partnered with large tech companies and fintech companies. For example, a few years ago, Stellar and IBM teamed up to introduce World Wire. This project would allow big financial institutions to make transactions through the Stellar network using intermediate assets such as stablecoins.
While other blockchains have crowdfunding, meaning grants can be given to projects that help further develop the ecosystem, Stellar allows its users to vote to support any project.
How are many Stellar coins (XLM) in circulation?
When the Stellar network was launched, 25 billion XLM were issued. But this has changed since the release. The current total supply is 50 billion XLMs, and the current number in circulation is 20.7 billion.
In 2019, the Stellar Development Foundation announced that it had burned more than half of this cryptocurrency's supply. That means that the Stellar Development Foundation currently controls around 30 billion XLM. In contrast, some of this capital is spent on marketing and helping the organisation grow. In addition, about a third of this capital is spent on investments in other blockchain projects.
Explaining why it has taken this drastic step - and pledging not to burn more XLM in the future - the foundation explains, "SDF can be more compact and do the job with fewer lumens... 55.5 Those XNUMX billion lumens do not increase Stellar's adoption rate."
How secure is the Stellar network?
The issue of security is probably the essential aspect for those who want to invest in Stellar.
The Stellar network is secured using the Stellar Consensus Protocol, which is described as having four main attributes:
- Decentralised control.
- Low latency.
- Flexible reliability.
- Asymptotic security.
Through SCP, anyone can participate in the consensus process, and no single organisation can reserve most of the decision-making power for itself. Transactions are also confirmed cheaply and within seconds - and security measures are in place if intruders try to break into the network.
Where can I buy Stellar (XLM)?
Because of the innovative system, experts praise Lumen's potential. The project can potentially change the modern banking system, but the token exchange rate is not that high so far. So take advantage of this chance to make money.
You can buy Stellar in Kenya on well-known exchanges such as Binance, Poloniex, OKEx, Bittrex, Upbit, Kraken, CEX.IO.
We recommend finding out which coins on the platform are traded paired with the Stellar token. For example, Binance sells XLM for ether (ETH), Binance Coin (BNB) and Tether (USDT).
There are also other features depending on the platform. For example, on Poloniex, the reduction of coins is not XLM but STR. Choosing a platform where Stellar Lumens is traded is simple to buy it. Register, deposit the desired cryptocurrency or traditional money, create an order in the buy order book and wait for someone to sell Lumens.
What can I do after buying an XLM?
1. Store/hold Stellar Lumens.
Firstly, you can simply store your cryptocurrency. For example, many users keep Stellar Lumens in anticipation of an increase in value. Therefore, you can hold your Stellar Lumens in your account in a secure exchange.
There is an even more thoughtful approach to your cryptocurrency. For example, you can earn money by placing coins in steaking.
The primary way to invest passively in the cryptocurrency market and the main alternative to mining is staking.
Staking is the process of storing funds in a cryptocurrency wallet to support all transactions on the blockchain. Essentially, it consists of locking a certain amount of cryptocurrency into a wallet for rewards.
The concept of Proof of Stake (PoS) involves this type of mining, where instead of participants' computing power, they simply need to store crypto-assets in their accounts. Staking is, therefore, a great way to make passive income.
3. Trade CFD.
If a user wants to invest in Stellar in Kenya, trading CFD is the way to go. There are many cryptocurrencies at your disposal and a vast number of trading pairs to trade Stellar Lumens. The best news is that you do not have to buy Stellar or any other assets.
Stellar Lumens Wallet
Coin owners choose how to store Stellar tokens themselves. The official wallet for the platform is called the Stellar Wallet. Its desktop version, the Stellar Desktop Client, is also popular. The Stellar Wallet allows:
- Conduct transactions with XLM;
- Top up your balance via gateways;
- Exchange XLM coins for other cryptocurrencies;
- Deposit and withdraw funds in fiat currencies - so far only dollars, yuan and euros.
Investing in Stellar (XLM)
So, as was in the article below, CFD is a real way to invest in Stellar. The Contract for Difference (CFD) is a low-cost trading method for beginners and experienced investors alike. CFDs can be traded on listed stocks, commodities, indices, precious metals and, of course, cryptocurrencies.
The bottom line is that a Contract For Difference (CFD) is not concluded to deliver a real underlying asset. Instead, it allows you to transact CFDs on any asset at any time. For example, if you can purchase a certain amount of cryptocurrency, you can buy a Contract For Difference for the difference in their price. The high popularity of CFD shares is due to the possibility of making a profit from speculations and hedging risks. Thus, an investor may get even out possible losses without changes in an investment portfolio.
Advantages of CFD trading:
- CFD volume and collateral requirements that are accessible for most investors.
- Possibility to operate on Forex and CFD markets from one account.
- No restrictions on volume.
The future and prospects of Stellar (XLM)
The crypto project roadmap is based on three principles:
- Developing new tools for international operations;
- Increasing visibility;
- Supporting the reliability and security of the network.
The developers want to increase transaction volume by 5, expand the ecosystem and attract more partners from the banking sector.
The project creators are supporters of fine-tuning international legislation so that any financial institutions (including state banks) can use blockchain capabilities. So there are plans to work with governments in different countries to help them change their regulatory frameworks.
Stellar Enterprise Fund (a venture capital fund for open source networking) will hold one new event per quarter. The aim is to promote altcoin and services.
To Sum Up.
Stellar is a blockchain network, distributed, open source and community-owned. It is used to facilitate transfers between assets. Stellar aims to facilitate these transfers at a fraction of a penny, while striving to be an open financial system and provide people of all income levels with access to affordable financial services. The Stellar network's own digital currency is called Lumens (XLM).
To protect against spam, there is a requirement that every Stellar wallet contains at least a small number of Lumens. With Lumens, users can send each other any currency, automatically converting it to any other currency. Stellar also supports smart contracts.
Cryptocurrencies are called the money of the future. In some time, they may become a full-fledged global financial system. Cryptocurrencies continue to be used despite all doubts and concerns, and their price and demand are growing. And the volatility of cryptocurrencies makes them ideal investment vehicles. All you have to do is to be willing to learn and start earning. Then, anything you can imagine can exist!