Buy Stellar (XLM)
The cryptocurrency industry is growing rapidly. If you look back and think of the world a few years ago, you see a kind of picture of uncertainty. Then, the world was not ready for the idea of a fully digital currency. Today, the situation has fundamentally changed. Cryptocurrencies are even being used for cross-border transfers at the level of major financial institutions. One of the platforms providing this opportunity is Stellar.
About Stellar Lumen (XLM)
Stellar Lumen (XLM) is a cryptocurrency known as the 'Ripple killer'. In reality, it is a fork of Ripple that has developed its successful coin. Ripple Labs programmer Jed McCaleb created Stellar Lumen (XLM) in the summer of 2014. Along with him, several other developers are at the platform's origins.
Stellar Lumen is based on the same protocol as Ripple. In its early days, Stellar was effectively a copy of it as a platform. But already, in 2015, it switched to its own open protocol. During the development of the new platform, the contributors also addressed many of the shortcomings for which Ripple is criticised in the cryptocurrency community.
The words "lumen" and "Stellar" are interchangeable on the web, although this is not entirely correct. Stellar is a platform for fast international payments, and Lumen is the cryptocurrency that supports it. Therefore, in our review, you might encounter expressions like Stellar, Lumens, Lumen, XLM - all referring to the Lumen coin (XLM).
The non-profit Stellar Development Foundation supports the new cryptocurrency. Its founders, board members and advisors do not receive financial compensation for their activities. The organisation is only concerned with the development and support of the project. Read on to learn interesting facts about Stellar and how to invest in Stellar.
The founders of Stellar
Jed McCaleb, a former Ripple Labs developer, is the founder of the Stellar Development Foundation. He also founded the e-Donkey file-sharing service and the first bitcoin exchange, Mt.Gox.
Joyce Kim, co-founder of Stellar. Before joining the project, she was a managing partner at SparkChain Capital.
Stellar's story began in 2014 when the Stellar platform hit the market. Jed McCaleb emerged from the Ripple blockchain project and founded a new project with Joyce Kim.
The principles of decentralisation and openness of the system became fundamental. As a result, developer dominance in the distribution of cryptocurrency was eliminated. At its inception, the newly created network used Ripple protocols.
A year later, however, the system was switched to proprietary software. The internal coin was given the name stellar-lumens. From the beginning, the project has been a non-profit one. The Stellar Development Foundation controls it. Any programmer can upgrade the platform, thanks to the open-source XLM.
Features of Stellar cryptocurrency
If you're going to buy XLM, familiarise yourself with the features of this cryptocurrency and how it works.
Ripple has created a master node that keeps the other nodes in the blockchain network under control. The system remains functional, even if some nodes are disabled. But the principle of decentralisation is violated.
Whereas the developers of the XLM cryptocurrency have adopted the stellar consensus protocol (SCP). Any user of the crypto network can start a transaction validation node or node. If inappropriate node behaviour is noticed, the stellar blockchain is frozen by the software code enabled. The history of all transactions is stored on each of the individual peer nodes maintained by the blockchain network. Lost information can quickly be recovered.
When transferring money between countries, you can buy XLM with the currency of the sending country, and the recipient will receive the money in the currency of the receiving country. Transfers in any currency are possible, even rare currencies.
The same goes for cryptocurrencies: the exchange allows the recipient to get the coin he wants. The transaction is paid in XLM, and the commission is distributed among the nodes that took part in it.
Advantages and disadvantages of Stellar
Stellar is a powerful tool for making cross-border payments anywhere in the world. The system combines banking tools derived from Ripple with its own decentralised protocol.
So, the main advantages of Stellar are:
Low energy consumption - no mining, thanks to the implementation of Stellar Consensus Protocol, the transaction verification process on the Stellar network is more energy-efficient than the Proof-of-Work (PoW) consensus algorithm;
High transaction processing speed - unlike the first Bitcoin cryptocurrency, the transfer is sent straight to the validator in Stellar. The money is credited to the recipient's account 5 seconds after the payment is created;
Easy access: XLM can be used for blockchain transactions in states where virtual assets are little known or banned by authorities.
What are the disadvantages of cryptocurrency
With all the significant advantages such as user equity, high-speed transaction processing, decentralised platform, open source, security, Lumen cryptocurrency has some disadvantages:
- The coin is subject to inflation.
- Transaction fees are low, and there is no verification fee. Participants are in no hurry to become validators as there is no incentive.
- Competition in the blockchain market.
Where does Stellar Lumen (XLM) trade?
Many well-known exchanges already accept XLM, so exchanging it for other currencies is not too difficult. So if you want to buy Stellar in Somalia, choose the most reliable and trusted exchange like Binance.
Binance is currently one of the most popular exchanges for people who want to invest in Stellar. Due to the popularity of Binance, people from different countries can use the platform as a way to buy, exchange and sell cryptocurrencies.
Why investing in Stellar makes sense
Creating a global transaction system with IBM makes Stellar interesting for investors. And other partnerships with various companies add weight to the cryptocurrency. At the same time, transfer fees are as low as possible. The user-friendly and transparent interface is easy to understand for new customers. The supported transaction speed (1,000 or more per second) makes the system one of the most efficient.
Governments in most countries are creating laws and regulations in line with anti-money laundering policies and creating a safe environment for consumers. The crypto world has not escaped such regulation. Stellar operates in full compliance with ICO regulations, so users need not worry that the authorities will somehow restrict its activities.
On the Stellar platform, conversion and transfer of any assets are available. This modern payment system is fast, low cost, supports all fiat and digital currencies, and circulates globally.
In terms of value growth, lumens are pretty promising, with bold predictions reaching above $10 in the near future. Since its inception, XLM has shown a 75% increase in value.
Therefore, if you invest in Stellar in Somalia, you can generate income.
How to start investing in Stellar (XLM)
Another way to invest wisely is CFD trading.
CFD trading is an opportunity for traders and investors to speculate on asset price movements. The trader does not own the underlying asset itself. Unlike traditional investments, CFD trading enables traders to play down as well.
Because a CFD investor does not actually own the underlying asset, the trader can sell the asset and make a profit when the price falls or lose a profit when the price rises. CFD trading also gives investors access to global markets, be it stocks, cryptocurrencies, indices or commodities. And all in a single trading environment.
The benefits of CFD trading:
- Trade on both rising and falling markets
Open short or long positions according to market conditions and your trading strategy.
- Leverage trading
You require much less capital to open trade than the model, where you need to own the underlying asset. As a result, leverage can significantly increase your profits (and your losses).
- Fast execution
Super-fast order execution averages eight milliseconds when trading currencies. There is no dealing desk intervention. Instead, your order is automatically routed to one or more of our liquidity providers, ensuring that your trade is always executed quickly and efficiently.
CFD trading can also work as a way to prevent potential losses by holding real assets. For example, if you own shares of a company but you believe that the share price will fall at some point, you can use CFDs to sell them. If they fail, you will make a profit on the position. But if the price does go up, you can close the trade.
Stellar Lumens (XLM) is a fully decentralised consensus platform. It supports any type of currency and has a built-in decentralised exchange that can trade any currency or asset.
Non-commercial projects are also capable of generating profits for their investors. There are several reasons why Lumen is expected to grow in value in the future. Firstly, the project is altruistic. Stellar can be used to create a wide range of applications, and it has no competitors in terms of features. Also, experts praise the technological component of the project.
And thanks to the competent management on the part of Stellar Development Foundation and professional developers, the goal set for the team - creating a comfortable ecosystem for users and popularisation of the platform - looks more than achievable. Partnerships with iconic companies such as IBM are proof of that. So, learn how to make money and go towards your goal. Success goes hand in hand with enthusiasm. Good luck!