Stellar is a decentralized and open platform for financial services, where each transaction is recorded in a public ledger and can be verified by anyone on the network.
The coin has been around since 2014, but it’s still not well known to many people. It’s also one of the few coins that don’t have an ICO or pre-mining phase.
In this article, we’ll explore what you ought to know about stellar- the technical side of it, its history, and how to buy and trade XLM! We’ll also take a look at some of its advantages over other cryptocurrencies like Bitcoin. This will help you decide if Stellar might be right for your portfolio or not!
How does Stellar work?
The Stellar network has its own built-in currency, called Lumens, which is abbreviated as XLM. Lumens have a fixed inflation schedule of 1% per year, and the total number of Lumens that will ever be available is approximately 100 billion. To prevent inflation from happening too quickly, new coins cannot be generated arbitrarily by anyone. The network is programmed to generate 1% less than the number of new coins introduced each year.
The Stellar network supports multi-currency transactions, so you can engage in trading between USD and Euros, for example, even though Lumens are the only currency native to the platform.
One particularly neat feature of the Stellar network is that it allows assets like currencies and commodities to be traded directly at the market price. This is usually done by brokers or trading shops that can charge up to 10% of the transaction volume, but it only costs 1/5th of a cent per trade on Stellar!
You could use stellar blockchain technology to create your own personal exchange-traded funds (ETFs). To do so, you’d have to create a basket of assets and then issue tokens that track the price of your ETF on the Stellar network. You could distribute these tokens among friends and family, allowing them to trade your ETF easily by using a simple app or website!
This means that you can use Stellar to build all kinds of financial services. For example, you could build a Virtual Private Network (VPN) where the VPN provider accepts Stellar for payment and then allows users to trade fiat currencies within the network without going outside!
How to Buy XLM Coins
To buy XLM coins, you first need to choose a trading platform. There are many options available, including Kraken, Poloniex, and Binance. Once you have an account set up, buying Lumens is as simple as depositing your preferred cryptocurrency (usually Bitcoin or Ethereum) and then trading it for XLM tokens on the Stellar network. Just click on the market, choose the currency pair you want to trade, and specify how many Lumens you want to buy!
History of Stellar (XLM)
Stellar has a long and interesting history. It was originally created in 2014 by a man named Jed McCaleb, who also co-founded the infamous Bitcoin exchange “Mt Gox,” which later imploded when hundreds of thousands of dollars worth of coins went missing!
McCaleb wanted to create a new cryptocurrency that would work as an intermediary between other forms of money as a way to reduce friction and costs associated with global remittance. To finance this project, he created an ICO, which raised around $100,000. Unfortunately, it turned out there was a major problem- McCaleb had already sold the majority of his tokens to people in South Korea, so he couldn’t provide them with an actual working product.
McCaleb’s co-founder, Joyce Kim, managed to raise $3 million in venture capital, allowing Stellar to survive this setback and continue on its mission. However, problems continued to mount for McCaleb after discovering that he had sold another $10 million of Stellar tokens on the open market- this time to his friends and family!
Conclusively, Stellar is a platform that allows anyone to create financial services, send global payments, and trade any type of asset. If you are interested in investing some money into cryptocurrency, Stellar may be a good idea. It’s cheap to trade on the platform, so you won’t have to pay any high fees, which are often associated with other exchanges!
Stellar (XLM) FAQs
How Do I Get a Stellar Wallet?
There are several wallets available that support XLM tokens. Some popular hardware wallets include the Ledger Nano S and the Trezor; for desktop users, you can try using Exodus or Jaxx, while mobile users should opt for Coinomi.
Where Can I Store XLM?
You should store your coins in a secure hardware wallet to ensure that they are kept in a safe place. There are many options available so take time to do some research before deciding on the best choice for you.
Is Stellar a Good Investment?
Nobody can say for sure whether or not any type of cryptocurrency is a valuable investment. It’s important to remember that nothing is guaranteed when it comes to the financial world, so please only invest as much as you are willing to afford to lose!
What’s the Difference Between Stellar and Ripple?
While both cryptocurrencies have been created to allow people to transfer value across borders quickly and cheaply, it is important to understand that they are fundamentally different from one another! Some key differences include the fact that Ripple is centralized, which means it has control over its network, while Stellar is decentralized and relies on the community to self-govern.
Is It Possible to Mine Stellar?
Unfortunately, it is impossible to mine XLM tokens as they are all created before the genesis block. They must either be bought or traded for!
Is Stellar traceable?
It is possible to find out the location of Stellar transactions on the public ledger, but it is not possible to view any personal information. This makes cryptocurrency perfect for people who are worried about their financial or digital footprint being tracked!