The name stellar cryptocurrency refers to a digital or virtual currency developed by Stellar Development Foundation. The association’s currency, which is called the lumen, is traded under the symbol XLM on different cryptocurrency exchanges. The lumen can be used by dealers on the stellar network, which is a blockchain-related distributed ledger network that connects banks, payments systems, and people to ensure low-cost, cross-asset transfers of value, including payments. Stellar support is a distributed exchange mode. This allows customers to send payments in specific currencies even if they may hold credits in another, while the network automatically performs the forex conversion. The receiver can withdraw their currency the same way through a mate institute like a bank.
Where to Buy Stellar Lumen
If you want to get involved with stellar, you’re most likely going to have to buy it on a cryptocurrency exchange. Fortunately, stellar is listed by several estimable exchanges including the following:
- Coinbase – it’s a US-located exchange and helps you earn Lumen for learning about stellar.
- Binance – it’s a global exchange with web, desktop, and mobile apps for trading.
- Kraken – It’s a US-located exchange with a web-linked mobile experience.
- Crypto.com – a global exchange with Web and mobile apps that supports spot and secondary trading.
The Advantages
The advantages of using Stellar are that it has quick business transaction speed, supports multiple currencies on its network, and has extremely low sale costs. Many deals on the Stellar Network take under five seconds to complete and with multiple currencies and cryptocurrencies available it gives customers a lot of options. More significant than speedy deals across a variety of means are the costs for these deals.
The average cost for making a transaction on the Stellar Network equates to a millionth of a USD cent, a stark difference when compared to traditional currency transfers through banks and indeed other crypto apps and networks. In addition, the Stellar Network is truly decentralized, run by peers on the network, and not possessed by anyone, just supported by its non-profit association.
The Disadvantages
The disadvantages to using Stellar are fewer. The main disadvantage is related to trust, as stellar uses stablecoin pairings to ensure its traditional currency support for things like the USD. The USD you hold in your stellar wallet is a stable coin similar to TetherUSD or AnchorUSD, meaning you must trust the issuer of the stablecoin to hold the same reserve rate of USD to the token. If it turns out that they don’t, you won’t manage to redeem your stable coins for an equal dollar figure.
The other disadvantage is that you must hold a minimum balance of Lumens in your account in addition to some extra for each asset you hold to use the network or hold means on it, though the quantum is minimum. While some see this as a disadvantage, it’s used as a medium to stop spam on the network by stopping fake accounts from being created and pointless transactions from congesting it up. Accounts that don’t hold Lumens cannot use the network.
How to buy Stellar
Stellar performs such as forex, stock exchange, and crypto exchange are whisked into one system. Unlike many blockchains that solely store your balance, the stellar network also can boost trades without putting your funds on an exchange. This is known as a Decentralized Exchange. This set-up order book helps trades automatically resolve and makes the network largely liquid. Stellar is run on a network of peers, no individual or reality can stop or alter any of the transactions on the network, meaning true decentralization.
To buy XLM, the first step is to open an account with a regulated exchange, deposit finances, choose stellar XLM from the trading platform list, and check & confirm stellar XLM tokens have been added to your Wallet.
- Head over to a regulated crypto broker and subscribe.
- Fund your recently opened account.
- Search the available cryptocurrencies for Stellar (XLM) and confirm.
- Choose how much you wish to buy and enter the value.
- Confirm order-your stellar Lumens coins will be added to your wall.
Takeaway
Before buying stellar lumens, you should be educated on the threats of buying and holding cryptocurrencies. Note that while lumens will always have usefulness in the stellar network, the price of lumens nominated in fiduciary currency may be unpredictable and could lose significant value.
