bitcoinBTC/USD
$ 19,163.56
ethereumETH/USD
$ 1,057.87
tetherUSDT/USD
$ 1.00
cardanoADA/USD
$ 0.450472
xrpXRP/USD
$ 0.316212
usd-coinUSDC/USD
$ 1.00

Stellar (XLM) Cryptocurrency – What Are Its Advantages?

Stellar is known as a decentralized payment technology, focusing primarily on connecting users and financial institutions, as an open-source platform. Jed McCaleb – the co-founder of RippleNet, founded the Stellar network in 2014 as a non-profit organization, which at first was named the Stellar Development Foundation. Providing financial services to people that previously didn’t have any access to banking is the main goal of the Stellar protocol.

The native cryptocurrency, Lumens or XLM makes it possible to transact on the Stellar network. This cryptocurrency, among other things, serves as a bridging mechanism between fiat currencies. When referring to this cryptocurrency, we capitalize the name of the network or organization, while the term ’stellar’ in lowercase is used when referring to its tokens.

The way in which Stellar works is enabling the transfer of digital and fiat currencies as a peer-to-peer network, as well as making cross-border transactions easier.

Sometimes there are more than two participants in these transactions and there can be many currency conversions, sort of like a chain. As a simple example, a transaction from euros (EUR) to US dollars (USD) could involve transactions from EUR to Bitcoin (BTC), BTC to XLM, and then XLM to USD.

The smart contract features of Stellar are constantly developing and also projects like stablecoin focused Stronghold, are being released, in addition to launching and hosting a good number of ICOs.

Stellar (XLM) all-time price movements. Source: Coinmarketcap

What are the Main Advantages of Stellar (XLM)?

Stellar’s three main advantages are:

  1. Fast transaction speed
  2. Multi-currency support
  3. Extremely low transaction fees

Let’s take a deeper look into these advantages

1. Fast transaction speeds

About 2000 transactions per second can be processed by Stellar and because of this, only a maximum of 5 seconds are needed in order to validate each transaction. This high transaction speed makes Stellar a great tool when you need to make fast and secure cross-border payments.

2. Multi-currency support

With Stellar, you are able to carry out multi-currency transactions, as Stellar has multi-currency support. An anchor system is used for this feature. It works by accepting any money for a deposit and a loan is issued in the currency that is required by you. To make it simple, if you sent Monero, for example, the recipient receives Bitcoin or another cryptocurrency that is needed in that particular case. A profitable course is independently selected by the system.

3. Extremely low transaction fees

Stellar is a payment protocol that is not developed to prioritize profit as much as other cryptocurrencies on the market. Moreover, due to the fact that it’s very efficient when operating and also due to the low transaction times, Stellar makes it possible to reduce the overall cost of transaction fees.

Should I Buy or Trade Stellar?

If you’re interested in acquiring Stellar, it is possible for you to buy and sell Stellar Lumens (XLM) on quite a few exchanges these days. In the United States, however, it is not possible for you to purchase XLM with US dollars or another fiat currency. Instead, if you want to purchase Stellar then you will have to buy it with another cryptocurrency. You can use Bitcoin or Ethereum in order to do so.

Takeaways

  • Stellar is known as a decentralized payment technology, focusing primarily on connecting users and financial institutions, as an open-source platform.
  • Jed McCaleb – the co-founder of RippleNet, founded the Stellar network in 2014 as a non-profit organization, which at first was named the Stellar Development Foundation.
  • Providing financial services to people that previously didn’t have any access to banking is the main goal of the Stellar protocol.
  • The native cryptocurrency, lumens or XLM makes it possible to transact on the Stellar network. This cryptocurrency, among other things, serves as a bridging mechanism between fiat currencies.
  • The way in which Stellar works is enabling the transfer of digital and fiat currencies as a peer-to-peer network, as well as making cross-border transactions easier.

 

Also read:

Related News

Is KuCoin Token a Good Investment – Should You Invest in KuCoin?

The cryptocurrency market saw one of the biggest bull runs in its history back in 2021. During this time, several tokens and cryptocurrencies made millionaires overnight. However, as the market grew, people began taking profits, leading to a market correction. In early 2022, the market was attempting to recover, but with everything that was happening around the world, it failed to do so.  One token that is performing well even during these

Read More »

How to Use Pacoca  – A Step-by-Step Guide

  Pacoca is a comprehensive DeFi hub where investors may monitor and invest in several initiatives. Since its inception, the platform has seen tremendous success, drawing a large number of daily investors who use it daily. Decentralized finance (DeFi) is the most profound change to ever occur in the financial markets, and it is expanding rapidly, with almost new protocols being released each day.  Although, there is still a severe

Read More »

Here are 3 Reasons Why You Should Use KuCoin Exchange to Buy Cryptocurrency

KuCoin is a global exchange for cryptocurrencies that started operating in 2017. The platform enables trading in futures and margin products using an extensive selection of tokens. In addition, KuCoin is an attractive cryptocurrency exchange due to its low fees and extensive feature set. KuCoin’s extensive features, low fees, and a wide variety of cryptocurrencies make it an ideal platform for experienced and even new cryptocurrency traders. However, KuCoin lacks an operating

Read More »

My Coins

bitcoinBitcoin
$ 19,163.560.8%
ethereumEthereum
$ 1,057.870.39%
cardanoCardano
$ 0.4504720.3%
tetherTether
$ 1.000.01%

Newest Videos on YouTube

We inform and educate people about Cryptocurrencies and Blockchain technology.

© Copyright 2021, All Rights Reserved,
Crypto Academy

Bitcoin

Contact Us

For any question conatct us through:

sales@crypto-academy.org

Disclaimer: All information and materials on this website are for educational purposes only. Crypto-academy.org does not provide any form of financial advice. Cryptocurrencies are highly volatile, therefore any form of investing carries a high level of risk to your capital. It is recommended that you seek professional advice prior to implementing any investment or financial plan.

We do not ask you for your Cryptocurrency / We do not hold your Coins / We do not ask for Private Keys / Be aware of scammers and imposters.

Contact us only through: sales@crypto-academy.org