Over the past ten years, cryptocurrencies have become increasingly attractive to people for several reasons. One of these is the fact that it is digital. Indeed, even traditional currencies -such as the dollar or the euro- can now be used digitally. So, what’s the main difference with cryptocurrencies?
Cryptocurrencies are purely digital and based on blockchain technology. They enable so-called peer-to-peer transactions without the intervention of third parties such as banks or governments. This is the main difference between them and conventional currencies: the fact that they are decentralized!
The first cryptocurrency to be created was Bitcoin in 2009, but since then, many other cryptocurrencies have emerged, such as Ethereum, Binance, Ripple, and Litecoin. What about Stellar? Does it ring a bell? In this article, you will find out all you need to know about Stellar chart, prices, predictions, and much more!
The Stellar XLM cryptocurrency is a digital currency based on blockchain technology and is designed to enable fast, cheap, and secure transactions across the globe. The Stellar project network is a decentralized open-source platform that transfers funds between users worldwide without needing a trusted third party such as a bank.
The Stellar protocol also enables the creation of tokens representing digital assets, fiat currencies, or cryptocurrencies. The native token of the Stellar blockchain is the XLM. It is used to facilitate transactions on the Stellar network and can also be used to pay transaction fees on the platform.
The XLM is a token that is available on most cryptocurrency exchanges. The Stellar Foundation, responsible for developing and promoting the Stellar network, is a not-for-profit organization that aims to connect financial institutions, businesses, and people worldwide to facilitate lower-cost financial transactions.
If the Ripple XLM cryptocurrency rings a bell, you’re probably familiar with its founder. If not, Jed McCaleb is the person who decided in 2014 to found Stellar XLM.
Due to differing long-term visions regarding his former project with Ripple, Jed McCaleb decided to embark on a new cryptocurrency in collaboration with Joyce Kim, a Californian entrepreneur.
Stellar initially aimed to create a fast, inexpensive, secure international money transfer platform for unbanked or underserved populations. However, the project quickly expanded to include the creation of tokens representing digital assets, fiat currencies, or cryptocurrencies.
It was in 2015 that Stellar launched its token, the Stellar Lumens (XLM), to facilitate transactions on the platform. XLMs were distributed free of charge to users to encourage adoption.
During 2018-2019, the two founders decided to acquire start-up BlockEQ and Chain, a blockchain technology company focused on financial services to enhance its cryptocurrency portfolio.
Why was Stellar designed?
As mentioned earlier, Stellar was designed to offer a fast, low-cost, secure money transfer solution for unbanked populations or those with few exchange possibilities with their banks. Developing countries were the main targets of the project.
Indeed, there are still many regions in the world where traditional financial services still need to be more inaccessible or costly. As a result, access to financial transactions and services is minimal for the local populations concerned.
This is why Stellar’s technology facilitates low-cost international transactions, making it an attractive solution for cross-border transfers.
In other words, Stellar’s technology enables the creation of digital assets, such as XLM tokens, which can be used to represent fiat currencies or cryptocurrencies.
Therefore, Stellar aims to make financial services more accessible and affordable for everyone, especially those who do not have access to traditional financial services.
By offering a fast, low-cost money transfer platform, Stellar contributes to financial inclusion and economic development in the world’s most underserved regions. That’s what makes Stellar so unique!
How does it work? The Stellar blockchain
Now that you better understand why its founder created Stellar let’s look at how Stellar works in practice.
Stellar Consensus Protocol (SCP): Stellar uses decentralized blockchain technology to enable network participants to reach a consensus on the state of the blockchain quickly, energy-efficiently, and, above all, securely.
Stellar transactions: these are verified and validated by the network nodes, which are computers running on the SCP protocol mentioned above. All these transactions are then grouped into batches and put to the vote. If most network nodes approve the transaction batch, it is validated and added to the blockchain.
Stellar Lumens tokens: XLM tokens are used to facilitate transactions on the platform with users. This means they can buy XLM tokens on cryptocurrency exchange platforms and then use them to send or receive payments on the Stellar network.
Digital asset creation: the Stellar blockchain also enables the creation of digital assets representing fiat currencies, commodities, or other assets. These assets can be traded on the Stellar platform and transferred to users worldwide.
Stellar Staking: Where can I buy XLM?
As you can see, Stellar is an innovative cryptocurrency with good ideas for improving the financial lives of specific populations worldwide. Today, Stellar’s value is getting higher. So, where can you buy Stellar? That’s what we’re now going to find out together by introducing you to the three best platforms that will enable you to acquire some.
Cryptocurrency exchange Bitfinex lets you buy XLM tokens. To do so, you’ll first need to create an account on the platform. Once you’ve done this, you can deposit funds into your Bitfinex account using one of the deposit options available on the platform.
Deposit options include bank transfers, credit cards, and e-wallets. Once all these formalities have been completed, it’s your turn to play! You can buy XLM using any of the trading pairs available on the platform. Feel free to study the market – there’s no reason to rush!
If you’re interested in this platform and want a better idea of what it can do for you, the Bitfinex review is available to learn more.
The Coinbase cryptocurrency trading platform is both popular and easy to use. If you want to buy XLM tokens, you can easily do so using your credit card or bank transfer – the choice is yours! But the first step will be to create an account by providing your personal details, including your ID and phone number.
The Coinbase platform also offers a mobile application to buy, sell, and store this digital currency. It also provides security features such as two-step verification and storage in offline wallets to keep your funds safe. We highly recommend it!
Kraken (read review) is another popular cryptocurrency exchange platform supporting Stellar (XLM) purchases. Its advanced security protocols make it a reliable and secure platform.
Examples include two-step verification or offline storage (cold storage) of your funds. You can buy XLM tokens using fiat currencies such as euros and dollars. It offers similar services to the Binance platform.
Let’s sum up this section by saying that these three platforms are all equally interesting, but you need to choose one to start buying XLM tokens.
That’s why you could start with the most popular platform, Bitfinex. Both intuitive and pleasant to use, this platform will enable you to make the most of it. Whether you’re an amateur or at an advanced level, Bitfinex is the most straightforward platform for buying Stellar today. That’s why you should start with this platform.
Now that Stellar has practically no secrets for you regarding its history, objectives, and modus operandi, we can finally ask ourselves: Is Stellar worth it? And will Stellar recover to its best in the future?
Before answering, we need to talk numbers!
What is the stock price of Stellar to USD? And will Stellar go up? Jed McCaleb, the founder of Stellar, has announced that the maximum number of tokens will be 50 billion, so it’s safe to say that this crypto-currency has many years ahead!
Its fast, scalable technology: the Stellar network is capable of processing up to almost 4,000 transactions per second, which is considerably faster than many other cryptocurrencies. Its technology is also scalable, meaning that the network can easily adapt to an increase in the number of transactions. And that’s what’s potentially going to happen!
Its low transaction costs: the XLM token is designed to be a low-cost cryptocurrency. Its transactions cost just a few cents, making them much less expensive than others.
Its decentralization: as with other cryptocurrencies, Stellar was designed to be a decentralized payment platform. Rightly so, users can send and receive payments without the need for a trusted third party, since the blockchain takes care of that just fine.
Strong competition: the market is highly competitive, and there are many other cryptocurrencies offering similar or improved features to Stellar.
Potential centralization: although Stellar is a decentralized public blockchain, the organizations that manage the network’s validators can potentially exercise a degree of power over the network, which can undermine Stellar’s decentralization and security.
Adoption still limited: Although Stellar has experienced considerable growth since its inception, its adoption is still relatively limited in the marketplace.
Our final opinion on Stellar
Now that you know a lot more about the Stellar cryptocurrency, we can conclude that it’s a high-potential digital asset promoting sharing values due to the primary reason for its creation, which is to offer alternative means of payment for people who don’t have easy access to banks or other financial institutions. What about Stellar’s value going forward? We can definitely say that Stellar’s future is bright. In fact, Stella’s prediction for 2024 is on the rise.
By the way, for your information, we recommend that you consult the full Ripple review, which will enable you to learn more about another cryptocurrency also founded by Jed McCaleb, and thus gain a better insight into other decentralized currencies.