Buy Stellar (XLM)
The new cryptocurrency, Stellar (XLM), has quickly gained popularity among investors and competed with the digital market leaders. Today, the coin attracts the attention of many speculators, so it is worthwhile for the reader to learn more about its features. This article will explain Stellar's features and why to invest in Stellar.
How is Stellar different from other cryptocurrencies?
Some experts claim that Stellar is an improved and more advanced version of Ripple. To some extent, this statement is indeed true, as the main functions and tasks of these systems are the same. But Stellar 2018 has solved many of Ripple's problems and surpassed them in many ways:
- First of all, it is a fully decentralised system. Its creators took into account the mistakes of their predecessors and organised the correct distribution of coins. While Ripple developers appropriated over 60% of all cryptocurrencies, Stellar founders have distributed funds among participants fairly.
As such, Stellar's exchange rate does not lend itself to manipulation by the developers and is considered more transparent. The formation of the value of coins depends solely on supply and demand on the trading floor.
- Among other things, Stellar-platform is considered the fastest exchanger, working without third-party resources.
- In addition to its primary functions, this system could become a new leader among decentralised exchanges. However, due to the lack of such organisations, the company will gain wide popularity among cryptocurrency traders.
- Last year, the platform's developers unveiled their concept of a networked ATM. This innovation will attract those who are not too versed in the specifics of e-money but want to make good money from it to the crypto industry. As a result, purchasing digital currency has become easier and more accessible. Now every user with a basic knowledge of a PC can make an exchange.
One of the founders of Stellar announced an agreement with major banking institutions. According to him, 30 financial institutions have agreed to fruitful cooperation with the blockchain project. The cryptocurrency has been officially listed as supported by the popular cryptocurrency wallet Nano Ledger S.
What's the feature of Stellar cryptocurrency
If you want to buy XLM, consider the features of this cryptocurrency. An essential feature of Stellar is the ability to create tokens. Thus, new ICOs are being developed and launched based on the decentralised platform.
Developers are actively poaching some of the users of Etherium due to its more straightforward programming language.
A disadvantage of Ether is the difficulty in writing smart contracts. The program involves using a rare programming language, so the team has to find a specialist and pay for his labour. The Stellar network has eliminated this problem by moving to a more familiar programming code.
Characteristics of Stellar
The Stellar system has several other essential features:
- A non-profit foundation, which is not controlled by the developers and acts independently, is responsible for the project's development.
- The platform initially uses a proprietary, open-source protocol. After that, its work becomes transparent for each user.
- Transactions are confirmed in just 5 seconds.
- Security is ensured through cryptographic encryption and autonomous nodes.
- Every participant has free access to information about the activities of the management fund. Investments, acquisitions and employee salaries are located on a public server.
- A quarter of the cryptocurrencies created were immediately transferred to non-profit organisations. In addition, 5 per cent of the total has been frozen within the system. These funds will go to pay for operating costs and reduce user fees.
- Every participant has equal rights and opportunities, regardless of their capital or transaction size.
- To prevent market manipulation, a special agreement has been created in the fund. According to this document, holders of significant capital cannot dispose of it during the first five years. So now, cryptocurrencies will not be influenced by market sharks.
Thanks to the innovations, the creators of the digital system have minimised the gambling component and made their project open to users.
Despite the abundance of advantages, the development has flaws. And if you want to buy XLM, be sure to consider as many factors as possible. This method will help you reduce the risks:
- The main drawbacks are the high entry threshold and the inability to mine. It limits the user.
- The introduction of a minimum transaction volume is due to the protection against spam attacks.
It is known that the exchanger's activity can slow down due to the appearance of "fake" users, so the developers have taken appropriate security measures.
How does the system work?
Stellar is a decentralised consensus platform that exchanges any financial assets quickly and efficiently. The cryptocurrency, in this case, acts only as of the unit of exchange. In this way, the token represents a "bridge" for barter. This is what people buy Stellar for.
Initially, the crypto structure used a coin of the same name, but the currency was renamed Lumen (XLM) during the update. To make an exchange transaction through this service, you need to register, select one of the options offered and deposit your assets into your account. Then, the system will exchange and withdraw the funds in the desired currency to the specified address.
This convenient and fast scheme functions due to the internal decentralised exchange. The built-in SCP algorithm, a consensus protocol, has a distributed data registry at its core. This registry records all information about the transactions that have taken place.
Multiple peer-to-peer nodes ensure the operation of the registry. Even if one component fails, the remaining parts will maintain uninterrupted operation. Due to the clever design, a collapse of this system is virtually impossible.
Where to buy Stellar and how to store the proceeds?
As the coins cannot be mined, people only have to buy them. One can buy Stellar in Nigeria from particular exchanges:
- Bittrex offers to carry out the transaction using BTC or ETH.
- Binance provides the option of exchanging using Bitcoin, Ether or a domestic exchange currency.
- Kraken allows you to get coins for Bitcoin or Ether.
For secure storage of XLM, an official cryptocurrency wallet is suggested. However, the most secure version of this service is considered the desktop version. Therefore, if you plan to invest in Stellar in Nigeria, make sure to store your cryptocurrency securely.
How else can you invest wisely in Stellar (XLM)?
If there is a desire to invest in Stellar in Nigeria, you can look into trading, namely CFDs.
What are CFDs?
A CFD is an agreement between two parties, the seller and the buyer, to transfer the difference between the current value of an asset at contract time (opening a position) and its value at contract end (closing a position).
Although in form, a contract for difference is very similar to a contract for delivery of goods, but the seller does not have to own the real asset, and the buyer does not get rights to demand delivery. If the asset price increases between the first and second transaction, the buyer will receive the price difference from the seller. If the price decreases, the seller will receive the price difference from the buyer.
A CFD is essentially a derivative financial instrument for the underlying asset, which allows you to profit from increases and decreases in the underlying commodity or security price.
Leverage, or the use of leverage, means you are only putting some of your own money into a trade. In other words, it dramatically increases your buying power by multiplying your initial investment and allows you to open a position well over your initial investment.
Leverage is often described as borrowing money from a broker even though you are not physically borrowing any money.
Is it worth investing in Stellar?
Most experts agree that the market value of this currency will rise regularly. This trend is directly related to the growing popularity of cryptocurrencies.
At the moment, the users have already appreciated the benefits of XLM and consider it one of the most comfortable systems of this century. The coin is ranked number 6, and its capitalisation is growing at a fantastic rate, as evidenced by the feedback. Many analysts are confident that the total investment will exceed 100 billion US units by the end of this year.
The development is based on a unique technology, which allows for the fastest possible currency exchange. At the same time, the participant does not lose money on commission costs and pays only a small fee for the use of the service.
The price of the crypto asset is mainly dependent on developer policies and the attraction of big investors. At any rate, this digital coin has performed well in the cryptocurrency market. As a result, it is now well-positioned to become one of the top three.
Stellar is a technology that allows money to be transferred between people, companies and financial institutions as easily as sending an email. That means that individuals gain access to financial transactions, banks' costs go down, and businesses' profits go up. It can improve the world's economic infrastructure. So use the knowledge for the benefit of yourself and humanity. Good luck!