Buy Stellar (XLM)
Cryptocurrency is becoming more and more popular around the world each day. As a result, many people are beginning to understand what cryptocurrency is and what it serves. In this article, you will read about Stellar Lumens (XLM) and find out why to buy XLM.
What are Stellar Lumens (XLM)?
Stellar is a blockchain created in 2014 and supported by the Stellar Development Foundation. The network aims to improve international payments and transfers.
Stellar has its consensus mechanism, called the Stellar Consensus Protocol, which differs from Proof-of-Work and Proof-of-Stake. Instead, transaction verification nodes work with quorum slices to negotiate an agreement.
Unlike other blockchains, the Stellar Lumens token (XLM) is not mining and cannot be used as a reward. Instead, the initial offering was 100 billion XLMs, issued at an annual inflation rate of 1%. In 2019, the total supply of XLMs was reduced, and the inflation mechanism was removed following a management vote.
There are currently about 50 million XLMs in existence. XLM is used to settle transactions in the Stellar network and as a bridge for international payments.
History of the project
The first banking-focused blockchain startup called Ripple (XPR) was launched in 2012. The cheap and practical cryptocurrency attracted investors' attention, and many predicted a great future for it. XPR is still on the market today and is even in the top ten, but the Ripple Labs project is far from perfect, especially decentralisation.
Blockchain engineers liked the idea of combining banks, payment systems and individuals into one platform. After Ripple developers published the XPR source code under community pressure in 2014, a hard-fork emerged online, called Stellar coin (XLM). The cryptocurrency switched to its own protocol the following year. The author of the brutal force, Jed McCaleb, named the internal coin of the Stellar system - Lumens.
The cryptocurrency has received a lot of favourable reviews. It has even been called the "Ripple of the healthy man". The founder of Stellar Lumens, who worked at Ripple Labs for many years, immediately stated that the project has no commercial goals. The independent Stellar Development Foundation oversees the system. XLM is open source, and any programmer can upgrade the platform. That is why many people prefer to buy Stellar rather than Ripple.
The management team of the Stellar Development Foundation includes:
- Patrick Collison, CEO of Stripe;
- Nicholas Barry - MSc in computer science and mathematics, and a contributor to computer systems development for Microsoft and Salesforce;
- David Mazires - computer security specialist and co-leader of the Secure Computer Systems research group.
Technical features of Stellar
The Ripple consensus mechanism, of which the Stellar Lumens cryptocurrency was initially a fork, uses 'Byzantine Fault Tolerance' (BFT). It is designed to keep the network up and running even if some of its nodes are shut down or hijacked by hackers. Ripple solves this problem by having the main node take complete control of the validators, against Satoshi Nakamoto's idea of decentralising blockchain networks.
By moving to their platform, the developers of XLM cryptocurrency changed the consensus mechanism from BFT to SCP (Stellar Consensus Protocol).
At the primary level, Stellar is an ownership tracking system. Like accountants for centuries, it uses a ledger to do this, but the innovation with Stellar is that there is no real accountant. But there is a network of independent nodes, each checking and rechecking the work of the others.
Stellar is a decentralised system, meaning that no one can stop the network or secretly configure it to their liking. Still, even without a central authority, the ledgers are checked and updated every five seconds. For those looking to invest in Stellar, such a feature can only make you happy.
What makes Stellar unique?
Let's continue the theme of SCP.
What function does SCP perform?
The Stellar Consensus Protocol (SCP) is a unique algorithm that keeps everything in sync under control.
There are many ways to achieve consensus in a decentralised system - the innovative proof-of-work method used in the Bitcoin network was invented first and is still the best known. But like many early projects, PoW left room for improvement. SCP aims to be better by being customisable, fast and highly energy efficient.
Above this baseline is a powerful API, so you don't need to understand the intricacies of distributed consensus to build on Stellar.
Simple, well-documented features allow you to:
- move new digital money in a familiar pattern.
- quickly trade tokens between accounts.
- create markets.
- issue assets.
In order to avoid the loss of decentralisation at the launch of the Stellar blockchain ecosystem, specific measures have been taken:
- Open Source. At launch, XLM operated using the Ripple protocol, and then the team developed its Stellar protocol. The SDF (Stellar Development Foundation) guarantees free access to the source code. As you have read above and understood the benefits, this brings to those who want to buy XLM.
- In the first phase, it was immediately planned how many tokens would be generated when the network is launched and how many would be issued to create artificial inflation (1% per year).
- A budget was drawn up for the development of the fund (5% of the total issuance). It is envisaged that 25% of all coins will go to non-profit entities.
- The non-profit Stellar Development Foundation was founded to develop the system; its founders do not receive any dividends for their participation in the activities. They are also not allowed to sell shares.
- The project team's activities are published on the official website and social media pages. However, absolute transparency only attracts new investors and buyers.
According to the restrictive agreement, holders of large volumes of Lumens are not allowed to sell coins for five years.
Where to buy Stellar
Stellar Lumens (XML) is a popular digital asset, with 250 trading venues handling it.
When making a transaction, pay attention to the Stellar exchange rate and the minimum transaction threshold. It may differ significantly at different exchanges. Liquidity is one of the main advantages of XLM cryptocurrency.
If you wish to buy Stellar in the Philippines, we recommend using the popular Binance exchange. Once you register and set up your account, a wide range of services and tools will be available to you. To buy cryptocurrency from a card, get your identity verified and top up your balance.
Stellar does not support the PoW consensus algorithm. Lumens cryptocurrency cannot be mined on computing hardware. Blocks are created by nodes.
Ways to invest in Stellar Lumens (XML) efficiently
What do I do after buying Stellar Lumens?
- Store/hold Stellar Lumens.
Many users store Stellar Lumens in anticipation of an increase in value. You can safely store your Stellar Lumens in your account or our crypto wallet. The most important thing is to choose the safest and most secure wallet.
- Earn Stellar Lumens.
If you want to invest in Stellar in the Philippines, place your coins in staking. Stacking is a great way to increase the number of assets stored in your wallet or trading account.
- Send Stellar Lumens.
You can instantly transfer assets wherever you are. For example, you can buy Stellar Lumens online and send it to whomever and wherever you want with the correct Stellar Lumens address.
- Spend Stellar Lumens.
You can also use Stellar Lumens to buy goods and services. More and more businesses and retailers are accepting Stellar Lumens every day.
- Trade CFDs.
Contract for Difference, or CFD for short, is the most profitable instrument at stock exchanges, allowing you to make a quick profit with the minimum of free money and without burdening participants with property rights. As a result, a vast majority of stock exchange transactions are based on CFDs.
Trade Stellar Lumens as it is another excellent way to invest. There are over 300 cryptocurrencies and many trading pairs for trading Stellar Lumens.
Advantages of CFDs:
- Leverage. A trader gets to work with funds that are several times his coverage. To start trading, you need to deposit the amount required by the broker. The remaining funds are provided as a kind of credit;
- A large number of assets. CFD trading allows working with various financial instruments, from currency pairs to stocks. The trader can diversify his portfolio owing to different assets;
- Possibilities to hedge risks. CFD is very often used as a risk insurance instrument along with options and futures.
A contract is made between the parties. One of the conditions is a rise or fall in the price of particular securities or other assets. The difference between the initial price and its future valuation is passed on to the buyer/seller when this happens. It depends on the performance of the terms of their contract. However, the shares themselves do not change ownership.
Stellar cryptocurrency has a future. However, it depends on the competitiveness of the project.
However, cheap and fast transfers in any currency are in high demand, and XLM cryptocurrency is out of competition in this niche. The project is actively developing the team to implement new technologies and eliminate shortcomings. So try it out and make money. Once you get to the end, people laugh at the fears that plagued them at the beginning. Good luck!