Should You Be Tempted To Invest In Stellar (XLM)?
Stellar (XLM) is an open-source cryptocurrency developed by the non-profit organization stellar.org. Stellar was launched in 2014 with distribution payment as its focal point.
Unlike other cryptocurrencies which were created for quick and anonymous transactions, Stellar is somewhat different.
Stellar allows for the transfer of funds and conversion of the XLM from cryptocurrency to fiat currency and vice versa.
Stellar can also be exchanged for other cryptocurrencies. Stellar recently announced that IBM would be joining Barclays, Praekelt foundation and other organizations to use the XLM for transactions.
How Does Stellar (XLM) Work?
Stellar is built to run on a platform called Stellar Consensus Protocol. With the internet, all Stellar servers connect and sync with each other to create a global exchange network. Each of these servers has a record of all the accounts in the network.
These accounts are stored in ledgers. When you make a transaction, all the servers on the network comes together (the consensus) to agree on what processes should be used. A consensus happens at regular intervals (2-4 seconds). This ensures that all the servers on the network have up to date ledgers.
How is Stellar performing in the cryptocurrency market
As at today, 1 XLM is currently valued at $0.63 (USD) after depreciating by 4.96% in the last 24 hours. XLM still retains number eight position on the cryptocurrency chart with a daily trading volume estimated at $190 million (USD).
The market cap of Stellar Lumens is pegged at $11.3 billion. The total supply of Stellar Lumens is placed at 103.6 billion XLM with around 17.9 billion XLM currently in circulation.
Additional Facts To Know About Stellar
- Every Stellar wallet is required to hold a minimum of 20 XLM (to ensure all accounts are authentic).
- Every transaction costs a token 0.00001 XLM.
- Stellar is built with a yearly inflation of 1%.
- XLM can be exchanged for any currency.
- The first 19 Billion XLM was given for free to Bitcoin users in 2014.
- Stellar.org is committed to fighting poverty with funds generated from XLM.
The price of Stellar (XLM) undoubtedly took a hit in the past week along with most other cryptocurrencies. However, it does not deter the fact that stellar is one of the most amazing cryptocurrencies in the market.
And given that it supports exchange with fiat currencies, the XLM is one of the best cryptocurrencies to use for transactions and even investment.
This is not investment advice. Cryptocurrencies like Ripple (XRP) are highly volatile assets and are very risky investments. Do your own research and/or consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.