In today’s world, traditional methods of financial transactions have been overshadowed by a digital revolution. This shift has given rise to the widespread use of cryptocurrencies, which have become increasingly popular and now serve as virtual currencies in various transactions. Cryptocurrencies have gained significant traction as an alternative form of currency, coexisting alongside traditional fiat currencies.
One such currency is the Stellar XLM. Stellar was launched in 2014, and its purpose was to bridge the gap between cryptocurrencies and physical ones. With the Stellar network, we have seen online transactions carried out in the shortest time. What’s more? The network has reduced the fees for micropayments and remittances, thus making financial services easily accessible and affordable to the world.
Although Stellar was launched in 2014, it didn’t blow up till 2021, when it gained exponentially. This growth was expected, considering that the crypto market had then hit a valuation of 1 trillion dollars. However, regardless of the market valuation, Stellar Lumen is a solid cryptocurrency.
Let’s take a closer look at Stellar to understand why it could be a smart investment or a potentially risky choice.
How To Buy Steller (XLM) In 2024
- Setting Up a Wallet: First, you need to set up a digital wallet that supports Stellar Lumens. There are various options available including Ledger, Trezor, Lobstr, and Stellar’s official desktop client. This wallet will allow you to store, send, and receive XLM. After setting up the wallet, ensure to secure your private keys and keep them offline to protect your assets.
- Creating an Exchange Account: The next step is to create an account on a cryptocurrency exchange that supports XLM. Renowned exchanges like Binance, Coinbase, and Kraken have XLM listed. During registration, you’ll need to provide some basic personal information for verification purposes following the Know Your Customer (KYC) regulations.
- Buying Stellar Lumens: After your exchange account is set up, you will need to deposit funds. Most exchanges allow funding with popular fiat currencies like USD, EUR, etc., or other cryptocurrencies like Bitcoin or Ethereum. Once the funds are in your exchange account, navigate to the appropriate market (e.g., XLM/USD or XLM/BTC), and place a buy order. You’ll have the option to specify the amount and the price you are willing to pay per XLM.
- Transferring XLM to Your Wallet: Once the transaction is completed, it is generally recommended to transfer your XLM from the exchange to your personal wallet. This is for security reasons, as exchanges can be prone to hacks. In your wallet, go to the receive option and copy the address. On the exchange platform, select the withdraw or send option and paste the copied address, then confirm the transaction.
8 Compelling Benefits Of Stellar Lumens (XLM)
- It Serves As a Form of Legal Tender
The Stellar blockchain can handle between 1000 and 5000 transactions per second. What this implies is that XLM can and is used as a currency. And seeing that it has a strong base that can support the actions of 5,000 transactions, it is a good option.
This makes Stellar a worthy competitor to centralized payment systems, and this will increase as more people adopt crypto for their online payments.
- The KYC feature
When it comes to currencies or anything with monetary value, there is a commonplace fear of misuse by criminals. Stellar’s KYC functionality means it has an alliance with central bank-issued cryptos to safeguard against criminality and transaction speed.
In April 2021, ECB President Christine Lagarde pointed out the risk of using crypto for money laundering and other financial crimes. Although this risk exists, it is not an issue for Stellar. This is because of the inbuilt KYC feature on Stellar’s blockchain.
The implication for Stellar Lumens is that, in the long run, it will be a choice for regulators in key markets like the EU and the US. Stellar also has the potential to compete with the upcoming Central Bank Issued Digital Currencies (CBDCs).
We know many people want the certainty of being able to trace their payments and would adopt government-issued crypto. But crypto enthusiasts may not care much about government control over money. And for decentralized payment cryptos to compete effectively in the market, they would need to be in a position that offers the same value that CBDCs offer and more.
- Presence of Intelligent Contract Capabilities
Stellar XLM has a decentralized exchange, which could become a driving force of Stellar’s value in the long run. And because Stellar Lumens are native to the Stellar blockchain, Steller Lumens will always have value to the Steller blockchain.
- It Can Be Found On Almost Every Crypto Exchange Platform
Accessibility is critical with any cryptocurrency because with easy access comes credibility and liquidity. On this note, Stellar has the upper hand since the token is available to retail and industrial investors.
- It Is Safer Than XRP
XLM and XRP bear many similarities, one being that they are both targeted at the precious cross-border payment market and have made in-roads in it. But XRP has a lot of complex legalities around it. This is because it is owned by a corporate entity called Ripple, and they have to follow policies set by the SEC.
The issue with XRP is that the SEC argues it was sold as an unregistered Ripple security at one point. The case is still in court, and there is no telling what the outcome might be. This case has caused Ripple and XRP to permanently lose big partners, causing them to delist the token from their exchange list.
This has created a strategic market position for Stellar. It can settle cross-border transactions quickly and at almost zero cost.
- Strong Community and Developer Support
The strength of any crypto token depends on the team behind it. It will work if the team is dedicated to making the token successful. If the team behind the token is weak, the crypto will not stand the test of time.
Weak teams often lead to the demise of numerous projects or leave them vulnerable to malicious attacks, resulting in substantial value erosion. However, Stellar (XLM) defies such concerns due to its association with an exceptionally robust team within the cryptocurrency sphere. This solid team backing ensures the project’s resilience and shields it from potential threats, establishing Stellar as a reliable and secure platform.
- Prioritizes User Experience
No doubt, cryptocurrency is complex tech. And the public is only beginning to understand the basis of its operations. Hence, only the easiest cryptos to understand, trade, and store will likely gain the most traction. Luckily, Stellar (XLM) is one of the most easy to understand cryptocurrencies.
Stellar (XLM) distinguishes itself by providing users with a user-friendly experience through its compatibility with multiple wallets, including renowned options like Ledger and Trezor. This flexibility empowers individuals to securely store their Stellar holdings outside of cryptocurrency exchanges. By owning Stellar (XLM), there is no compulsion to keep it on exchange platforms, granting users greater control over their assets and the peace of mind that comes with enhanced security measures.
- Potential To Be a Top Cryptocurrency
The crypto market’s top 100 by market cap has changed so much in a few years because many cryptocurrencies were dump schemes.
Stellar is one of those that have maintained their place among the best, and for a good reason. It has a clear roadmap for growth and development and has been acting on it. Therefore, continually improving the token for the market and creating a proper environment for long-term growth.
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