Stellar Meaning, How To Buy Stellar Lumens (xlm) Cryptocurrency With USD

What is Stellar Lumens (xlm)?

Stellar lumen is a virtual currency produced by Stellar Development Foundation. The cryptocurrency is traded as lumen under the XLM symbol. To use lumens, you need to be in the Stellar network. It is a Blockchain network similar to popular cryptocurrencies such as Bitcoin.

The network connects people, financial institutions such as banks, and payment systems to offer low-cost asset transfer and payment services. Stellar is among the best performing altcoins in the last half a decade. In fact, its market value is capped over $1 billion.

Brief history

Stellar is under the Stellar Development Foundation. Joe McCaleb helms this nonprofit organization. During its formative years, the company received donations from behemoth companies such as Google, BlackRock, Stripe, and FastForward.

The company has partnered with companies such as TransferTo to enable cross-border covering more than 70 countries. It was the first technology to obtain a Shariah-compliance certificate.

More on Stellar Lumen

As a cryptocurrency, the virtual currency has no central controller. Besides, thanks to the Blockchain network, it is hard to counterfeit or double-spend the digital currency.

As of writing, there are at least 22.5 billion lumens coins in circulation out of the total 50 billion. Initially, the company had a maximum supply of 100 billion coins. However, in November 2019, Stellar Foundation removed 50 billion coins out of circulation.

As expected, the demand and price of XLM rose but for a short moment. By March 2020, its value had dropped by over two-thirds. That said, the digital currency continues to be one of the best performing in the market. As of March 2021, Stellar Lumens (xlm)value had risen to about $8.3 billion.

Its future

The company is primarily fixated on developing economies such as India. Ideally, it seeks to offer bank loans and remittances to users outside the banking service. What’s more, Stellar is free; it does not charge individuals or companies for using the network.

The digital currency allows users to send payment in different currencies. The system then performs forex conversion so that the receiver can receive the payment in their currency. This is done in partnership with other financial institutions such as banks.

The chief focus for Stellar is to reduce cost and time lag experienced in cross-border transactions. The technology uses the consensus protocol, which is a result of a fork, creating the Stellar Consensus Protocol (SCP). It is through this process that Stellar became an open-source system.

Unlike Bitcoin that uses all nodes in the network to authenticate a transaction, Stellar uses a few trustworthy nodes. This short authentication ensures fast and cost-effective transactions.

How to mine Stellar Lumens (xlm)

As mentioned, Stellar is based on the consensus protocol: Stellar Consensus Protocol (USP) which is unlike the Proof of Work (PoF) used by Bitcoin. As such, you cannot mine Stellar Lumens.

This means all its coins were issued during creation. In fact, during its formative years, 100 billion coins were created. And in less than five years, this numbered increased by 1%. So how did they distribute the coins? Here’s a breakdown:

·       50% of the coins was given to users that received invitation for a Stellar Foundation Meetup.

·       25% was distributed to companies, nonprofits, governments, and institutions. Ideally, these companies played a role in the growth and adoption of the digital currency.

·       20% was divided between Ripple and Bitcoin holders. This was through two draws in October 2016 and August 2017. Bitcoin holders took 19% of the 20% while Ripple holders took home the remaining 1%.

·       5% caters for operational expenses for the foundation.

The company capped the maximum usage to 50 billion and it has no plans of creating an extra batch. While 20billion coins are in circulation, 30 billion remains with the company ideally for developing and promoting the digital currency.

Easy ways to get Stellar Lumens (xlm)(XML)

Here are simple ways to get your hands on XML.

Faucets of Stellar Lumens

You can use faucets to get XML tokens. In fact, it’s one of the easiest ways to get any cryptocurrency tokens. Ideally, several apps and websites will award you XML tokens once you complete a certain task. For example a website might prompt you to watch a video or play a game. Once completed, you receive XML tokens as a reward.

You can get free XML tokens on sites such as Allcoins and Coinmonster.

Stellar Lumens (xlm) Airdrops

Airdrop refers to the distribution of a small quantity of free cryptocurrency during launch. This can be done by an individual, company, organization, or others. In essence, the recipient must meet a certain condition.

And since XML is one of the best performing altcoins, there are many companies distributing free XML tokens. This is in a bid to maintain its circulation and increase its visibility in the market. Most users receive Airdrops after completing a task on social media platforms.

There are websites such as AirdropAlert, which keep you up-to-date with available Airdrops campaigns. Websites such as Earncrypto allow you to win free XML tokens through playing games, taking surveys, and watching videos.

Stellar Lumens (xlm)games

You can also get free XML tokens by playing online and mobile games. Some of the most popular in the market include PopStellar, Idle-empire, and Cryptocollide.

 Stellar Lumens (xlm)features

·       It has a 3-5 seconds transaction speed.

·       100 billion XML tokens were created.

·       20 billion tokens in circulation as of writing.

·       Uses the Stellar Consensus Protocol (SCP).

·       Has an easy to use and clean API.

·       Features a decentralized distributed database.

·       Has an annual 1% inflation.

How to buy Stellar Lumens (xlm) cryptocurrency with USD

If you are looking to investing in Stellar Lumens, there are several ways to go about it. keep in mind you need at least 0.5 XML deposit to run a new account. So, here are seven easy ways to buy Stellar Lumens.

Get a wallet

To store your Stellar Lumen, you need a wallet. Luckily, many wallets support XML. Here, you can choose between a cold and hot wallet. A hot wallet is an online wallet while a cold wallet refers to a physical one.

One of the most preferred brand is Ledger. The wallet can hold lumens plus other popular cryptocurrencies such as Bitcoin and Ripple. The best part, the wallet is not prone to hacking unlike the hot variants. 

Besides, it allows you to transact lumens on the go. You can choose between the Nano X and Nano S. Blockchain wallet is a hot wallet that allows you to use it on mobile and web platforms.

Buy your lumens tokens

Stellar lumen trades under the XML symbol. Initially, the digital currency used the STR symbol. As expected, some trading platforms may use the latter, so do research before settling for a trading platform.

Some of the most preferred sites to buy lumens include:

·       eToro

This is arguably the most straightforward platform to buy lumens. Not only is it beginner friendly but also presents you robust user interface. While it allows for swift trading, it is a bit cumbersome to withdraw money. As such, it is an ideal platform for making profit via XML.

·       CEX.io

While eToro is hailed for being beginner friendly, CEX is touted for its fast transactions. The London-based company supports deposits via wire transfer, debit, and credit card.

·       Coinbase

If you want to buy lumen via a brokerage, Coinbase is the ideal option for you. Trading via a brokerage guarantees fast and convenient transaction as opposed to peer to peer trading. You can also use their Coinbase Pro platform for quick transactions.

·       Binance

All the above sites offer secure and convenient lumens transaction. Besides, they offer a host of popular cryptocurrencies. And the best part, you can use some of the most popular fiat currencies.

Withdraw lumens

Once you receive lumens in your exchange account, be sure to withdraw them to your hot or cold wallet. Leaving them on the exchange platform increases chances of theft and hacking. You can use either of the recommended wallets.