There are numerous crypto assets and among those with increasing popularity are Stellar lumens. What are they and should you invest in them?
What is Stellar?
Stellar is a platform that allows users to create, trade, and send different types of cryptocurrency. It uses blockchain technology and aims at bringing together the world’s financial systems.
This decentralized network was started in 2014 and its launch was in 2015 by Jed McCaleb.
Over the years, it has managed to increasingly grow and build partners with platforms such as IBM, KlickEx, and Flutterwave among others.
What Are Stellar Lumens?
Stellar Lumens (XLM) are the digital currency provided by Stellar as a platform. They are the crypto assets and the foundation of this network. Initially, though, the currency used at the launch was Stellars, but the name later changed to lumens.
Since the initial name stuck, it is not surprising to hear some still talk of Stellars even when there is a move to lumens already.
If you want to pay any transaction fee on the site, you will use lumens. They, therefore, become handy when users are executing trade since they act as the immediate currency.
Interestingly, Stellar has an automatic protocol that helps convert the money users send through the network to the lumens and later to the coin they desire. For instance, Stellar makes it possible for one to make payment in US dollars to a recipient based in Mexico who will receive it in pesos after the platform converts it.
The good thing is, you don’t have to wait for long for the conversion process to be over. In a matter of seconds, everything is done.
How Does It Work?
Stellar works like any other blockchain. It allows peer-peer transactions and secures user information. Additionally, for any transaction on the platform to be valid, there must be a consensus. It achieves this through a unique mechanism, Stellar Consensus Protocol (SCP).
The SCP is also responsible for guaranteeing security, enforcing trust, and decentralizing control of Stellar.
Where to Buy Stellar Lumens
Stellar has huge growth potential. Investors, therefore, can buy its lumens. Wondering where to do this? Well, you can purchase them from the platform. Additionally, you can get them from any of the following crypto exchanges;
Should You Invest in Stellar Lumens?
With the reported growth of Stellar Lumen, investors might want to venture into the platform. However, is it a good idea? Before you make this decision, you can consider the performance history of the lumens and their potential value.
To date, lumens are very promising. There has been a rise in its value and it is steadily growing. Moreover, Stellar lumens have the potential of increasing in their value. Therefore, it is a good platform for a long-term investment.
What Makes Stellar XLM Grow?
Among the things that lead to increased growth and a promising future on the platform include;
- Low transaction costs
- Partnership with big names in the industry. such include tech companies like IBM
- An efficient system; the consensus mechanism which allows a fast and cheap transaction confirmation process
Stellar is a platform worth investing in. Therefore, why not buy Stellar Lumens to be part of world finance?