Stellar platform overview: buying and selling coins, the actual use
Establishment of the platform
Stellar was distributed as a completely decentralized trading platform. Its integral unit or so-called, token was termed Stellar Lumens or shortly XLM. The whole system is intended to support currencies of any type. It also has an integrated decentralized exchange. Any types of currency and capital assets are trading through this stock.
Now let’s consider Stellar more detailed. Independent peer nodes are gathered into a huge network. All the network accounts are merged into the ledge. Each nod keeps the database copy of the network account balance. For all the data to be actually all the nodes synchronize with each other every 2 or 4 seconds. The synchronization mechanism was called a consensus. The success formula of the XLM system consists in its operation of its blockchain. The platform introduces the lowest fees for the fastest cryptocurrencies transactions.
In 2014 a founding member of the Ripple Company decided to establish the Stellar system. It was a kind of filiation. The Ripple and the Stellar are now the main competitors.
In 2017 the world IT giant IBM Company suggested cooperation to the Stellar. Since that the Stellar turned into the fastest-growing ICO platform.
Stellar can be considered as a common infrastructure for money. A non-commercial organization supports the Stellar platform. It increases the compatibility between currencies and different financial systems. Thus, Stellar’s mission is to help serving unity in the World.
Stellar represents a simple technology. It allows conveying money between people, companies, and financial institutes. This means that separate individuals get access to financial operations. Bank expenses are reduced, and business profit is increased. Anyone can help to improve the financial system in the World. Each of you can be a member of this community. It would be a perfect way to recover the world’s financial mechanisms. Moreover, people can use Stellar in their major financial operations.
Where to buy Stellar Lumens?
Lumens has not yet received such widespread distribution as bitcoin or Ethereum. So it will not be possible to buy it using an online exchanger yet. Yet any popular crypto stocks work with Lumens. This also applies to such financial giants as Binance and OKEx.
Specifically, you can make a deposit account or fundraising on a Stellar blockchain. The Stellar Wallet can be downloaded at the company’s official website. After setting up the user launches a program and chooses an option “create a new account”. After entering the password, it is necessary to create an encrypted key. And finally, you select “show secret key” to see, to copy, or to save it.
Initially, the Stripe Company supported the Stellar project by investing $ 3 million. Stripe was interested in developing the program. The XLM token was the only cryptocurrency not preceded by an ICO conducting. Based on this network the smart contrasts can be launched. Exchange transactions are also to be made. Moreover, you can create decentralized applications and conduct ICOs. So, Stellar becomes a competitor not only to Ripple but also to Ethereum.
The acronym STR was used instead of XLM by the Poloniex platform. It is rather easy to deal with Lumens, just choosing the platform where it is sold. The first step is to deposit the required cryptocurrency or traditional money. Secondly, it is necessary to create an order in the buy order book and wait when someone to sell Lumens. XLM has a built-in decentralized exchange stock. It can be used for trading any currencies and assets. About 50% of the Stellar cryptocurrency trading takes place on the Binance exchange. Upbit, Poloniex, Kraken, and many other cryptocurrency stocks are also applied.
The Lumen share capital is about $ 5 billion. It takes the 8th place in the world in this indicator between other cryptocurrencies. One coin cost between $0,26 и $0,44 in 2018. Later it achieved $1. Analysts believe in Stellar's growth by 2021. Lumen is needed for internal network payments.
As many analytics note, the Stellar coins go directly to people. It is aimed at countries with no banks, only with telephones and the Internet. They will be able to easily connect through Stellar to a bank. The borders are not a problem anymore. Ripple Labs and their chief, David Schwartz, disputed these findings.
- They want to compete with two things. Firstly is to simplify the code language. Secondly is to have a lower launch cost than Ethereum.
- Uninterrupted operations are achieved.
- The Stellar Wallet can be downloaded on the company's website.
- Although Lumens cannot be held in your hand, they are very important to the platform. They contribute to the ability to move money around the world in a fast and safe way. As well as an exchange between different currencies is simply carried out.
Where to store XLM?
A network is a storage place for tokens. To get access to them you need a unique key. Yet, a dedicated client is required to receive and transfer coins. Simple operations can be done using Stellar's client.
The platform's website also provides a list of Lumens-enabled cryptocurrency wallets. There are 14 options and you can choose one of three types of client:
- web wallet with browser access;
- desktop – software for the PC;
- mobile – an application for smartphones and tablets.
For the most protection, it is best to choose applications with cold key storage.
Cryptocurrency is currently introduced as a legal exchange in only a few countries. The USA, Brazil, and Japan are among them.
The competitiveness of the project specifies its future perspectives. There are positive and negative predictions as well.
Making transfers in any currency cheaply and quickly is a very popular service. Here XLM cryptocurrency is out of the competition. The platform is actively developing. The team is introducing new technologies and working to drop deficiencies. One of the main advantages is the high transaction processing speed. The money is credited to the beneficiary's account in 5 seconds after the payment is created. Low energy consumption is also an attractive factor. And finally – easy access. Lumens can be used for blockchain transactions in countries with banned virtual assets. Unfortunately, there are also some disadvantages. For example, imperfect security system, low profitability of node maintenance. The annual inflation rate is 1%. Decentralized applications work with limited options.
The Stellar decentralized trading platform began operating in 2018. So cryptocurrency is easily exchanged for another digital asset. The Stellar Development Foundation's list of partners is growing all the time. The Shariyah Review Bureau recognized Stellar protocol is in line with Islamic principles.
Stellar’s achievements are quite serious. But Ripple is still ahead of its fork in the technology race. Bitcoin, Ethereum, and Dash networks are more widespread.
Stellar's low popularity can be caused by several factors. First is the weak marketing policy. The second reason is the failure of an official wallet. Finally, an ill-conceived security system is also an important challenge.