Cryptocurrencies have been a trend for recent years. They can be used not only for payments but also as an investment. Many coins you see are bump and dump, but how to choose the most reliable? Actually, it can be a tough choice, especially if you don’t know how crypto works. At first, we need to say a few words about cryptocurrencies in general.
Have you ever traveled abroad? One of the first things you probably mentioned was that people in different countries use different payment methods, so you had to exchange your money for the local currency. You need dollars to buy coffee in the United States of America, and if you want to enjoy your drink in Europe, you should prepare a few euros.
Investing in cryptocurrency is something similar to exchanging money abroad. Bitcoin, Litecoin, and Stellar are several examples of ‘foreign currencies’. They work like digital money on the web.
Today, we’ll talk about Stellar, which is one of the most promising cryptocurrencies nowadays.
What is Stellar?
Launched in 2014, Stellar is a decentralized digital platform aimed to reduce the gap between banks, individuals, and payment systems. The project was started as an easy and cheap payment service where people from all over the world can make transactions without waiting days or paying expensive fees. The Stellar platform has its native digital currency called Stellar Lumens or XLM.
How does Stellar work?
Similar to other cryptocurrencies, Stellar Lumens are based on blockchain technology. The Stellar network consists of thousands of decentralized servers that support a shared ledger where all transactions are processed. The ledger records the funds as credit released by particular gateways. This credit is added to an account on the network which here acts as the multifunctional digital wallet. The Stellar users can send their assets to other users on the network through various currencies. No matter what currency do you use for payments, as you can immediately exchange your assets at the best possible rate.
5 reasons why investing in Stellar is a good idea
Stellar Lumens is included in the list of the best ten cryptocurrencies by market capitalization. Moreover, if we compare the Stellar coins to the growth rate at its very beginning, XLM has demonstrated an impressive growth recently. If it isn’t enough to convince you, we prepared five reasons to explain why Stellar can be a good option to invest.
1. IBM partnership
This reason alone makes Stellar one of the top cryptocurrencies in the digital world. IBM and Stellar are collaborating to solve a very important problem. The IBM-Stellar payment solution has changed the way how traditional and currently, non-traditional institutions conduct transactions. Now it is possible to send money to anyone throughout the world with as little fee as possible.
According to their blog post, IBM selected Stellar because of its non-profit status, its high speed, and its transparency. The fact that the platform supports various asset types also played a huge role.
Stellar also has a partnership with KlickEx.
Similar to other cryptocurrencies, Stellar uses blockchain, but that’s not all. The coin is similar to Bitcoin as it is released via blockchain transfers, but you don’t need to mine it. XLM is also similar to Ethereum as it allows creating dApps. However, there is one important difference between Stellar and other coins — a transaction fee. It is incredibly low when it comes to Stellar cryptocurrency.
The platform is quite straightforward, which makes it super user-friendly, especially for new customers. And we need to mention the speed of transactions. The network works really effectively to maintain top-notch speed. It operates more than 1000 operations every second, meaning that transactions are very fast.
This is one of the biggest advantages that Stellar has over other crypto projects. ICO regulation can be a huge problem in the crypto world. Every day we see governments issue more and more regulations to protect consumers. For example, crypto projects must comply with standards such as anti-money laundering policy and offer a high level of security. Some authorities have gone so far as to completely forbid the ICOs while some try to prevent ICO and blockchain-related misconduct.
However, you don’t need to worry about ICO regulations if you use Stellar. This company is already compliant with the main ICO rules and is working to help others with a regulation-compliant token offering.
4. The transactions are extremely cheap
What makes Stellar so special? Transactions! They are fast and cheap. Each transaction on the Stellar platform costs 0.00001 XLM, which means that it is almost free of charge. And if we compare it to traditional payment methods, the offer sees even more profitable.
Last but not least, all transactions are super-fast. The average time is 2-5 seconds, with about a thousand operations occurring every second.
5. Stellar allows easy transfer of money
Stellar can replace many financial instruments as it can convert and transfer all assets at ease. You can make payments and send your funds to anyone in the world at a super low cost and instantly, in any currency. The platform is working to make transnational transactions accessible for people, and it appears that they do this very well.
Stellar solves numerous problems by representing various types of currencies and assets, making transactions easy across institutions and currencies, and offering a highly scalable platform.
With the IBM partnership and the fast transactions, Stellar has achieved quite a lot in recent years, and XLM seems to have a bright future ahead of it.