This time crypto is emerging the best solution for centralized problems and while you talk about banking transactions than how can you forget to Stellar Lumens (XLM)?
Stellar Lumens is founded by the same man who was the brain behind Ripple (XRP), Mr. Jed Mccleb in the year 2014.
Currently Stellar becomes the most popular project under blockchain based decentralized cryptocurrencies.
Stellar (XLM) is a strong Competitor of third largest cryptocurrency Ripple (XRP), check our extensive guide on Ripple.
This guide is to help you know.
- What is Stellar Lumens (XLM)
- How Stellar Lumens works
- The history behind Stellar Lumens
- Stellar Lumens Price prediction
- How this is different than others.
- How to Buy Stellar Lumens?
In the end, we will discuss is it worth to invest in Stellar Lumens?
So do not miss this guide, if you are crypto investors or looking to add Crypto investment portfolio.
Let’s first start with what is Stellar Lumens?
Table of Contents
What is Stellar Lumens?
Stellar Lumens is a Blockchain based decentralized cryptocurrency created in the year 2014.
The main objective behind Stellar Lumens is to decentralized cross border and retail payments using blockchain technology.
It is having the same mechanism as Ripple but it has the vision to focus not only financial institutions but to end users as well.
Stellar Lumens got breakthrough in the year 2014 when Strip an Irish based payment processing company offered 3 million dollars to start the project.
The brain behind Stellar Lumens is Jed McCaleb and he was the same man behind Ripple and that is what people arguing him to copy the same codes of Ripple.
But Reality and actually used protocol for Both Ripple and Stellar are different and Jed McCaleb completely denied the copying of any codes from Ripple (XRP).
How? Will get Idea as you read later in this guide.
As an Idea behind Ripple and Stellar Lumens is the same to solve cross-border payment transactions systems.
Stellar Lumens is a non Profit organization, which does not hold any profit with them, it is purely build to help financial institutions to fasten payment transactions.
But Ripple is controlled by the Ripple Lab which looks bit centralized.
Stellar is a network on which all transaction takes place and Lumens is the token or currency required to make every transaction safe and secure on Stellar Network.
Let me make this simple.
Stellar is the real technology which allows payment transaction to process from one sender to the next receiver.
But Every network required a guarantee of security and prevention from any Spam DDoS attack, which requires a trust network between both parties.
That is possible through Lumens (XLM), yes Lumens is the currency required to pay a transaction fee on Stellar Network.
Every account holder must have to maintain a minimum balance of XLM to create trust among both parties.
Lumens (XLM) also work as Fuel to complete your transactions. Without it, you won’t complete the transaction and it helps to prevent any attack on transacting payment.
How Stellar Lumens Works?
I think almost a bit of process on how Stellar Network works you already understand, now this time I will tell you in detail exactly how this works.
Most of the time, while we talk about cryptocurrency or Blockchain based project the only way to validate any transaction is through Mining.
But here the case with Stellar Lumens is a bit different, it is based on Stellar Consensus protocol. Which provide additional security to Stellar Network.
Stellar is not like Bitcoin or Ethereum which work on Proof of Work, Stellar is having a mechanism of Proof Of Stack.
While stellar was build in the year 2014, only then 100 billions of Lumens (XLM) coins were available in the market.
Where Distribution is happened to work as below.
- 20% Of the coins in two Give Away in 2016 and 2017 distributed to all BTC and XRP holders.
- 25% of the total Lumens given to the partners such as business, government, and nonprofit organizations.
- 50% of the Total Coins will be giving away to all the new Sign up Users who do sign up with Stellar Partners such as Blockchain.
- 5% of Coins are reserved with Stellar.org for their operational expenses.
Hence in such a way nothing is left for mine and every individual coin available to use.
But we all know that security in blockchain network is maintained by Miners and Miners are the only person who validates every transaction to be legit.
So How to validate Stellar Lumens transaction?
Stellar has authorized few nodes throught the globe to use Stellar network to ensure security in the network.
Stellar also require a minimum amount to maintain each account to create trust among the network.
Hence to connect with each node every account holder should maintain minimum 0.5 XML in their account.
Transaction fee to clear any transaction is very low which is currently around 0.00001 XLM.
Stellar is an Open Source network anyone can use this and use this network, you have to care about two fees.
Base Fee – For Every operation in Stellar network the Fee is 0.00001 XLM.
Base Reserve – Every Steller account holder should have a minimum of 0.5 XLM balance to stock.
Note – Here operation is different than Transactions. A single transaction can have multiple operations.
Example – If you transfer Payment from one sender to another recipient you would need two operations.
- The 1st operation is to establish a trust network between both parties.
- 2nd Operation is to send payment.
This will result in 2×0.00001 XLM = 0.00002 XLM in total cost for one payment send transaction.
It has an extremely very low cost per transactions, which can create problems for a company like Western Union and SWIFT who are charging much more as compare to Stellar.
Stellar is not limited to do the transaction for digital assets only but it allows transacting the currency of your choice such as Fiat or digital.
Amazing, that means a bundle to use for any reason is ready.
Now Question coming to your mind is Where this transaction Fee Goes?
Yes, The stellar network is an open ledger which collects all the base Fee and redistributes them in the process of inflation.
In summary, Stellar is a strong technology which is used to replace cross border payment systems.
It solves small retailers or banking financial institute problems to reduce transaction fees and provide quick and instant confirmation on sent payment.
Why People Will Buy Stellar Lumens (XLM)?
From the above point of view, what we know is you can get Lumens for Free if you sign Up with any Trusted partners or as a governing body.
But to run that technology by any company such as financial institutions or individual retail customers they need Lumens (XLM).
No Transaction is on the stellar network is possible without Lumens (XLM).
If you are a developer, who wants to build applications on the stellar application will also need Stellar.
In summary, if in the near future everyone is started using stellar Network will increase demand for the tokens.
The way GiveAway is working with Stellar partners in next 10 years every Stellar Lumens coin will be distributed and nothing will be left for free.
Till January 2018, only 8 Billion Lumens have been given Away. Every year supply of 1% Lumens added to the network
After 10 Years, only Way to get Lumens is by buying from the existing holder of Lumens.
I am sure you got the reason why you should buy Stellar Lumens Coin?
Now the other point, is this really going to make Big hit in the Future?
What is Future of Stellar Lumens?
Well, No one can really predict the future but everyone can give a pathway where the current company is heading for.
Stellar Lumens is widely accepted by South Pacific region where approx 60% of Cross Border payment is done by small retailers using Stellar Network.
Stellar has the capacity to expand its reach where no financial institute exists to provide services.
The Biggest News is with IBM.
Yes IBM is planning to launch new Blockchain based product called Blockchain World Wire based on Stellar powered Blockchain Network.
This is something golden opportunity for every investor to try their hand with Stellar Investment.
According to the sources form Coindesk, IBM is working with Stellar Project since last October 2018.
Which opens big gates for Stellar to expand as much as they can.
Iran has decided to build its CryptoCurrency call PayMon which will be backed on the Stellar Blockchain based technology.
From another source, I found that Stellar Lumens is the First Cryptocurrency to receive Sharia Compliance certification and integrate with Middle Eastern.
Stellar has also another potential to grow as Renewable Energy. Irene Energy is a renewable electricity supplier which uses stellar Blockchain.
Using Secure payment gateway on the stellar network it allows it’s customers and producers to pay for electricity payments.
The team has a very huge plan to get accepted Stellar Lumens in various sectors and its partnership with big brands will give new opportunity to expand.
Strongly the project is a real competitor of Ripple (XRP), but the main focus to target Stellar is not only financial banks but small retailers too.
To get more idea about Stellar vs Ripple checks our detailed guide.
With the introduction of Facebook Libra Cryptocurrency which is trying to solve the same problem as what Stellar (XLM) is focused on may create challenges for Stellar in the future to expand.
Now I can say that you got brilliant ideas about Stellar and how it works.
Is Stellar Lumens Secure Network?
Start from its origin till date no report for security breach has been reported by Stellar users or network holder.
Security of stellar network is improved by the Lumens (XLM). Which is a key component to use the stellar network.
The minimum fee will be paid out with each transaction will ensure that no Denial of Service (DDoS) attack.
Stellar also ask each account holder or node to hold a minimum balance of 0.5 XLM to create trust network in between both parties.
And it’s current integration with IBM, itself says how much secure this technology would be and I don’t need any explanation for that.
Now Let’s talk about price prediction of Stellar Lumens.
Stellar Lumens Price Prediction?
Let we out a few figures from most of the technical analysis what they say about Stellar.
In the Mid of 2017 April, the stellar price was below 1 cent (0.002$)and at the end, it touched to 0.31$ which was amazing.
In the year 2018 January, the price of stellar got the massive boom and it touched to 0.93$ Boom!!
Hence we have seen a massive boom in 2017 the same as we saw with others and suddenly dropped because it was the fortune of all Crypto coins due to central regulations.
While checking the price prediction by technical analysis done for near 2019 and after I found few.
Wallet Investors forecasting price by end of 2019 will remain the same or may drop to 0.0852 USD if you are planning for 1-year investment.
SmartEnum did another technical analysis and they look quite optimistic about different scenarios and they predict the price will be in between 0.17-0.35$.
LongForecast predict price by end of 2019 will be 0.08$ and it is quite optimistic for a long run in 2023 will touch 0.30$.
Theoofy did another technical analysis and they are optimistic that price will touch close to 0.28$ by end of 2019
What I would say is predicting a price is like gambling, sometimes will come true sometimes not.
Afterall Cryptocurrency deals with emotions at a certain point in the year 2017, no one can imagine that Bitcoin can touch to sky close to 20,000 USD but it did.
Sometimes human sentiments make Crypto market hype, so you should be well updated with the latest news and updates and do trade accordingly.
I hope I have answered all about Stellar Lumens queries, this time is to tell you how to buy Stellar Lumens (XLM)?
How to Buy Stellar Lumens?
You can get Stellar Lumens through two ways not through mining but as mentioned below.
- First Through GiveWay by Stellar Partners such as Blockchain, sign up Right Now.
- Second by buying from Exchange on which Stellar is registered.
Here, I am going you through the simple process of buying Stellar from the low transaction fee Exchange Call Binance.
To learn more in detail how to Buy Stellar Lumens check this guide which has explained the same procedure in detail but with another coin like Tron (TRX).
Here we will discuss Binance because it is listed with XLM and offering you to Buy XLM using BTC, ETH or Credit Card Payment.
- First Sign Up Binance Exchange through this Sign-Up Link.
- Binance Won’t require any KYC to have a Basic account which limit is up to 2 BTC trading per day.
- To purchase Stellar Lumens you need to have BTC or ETH, If you already have BTC, ETH you bought from Coinbase or any Exchange Transfer it from CoinBase to Binance.
- If you want to Buy ETH, BTC using a Credit card than Binance is offering the same with 3.5% or 10$ Whatever is the highest fee.
- That means now you have BTC, ETH to trade or buy Stellar Lumens on Binance. I would suggest buying ETH because it has lower transaction fees.
- The process explained here to buy TRX repeat same with ETH exchange and search for XLM and place buy Order for Stellar Lumens.
- Once you bought successfully XLM will be added to your Binance Wallet.
I hope the process to buy Stellar is easy to understand and you can get more idea using our suggested guide.
Before closing this guide, let me give my view on what I think about Stellar Lumens.
Conclusion on Stellar Lumens
I am not a financial advisor but what I can give you the latest trend in the technology industry and which looks bright future ahead.
Yes, of course, Stellar Lumens is the best solution to replace cross border payments existing service provider like SWIFT, Western union companies.
It is also a great competitor of Ripple (XRP), which is already been accepted by Banks but the reach to Stellar lumens is not limited to banks but this is too small retailers as well.
The existing announcement by IBM to build a blockchain based world wire on stellar blockchain network itself says how this is going to be in future.
The best part with stellar is decentralized and non profit organization and the only aim is to solve the problem which looks optimistic to us.
I won’t say anything about future price prediction but what i can tell is Crypto is uncertain any moment it can touch new sky while on other moment can touch the ground.
So be updated with the latest news and diversify your investment and yes i am going to invest in Stellar becuase this looks good for me and somewhere in near future, this can give me a good return.
Here are few another top 10 best suggestions to invest in Crypto portfolio if you like the most.
Tell me what do you think about Stellar Lumens in the Comment box and keep reading keep sharing this with all Crypto Investors.