Stellar cryptocurrency (XLM) Originally, the token was named Stellar, however in 2015 the organization determined to rebrand, as a consequence of which the coin was renamed Lumens (XLM).
When sending a transaction, the user must pay a flat fee of 0.00001 XLM. In addition, only a user whose balance contains the minimum XLM tokens set by the network can be a member of the network. This ensures that all accounts intend to use the network and protects it from the creation of empty spam accounts (wallets).
Stellar: Advantages and Disadvantages
Stellar was created as a powerful tool to make cross-border payments available worldwide. By combining banking instruments taken from Ripple and its own decentralized protocol, Stellar has undeniable advantages:
- Liquidity – due to “support” you may change any assets externally the requirement for an introductory change. In addition, exchanges are made through a built-in decentralized exchange, so transactions are executed almost instantly, unlike centralized platforms (like Binance, Bitfinex).
- Fast – Unlike Bitcoin, where transactions are sent to a shared pool before they are approved by the nodes, in Stellar the transaction is sent directly to the node for verification. The entire process from creating a payment to receiving it by the sender takes from two to five seconds.
- Energy Efficiency – By using the proprietary Stellar Consensus Protocol instead of the traditional Proof-of-Work, the transaction verification process is much more energy-efficient than Bitcoin mining.
- Convenience – XLM will be helpful also in lands where cryptocurrencies are banned or avoided. The sender can send the transaction in cryptocurrency, and the recipient can cash out in any available currency.
But Stellar’s disadvantages are no less than advantages:
- An ill-conceived system of protection against attacks – the security system of Stellar is far from ideal, since in the event of suspicious activity of one of the nodes and an attempt to carry out a “double spending” attack, the network is simply “frozen”.
- Inflation Exposure – Stellar’s annual inflation rate is 1%.
What are cryptocurrency exchanges for?
Analyzing the activities of a cryptocurrency exchange, two areas can be distinguished – trading and exchange to exchange XML to BTC. For instance, you need to make cryptocurrencies at a positive charge, and changes are simply ideal for this. Any users also save their “hard-earned” means on such devices, accepting them as a sort of container. Nevertheless, hard-core specialists do not recommend making this, for the changes, although infrequently, move to the scam. The most essential purpose of the exchange is to trade money sets, which makes great benefits to merchants.
To get a profit, you don’t have to be an Ass in cryptocurrency exchange platforms. A chance may additionally be done within thought, while numerous who originally bought simply a few of hundred bucks have previously been capable to “boost” their initial million. To understand that you are only a step away from a big profit, you just need to observe how quickly the rate of cryptocurrencies is changing online.
Due to the great level of evaporation, cryptocurrency may be applied as a dangerous device, which will enable you to make the highest value. The system is related to selling that takes a position on current money transfers. In common, online profits within cryptocurrency may be significant. For example, stocks go up 30% on average over a year, and this income is considered huge. However, for comparison, you can consider the well-known bitcoin, which has risen in price by more than 5000%, and this is only in 2013.