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What Is Stellar and How to Buy XLM Coins?

2023-11-23 10:09:38
What Is Stellar Lumens (XLM)

In our commitment to continually broaden our offerings, we are introducing a new project addition: Stellar Lumens, a decentralized cryptocurrency and open-source blockchain platform designed for efficient, low-cost cross-border payments and the creation of digital assets. 

This article provides you with a comprehensive overview of the Stellar Lumens blockchain, its token (XLM), tokenomics, statistics, and its features. We will conclude the article by providing precise steps on how to buy or trade XLM coins.

What Is Stellar Lumens?

Stellar Lumens, often simply referred to as Stellar, is more than just a blockchain network; it's a robust ecosystem fueled by a mission-driven foundation. At its core, Stellar is a public, open-source blockchain designed for fast payments and extremely low-cost transactions. What sets Stellar apart is its Stellar Consensus Protocol (SCP), a proof-of-agreement mechanism that enhances speed, cost-efficiency, and energy sustainability. This unique design positions Stellar as a key player in shaping a new era of decentralized finance.

Financial interoperability is a critical issue in decentralized finance, and Stellar addresses this challenge. Stellar Lumens allows the seamless interoperation of diverse digital financial systems and currencies on a single platform. Unlike many other blockchains, Stellar achieves this through its SCP consensus mechanism, enabling the creation and issuance of digital assets for fast and low-cost transactions worldwide. This interoperability transforms the blockchain network into a bridge, connecting various financial systems and fostering global financial inclusivity.

Stellar Lumens enables users to easily create and issue digital assets, including tokens tied to real-world currencies or assets. This flexibility extends to various use cases, from representing national currencies to tokenizing assets like real estate or time-based services. The decentralized exchange on the Stellar network allows direct trading between users, eliminating the need for intermediaries and custodians.

Applications and Global Impact demonstrate Stellar's versatility, from facilitating cross-border payments to tokenizing real-world assets. The network provides a foundation for scalable, 24/7/365 settlement, making it ideal for applications like remittances, payroll, and treasury balance management. Stellar's on/off ramps simplify the integration of traditional payment methods, fostering global connectivity. Additionally, its ability to tokenize various assets, including central bank digital currencies (CBDCs) and securities, demonstrates its versatility.

In conclusion, the Stellar Lumens stands out as a revolutionary force in the realm of decentralized finance. Its unique features, including the SCP consensus mechanism and decentralized exchange, address critical challenges in the financial world. From enabling cross-border payments to providing a platform for asset tokenization, Stellar's innovation is making it a preferred choice for a diverse range of users and global enterprises.

What Is Stellar Lumens (XLM) Coin?

In the dynamic ecosystem of the Stellar Lumens blockchain, Lumens (XLM) plays a pivotal role as the native cryptocurrency. While the Stellar network was originally designed to accommodate digital representations of any currency, XLM were introduced to serve a unique purpose within the network's framework.

XLM are not just a cryptocurrency; they are an integral element designed to maintain the efficiency and integrity of the Stellar network. Every account on the Stellar network is required to hold a small number of XLM at all times. This strategic design addresses the inherent risk of the network being susceptible to spam, nonsensical data, or misuse as an arbitrary database system. The minimum balance required per account is 1 XLM, and there's a minimal per-transaction fee of 0.00001 XLM. 

XLM are indispensable to the Stellar network, serving as the designated cryptocurrency for fulfilling network requirements. Unlike other approaches that could have relied on national currencies, XLM was chosen to maintain neutrality and independence from economic and political influences. This choice aligns with Stellar's vision of creating a digital-first asset that embraces the openness of the internet.

XLM Tokenomics

Contrary to the tokens of other blockchains, XLM are not mined or awarded over time by the protocol. Instead, 100 billion XLM were created at the inception of the Stellar network. Initially, the supply increased by 1% annually for the first five years, as per the network's design. However, this inflation mechanism was discontinued by a community vote in October 2019. As of November 2023, the overall XLM supply is capped at approximately 50 billion, with no additional XLM set to be created.

Approximately 20 billion XLM are circulating in the open market, while the Stellar Development Foundation retains around 30 billion for the purpose of developing and promoting the growth of the Stellar network. This strategic allocation positions XLM as a key driver for the continued innovation of the Stellar Lumens, making them a crucial element in the broader landscape of digital finance.

XLM Statistics

Token Supply: 50,000,000 XLM

Market Capitalization: $3.37 Billion

Trading Price: $0.12

Cryptocurrency Rank: #24

*Data source: The table above is real-time data from Coinmarketcap as of November 14, 2023

Features of Stellar Lumens

Stellar Lumens provides a range of features, including:

  1. Issue Your Own Assets: Stellar allows users to create redeemable and tradable tokens, representing various forms of value. These tokens can be pegged to currencies like digital dollars, pesos, or euros, making cross-border payments seamless. Users can also tokenize real-world assets such as real estate or gold.
  2. Send and Trade Tokens: Stellar network enables the direct exchange of all tokens without the need for intermediaries or custodians. Users can submit bids or asks to the network, and trades automatically resolve every few seconds, facilitating a seamless and efficient decentralized exchange experience.
  3. Seamless Currency Conversion in a Single Transaction: Stellar enables users to send one currency on the network and ensures that the recipient receives another, all in a single transaction.
  4. On/Off Ramps: Stellar offers on/off ramps, simplifying the integration of cash-based payments. This feature provides a streamlined method for customers to move cash onto applications or connect via traditional payment methods. 
  5. Asset Tokenization: The Stellar network facilitates the easy creation, issuance, and management of digital representations of fiat and Real World Assets (RWAs). Users can tokenize values from Central Bank Digital Currencies (CBDCs), stablecoins, securities, and more. 
  6. Transactions at Scale: With the capability to process 1000 transactions per second, the Stellar network can handle volumes comparable to SWIFT. 
  7. Energy-Efficient Design: Research indicates that the Stellar network's environmental footprint is equivalent to the greenhouse gas emissions from the electricity use of 33.7 US homes for one year. This shows Stellar Lumens commitment to an energy-efficient and sustainable blockchain design.

Where to Buy XLM Tokens?

CoinEx is a global cryptocurrency exchange, trusted by 5+ millions of users worldwide with 100% reserve. With its 700+ tokens supported, including XLM, users can now trade easily and seamlessly. To purchase XLM tokens on CoinEx, follow the steps below.

  1. Create an Account: Start by signing up for a CoinEx account.
  2. Deposit Funds: After logging in, deposit funds into your CoinEx account using any supported cryptocurrencies or deposit methods available on the exchange. Having funds in your account enables you to execute trades seamlessly.
  3. Navigate to XLM Trading Page: Once your account is funded, go to the dedicated XLM trading page on CoinEx. You can find a search box and enter the term XLM to swiftly locate the trading pair associated with XLM tokens.
  4. Choose a Trading Pair: Select the desired trading pair that matches XLM with another cryptocurrency. For instance, you may choose XLM/USDT if you wish to trade USDT for XLM.
  5. Specify the Purchase Amount: The next step is to specify the number of XLM you wish to acquire. You have the option to either purchase them at the current market price or set a limit for your desired buying price on the trading page.
  6. Execute the Trade: With the specified amount, proceed to execute the trade. Confirm the details, and if you are satisfied, submit the order. 

By following these comprehensive steps, you can easily trade XLM tokens on CoinEx, taking advantage of the available trading pairs.

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