Stellar Lumens (XLM) Cryptocurrency: Is It A Buy, Hold Or Sell Right Now? 

Here’s everything to know about the Stellar network and XLM before investing in it.

Last Updated May 23rd 2022
4 Min Read

While investing in the crypto market, it doesn’t take long before you come across Stellar Lumens. This unique cryptocurrency features a rocket ship as its logo and a catchy name that makes one envision futuristic space travel. Aside from their savvy marketing, Stellar brings a lot to the cryptocurrency sector.

Stellar is a distributed payment infrastructure that features an open-source code. The platform entered the market with the goal to facilitate a more streamlined approach to international money transfers, especially remittance payments. Today, the Stellar ecosystem is known for its affordable, fast, and reliable transfer capabilities. Specifically, the platform facilitates frictionless cross-border transactions. 

If you are considering buying or selling XLM, here’s everything you need to know about the network and its future roadmap to make an informed decision. 

A Market-Beating Cryptocurrency — But For How Much Longer?

Learn more about XLM, one of the best-performing cryptocurrencies in the market.

Stellar is a decentralized network on which users can create, send and trade several types of cryptocurrency. It was created in 2014 and launched in 2015 to bring the world’s financial systems together under one network.

Like other decentralized platforms and exchanges that use blockchain technology, Stellar is spread across multiple servers. This means that the activity carried out on Stellar is not monitored by a singular source.

Unlike its main competitor in the market, Ripple, Stellar focuses on the needs of the individual rather than large financial institutions. In this manner, the platform is able to seamlessly connect individuals, institutions, and payment systems throughout the world. Today, the platform consists of an international consortium of individuals and entities located in every region.

The Stellar blockchain allows anyone to issue new crypto assets in the network and exchange them for other assets via built-in asset exchange features. Tokens on Stellar are issued and redeemed by anchors, trusted entities that dispense digital credits on the Stellar network in exchange for asset deposits with the trusted entity. 

Anchors enable the exchange of real-world assets on Stellar by leveraging a distributed platform that maintains an order book for every asset pair. The Stellar network supports the issuance of various assets, including stocks, currencies, crypto assets, and more. 

The platform has been designed to match the needs of global consumers and continues to outperform Bitcoin in many ways. 

Don't Miss: 9 Reasons Why You Should Invest in Stellar (XLM) Today

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

The Road Ahead For Stellar (XLM)

A few aspects of Stellar’s work are currently making headlines and keeping watchful eyes on the lookout.

XLM Accessibility 

XLM is easily accessible and can be found on the top cryptocurrency exchanges and brokerages worldwide. Trading on Binance, Huobi Global, and Coinbase Pro, among a host of top names, put XLM in the hands of millions of users. This brings more liquidity to the cryptocurrency and results positively in the valuation of the asset. 

Moreover, XLM has a maximum supply subjected to scarcity in the future. It scales relatively faster than other blockchains due to its Stellar Consensus Protocol (SCP), which can process 1,000 to 5,000 transactions per second. 

Network Infrastructure and Future Roadmap 

Unlike most cryptocurrencies, Stellar Lumens does not require nodes to mine blocks of transactions. Network participants do not receive awards for their efforts to validate the blockchain. This approach is in stark contrast to cryptocurrencies such as Bitcoin. Notably, the firm decided it was better to issue 100 billion XLM during the platform’s launch. From there, the supply of Stellar would see an increase of 1% every year for around six years.

Developers altered this approach in October 2019. They reduced the amount of XLM to 50 billion. This strategy left around 20 billion XLM in the market with another 30 billion retained by the firm. These retained funds are to go towards the expansion of the XLM ecosystem. Tasks such as development and marketing are the primary use of the funds per Stellar’s plan. 

Smart Contract Capabilities 

The stellar blockchain allows for the building of assets. This means investors can launch tokens and even build decentralized exchanges on this blockchain.

Since XLM is the native token on the stellar blockchain, it means there will always be value for it. The decentralized exchange, in particular, could be one of the critical factors that will drive the value of Stellar in the long run.

While the platform accepts payments in any currency, XLM is one of the anchor currencies on this network. This means that once people are on-ramp via fiat, XLM becomes the best option for moving between assets at a minimal cost. 

Is Stellar Lumens (XLM) A Buy, Hold Or Sell?

With strong fundamentals in place, XLM is a must-have cryptocurrency in an investment portfolio.

Given the sheer level of expertise Stellar possess and their unique approach to the market, it’s no surprise that XLM is one of the most popular cryptocurrencies in the world today. You can expect this popularity to rise as more people enter the blockchain sector. Experts believe XLM to be a good long-term investment in a portfolio for various reasons.  

Check Out: Stellar (XLM) Price Prediction

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

A Cryptocurrency Under Close Watch — Now And Always

Based on its price movements, XLM is headed towards a bright future, making now a good time to buy XLM.

Many individuals are becoming interested in Stellar Lumens. Early investors of XLM have seen massive returns, and it seems like it will only grow in popularity. It is due to many factors, including its availability on major exchanges and the speed of transactions.

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

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