In the era when cryptocurrencies have taken up the centerstage of the new dawn of the digital economy, there are a plethora of options available to you to invest. However, it is extremely important to be aware of the cryptocurrency that you are planning to invest in and its future implications. It is mainly because of the fact that the world of investment is full of uncertainties and with great rewards come greater risks. In this article, a cryptocurrency named Stellar Lumens is scrutinized to come to a conclusion whether it is a good investment or not.
What is Stellar?
Stellar is an open-source network for currencies and payment where it is possible to create, send and trade digital representations of all forms of money—dollars, pesos, Bitcoin and what not. It was incubated in 2014 and was launched in 2015.
It aims to bring together all of the world's financial systems under a single network. They have designed it in a way that is suitable for the users in developing countries as well. It had added to Stellar’s popularity significantly.
The decentralised network of Stellar is spread across multiple servers like any other platforms that makes use of blockchain technology. It has no single owner, but is owned by the public.
What is unique about Stellar?
It uses blockchain technology to complete its transaction. Being a decentralized network, it handles millions of transactions every day. What makes Stellar unique is its compatibility with the requirements of a common man.
What is Lumens?
Lumens are the native digital currency of Stellar. It requires only a small amount of Lumens to initiate the account and transactions. After that, the platform does not give preference to any one currency.
Being a decentralized network any kind of currency can be used through Stellar. Its primary intention is to make people’s savings more useful and accessible. It has a built in system which converts money sent through Stellar into desired currency.
At first the currency is automatically converted to Lumen and then if the recipient is an India, it is converted to India rupee.
How does Stellar work?
To cover its basic intention to track ownership, it uses ledger where a network of independent computers cross check each other’s works. Its lack of central authority makes it impossible to tweak the numbers and transactions in Stellar.
Its efficient algorithm called Stellar Consensus Protocol (SCP) overlooks the process and ensures that everything is in sync. The Stellar ledgers store two important pieces of data for each account. First, how much they own and secondly, what do they plan with this money.
It is the Nodes that check the ledger and run the core Stellar software. The agreement between the nodes when you initiate a transaction completes it. Hence, Stellar networks are verified by multiple nodes. Their well-documented functions help you proceed with your transactions in ways that you prefer. You are even capable of issuing assets.
Why is Stellar a good Investment?
Growth of Stellar has been phenomenal in 2021. It has returned 424.4 percentage year to date. Analysts who have studied the growth of stellar for a long period of time do not see it slowing down in the near future.
Its current affordable prices and potential to improve makes it ideal as an investment destination. Another reason why Stellar is a good choice for investing is because of its unique upgrades that augments the flexibility of Stellar core and customer based applications.
Furthermore if Stellar encourages further decentralized applications in its platform it will result in massive increase in the value of Stellar which will make it further profitable for the people who invested in it.
Another reason why it is preferred amongst prospective investors is because of its simple and low-cost transactions and through it, the accessibility to the global economy.
Things to Note about Stellar
Before you move on to invest large amounts of money in Stellar, remember that there are lots of risks that are associated with such investments. While it provides great incentive and returns also expect that there will be potential risks although lumens has been faring well till date.
Be sure to analyze your financial stability before making any investment moves. Stay up-to-date with the information regarding Stellar by also having sound information about current market and trends.
Where to Buy Stellar Lumens?
Apart from purchasing Lumens directly from the Stellar platform the following are a few places from where you can purchase Lumens
- GMO Coin
Can I buy stellar on Coinbase?
Yes, you can buy, sell, convert, send, receive, or store XLM on Coinbase.
Is Stellar energy efficient?
Yes, Stellar is more energy efficient than Bitcoin based systems.
Who is the founder of Stellar?
Jed McCaleb is an American programmer and entrepreneur who founded Stellar in 2014.