Cryptocurrency remains attractive for investing in decentralized and independent projects. It allows companies to simultaneously increase their capital and keep it in a safe financial field. However, the Bitcoin cryptocurrency is no longer of particular interest among miners – the reason for this is greater prevalence and stiffer competition. Therefore, investors are increasingly preferring newer platforms with good development opportunities, such as Stellar cryptocurrency, a Ripple follower.
Stellar Lumens (XLM) is a promising project among cryptocurrencies, and investors are looking for more and more new options for their investments. Therefore, today there is an increased interest in it. And it is also caused by the fact that Stellar Coin is a direct competitor of Ripple (XRP), the latter of which became an example for its development. To assess the prospects of cryptocurrency and competitiveness, it is necessary to analyze the main advantages over other projects.
Contents
Table of content
- Stellar cryptocurrency: basics and purpose
- Prospects for the development of Stellar cryptocurrency and investing in it
- Where to buy Stellar cryptocurrency tokens (XLM) and register a wallet
- Stellar cryptocurrency growth prospects and return on investment
Stellar Cryptocurrency: Basics and Purpose
Despite the strengthened position of the Ripple cryptocurrency, the Stellar Lumens project has no financial regulator. In comparison, Ripple’s owners, through intermediary companies and directly, have appropriated a total of 65% of all tokens issued so far. This share is enough to drive the cryptocurrency’s exchange rate policy against others.
The Stellar platform allows for direct and fast exchange transactions of any fiat currency
In fact, thanks to Stellar Lumens, a user manages the exchanger by himself, without using a third-party service. And this is not surprising. The founder and developer of Stellar – Jed McCaleb – previously worked for the benefit of the Ripple platform. After he announced plans to develop his own cryptocurrency, which is based on the same principles of work. The technological similarity with Ripple is evident in such aspects:
- Identical commissions on many transactions;
- Similar principle of ICO organization;
- The mandatory presence of 20 units for the full functioning of the wallet.
At the moment, the mining of Stellar Lumens tokens (XLM) is not available and it is not possible to use the project for mining. You can buy coins on exchanges. To attract a larger audience, the developer announced the transition to the Stellar Lumens platform for a number of users of the Ethereum project. As explained by the developers themselves, the difficulty lies in the low popularity of the Solidity language, which is required for Ether smart contracts, and the search for programmers for it. The Stellar platform works in C++ and a full-fledged migration of users with Ether wallets is not feasible in this case.
Prospects for the development of Stellar cryptocurrency and investing in it
The difference between Stellar and Ripple cryptocurrencies is characterized by another indicator – the source of investment. Ripple enters into partnerships with large banks. Its capitalization and rate depend on the banking structures themselves, which are investors and sponsors of the cryptocurrency. They also act as intermediaries in exchange transactions on the Ripple platform. It is likely that partnership contracts are determined by the creators, who own more than half of all tokens.
When launching Stellar, the developers took into account the errors identified in Ripple. Among the key solutions is a fully decentralized cryptocurrency network. This is more attractive to private investors and commercial holdings. The system serves them as a convenient service for exchanging fiat currencies, and in return receives new investments and ideas from developers. Among Stellar’s major partners is IBM, the world’s dominant registrar of patents for new developments.
Today Stellar is among the top 30 cryptocurrencies in terms of capitalization. And this result was achieved with no possibility of mining tokens with the help of crypto farms. In the near future, Stellar can become a universal platform for many users and miners who practice frequent exchange of cryptocurrency for fiat money. It can also become a convenient platform for investors and large holdings:
- The presence of a Stellar wallet will allow you to quickly and easily conduct any exchange operations for further trading on exchanges and project realization.
- Decentralized platform minimizes the risks of a collapse of the exchange rate, if there is an economic or political high-profile event in the world. Thanks to this, Stellar cryptocurrency will remain attractive to the investor regardless of what happens.
Where to buy Stellar Cryptocurrency Tokens (XLM) and Register a Wallet
Stellar investors prefer the versatile and popular Binance exchange. It is practical both for purchasing XLM cryptocurrency and for conducting exchange transactions.
There are many wallets available for storing XLM. The most popular are online wallets (you can create and register a new Stellar wallet here). Once registration is complete, you will have access to an electronic key code, with which you can always temporarily get remote access to the wallet and management of Stellar cryptocurrency from any computer.
Stellar Cryptocurrency Growth Prospects and Return on Investment
The project is still young and it is difficult to judge about a long-term perspective. But current practice shows that Stellar will be a useful platform for many purposes:
- Universal exchanger. Miners, especially large investors who purchase generating capacities and data centers for rent, organize crypto farms of several platforms at once. Stellar cryptocurrency will serve as a fast token exchange service here as well.
- Stability. A decentralized project is independent of sudden changes in specific currencies and the global situation. This will allow investing in Stellar regardless of the problem.
- Growth. The current indicators of Stellar (XLM) cryptocurrency and capitalization show that the platform is in demand and will grow in the future.
At the end of October 2023, the Stellar (XLM) cryptocurrency exchange rate was $0.12 per token (according to Coinmarketcap). Investors who saw in Stellar a successful project for investment are skeptical of the experts’ conclusions and expect a higher rate.
If we compare the prospects of Stellar with the Ripple, it is too early to draw conclusions. Ripple is a well-established platform that has been around for a long time and has strong ties with major banks. Despite the influx of large investments from commercial businesses, they can’t match the investments of major banks. It is worth remembering that in addition to the investments themselves, banks determine the future of Ripple and its exchange rate by their own activities.
Stellar is deprived of such opportunities, but investors do not care. According to the feedback of partners, they aren’t concerned about how the cryptocurrency behaves in relation to other platforms. The main thing is that it is self-sufficient, independent and profitable.
Overall, the outlook for the Stellar Lumens project appears to be positive and transparent. At the same time, the development has not stopped and the platform is constantly evolving. This is characteristic only for projects with profitable investments.