Stellar Lumens is one of the most popular cryptocurrencies on the Lumen blockchain. The currency is developed by the non-profit organization Non-profit Stellar Development Foundation. The non-profitable aim behind introducing the currency was to create a borderless network for unbanked users. It is an open-source network that allows customers to trade, create and send digital currencies.
Now when you are a beginner in training digital currencies, research well which one is best suited according to your financial conditions and experience. Know about the Stellar Lumens currency and then determine whether it’s fit for early investment. Click here to learn more about how to invest in Stellar Lumens.
What are Stellar Lumens?
The cryptocurrency, Stellar Lumens, was established in 2014 as an open-source network to provide seamless opportunities for trading currencies. The foundation aimed to make the network accessible to all. Generally, people who have no bank accounts face digital contingencies in transferring money from them to another.
The foundation worked on such weaknesses and they developed this transfer of representational currencies. This first-generation cryptocurrency provides access to the financial system for such people. The primary founder of the currency is Jed McCaleb. He shared his aim of removing the bureaucracy of the money transfer system. He readied that people are facing issues with the advancing costs of the platforms.
The currency has a first-mover advantage as the first borderless currency.
How are Stellar Lumens Different?
Like any other cryptocurrency, stellar lumens are also a digital currency that allows the transfer of money from one user to another. But unlike all other platforms, the lumens do not solely focus on the currency. They created the network with an inbuilt entry barrier. This restriction removes the fraudulent elements that are harmful to transparent transfers.
Another notable difference between the currencies is the process with which they create tokens in the market. The platforms like bitcoins allow users to mine the currency. They all can mine it unless they do not have the right tools. The platform also offers rewards for users in the process.
Stellar Lumens here are different. The foundation itself released the lumens as and when it was established. Although in 2019, the foundation decided to halt the supply of lumens, it has increased the demand for the currency.
Why are Stellar Lumens so Popular Right Now?
There are various cryptocurrencies in the market, yet stellar Lumens has its place and worth. People appreciate the platform for its readability, available products in the market, and practical vision. The stellar blockchain develops the products. For an investor, the stellar is potentially viable with growth and affordability. Most investors argue that the stellar is undervalued.
From the year they offered it, the foundation has created ties with various financial and technological giants. Some of which are ICICI Bank, Deloitte, IBM, and Meridian Bank. The focus of this is to provide the services with the locational restriction.
Benefits Of Stellar Lumens for Beginners
Now, what is the benefit that stellar can provide to a budding investor? Here is a list of points that need to be looked at.
- One of the distinct features that the currency provides is the benefit of Path Payment options. The simplified explanation is that users can exchange the tokens with their valuation. A user can send a token. The receiver can receive it with the same value but with a different token. This token value exchange system creates the possibility of sending and receiving digital money in a single transaction.
- Another feature that helps investors is the availability of digitalized exchange. The stellar investors are allowed to swap one token for another. The tokens received can be of any kind, Bitcoin, XML tokens, and stablecoins. They then recorded their transactions in the blockchain rather than in the exchange.
- The security of transactions is another feature that convinces the investors. When you are a new investor, you pay special attention to the safety of the network. The foundation has instilled the aspect of a restriction on entering the market. They pay special attention to the network in which investors trade. The barrier which they have created removes undesirable actors from entering the market. In this era of cybercrime, the system allows affirmation to the users regarding the security of the currency.
Cost Efficient: Stellar Lumens
Various cryptocurrency networks cost thousands of dollars the purchase. We refer the fee to as a gas fee. The stellar lumens have a non-profit aim due to which they have reduced the fees up to their operating costs. The fees which the lumens network takes are a few pennies when compared to other currencies.
The processing time is also a characteristic that makes the transactions of stellar lumens efficient. The time cryptocurrencies take to transfer is a pitfall for many platforms. If we take the example of Bitcoin, it takes 5 minutes at the minimum to 5 hours at the maximum. The amount of time depends on the miners. The second system of Lumens gives an immense advantage to the investors.
Although Stellar Lumens provides access to foreign transactions, they have their costs controlled. Investors can easily undertake cross-border transactions without paying hefty sums for it. Now stellar has the advantage of SCP, which is an abbreviation for Stellar Consensus Protocol. This system employs nodes or individual users for validation. It allows the network to maintain a low cost for its investors.
The Stellar Lumens have overperformed in the cryptocurrency market. There is also various news coming up about the possible acquisition of MoneyGram. This MoneyGram allows a user to focus on the system. This development is said to make the investors earn a huge profit after the price moves up. For a new investor, this is one of the best investment options. It has all the prospects needed to grow. It has had its bull run in 2018 and survived the bear market for so long. Indeed, the currency is going to emerge in the market someday.