Premium Lumens (XLM): A Complete Guide to Cryptocurrencies

What is a starburst? The Stellar Network is an open source and decentralized payment protocol that facilitates cross-border economic exchanges between cryptocurrencies and fiat currencies. The original stellar cryptocurrency, Lumens (XLM), is available for purchase on all major exchanges.

The goal of the Stellar blockchain is very ambitious, which is to ensure that all financial systems can work together on a single network. This is made possible by “tokenizing” each potential asset or fiat currency.

In order to ensure net neutrality, the project is led by the Stellar Development Foundation (SDF), a non-profit organization founded in 2014.

Read this guide to find out more!

How does Stellar Lumens work

So far, those who want to trade cryptocurrency with fiat currencies (euro, dollar, etc.) generally have to go through a long and expensive process.

Stellar has created a semi-decentralized consensus platform that facilitates the exchange of major fiat currencies for cryptocurrencies and other assets. Financial transactions are usually executed in 2-5 seconds and there are thousands of transactions processed per second.

The original Stellar token, Lumens (XLM), is used to power these cross-border financial and crypto transactions. From this point of view, Stellar has similarities with the Ripple XRP Ledger blockchain, which is also designed to provide a payment protocol for payment providers and financial institutions.

Stellar Lumens was founded in 2014 by Jed McCaleb (Co-Founder of Ripple) and Joyce Kim, to make exchanges faster, cheaper and easier to access. Some argue that Stellar is an offshoot of Ripple, but McCaleb states that it is not. Stellar Lumens has its own token, and unlike Ripple, it is focused on providing payment options for regular people rather than institutions.

How to use Lumens (XLM)

Lumen (XLM) is the original cryptocurrency of the Stellar network. Lumens tokens are used to send money or other goods and exchange currencies. Thus, Lumens allows the user to send a coin that arrives at the receiver as a coin of a different type. Usually, this process requires that a particular transaction go through a certain number of currencies, smoothly.

Stellar does this by checking the availability of swap currency pairs. If not, he can search for an order on the starting coin from the Lumen holder and once he gets Lumen, he can search for a pair of Lumens and the desired coin. This process is made possible by the so-called anchors within the Stellar network.

Anchors facilitate currency exchange within the network because they are able to hold a deposit and issue credit in a different currency. Since all the anchors are on the same network, this process is actually very fast.

How to Buy Stellar Lumens (XLM)

You can buy Stellar Lumens (XLM) on top cryptocurrency platforms. To do this, you will have to follow these five simple steps:

  1. Create a valid Exchange account
  2. Deposit money into the account
  3. Search for Stellar Lumens (XLM) on the platform
  4. Choose how much money to use
  5. Validate your purchase

To sell Stellar Lumens, the process is very similar to buying, just select “sell” instead of “buy” and choose how much to sell.

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