Stellar is a decentralized financial network on which international payments can be made in various currencies at lightning speed, which are converted to the correct currency for the sender and receiver via the Lumens (XLM) cryptocurrency.
On this page we will explain what Stellar Lumens is, where you can buy or sell Stellar XLM, what the current Stellar Lumens price is and how you can store this cryptocurrency.
How To Buy XLM
So you’re interested in buying XLM? Currently, there is no way to buy XLM directly with fiat, so the best way to buy XLM is to first purchase Ethereum, transfer it to your chosen trading platform and change it to XLM. We’ll show you how.
2. Once your account has been created and confirmed, log into your Binance account. Once you have logged into the account, go to the menu, click on the funds section and then deposit on the drop down bar.
3. Once you’re on the Deposit section, click the drop down menu labeled “Select Deposit Coin” and look for Ethereum, or type ETH and select.
4. This is your Ethereum Deposit Address, we have chosen Ethereum instead of Bitcoin due to the lower fees and transfer times. Next we’re going to look at buying Ethereum and depositing it into your Binance account.
1. First change the Buy option from BTC to ETH for USD and then choose your amount.
2. When you have chosen the amount of Ethereum you want to purchase (A minimum of 0.05 ETH is required), you will need to register and confirm your CEX account and payment details.
Once that has been confirmed and the ETH has been deposited into your account, we will then need to move it over to Binance.
3. Select the Withdraw option at the top of the site and select Ethereum as your currency. You will then be given a field, where you will add a wallet. This is where you can transfer your money to Binance.
4. Go back to your Binance Account and copy the alpha numeric code under your Ethereum Deposit section and paste it into your Ethereum Withdrawal section on CEX.io. Confirm that this address is correct and press “Withdraw“.
Your Binance account will now be credited with Ethereum.
2. On the trading platform, select the ETH section and use the search function to search for XLM/ETH and confirm.
3. On the XLM/ETH trading section you can now choose how much XLM you want to buy with your Ether. Once you have chosen your amount, press Buy XLM and place your order.
Once your order has been fulfilled, your account will be credited. Congratulations you’re now the proud owner of XLM.
What is Stellar Lumens (XLM)
Stellar is an open-source decentralized network with the primary goal of exchanging various forms of ownership / value in a safe, fast and affordable way through blockchain technology. For example, to make a payment in euros from the Netherlands, which is converted into dollars at the most favorable rate and is credited to someone in the United States a few seconds later.
The internet consists of a network of servers containing our data, but also websites and applications. Just like the internet, Stellar is a network of (decentralized) servers. Every “Stellar server” keeps a digital ledger, also known as the blockchain.
Every Stellar server always has exactly the same copy of this ledger, which keeps track of every transaction on the Stellar network. In principle, each entity can set up a Stellar server and as the number of servers in the network grows, the network becomes more robust. All servers in the network communicate constantly (every 2 to 5 seconds) with each other to verify transactions, this is called consensus:
When a transaction has taken place on the Stellar blockchain, the value of the transaction is credited to the wallet of the sender and receiver. The value of the transaction can be credited in various currencies including BTC, USD, EUR, JPY and GBP. The owner of this “credit” on the Stellar network can then choose to make payments in Lumens (XLM), which will then be added in the form of another currency (again including Bitcoin, Dollar, Euro, Yen, Pound). on the recipient’s account.
This technology from Stellar is very fast and cheap: the costs per transaction are currently 0.00001 lumens, this means that with 1 XLM you can cover the costs for 100,000 transactions. This makes the technology very suitable for micro payments, among other things. Every transaction is confirmed within 2 to 5 seconds on the Stellar blockchain, making international payments through Stellar Lumens very interesting.
Stellar Lumens Price
The Stellar network went live in 2014 with a total of 100 billion Stellars , which at the time was the digital currency on the Stellar blockchain. In 2015, however, Stellar changed the name of this token to Lumen so that a clearer distinction could be made between the XLM cryptocurrency, the Stellar network and the non-profit organization Stellar.org.
The Stellar course is determined by supply and demand, as with any other form of possession. Of the 100,000,000,000 XLM that has been created, 5% is reserved for the non-profit organization Stellar.org and the Stellar Development Foundation (SDF) in order to continue to pay the costs for the further development of the Stellar network.
However, Stellar.org is not only dependent on this 5 billion XLM but also receives business donations from large companies such as Stripe, BlackRock and Google.org.
Not all 100 billion Lumens have been put directly into circulation on the Stellar network: the intention is to distribute them gradually over a period of 10 years. Stellar.org has devised a “giveaway” program to ensure that the Lumens are distributed to various groups in the right way:
- 50% is intended for individuals who want to have / use Lumens
- 25% will be donated to non-profit organizations on behalf of developing countries
- 20% has distributed Stellar.org among all Bitcoin (19%) and Ripple (1%) holders.