Is Stellar (XLM) a Safe Investment?

Bittime - This article ask the question, is Stellar (XLM) a safe investment. Learn the benefits, how to buy, and risks associated with this crypto asset.

What is Stellar (XLM)?

Stellar is a blockchain-based payment technology company founded in 2014, and Stellar Lumen (XLM) is the native digital asset of this network. 

Stellar Lumen's mission is to enhance, not replace, existing financial systems by enabling people to transfer fiat currency as digital assets or cryptocurrencies. 

In this article, we will discuss whether Stellar (XLM) is a safe investment and what you need to consider before investing.

International Money Transfer Challenges

Problems faced by users

Sending money internationally is often a complicated matter. Users have to bear various bank fees, and transfers can take days to reach the intended recipient. 

This creates a need for more efficient and faster solutions.

Solutions Provided by Stellar

With Stellar, users can create “dollar tokens” or digital versions of US dollars and send them anywhere in the world.

One Stellar dollar token is equivalent to $1. This allows anyone to own dollar value without having to have a US bank account, which is especially useful for those who work abroad and need to send money back to their families in politically or economically unstable countries.

Read Stellar price (XLM) to IDR Latest Today

Benefits of Digital Dollar Tokens

Unlimited Access

Digital dollar tokens allow individuals to own and store dollar value securely and digitally. This is especially important for those living in countries with unreliable banking systems. 

Migrant workers can send dollars back home, and recipients can keep them until they are ready to exchange them for local currency.

Fast and Cheap Transactions

By using Stellar, transactions can be completed in seconds and the fees charged are very low. 

This removes much of the cost and friction from the traditional banking system, making it more efficient for all parties involved.

Read too When Will Stellar (XLM) Launch? This is the history, investors must know!

XLM Functions in the Stellar Network

The role of XLM as an Intermediary asset

XLM tokens serve as intermediary assets for transactions on the Stellar network. The Stellar Protocol converts fiat currency first to XLM, and then to the requested currency. 

This makes the transaction process more efficient and faster.

Low Transaction Fees

One of the advantages of Stellar is its very low transaction fees, namely 0.00001 XLM for each transaction. 

This is much cheaper compared to the fees charged by fiat-based payment solutions such as PayPal, as well as other blockchains such as Bitcoin and Ethereum that frequently experience congestion.

Read too Why is Stellar (XLM) so popular?

Stellar Lumen Use Cases

Stellar Usage Statistics

Since its launch in 2014, the Stellar network has processed more than 2 billion transactions carried out by more than 6.5 million individual accounts, including large companies and startups. This shows that Stellar has succeeded in attracting the attention of many users around the world.

Stellar Lumens Strategic Partnership and Other Projects

Stellar has entered into various strategic partnerships to expand its reach. In 2018, Stellar partnered with TransferTo to offer cross-border payments to more than 70 countries. 

Stellar XLM Project that Gets Sharia Certification

Stellar also became the first blockchain platform to obtain a Sharia compliance certificate for payments and asset tokenization.

Is Stellar (XLM) a Safe Investment?

Cryptocurrency Market Volatility

Like many other cryptocurrencies, XLM also experiences significant price volatility. 

Even though there is high profit potential, the risk of loss cannot be ignored. Investors must be prepared to face sharp price fluctuations and conduct in-depth research before investing.

Stellar Advantage

Stellar has several advantages that can make it an attractive investment option. 

With low transaction costs, high settlement speeds, and strong strategic partnerships, Stellar has the potential to continue to grow. 

Additionally, the lack of legal issues faced by Stellar, in contrast to some of its competitors, provides more confidence for investors.

How to Buy Stellar Lumen (XLM)

Purchase Steps at Bittime

To buy Stellar Lumen (XLM) easily, you can use a platform like Bittime. Here are the steps to buy XLM on Bittime:

1. Visit the Bittime Site or App: Access the Bittime main page and create an account if you don't have one yet.

2. Account Verification: Complete the account verification process according to the instructions provided.

3. Deposit Rupiah: After your account is verified, make a rupiah deposit into your Bittime account.

4. Search for XLM: Use the search feature to find XLM trading pairs.

5. Make a Purchase: Select the amount of XLM you want to buy and confirm the transaction.

Tips for First Time XLM Buyers

1. Do Research: Before purchasing, make sure to do research on XLM prices and market trends.

2. Use Double Security: Enable two-factor authentication (2FA) to protect your account.

3. Start with Small Amounts: If you are new to the world of cryptocurrency, consider starting with a small amount before investing more.

Conclusion

Stellar Lumen (XLM) is one of the promising cryptocurrencies with various applications and potential to improve the global financial system. D

ith its ease of use and low transaction fees, Stellar has the potential to be a solution for many people around the world, especially those who do not have access to traditional banking services. 

If you are interested in investing, make sure to do in-depth research and understand the risks involved.

FAQ

1. What is Stellar (XLM) and how does it work?
Stellar (XLM) is a blockchain platform that enables fast and cheap money transfers. XLM is the native digital currency of the Stellar network, used to facilitate transactions and pay transaction fees.

2. Is Stellar (XLM) a good investment?
Investing in Stellar (XLM) has potential profits, but also involves high risks due to the volatility of the cryptocurrency market. It is important to do research and analysis before investing.

3. How to buy Stellar (XLM)?
You can buy Stellar (XLM) through platforms like Bittime. The process involves account registration, verification, depositing funds, and making XLM purchases via available trading pairs.

How to Buy Crypto on Bittime

Want to trade sell buy Bitcoins and crypto investment easily? Bittime is here to help! As an Indonesian crypto exchange officially registered with Bappebti, Bittime ensures every transaction is safe and fast.

Start with registration and identity verification, then make a minimum deposit of IDR 10,000. After that, you can immediately buy your favorite digital assets!

Check the exchange rate BTC to IDR, ETH to IDR, SOL to IDR and other crypto assets to find out today's crypto market trends in real-time on Bittime.

Also, visit the Bittime Blog for interesting updates and educational information about the crypto world. Find reliable articles about Web3, blockchain technology, and digital asset investment tips designed to enrich your crypto knowledge.

Reference

Phemex.com, What is Stellar Lumens (XLM): Is XLM A Good Investment?, Accessed December 23, 2024

Zhiyuan Sun,Is Stellar Lumens a Safe Investment?, Accessed December 23, 2024

Author: IN