Buy Stellar (XLM) - how to invest in Stellar in India

Most of the top 20 projects in terms of capitalisation present users with a payment system with some unique feature or another. Therefore, each development team tries to surprise users with exceptional functionality - Stellar cryptocurrency is no exception. From this article, you will learn Stellar's key features and why many people want to buy Stellar. So let's dive into this exciting journey of discoveries. 

What is Stellar

Stellar is an analogue of a decentralised cryptocurrency exchange, where you can buy or sell any currency. The platform has its internal currency unit - Stellar Lumens (XLM), and a built-in 'ledger' that records all transactions and balances. Transfers within the network are completely free.

Stellar's single distributed ledger can store orders or, in other words, public offers made by system participants to buy or sell various currencies and global assets at pre-approved prices. This feature makes Stellar a single decentralised marketplace for a wide variety of assets. Moreover, you can exchange currencies and convert funds from dollars to euros or from bitcoin to Ethereum on the fly.

The Stellar network can handle around 1,500 transactions per second, making it much faster than Bitcoin and Ethereum. To make it more transparent, let's give an example. Suppose that your colleague wants to send you 100 XLM coins, but you need to receive this money in dollars.

The transaction will be posted on Stellar, and the system will find the best exchange rate and convert the money in just a few seconds. After that, you will receive your dollars.

You can do any currency conversion on the platform. 

Here is what this cryptocurrency is and why you buy XLM. 

Information about Stellar
Information about Stellar

What is Stellar XLM?

Each cryptocurrency is provided with a specific Ticket ID that makes it easier for users and institutions to use, monitor, analyse the market, etc. A ticket usually consists of three characters and is unique to a particular token or altcoin. XLM is the ticket identifier used in the development of Lumens, which forms part of the Stellar network. So when a person owns or transacts with an XLM, they are essentially buying XLMs, storing, sending or selling Lumens on the Stellar network.

Despite the volatility of the XLM token, reports show Stellar performing well. In fact, if you look at the statistics over the past five years, XLM is one of the best performing altcoins developed in recent times.

Features of  Stellar (XLM)

So why are many people willing to invest in Stellar? First, Stellar is an open-source network. It is a decentralised blockchain system designed to help people make domestic or cross-border transfers. In doing so, the transfers are relatively quick and straightforward. 

The Stellar network can be used for two primary purposes:

  • The network offers a remittance solution. These can be local transactions (for example, when paying for goods or services) and transfer money to people in other countries.
  • The Stellar network helps people transfer money and can also be used as a way of storing funds. For example, you can easily buy a certain number of XLM tokens to store money securely in your cryptocurrency wallet. This money can then be used as an investment, selling XLM tokens as the Stellar network grows and the value of Lumens increases.

Stellar was also created as a tool for payment solution developers. Several tools help developers integrate the network and payment features into their software products.

Stellar trading conditions
Stellar trading conditions

Blockchain platform ecosystem

Like other cryptocurrencies and altcoins, the Stellar network is also built on distributed ledger technology - blockchain. Blockchain is a decentralised type of database on which cryptocurrencies are based. However, the ecosystem of the Stellar platform is slightly different from some other existing cryptocurrencies.

For example, unlike Bitcoin, tokens on the Stellar network are not mined through mining. In 2015, when Stellar first announced the XLM token, 100 billion XLM were allocated to the network. After that, an annual increase of 1% in the number of tokens was seen until 2019, when a community vote led to a decrease in XLMs. 

Deposit replenishment
Deposit replenishment

Stellar issuance

Today, Stellar's issuance stands at 50 billion XLM. The Stellar team has said that it has no plans to issue any additional tokens but that some of the tokens currently retained will be released to the public market in the future.

Approximately 20 billion XLMs are currently available in public circulation. Users can purchase these tokens on cryptocurrency exchanges. The Stellar Development Foundation holds the remaining Lumens presently.

The primary purpose of the remaining Lumens is to help promote and develop the Stellar platform.

Stellar Trading Platform (XLM)
Stellar Trading Platform (XLM)

Stellar's development team 

The Stellar project team consists of 20 people, and some of the functions are covered by well-known advisers. We will not dwell on each of them but will highlight, in our opinion, the most critical members of the project. 

The first one we will highlight is Bartek Nowotorski. Before joining Stellar, Bartek worked as a lead developer and security specialist and discovered vulnerabilities in Facebook and Yahoo. 

The second person we want to highlight is Jed McCaleb. Jed is the co-founder of the Stellar Foundation. Before Stellar, he created eDonkey2000 and the first cryptocurrency exchange, Mt.Gox. 

Among the project's advisors, we can highlight creator Matt Mullenweg.

Benefits of Stellar

The Stellar platform can offer several key benefits to investors. 

The main benefit that anyone can get from Stellar is support for multi-currency transactions. The cross-currency transaction feature has dramatically simplified and accelerated the cross-border payment process.

When you execute a transaction, you can buy XLMs in fiat currency. The tokens are then sent to the recipient, who in turn can convert them into their country's fiat currency. 

In addition to speed, the Stellar network is also focused on keeping transaction costs low, which means there are no expensive fees associated with wire transfers.

How to buy Stellar (XLM)?
How to buy Stellar (XLM)?

Where to buy Stellar

There are several exchanges you can use to purchase XLM. Before choosing a particular exchange, you need to check whether it provides services in your country. Some exchanges have certain conditions or may not support Stellar Lumens. Binance is currently one of the most popular exchanges for people who want to buy Stellar in India. Due to the popularity of Binance, people from different countries can use the platform as a way to buy, exchange and sell cryptocurrencies.

Is Stellar Lumens worth buying?

As an altcoin in the cryptocurrency market, XLM has its pros and cons. So before adding tokens to your investment portfolio, carefully consider the advantages as well as the disadvantages.

If you are looking for a cryptocurrency for domestic or cross-border fund transfers, the Stellar network could be a good choice. Given the active development of the platform, the value of the token is increasing. As a result, it is being used for investments. As updates to the network are introduced, and the use of Stellar for remittances intensifies, the price of XLM is showing good growth.

On the other hand, the volatility and high volatility of the token price creates risks for using XLM as an investment vehicle. Therefore, it is essential to consider if you are looking for a long-term investment. Experts suggest that XLM will continue to rise in price over the next few years.

How to start investing in Stellar (XLM) 

There are still interesting ways if you're ready to invest in Stellar in India. Since cryptocurrency is a risky and highly volatile asset, this can be used to your advantage, for example, by trading CFDs. 

CFD trading allows traders and investors to speculate on asset price movements without actually owning the underlying asset itself. In addition, unlike traditional investments, CFD trading allows traders to play down as well.

Since an investor does not actually own the underlying asset, a trader can sell the asset and make a profit when the price falls or lose a profit when the price rises. CFD trading also gives investors access to global markets, be it stocks, cryptocurrencies, indices or commodities. And all in a single trading environment.

That's why CFDs are one of the most popular forms of trading on the financial market.

Registration on the Investment Platform
Registration on the Investment Platform

How does CFD trading work?

When you trade CFDs, you do not own the underlying asset. Instead, you buy some CFDs (also known as units) in the market when you think the price of an asset will rise, or you sell them when you believe the price is going to fall. 

The value of the CFD reflects and always follows the price of the underlying asset.

The risk provided by the leverage in CFD trading will affect the winning or losing trades. 

 CFDs (contracts for difference) are contracts negotiated between buyers (traders) and brokers (sellers) based on speculation on asset prices at specific market conditions.

Profits and losses are calculated based on the difference in price between the initial price at which the CFD is sold or bought and the moment of exit from the transaction.

Cryptocurrency is a new and extremely complex industry with its own nuances and pitfalls. XLM is a promising cryptocurrency. The project will become increasingly popular because of long-term partnerships with large companies and financial institutions, targeting a wide audience. As a consequence, the price of the asset could increase several times. So invest wisely and make money. Have successful trading and great profit!

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