Ways To Earn
There are several ways to make money by investing in a token: trading on exchanges or investing. One of the riskiest but potentially profitable methods is leveraged trading.
Trading
Cryptocurrency is unsecured, which means it’s highly volatile. Traders can use this to profit by buying altcoins when the market is down and selling them when the price is up. You can make such profits on CEX and DEX. But the decentralized platform has a limited selection of tools for trading.
Investing
The value of the altcoin has already increased 19 times since the launch of the project. In the long run, the price could rise even more. Even according to cautious forecasts, XLM should reach the $1 mark and go higher. Therefore, the coin is suitable for long-term investments.
What Affects The Rate of The Cryptocurrency
The price of the asset depends on such factors:
- The conclusion of partnerships with companies, corporations;
- listing on major cryptocurrency exchanges;
- the increase in popularity on the network, publications in the media;
- the general state of the crypto market;
- introduction of new services, tools;
- activities of mystery shoppers;
- protocol updates.
Where to Store Stellar Cryptocurrency
Altcoins can be kept in the accounts of centralized exchanges, where the coins are traded. Another option – cold wallets (Ledger Nano S keeps the key offline, provides connectivity to desktop and web applications). Some of them were developed by the Lobstr platform.
The Best Wallets For XLM
Perhaps the most convenient wallet for quick XLM transactions is the Stellar Wallet. It’s a web-based wallet designed specifically for Lumens transactions. You can also use a number of other services for XLM storage and transactions, such as:
- Lobstr;
- Litemint;
- StellarX;
- Fireblocks;
- Solar Wallet;
- StellarTerm;
- AirTM.
The Future and Prospects of Stellar (XLM)
The Stellar crypto project roadmap is based on 3 principles:
- Developing new tools for international transactions;
- Increasing visibility;
- Supporting the reliability and security of the network.
The developers want to increase the volume of transactions by 5 times, expand the ecosystem and attract more partners from the banking sector.
The creators of the project are supporters of fine-tuning international legislation so that any financial institutions (including state banks) can use blockchain capabilities. So they plan to collaborate with the governments of different countries and help change their regulatory frameworks.
Stellar Enterprise Fund (venture capital fund for open source network development) will hold 1 new event per quarter. The goal is to popularize altcoin and services.
Analytics and Forecasts
The crypto project has long-term prospects, and the price of the coin has every reason to grow. The platform is constantly developing:
- More and more new stablecoins are appearing (Circle has already issued USDC, and Germany’s oldest bank, Bankhaus von der Heydt, has issued EURB).
- New long-term partnerships with large companies, corporations and even government agencies are being created. Recent agreements have been made with the Ukrainian Ministry of Digital Transformation, IBM, and the German company Vonovia, which issued bonds on the Stellar blockchain.
- The speed and volume of transactions is increasing.
- With the ability to create smart contracts and decentralized applications, the project could become a competitor to Ethereum.
- Stellar Development Foundation is expanding the number of developers.
XLM is a promising cryptocurrency that has the potential to one day take the place of Ripple. Since its launch, it has been its main competitor. Given its tendency to enter into long-term partnerships with large companies and financial institutions, targeting a wide audience, the project will become increasingly popular. As a consequence, the price of the asset may rise.
Features of Stellar:
- Fast and secure transactions. Transaction verification process is more efficient than Proof-of-Work (PoW)
- Transaction fees are minimal
- Prerequisites for increased coin value
- Open source attracts large number of developers creating DeFi, Dapps
- Decentralized exchange built into the platform
- Scalability is still lower than Ripple’s main competitor
- The network hangs when hacker attacks are suspected.
- Revenue from connecting your own node is small compared to other blockchains
- The cryptoproject is still under development, many ideas have not yet been implemented
Frequently Asked Questions
Why do I need a minimum balance of coins in my account?
This is a necessary condition to protect the system from the creation of duplicate spam accounts. The user must deposit 1 Lumen to activate the account. Adding a new asset will require a reserve of another 0.5 coins. If the user wants to keep 3 Coins, they need to have (1 for account initialization + (0.5 Coins for reserve * 3) = 2.5 Lumens.
What is SDF?
It is a non-profit, non-stock organization that is incorporated in the state of Delaware.
Why was the endowment fund created?
It develops Stellar’s technology and network, attracts new partners, and creates and maintains a functioning community.
Is the release of the new lumens stopped?
Yes, there are no new tokens being created in 2021, according to official information, and there are no plans to create any in the future.
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