Stellar is a decentralized payment network that can automatically exchange fiat currency. Stellar facilitates fast international transactions without too much hassle. In addition to the possibility to make easy and fast international transactions, the Stellar network is very cheap to use. On this page, we explain what Stellar is and we will give you some tips for buying and selling Stellar.
Stellar was launched in 2014 and is the work of one of Ripple's co-founders. Stellar and Ripple are similar as they have the same goal: facilitating cheap and fast international payments. However, Ripple focuses on large financial companies and institutions, where Stellar aims to also enable transactions from smaller parties such as consumers.
Stellar runs on blockchain technology and developed its own protocol called the Stellar Consensus Protocol (SCP). With Stellar you can have euros sent via the network to, for example, the United States, after which these euros are automatically converted directly into dollars. Stellar's transaction costs are fixed at 0.00001 XLM. It does not matter whether you send 5 euros or 1,000 euros via Stellar, the transaction costs remain the same.
Another advantage of Stellar is the many collaborations the project has entered into. For example, it collaborated with the IT giant IBM. The confidence that large companies seem to have in the project, such as IBM, creates confidence among those who have invested in Stellar by purchasing the network's cryptocurrency called lumens (XLM).
Buy Stellar (XLM) safely and easily via Knaken+
Because Stellar is a relatively old, large and successful project, buying Stellar is quite easy. Most major cryptocurrency exchanges such as CEX.io, Binance, and Coinbase now offer Stellar. To buy the cryptocurrency via these platforms, you'll have to create an account after which you can buy the Stellar for the current market value. This is quick and easy, but you need to verify your identity when creating an account. Because of this, you often have to wait a while before you can start buying Stellar after creating your account.
You can also buy Stellar via so-called over-the-counter (OTC) platforms. These are often companies from your own country or region that sell Stellar. The customer service of these types of companies often speak your language, which can be seen as an advantage. In addition, OTC platforms offer a bit more privacy, since not everyone can see that you have placed an order, as is the case with exchanges.
Sell Stellar (XLM) safely and easily via Knaken+
You can often also sell Stellar through the platforms mentioned earlier. Keep in mind that Stellar's price can change quickly, which means your Stellar can depreciate in value fairly quickly. This of course also applies to the upside, XLM can rise quickly as well. You can read a few important tips for buying Stellar later on.
Knaken helps you buy or sell Stellar safely and easily. It doesn't matter if you are a beginner or a veteran. These three simple steps apply to everyone.
• Select your cryptocurrency
• Pay via payment methods such as IDEAL.
• Receive and manage your crypto in your Knaken dashboard or your own wallet.
Why do people buy or sell Stellar?+
People buy Stellar for a variety of reasons. One of the most common reasons is because they see it as an investment. Should Stellar become one of the most important ways of making international payments in the future, it is possible that Stellar will increase in value.
In addition, there are also people who actively trade with Stellar. This means buying and selling Stellar actively, sometimes on a daily basis, to generate a profit. Technical analyzes come in handy here. However, active trading with Stellar, like with all other cryptocurrencies, involves great risks.
Why choose Knaken?+
• Safe & Easy
• No extra costs
• Manage crypto via your Knaken Dashboard or your wallet
• Knaken has its own exchange
Important tips when buying/selling Stellar+
If you have studied the underlying technology and mission of the project, it might be an idea to buy some Stellar. Here are some tips for when you decide to do this.
First, you need to have a good Stellar wallet. It must be safe and easy to use. A hardware wallet, a kind of USB stick, is one of the safest options. These wallets are made by, among others, Ledger.
If you invest large amounts in Stellar, a hardware wallet is definitely recommended. In case you buy Stellar via an exchange, you will find Stellar in your exchange account. After purchase, send your Stellar to a secure wallet of which you own the private keys. This can be both a software and a hardware wallet.
If you plan to buy Stellar through an OTC platform, research the company thoroughly. Look for reviews like on Trustpilot and ask about other people's experiences. In the cryptocurrency world, many scammers are active. If something looks suspicious be extra careful.