Is Stellar a good investment? When should i invest in it

What is Stellar?

Is Stellar a good investment? This is a problem for many investors.Stellar is a promising cryptocurrency that supports the digital representation of any currency. The platform has its built-in token known as Lumen (XLM token). Also, it allows cross-border exchange between any pair of currencies.

The purpose of creating the token was to fill a unique role in the network. More importantly, Stellar accounts need to hold the built-in token at all times. The primary purpose of creating Stellar Lumen was to make money move like emails. Bitcoin established itself as a peer-to-peer payment ecosystem. In the same way, other projects with speedier technologies started developing. As a result, Stellar is one of the projects that has proven an effective payment system.

Stellar has partnerships not only with other cryptocurrencies but also with banks. Nevertheless, the network has built the most advanced payment infrastructures of all time. Therefore, Stellar has a free and open architecture that platforms can build low-cost financial apps.

How Stellar works

It is important to note that Stellar networks connect with banks, individuals, and other payment systems. In contrast, Stellar is cheaper for everyone. Therefore, it uses a fraction of the cost of the currency and traditional gateways transfer. The network is looking to revolutionize remittances and international payments. As a result, these changes will make them safer and more accessible for everyone.

Stellar provides the same services other financial systems offer. Nonetheless, there are key differences that make the network unique. In particular, Stellar Lumen occurs on a decentralized blockchain. Therefore, the web is cheap and fast when compared to other financial systems.

Is Stellar a good investment

Stellar Lumens(XLM) Price History

2014

In 2014, Stellar listed the Lumens, which were trading well. XLM exchanged between $0.001972 and $0.009421. Subsequently, XLM traded at $0.009421 towards the end of that year.

2015-2016

On 28th January 2015, the price broke by $0.00541. On the contrary, the price fell below $0.002586 in early April. Alternatively, the price increased slightly towards June where the XLM coin was trading at $0.00486. On 2nd December, the price dropped below $0.001653.  Subsequently, in February 2016, XLM traded at $0.002644. In contrast, the price did not improve in the rest of 2016. Therefore, the price ranged between $0.00145 and $0.00256.

2017

The price began to go higher in April. As a result, the Bull Run comes around picking the Lumens upstream. By the end of April nonetheless, the price was trading above $0.005. Despite this, the price exploded, and XLM traded at $0.067443 at the end of May. Still, the price remained between $0.04 and $0.05 in most parts throughout May and June.

The price dropped further to $0.02 and remained there until November. In contrast, the price rose rapidly due to the cryptocurrency rally towards the end of November. In December, XLM was trading at an all-time high of $0.938114.

2018

In January, the price was still high at $0.3540. In most of 2018, XLM traded between $0.02 and $0.03. Nevertheless, the price fell below $0.02 and broke to 0.1 at the beginning of the following year in November.

2019

In January, the Lumens price remained below $0.01. The digital currency managed to find itself in the preceding months. In contrast, the price lay between $0.066 and $0.065. Above all, analysts targeted the price to hit $0.075 by the end of August. At the same time, the XLM price hit $0.059165, which was an improvement, keeping in mind competition with other emerging cryptocurrencies. Finally, in December, the price fell to as low as $0.039 per Lumen.

2020

XLM prices showed significant improvements at the beginning of the year. Stellar is characterized by sharp rises and sharp drops, unlike other cryptocurrencies. As a result, the price fell sharply to $0.028492 in March. Alternatively, the fall was influenced by the COVID-19 pandemic.

The price shot up towards the end of May, trading at $0.085003. In contrast, the price was at $0.103177 in August. Therefore, the trend continued towards the end of the year, marking a new high of $0.128370.

1st January-23rd September 2021

January started on a high note where XLM coin was trading at $0.312166. Nonetheless, in February, the price improved to $0.532082. Subsequently, the price increased until 16th June where the coin was trading at $0.654250. Furthermore, in June, the price fell sharply, and XLM traded at $0.200156.

YearMaximum PriceMinimum Price
2014$0.009421$0.001227
2015$0.005840$0.001653
2016$0.002644$0.00145
2017$0.938114$0.002
2018$0.3540$0.002
2019$0.158347$0.039
2020$0.085003$0.103177
January-September2021$0.654250$0.200156

Comparison between Bitcoin and Other Cryptocurrencies

Is Stellar(XLM) a good investment vs. Is Bitcoin a good investment?

Lumen has a firm price compared to Bitcoin. In comparison, when the Bitcoin price drops, investors expect the price of XLM to drop. Unlike Bitcoin, Lumen is not mined. Bitcoin processes 4-5 transactions per second. Nevertheless, Stellar processes over 4000 transactions per second. Thus, the Stellar network is fast. It is important to note that Stellar transactions are cheaper compared to Bitcoin.

StellarBitcoin
Firm priceFlexible price
Not minedmined
Very fast speedVery low speed

Is Stellar(XLM) a good investment vs. Is Ethereuma good investment

Ethereum is a more complex platform than Stellar, meaning that it takes time to process payments. On the other hand, Stellar is much faster than Ethereum. Therefore, Stellar users do not pay transaction fees to third parties.

In terms of liquidity, Etherum is more efficient as users use it to create ERC20 tokens. For this reason, Etherum has many compatible wallets with an infinite number of tokens. Therefore, it’s challenging for new users to trade. On the other hand, stellar users do not have to use other exchanges. To sum up, the network has its tokens to be changed.

StellarEthereum
Fast processing speedSlow processing speed
Not minedmined
Uses Stellar consensus protocol algorithmUses Ethash

Is Stellar(XLM) a good investment vs. Is Binance coin a good investment

Stellar uses Lumen XLM tokens while Binance coin is an ERC20. Despite this, stellar is a cheaper and safer payment network than Binance. Binance has a better utility than Stellar. As a result, the Binance coin is more popular than Stellar. Therefore, Binance will continue, maintaining its better utility even in the future.

Binance coin is more expensive to transact than XLM. In contrast, Stellar is less decentralized than Binance coin. Binance is more trustworthy relative to Stellar. For this reason, it does not mean that Stellar is less secure. Moreover, the availability of BNB is more significant than that of XLM coins. Binance coin supply is at 100%. Alternatively, the Stellar collection has not reached the maximum, which is not expected to change soon.

StellarBinance coin
Fast processing speedSlow processing speed
Cheaper to send transactionsExpensive to send a transaction
Less decentralizedMore decentralized

Is Stellar(XLM) a good investment vs. Is Dogecoin a good investment

In terms of utility, Stellar is better than Dogecoin. It might not be popular, but it is expected to maintain a better utility in the future. In Addition, Stellar transactions are faster than Dogecoin. Its transactions are cheaper to send compared to Dogecoin.

Based on availability in supply, XLM coins are at 47%. On the contrary, the availability of Dogecoin is unknown. The Stellar inflation rate is unknown, while Dogecoin is at 4%. Moreover, Stellar offers staking at around 1%, while Dogecoin does not provide staking.

Dogecoin does not support intelligent contracts. On the other hand, Stellar does support Smart contracts. As a result, intelligent contracts give Stellar developers the potential to create decentralized apps on top of the blockchain.

StellarDogecoin
Fast processing speedSlow processing speed
Faster transactionSlower transaction
XLM coins availability supply is 47%Availability in the supply of Dogecoin is unknown

Is Stellar(XLM) a good investment vs. Is Litecoin a good investment

Litecoin utility is generally better than that of Stellar. In contrast, Stellar is less popular and newer compared to Litecoin. Therefore, Stellar is expected to maintain its lower relative utility in the future. It is worth noting that Stellar’s transactions are cheaper compared to Litecoin. Additionally, Stellar is much faster than Litecoin.

Litecoin is more decentralized than Stellar. For this reason, Stellar is less trustworthy relative to Litecoin. In addition, the availability of XLM coins is less compared to LTC coins. The inflation rate of Litecoin is at 4%, while for Stellar inflation rate is unknown. Lastly, Staller supports smart contracts while Litecoin does not. 

StellarLitecoin
Fast processing speedSlow processing speed
Less decentralizedMore decentralized
XLM coins availability is less compared to LitecoinLTC coins are more available

Is Stellar(XLM) a good investment vs. Is Cardano a good investment

There are several differences between Cardano and stellar. For starters, Cardano allows developers to build decentralized applications. Despite this, Cardano is more decentralized than Stellar. Moreover, Cardano utility is better compared to Stellar. Stellar is cheaper and faster to confirm compared to Cardano.

 Stellar uses its consensus protocol to confirm its transactions. On the other hand, Cardano uses a proof of stake consensus mechanism. Finally, Stellar XLM coins are limited in supply compared to Cardano for its ADA coins.

StellarCardano
Fast processing speedSlow processing speed
Less decentralizedMore decentralized
Stellar consensus protocol algorithmProof of stake

Is Stellar(XLM) a good investment vs. Is XRP (Ripple) a good investment

In terms of utility, Stellar is generally better than XRP. Nonetheless, Stellar is less popular among users. At the same time, it is expected to maintain its high utility in the future. Undoubtedly, XLM coins are more expensive to send than XRP. Besides, the cost of a transaction on Ripple is just 0.0001XRP. Nonetheless, XRP is much faster to confirm compared to Staller.

XLM coins’ supply in percentage is more significant than that of XRP coins. In contrast, it is more decentralized than Stellar. Moreover, Stellar offers are staking at 1% per annum, while XRP does not. In addition, the inflation rate for both XRP and stellar is unknown.

StellarXRP
Slower than XRPVery fast speed
More expensive to send moneyZero cost of the transaction
Less decentralizedMore decentralized

What do other people think about Stellar?

Stellar is doing well in 2021, and its growth is expected not to slow down in the future. Its potential to improve and its affordable prices make it an excellent investment to consider. Therefore, users enjoy using the platform since it is fast and compatible with the needs of an ordinary man.          

FAQ

Where to buy Stellar Lumens

It suffices to remark that one requires Lumens to use stellar. As a result, Lumens are available for trade and sale on many exchanges directly from the Stellar network. Most importantly, you can easily exchange Stellar Lumens through Coinbase and Kraken. Consequently, these platform allows you to buy the Lumens directly from the networks.

How to buy Stellar Lumens

Find the best exchange platform that you can get by selling and getting hold of Stellar Lumens. For starters, signing up for an account allows you to trade and get hold of the cryptocurrency. Open an account on Coinbase or Kraken to invest in Stellar Lumens. Furthermore, buy a wallet with the exchange platform and make a purchase.

How to mine Stellar Lumens

It is important to note that Stellar Lumen cannot be mined in a similar process to Bitcoin. Alternatively, Stellar does not use Proof of work. Consequently, Stellar relies on reestablished nodes that confirm transactions through a voting system. In particular, Stellar offers 1% inflation per year on Stellar nodes to block rewards.

Should I Buy Stellar Lumens

Stellar is a digital currency worth giving a shot at. Inversters consider Stellar Lumens a long-term investment. Simultaneously, Stellar is affordable and prospective to improve, making it an excellent digital currency to invest in.

December 2021, XLM coin is expected to hit $0.05. Nevertheless, the potential high will be $2.50 and a low of $1.20 by January 2022. Consequently, most forecast reveals that stellar Lumens has growth potential. The stellar price ranges from as low as $0.025 to a high of $13 per coin. Therefore, these statistics indicate that Stellar Lumens has a long-term value.bexplus recommends that you check Stellar Lumens price prediction.

Summary

Stellar will be one giant cryptocurrency soon. As a result, Stellar has shown significant improvement with no sign of slowing down. Nevertheless, Stellar is an affordable, fast, and more secure form of payment. Therefore, it provides a platform for the commoner to despite the stake at hand.

Stellar uses a ticker symbol XLM for Lumens, which are the original assets used by the network. Notwithstanding, the founders launched it with 100 billion Lumens with a rate of 1% annual inflation. Importantly, the transaction fees for the Stellar network have been 0.00001XLM.

It suffices to remark that Stellar’s primary goal is to make people’s savings more accessible and valuable. For this purpose, its decentralized network allows any currency to be exchanged. Unlike other cryptocurrencies, Stellar does not prefer specific currency.  Moreover, Stellar uses a Stellar consensus protocol (SCP) algorithm. As a result, the SCP algorithm ensures the processes and transactions are secure.

Lastly, the XLM price is expected to hit $2.50 by the end of 2022 and $7.50 by 2025. This forecast reveals Stellar’s potential and long-term growth. It should be noted that  Stellar is unique because due to upgrades that support the flexibility of applications. In addition to this, Customer-based applications are fast and easy to use.