Stellar (XLM) is an open-source, decentralized payments network that uses blockchain technology to facilitate fast, low-cost, and secure cross-border transactions between any currency pair. It supports digital representations of all currencies and has its own native token, the lumen (XLM), which is required for network transactions and account maintenance.
Stellar (XLM) is used in several key ways within the Stellar network:
Transaction Fees: XLM is used to pay for transaction fees on the Stellar network. Each transaction has a nominal fee, currently set at 0.00001 XLM, to deter spamming the network with frivolous or malicious transactions.
Bridge Currency: XLM can function as an intermediary currency in transactions between different currencies on the Stellar network. This feature is particularly useful in cross-border transactions where there might not be a direct market between the two currencies involved.
Network Security: To open an account on the Stellar network, a minimum balance of 1 XLM is required. This requirement is intended to prevent ledger spam and ensure that all accounts on the network are genuine.
Liquidity Provider: In the Stellar decentralized exchange, XLM can be used to trade against all other forms of currency or tokens issued on the network. This makes XLM a key liquidity provider, enabling users to convert between different assets easily.
Access to Financial Services: XLM enables access to financial services on the Stellar network. This includes payments, remittances, and micropayments, among others. By using XLM, users can engage in financial transactions that are faster and cheaper than traditional banking systems, especially in underbanked regions of the world.
To store Stellar (XLM) tokens, you have several options:
Hardware Wallets:
- Ledger: Open the Stellar (XLM) app on your Ledger device, navigate to the Wallet tab, and manage your tokens from there.
- Trezor: Use the Exodus desktop wallet as an intermediary to connect your Trezor Model T to the Stellar network.
Digital Wallets:
- Lobstr: A hot wallet option for storing XLM tokens.
- Nexo: A digital wallet that allows you to earn interest on your XLM tokens.
Stellar Network:
- You can also store your XLM tokens directly on the Stellar Network, which is considered the most secure option.
When choosing a storage method, consider factors such as the quantity of tokens you have, your risk tolerance, and the level of security you need.
To buy Stellar (XLM) tokens, follow these steps:
Create an Account:
- Open an account on a cryptocurrency exchange like Binance, Coinbase, or MoonPay.
- Verify your email address and identity by providing photo identification and other required documents.
Deposit Funds:
- Deposit funds into your account using a payment method such as a bank transfer, credit card, debit card, or cryptocurrency.
Buy Stellar:
- Navigate to the exchange's trading platform and select Stellar (XLM) as the asset you want to purchase.
- Enter the amount of XLM you want to buy, either in terms of the fiat currency or the number of XLM tokens.
- Confirm the purchase and wait for the transaction to process.
- Store Your XLM:
- Once the purchase is complete, you can store your XLM tokens in a personal crypto wallet or leave them in your exchange account for trading or staking.
Remember to research the fees and risks associated with buying and holding XLM tokens before making a purchase.
