Stellar is a platform that allows you to send and receive money using blockchain technology. It’s similar to Bitcoin, but has some key differences.
What is Stellar?
Stellar is a decentralized network that aims to connect different payment networks. It’s an open source, free platform for issuing digital currency. Stellar has its own native currency called Lumens (XLM).
Unlike most cryptocurrencies like Bitcoin, Ethereum and Ripple which are used as a medium of exchange between consumers and businesses; XLM is used as a way to move money from one country to another quickly and cheaply. XLM can also be used as a store of value since it can be exchanged for other currencies with relative ease.
Stellar was founded by Jed McCaleb who started Mt Gox – the first Bitcoin exchange in 2010 (which later went bankrupt in 2014). He left Mt Gox after disagreements with its management but later developed Stellar in 2014 with Joyce Kim and David Mazieres as co-founders. The company behind Stellar – Lightyear Corp., raised $14 million from investors including Blackrock Inc., Stripe Inc., Founders Fund Partners LP among others during their Series A funding round in October 2018…
How does Stellar work?
The Stellar platform has four parts:
- Stellar Core, which is a decentralized, federated blockchain that maintains the Stellar ledger and manages your account (more on this below)
- Horizon, which is a web-based client that lets you send, receive and trade assets on the network via your browser. It also provides access to a decentralized exchange called SDEX. Horizon lets you see what’s happening in real time as it happens, so if there’s an issue with your account or someone else’s account on the network (like if they sent funds to an invalid address), then you would see it immediately in Horizon.
- SDEX allows users to trade different types of assets—not just XLM—on one platform while still maintaining their own private keys. So unlike many other exchanges where users rely completely on the exchange owners for security and privacy concerns (think Mt Gox), with SDEX anyone can trade any asset they want without having to worry about being hacked due to poor security practices by an exchange owner who may not have been licensed properly by regulators like FinCEN or FINRA (the Financial Industry Regulatory Authority).
Buy XLM on Kucoin
You can buy XLM on Kucoin.
Kucoin is a cryptocurrency exchange that offers a variety of digital assets, including Stellar Lumens (XLM), Bitcoin (BTC), Ethereum (ETH), and Tether (USDT). If you’re new to cryptocurrency markets, check out our guide on how to get started with KuCoin.
How to securely store XLM
There are several ways to securely store your XLM. The most secure way is to use a hardware wallet like Ledger or Trezor, but if you don’t want to spend money on the device, there are other options. You can also use a software wallet or desktop wallet, which are free and easy to set up.
If you opt for a mobile or paper wallet, however, make sure that they come from an official source (and not just any random website). With a web-based wallet like Coinbase’s Stellar account app, all of your funds are stored in one place—your browser—so it could be vulnerable if someone hacks into your computer by gaining access to your cookies or passwords.
Stellar XLM aims for faster cheaper transactions with less energy consumption
Stellar XLM is a cryptocurrency that aims to be faster, cheaper, and more efficient than traditional financial services. It was inspired by the Ripple protocol; however, unlike Ripple, Stellar uses a consensus protocol called “Stellar Consensus Protocol.”
Stellar was founded in 2014 by Jed McCaleb (who also founded Ripple) and Joyce Kim. The team has grown significantly since then with over 400 employees today. As of January 2019 there are around 100 million active wallets on their network with an average daily transaction volume of $2 billion USD per day (Source: CoinMarketCap).
As you can see, Stellar XLM is an exciting project with a lot of potential. We hope you now have a better understanding of how it works as well as its advantages over other cryptocurrencies. If you’re interested in learning more about Stellar we recommend reading our guide on buying XLM on Kucoin or checking out our buying cryptocurrency page for more information on how to purchase other currencies from exchanges like Bittrex or Poloniex.
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