What Is Stellar Lumens?
Stellar Lumens is a virtual currency that facilitates transitions on the Stellar network - a blockchain-based distributed ledger network. The goal of the project is to connect banks, payments systems, and people and enable affordable, instantaneous transfers of funds.
By design, Stellar is similar to Ripple. But whereas Ripple uses a top-down approach, Stellar uses more of a bottom-up approach. Meaning, the decision-making power belongs to the community. In fact, there is even Stellar Community Fund that gives away money to kickstart Stellar-based projects.
The security of the blockchain is ensured by the Stellar Consensus Protocol. It is an agreement system where verifications of whether the information is true or untrue are done through federated voting. Once participants decide what other participants they trust without restrictions, the latter become trusted validators.
Currently, the Stellar network is capable of processing around 1,000-5,000 orders per second. This is a much higher performance speed than most major currencies.
The network is owned and operated by a nonprofit organization called Stellar Development Foundation. The founder, Jed McCaleb, stated that Lumens XLM Stellar had the potential to make money more fluid, markets more open, and people more empowered in his launch speech in 2014. He remains in the leading position in the foundation up to this day.
How is the price of XLM determined?
There is no specific entity that decides the XLM price. Instead, it’s determined by multiple market factors, from supply and demand to regulations. But if we were to strip down all variables that drive the price change, the biggest one is the coin’s popularity.
It’s no wonder that Bitcoin is so expensive - its market cap is 835.428 billion USD. For comparison, Stellar Lumens’ market cap is close to 6 billion USD. If Stellar improves its service and gains more fame among investors, this will undoubtedly result in a price increase. Speaking of Bitcoin, this leading cryptocurrency also has a significant effect on XLM. When BTC is in a long-term bull market, most cryptocurrencies also experience positive changes, XLM is no exception.
Can you buy XLM without KYC on Changelly?
In some cases, yes. The KYC procedure is not processed by Changelly but by payment systems. Therefore, it’s the payment network that decides if you can skip this step. Before you buy lumens, you will be informed of every step required by the processor.
Can I buy less than 1 XLM?
There is a minimum threshold when you buy Stellar Lumens. And at the current valuation, it can’t be less than 1 XLM (~ 0.26 USD). The smallest order you can make now is 117 XLM, which is approximately 30 USD. As the price of one lumen coin changes, the threshold will be adjusted.
Here is why it’s not reasonable to go lower than 117 XLM. Every transaction is charged with a network fee, which is a fixed amount. If you were to buy a fraction of a lumen, the fee would eat away from your exchanged funds.
What are the fees to buy XLM?
All cryptocurrency exchanges have two tiers of fees - one charged by the blockchain network and one charged by the platform. The network fee goes to miners as a reward for processing and verifying data. This is a fixed amount of 9.5494046 lumens, no matter how many coins are purchased.
The platform fee is harder to pinpoint because we work with many trading partners charging different percentages. As an example, a combined fee of Changelly and Moonpay is 7.5%; for Changelly and Indacoin, it is 10%. But don’t worry - all fees are automatically included in the list of offers.
Where can I store XLM?
Normally, you buy Stellar Lumens on an exchange. But then you have three options for storing your assets: leaving them on the exchange, sending them to an online wallet, or moving them to a hardware wallet. The most common practice is storing your XLM in a hot wallet (the second option). You can expect a decent level of security without having to invest more money into physical devices.
What is the best XLM wallet?
There is no definitive ranking of wallets because different people prioritize different things. But just to name a few, Coinbase, Atomic Wallet, and Stellar Desktop Client are all quite popular options for storing lumens online. You can discover more software options and apps on Changelly’s partner list.
For those who prefer holding their assets in hardware wallets, there are a few options, too. Most users would agree that the selection between Trezor, Ledger, and Exodus is all you need. These are reliable devices, known and used worldwide.
How to cash out XLM?
Before you can turn your cryptocurrency into physical cash, you need to exchange it for a fiat currency digitally. This procedure can be done through Changelly, either on the website or through the mobile app. Locate the ‘Sell’ tab on the main page and follow the steps required by our trading partner Mercuryo. You will receive the fiat currency to your bank card - this was step one.
Step two involves taking your bank card to the nearest ATM and withdrawing cash from there. The process is more or less the same for all standard ATMs.
Can I buy XLM with PayPal?
No, lumens are not supported by PayPal, at least yet. If you’re in the USA, you have four available currencies - Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. You can buy and sell them for USD, as well as hold and use them at check out. Account-to-account transfers are not possible. If you’re somewhere else in the world, unfortunately, cryptocurrency transactions will not be available at all.
The PayPal network promises to work on wider crypto support, bit h in terms of currencies and locations. So, stay tuned for future updates.