Is Stellar (XLM) a Good Investment?

What Is Stellar (XLM)

Stellar is a blockchain network that allows users to make decentralized payments through its native currency: Stellar Lumens. It is popular due to its low fees and how fast each payment is executed.

This platform was launched in 2014, and since then, it has become a solid and established network with several important partnerships and thousands of users.

The History of Stellar

Stellar was founded by Jed McCaleb and Joyce Kim, two business partners who already had some experience in the crypto world and decided to join and create this fantastic blockchain project. McCaleb had previously participated in the Ripple and Mt. Gox projects, but he decided to leave them due to several conflicts with his cofounders.

Moreover, the Stellar team is also responsible for the Stellar Development Foundation, which is meant to support all organizational and maintenance activities behind Stellar and its company.

How Does Stellar Work?

Stellar’s blockchain works a bit differently than other platforms. It has a unique algorithm that keeps track of all transactions and the ownership of each account and token registered under the network. This is done through a ledger that’s sure to store all information on the platform, including each user’s current balance and pending operation.

The information is updated every five seconds and sent to the entire network. Moreover, all transactions need to be validated by the computers in the Stellar network before being executed. These computers are scattered all over the world, and anyone can create one by simply installing the Stellar software on their computers.

It is vital to set up this software, as it allows your transactions to be executed much faster. In addition, you only have to pay a 0.00001 XLM fee. Keep in mind that the fee may rise depending on the current network activity, but it is always going to be relatively cheap.

Stellar (XLM) Price Prediction

Before investing in a cryptocurrency, another critical aspect to keep in mind is how much it is expected to grow in the near future. Therefore, we analyzed several price predictions made by experts in the field and determined that in 2022 the average XLM rate might be around $0.21.

Moreover, it shows a significant price rise in 2023, in which it is expected to reach an average of $0.38.

Is Stellar Worth Buying?

Stellar isn’t as popular as other cryptocurrencies, such as ETH and BTC, so many people don’t consider it a serious investment option. However, its team has been working towards creating a cryptocurrency that can be used in the real world. It has been establishing partnerships and making its network grow as much as possible, so many users have started to notice the potential of XRP.

However, you should remember that stellar is a cryptocurrency, which makes it a volatile asset to invest in. Therefore, there’s no guarantee of success or profit when investing in it. Moreover, many people have pointed out that Stellar works somewhat similarly to Ripple, but the latter is much more popular.

Still, no one can tell you whether you should invest in Stellar or not. The best advice we can give you is to do your own research and determine if Stellar is a good addition to your portfolio. Nonetheless, blockchain technology is always a good investment, and Stellar seems to continue to grow every day.

Stellar Forecast

Stellar’s future is quite promising. Its team works very hard to develop its platform to create a developing economy for those who can’t get access to bank loans or other similar services, which is why they don’t charge a subscription for those who want to use the platform.

Moreover, it supports a distributed exchange mode that’s meant to handle payments in several currencies at once. This allows traders to hold their assets in a determined currency and send payments in another currency. The platform automatically does the forex transaction for the other user to withdraw, just like any regular banking institution.

This is known as cross-border transfer, which helps traders connect several entities and wallets. Moreover, Stellar charges as little as possible to make its platform accessible to anyone who needs to use it. In addition, Stellar keeps upgrading its services and establishing partnerships that bring more value to its native currency, so most experts expect it to grow throughout the years.

Where to Buy Stellar (XLM)

Now that you know the overall features of Stellar and how it works, you’re probably interested in learning how to get this interesting cryptocurrency. That’s why we created the following list of the best exchanges and methods through which you can obtain Stellar.

Coinbase

Coinbase is a trading and investing platform that features several cryptocurrencies and other assets for users to buy and sell whenever they please. It is pretty easy to use for all types of traders, as its interface is pretty intuitive, and it features lower crypto prices if you use the Pro version.