The Stellar Lumen is currently the sixteenth best altcoin judging by total capitalization. It indeed must have popped up in your recent surfing across the internet. However, while its position looks strong, the value of the coin has decreased. This has left investors bothered, with most asking whether it’s beneficial to go through with an XLM exchange now.
In this article, we’ll look at the basics of Stellar Lumens to help you determine your next course of action on the coin, as well as check out the best place to exchange it smoothly.
What Is XLM?
Created by the Stellar Development Foundation, XLM is a coin that serves as a token of transactions on the Stellar network — a decentralized blockchain system connecting payment systems, banks, and people to reduce transfer costs and facilitate cross-asset value transfer.
The XLM is like any other virtual coin. It can be used for payments, but only on the Stellar network. Traders on the network can exchange their BTC for XLM to facilitate trade.
Other important XLM features:
- Blockchain: Its blockchain network is aimed at decentralizing every transaction. Like all other public blockchain systems, all purchases and sales are recorded in an online ledger, which anyone with an internet-enabled computer can access.
- Anchors: These are entities on the Stellar network entrusted with the responsibility of holding deposits and crediting depositors’ accounts. They are considered the on/off ramps of the XLM network. Anchors are responsible for cross-border payments.
- Multi-currency Transactions: With Lumens, international currency exchanges are more accessible and faster. For example, you can send cash to Russia from the USA without batting an eyelid. This is done through a direct or indirect exchange or a conversion chain. Anchors facilitate Multi-currency transactions.
- Stellar Lumens Wallet: XLM can be stored across various types of wallets. Third-party wallet options for the coin include hardware wallets, downloadable wallets, and web wallets.
- Mining Process: Stellar operates the Stellar Consensus Protocol instead of Proof of Work. It cannot be mined.
Benefits and Drawbacks of Stellar Lumens (XLM)
Benefits
- It can be fully integrated with banks
- Allows transactions to be processed in multiple currencies
Drawbacks
- Not highly recognized
What Is an XLM Wallet?
An XLM wallet is a resource for holding your keys until you’re willing to have an XLM to BTC exchange or vice versa. It’s the bank for your Lumens!
Storing keys in an XLM wallet is very easy. Just settle for one and copy your wallet address, which is where anyone who intends to send you Lumens will send them to.
Types of XLM Wallets
- Hardware XLM Wallet: This is an offline wallet that stores your key. It is protected by an HSM (hardware security module).
- Web XLM Wallet: These are online wallets accessible from your browser.
- Downloadable Wallet: This is a wallet that can be downloaded for use. It negates the need for web wallets.
Steps to Exchange XLM for BTC on Godex.io
Visit the Godex.io homepage and follow these instructions:
- Choose the two coins to exchange.
- Put in your wallet address.
- Deposit and wait for confirmation.
- Finish.
Summary
The Stellar Lumen is a promising coin, no doubt. While it may have lost a little bit of value, it’s yet to reach its peak. However, should you choose to sell your Lumens, you can use the XLM for BTC exchange at Godex.
