If you are popular with several cryptocurrencies, then you must have heard about Stellar as well. Stellar is not very popular crypto but it is surely a coin that you should have in your portfolio. For all those people who have very little knowledge about Stellar, this blog will help you understand more. You will also be able to understand what are its pros and cons. All this information will together help you to decide whether you should invest in Stellar or not.
What is Stellar?
Stellar or otherwise called Stellar Lumens is a cryptocurrency and also a blockchain network. This cryptocurrency was founded in the year 2014 by Joyce Kim and Jed McCaleb. If you wish to understand it in a much better way, then Stellar is the actual blockchain, whereas Lumen is the token. The token Lumen is denoted as XLM. You will be able to find this cryptocurrency with this token name on the brokerages or crypto exchange platforms.
The basic or the main reason for the creation of Stellar is, it facilitates the creation, trading, and selling of digital money, fiat currency, and cryptocurrencies of all forms. With Stellar, you will be able to perform cross-border transactions with ease. Crypto trading and exchange will become much easier with Stellar. If you are interested in the crypto investment you must know about ideal features for an Android Bitcoin wallet.
Pros and Cons of Stellar:
Let us have a look at some of the important pros and cons of Stellar cryptocurrency.
Pros of Stellar:
Not many Novice investors know how important is trading volume. When the volume is high, that means traders are investing in that cryptocurrency. The trading volume of Stellar was very high in May. So, that shows that it is going to increase in the future as well.
Another important pro about Stellar cryptocurrency is there are no controversies. Ripple and Stellar are very much related to one another. It is Jed McCaleb who was the co-founder of both these cryptocurrencies. There are very few differences between these two coins as they are almost the same. But Ripple has always been in controversies. So, having no controversies is a positive aspect that gives you a reason to invest in it.
Another important point that you need to consider when talking about the pros of Stellar is its faster transactions. If you look at the official numbers, then the Stellar website says that it performs millions of transactions in one day. It can process one thousand to five thousand transactions per minute. So far, the total number of transactions performed on the network is more than 450 million, for five million accounts, since its launch in 2015.
Another pro about Stellar is the transaction fee. The transaction fee is quite less and that is surely an advantage for people transacting on this network. It is less than even $0.000017. That helps you understand how low is the fee.
Not all cryptocurrency exchanges have all kinds of cryptocurrencies for trading and investing. But when it comes to Stellar, you will be able to find it on most of the exchanges. That is an added advantage.
Cons of Stellar:
Ripple gives a tough competition:
Ripple is a widely accepted cryptocurrency and there are a lot of financial institutions that use this network for daily financial operations. Despite there being so many similarities between Ripple and Stellar, Ripple is still leading.
The symbol or the token symbol of the cryptocurrency is used to identify any cryptocurrency. BTC, LTC, or ETH are very popular tokens or token symbols. They don’t need any kind of introduction. But if you look at XLM, it is not as popular as the ones listed earlier.
If you look at the team of Ripple and Stellar, Stellar has a very small team. That means, its competitor Ripple can market better and develop better. That means, the chances of adoption are more for Stellar when compared to Ripple.
So, this was some useful information about Stellar, its pros and cons. Now weigh the pros against the cons and make a decision whether to invest in Stellar or not. Stellar may not be very popular today, but is a good coin to consider for future investments.