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Is Choosing to Invest in Stellar Lumens (XLM) A Good Choice?

Given its potential and benefits, it’s no surprise that many people today are considering the idea to invest in Stellar Lumens (XLM). Some reports have.

Posted August 14, 2020
Last updated August 24, 2022

The logo of Stellar Lumens (XLM) on a white background
The logo of Stellar Lumens (XLM) on a white background

Given its potential and benefits, it’s no surprise that many people today are considering the idea to invest in Stellar Lumens (XLM). Some reports have already suggested if investing your digital assets in Stellar Lumens (XLM) could bring more advantages and profit.

However, as how other cryptocurrency investments work in the market, choosing to invest in Stellar Lumens (XLM) still requires caution and good calculation. One thing you have to prepare, surely to learn all information about this cryptocurrency, from what it is, the way to acquire it, to its benefits and risks that may be involved.

So, let’s start with the basic.

What is Stellar Lumens (XLM)?

Lumens is the native asset of the Stellar network, which is widely known to cryptocurrency enthusiasts. It is interesting that Stellar Lumens tokens have become popular in an instant due to their increasing value. In other words, Lumens are incorporated into the Stellar network, where they take part as a unit of the digital currency. Like Bitcoin and other cryptocurrencies, Lumen cannot be physically stored as in the case of fiat currencies, although users can take advantage of the digital ownership of these assets using the private key.

In 2014, the Stellar network was activated with a capitalization of 100 billion, and in 2015 the capital was renamed Lumens in the framework of the change of the name of the platform. The change process was executed to avoid confusion as the token had the same name as the network, which has caused an excess of questions. However, it can be assumed that the Stellar network does not need its own asset. This assumption is not true as Lumens are intended to prevent the appearance of spam on the network. Also, all Stellar accounts have to have at least 20 XLM on balance to stay active.

Another logo of Stellar Lumens (XLM) on white background

The idea behind Lumens is to facilitate financial operations at a specific time. Lumens can be used as a bridge between different types of currencies that do not have their own direct market, thus bringing a benefit to the Stellar network.

How does it work?

Lumens can be used to simplify blockchain-based multi-currency transactions, without relying on existing markets and gateways. Although it is not their only attribute, this is one of the reasons why people invest in Stellar Lumens (XLM). There will always be a market for these tokens, but they will not always be a speculative asset.

The decentralized network is made up of nodes of a rank that function independently of each other. This means that the Stellar network does not depend on any other organization or legal person. The idea is to have several independent nodes in the Stellar network, which will favor the correct operation of the network, even in the event of the failure of some servers.

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A short history of XLM tokens price

During the first 3 years of the performance of the Lumens token in the cryptocurrency market, it stood out as one of the most stable coins, although it was not a stablecoin. The price of XLM remained oscillating between AUD 0.002 and AUD 0.003 until March 2017, the year in which it began to rise disproportionately and provided investors with a profit margin of almost 50x on the initial investment.

This uptrend was almost in sync with what we could see in other cryptocurrencies such as Bitcoin, ETH, LTC, and more, meaning that the highest peak in XLM price ($0.9) took place at the same time as other significant highs, testing so this event can be repeated if the conditions are met. Coincidentally, this year has shown signs of a new uptrend where we will possibly see XLM being part of it, so investing in Lumens at this time is an excellent idea.

Additionally, the market has already marked a price increase (from $0.07 to $0.15) around the same time that Bitcoin left the $9,000 range behind. In the event that a new lasting uptrend consolidates as in 2017, it would be an excellent opportunity to buy XLM tokens in Australia today and receive juicy profits after the price increase.

The charts that shows Stellar Lumens (XLM) price history
The chart from CoinGecko that shows Stellar LUmens (XLM) price history

Why should we invest in Stellar Lumens (XLM)?

Stellar aims to be a platform that provides access to financial services to everyone around the world, including services for the unbanked. Australian and non-Australian users consider XLM’s main benefit to be its low transaction fees, how fast they can be confirmed regardless of distance and network security. Specifically, transactions take approximately 2 to 5 seconds to complete and verify. In addition, the commissions that are charged for them are usually very cheap.

On the other hand, the Stellar Lumens platform offers high scalability. Currently, the network can handle up to 2000 transaction processes. Although its engineers advance that the network can really scale to 10,000 if services such as Google Cloud Servers are used.

The Stellar network has incentive programs for the community that allows its growth. It seeks to transform real money and not replace it, this allows it to have the support of banks, and not to appear as its competition.

In addition, Stellar keeps records of all XLM transactions in the form of a ledger, which collects information from each of its servers, making such information much more accurate and reliable.

Another reason why people should invest in Stellar (XLM) is undoubtedly the configuration of a development team that has highly qualified professionals recognized in the world of technology. On the other hand, having partnered the weight of IBM is an important advantage over this platform over other options. Last but not least, it must be taken into account that this platform is capable of launching ICOs.

How to buy Stellar Lumens (XLM) in Australia?

If you want to know how to buy XLM in Australia, you have to consider that you are in an excellent place (in legal and technological terms) to acquire cryptocurrencies, especially one like Stellar. You can buy these tokens through an exchange company, obtain them as a form of reward after a job or buy them from a relative or acquaintance.

The front page of Easy Crypto Australia (AU), the place to buy Stellar Lumens (XLM), Bitcoin (BTC), and other cryptocurrencies in Australia

Considering that not everyone works in the crypto ecosystem, the most practical option is to register on a local exchange platform such as Easy Crypto Australia (AU), where you can register an account and verify it with KYC procedures to buy cryptocurrencies.

Easy Crypto AU has a considerable list of available tokens and unlike other platforms, you do not have to deposit in cryptocurrencies, as it also accepts purchases in AUD through bank wire transfers. Investing in XLM had never actually been so easy.

Are you ready to start investing in Stellar Lumens (XLM)? Do not hesitate to contact Easy Crypto team for further information about XLM tokens or other cryptocurrencies.

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Disclaimer: Information is current as at the date of publication. This is general information only and is not intended to be advice. Crypto is volatile, carries risk and the value can go up and down. Past performance is not an indicator of future returns. Please do your own research.

Last updated August 24, 2022

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