The finance, banking, and tech sectors have all been whipped into a frenzy over the last year by cryptocurrency. Some believe it is the most important technological invention since the internet, while others think it is a fad that will be nothing but a memory in 10 or 15 years. While researching various cryptocurrencies, you may consider the question, “What is XLM?”
XLM is the currency symbol for Stellar Lumens, one of the most intriguing cryptocurrencies of today that is backed by some major players in tech and business. It’s considered similar to Ripple (XRP) because of its focus on banking and finance, but Stellar is a different animal.
What Is XLM?
Without diving too deeply into the technical aspects of the coin, Stellar is a platform that was designed to facilitate the transfer of funds instantly, anywhere in the world. Through the use of their XLM cryptocurrency, the Stellar network is able to facilitate even multi-currency transactions.
How can XLM be used?
There are several exciting use cases for XLM:
- Microtransactions. Right now the cost of making small transactions can be cost-prohibitive, which is why you see things like credit card minimums at your local store. With Stellar, a fee of $0.01 is enough to handle 600,000 transactions. This would allow merchants who sell low-dollar items to not have to worry about the cost of selling their goods.
- International money transfer. Sending currency to a recipient in another country is an arduous process that involves several layers and lots of fees. With Stellar, transactions can happen instantly. Stellar uses its native lumen asset to move money from one currency to another.
- Mobile money transactions. Platforms like Venmo and Cash are popular apps for easily sending money to other people. But these apps are simply more convenient forms of the current banking and money transfer systems. Stellar is already being used for this purpose in Nigeria.
As developers continue to learn more about the network, it is doubtless that more use cases will be created.
Who supports XLM?
A few of the major names that are either planning to work with XLM or already are include:
These companies are using Stellar to do things like reduce transaction costs, transfer money between departments, and move currency between business units in different countries.
How to purchase XLM
To buy XLM if you live in America, you’ll first need to purchase Bitcoin, Ethereum, or Litecoin using Coinbase. From there, create an account on the Binance exchange and send your cryptocurrency to your Binance wallet. You can then convert your coin into XLM.
Though there are many exciting coins in the crypto space, few of them have the kind of bright future that Stellar lumens should be set for. With huge names supporting its development, lots of practical use cases, and a high level of public interest, Stellar could be one of the key cryptocurrencies in the coming years.
Want to learn more about today’s most promising cryptocurrencies and how to buy them? Check out our recent guide on purchasing Ripple (XRP).