Frequently asked questions

The Stellar network was conceived as an open network for storing and moving money. It works by allowing participants to create and send digital surrogates of any currency that they like. This means, effectively, that all of the financial systems in the world can be brought together on the same network.

Lumens is the native currency of the stellar network. It’s used to incentivise the work necessary to make the network function. In the words of the developers, the Stellar network is too easy to use, which means that there needs to be some small barrier to entry to prevent the ledger from becoming clogged with spam.

Each account in the network must therefore have a minimum balance of one lumen, and a transaction fee of a small fraction of a lumen. This prevents bad behaviour from spambots, while still keeping things accessible for everyone else. Rather than using an existing currency, like the dollar, the lumen was created, just to keep things neutral and free from external control.

Lumen and XLM are the same thing — the latter being the ticker name for the former. Stellar is the blockchain protocol through which currencies of all kinds can be transferred, via the Lumen.

Broader trends in the crypto market will inevitably drag the price of XLM up and down. If Bitcoin, especially, experiences bearish or bullish spells, then you should expect to see that reflected in the price of Stellar Lumens.

You can buy Stellar Lumens (XLM) on a crypto exchange.

A crypto exchange (or cryptocurrency exchange) is a marketplace where buyers and sellers trade cryptocurrencies. Just like regular stock exchanges, a cryptocurrency exchange serves as a middleman who sets the market price at which an equal number of buyers and sellers can be found.

Is now a good time to buy XLM? Frankly, we don’t know.

But there are several strategies when it comes to crypto investing. One approach is to buy in when price slips. In the crypto community this strategy is known as "buying the dip" (BTD).

Another strategy is dollar-cost averaging: investing a certain amount of money on a set schedule, say $100 every Monday morning. Dollar-cost averaging seeks to average out the lows and highs over time.

No matter which strategy you choose, Cryptoradar’s price alerts help you to not miss a dip, and adhere to your investment schedule.

There are risks associated with any investment. Crypto markets are particularly volatile, with large upswings and downswings. Only invest as much as you can afford to lose.

When it comes to choosing a crypto exchange, there are also a couple of thinks to be wary of.

Before you can start trading, a crypto exchange will ask you to verify your identity. This is necessary because of anti-money-laundering laws. The verification process and time can differ significantly and take anywhere from minutes to weeks.

All crypto exchanges charge a fee or a spread to finance their operations. Fees can differ significantly among exchanges, so make sure to get a good deal.

Additionally, make sure that your preferred crypto exchange supports the payment methods of your choice, but be aware of any additional payment fees that may apply.

Last but not least, if you’re new to crypto, make sure that your chosen platform is easy to use and has good customer support. This helps you avoid making costly mistakes.

The way that you buy Stellar lumens will depend on the exchange you’re using. Some will allow many methods of payment, others are more particular. You can compare your options, as ever, using Cryptoradar.

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