What is Stellar Lumens (XLM)? Everything you need to know about XLM

In 2014, the the network system Stellar was launched by Jed McCaleb – founder of Mt. Gox and co-founder of Ripple, and former lawyer Joyce Kim.

Stellar Platform is an open source, distributed and community-owned network, which allows cross-border transactions between any pair of currencies with a very small cost. Stellar aims to be an open financial system that gives people of all income levels access to low-cost financial services.

Stellar can handle exchanges between fiat-based currencies and between cryptocurrencies. Stellar.org, the organization that supports Stellar, is centralized like Ripple and meant to handle cross platform transactions and micro transactions like Ripple. However, unlike Ripple, Stellar.org is non-profit and their platform itself is open source and decentralized.

One lumen (XLM) is a unit of digital currency, like a bitcoin. The native token of Stellar network is Lumens (XLM). Through the use of Lumens (XLM), users can send any currency they own to anyone else in a diffirent currency. Stellar can also support other tokenized assets on its blockchain.

Stellar is the network payment and Lumens (XLM) is the cryptocurrency. Both are overseen by a non-profit organization called Stellar.org.

Main features

  • Stellar is an open source, distributed and community-owned network used to facilitate cross-asset transfers of value.
  • In addition to Lumens (XLM) – the native token of Stellar network, other tokens can be created on the Stellar network. Like Ethereum, the Stellar blockchain can be a “home” other token types. Because tokens being able to be issued, exchanged, and transferred via the Stellar Network, Stellar is one of choices for ICOs outside Ethereum, TRON…
  • Like Ripple, Stellar can handle exchanges between fiat-based currencies and between cryptocurrencies.
  • Lumens have low fees (each transaction has a small fee of 0.00001 Lumens).
  • The Stellar network has a fast transaction speed comparable to its rival, Ripple.
  • Stellar is secured via the Stellar Consensus Protocol to ensure network security via a decentralized network.
  • Stellar.org is centralized like Ripple and meant to handle cross platform transactions and micro transactions like Ripple. However, unlike Ripple, Stellar.org is non-profit and their platform itself is open source and decentralized. Thus, they have the perk of feeling a bit more like a traditional company who can network with other companies on one hand, but have the open source, distributed, and community owned vibe that Ethereum and Bitcoin have on the other. Some might see this has “the best of both worlds.” Major companies thus far, to the extent that they embraced any cryptocurrency, have generally embraced Ripple and Stellar.

In general then, Stellar and its Lumens are competitive with other cryptos on many levels, but are in direct competition with Ethereum for ICOs and Ripple for being a digital partner for banks and businesses.

This makes Lumens (XLM) a cryptocurrency to watch out for moving forward. Keep in mind though, its low price relative to other cryptocurrencies speaks at least in part not to it being underrated, but to its high supply.

Stellar was originally based on the Ripple protocol and model. This can help us understand why Ripple and Stellar have so many common traits. It isn’t incorrect to say “Stellar is essentially a more open source and decentralized Ripple.”

Stellar is a distributed hybrid blockchain platform that was designed with the aim of making it easier for cross-asset transfer of value at a considerable low price. Lumens (XLM) is the token released as a native asset of Stellar. Lumens serves two purposes:

First, lumens play a small anti-spam role.

Lumens are needed for transaction fees and minimum balances on accounts on the Stellar network in order to prevent people from overwhelming the network and to aid in prioritization.

Each transaction has a minor fee—0.00001 lumens—associated with it. This fee prevents users with malicious intentions from flooding the network (otherwise known as a DoS attack). Lumens serve as a security measure that mitigates DoS attacks that attempt to generate large numbers of transactions or consume large amounts of space in the ledger.

Similarly, the Stellar network requires all accounts to hold a minimum balance of 0.5 lumens. This requirement incentivizes users to declutter the ledger by eliminating abandoned accounts, thereby that ensuring that all accounts are likely to have economic utility on the network.

Second, lumens may facilitate multi-currency transactions.

Lumens sometimes facilitate trades between pairs of currencies between which there is not a large direct market, acting as a bridge. This function is possible when there is a liquid market between the lumen and each currency involved.

Criteria when choosing a Lumens Wallet

Not only Lumens (XLM) but other crypto wallets also need the following factors to ensure the security and good for users.

  • Private key: Defined as a password for you to login to your crypto wallet. And of course, make sure that only you know your private key.
  • Easy to use: Has a friendly interface, especially fast speed.
  • Development community: There is an active development community and long-term support.
  • Backup and security: This is a necessary function when customers want to protect their accounts better and more flexible.
  • Compatibility: The wallet must be programmed to be compatible with the current popular operating systems such as Windows, Linux, mac, Android, iOs.

Make sure the crypto wallet you choose meets the above criteria before selecting. If it does not meet the above requirements, you should consider more carefully.

Lumens (XLM) Wallet

On the website, Stellar.org provides some crypto wallets that support Lumens storage:

  • Desktop Wallets: BlockEQ, Foxlet, Ledger, Stargazer, StellarTerm, Stellarport
  • Mobile Wallets: Blockchain, BlockEQ, Centaurus, Clic, Firefly, Interstellar, Lobstr, Papaya, Stargazer, Stellarport
  • Web Wallets: Astral, Blockchain, Firefly, Interstellar, Ledger, Lobstr, Papaya, Saza, StellarTerm, Stellarport, Stronghold, Smartlands.

Tiktakbtc Platform is a blockchain and cryptocurrency platform that supports buying, selling and storing Lumens (XLM) with Tiktakbtc Wallet and Tiktakbtc Exchange. You can store, buy, sell XLM with VNDT directly on the platform with fast speed, low cost, efficiency and safety and reliability.

  • Minimum balance: Minimum balances help protect the network from the creation of spam accounts. You can fund an account by sending 1 lumen to it. Unfunded accounts cannot establish trust lines; each trust line requires a 0.5 lumen reserve in addition to the 1 lumen minimum balance. To establish trust lines with three anchors, a user must retain a 2.5 lumen balance in reserve, for example: min balance 1 lumens + (0.5 lumens * 3 anchors) = 2.5 lumen reserve.

Therefore, when using Lumens Wallet in Tiktakbtc, you should note: The minimum balance in Lumens Wallet is 3 XLM and each transaction requires a fee of 0.00001 XLM to ensure customer safety, and the lowest limit when making a Lumens transaction is also 3 XLM.

  • MEMO: A memo is a message included with a transaction. This feature of Stellar allows users to communicate with each other on the global public ledger.

Exchanges often require users to include memos with their deposits. This is because exchanges usually only use one or a few accounts for receiving deposits, and they need a way to distinguish one user’s deposit from another. Not including a memo in such cases may result in lost funds. If you are sending funds to an exchange outside the Titakbtc Wallet, be sure to check whether the exchange requires you to include a memo.

When you send XLM to Tiktakbtc’s XLM wallet, you don’t need to use MEMO because every Tiktakbtc user’s wallet is an independent wallet.

  • Transactions: All users can look up details of Lumens (XLM) transactions on the Stellar network at: https://stellarchain.io/

There are something that you have to remember when you make XLM transactions at Tiktakbtc.

  • Minimum balance: Minimum balances help protect the network from the creation of spam accounts. You can fund an account by sending 1 lumen to it. Unfunded accounts cannot establish trust lines; each trust line requires a 0.5 lumen reserve in addition to the 1 lumen minimum balance. To establish trust lines with three anchors, a user must retain a 2.5 lumen balance in reserve, for example: min balance 1 lumens + (0.5 lumens * 3 anchors) = 2.5 lumen reserve.

Therefore, when using Lumens Wallet in Tiktakbtc, you should note: The minimum balance in Lumens Wallet is 3 XLM and each transaction requires a fee of 0.00001 XLM to ensure customer safety, and the lowest limit when making a Lumens transaction is also 3 XLM.

  • MEMO: A memo is a message included with a transaction. This feature of Stellar allows users to communicate with each other on the global public ledger.

Exchanges often require users to include memos with their deposits. This is because exchanges usually only use one or a few accounts for receiving deposits, and they need a way to distinguish one user’s deposit from another. Not including a memo in such cases may result in lost funds. If you are sending funds to an exchange outside the Titakbtc Wallet, be sure to check whether the exchange requires you to include a memo.

When you send XLM to Tiktakbtc’s XLM wallet, you don’t need to use MEMO because every Tiktakbtc user’s wallet is an independent wallet.

  • Transactions: All users can look up details of Lumens (XLM) transactions on the Stellar network at: https://stellarchain.io/

Go to the Tiktakbtc website: https://tiktakbtc.net/en/ and click Login on the top right side.

If you do not have an account at Tiktakbtc, please enter this link: How to Register and Update the account information 

Deposit

Step 1: Click Wallet, click Deposit or you can click DEPOSIT button (green button)

Step 2: Choose Stellar (XLM)

Step 3: You are going to see your address. You can copy your address or scan QR code to send XRP to your wallet at Tiktakbtc.

Note: Your XLM wallet at Tiktakbtc is independent, you do not need to use MEMO at Tiktakbtc.

Withdraw

Step 1: Click Wallet, click Withdraw or you can click WITHDRAW button (yellow button)

Step 2: Choose Stellar (XLM)

Step 3: Insert properly the information about: your addressquantity that you want to withdraw.

After all, click WITHDRAW.

There is a withdrawal notification, insert Google Authenticator code (or not) then click WITHDRAW.

Buy

Step 1: Click Exchange, click Buy/Sell

Step 2: Choose XLM/VNDT, then click EXCHANGE

Step 3: Enter the number of XLM you want to purchase. Then click CONTINUE

There is a confirmation. You will confirm and enter Google Authenticator (or not) then click Buy to finish.

Sell

Step 1: Click Exchange, click Buy/Sell

Step 2: Choose XLM/VNDT, then click EXCHANGE

Step 3: Enter the number of XLM you want to sell. Then click CONTINUE

There is a confirmation. You will confirm and enter Google Authenticator (or not) then click Sell to finish.

If you have any questions in  using services of Tiktakbtc, please feel free to contact with us through: https://support.tiktakbtc.net/hc/vi
We are already to support you anytime. Good luck!

The article is still being developed by Tiktakbtc in order to provide customers with the best information!

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