A lot of different cryptocurrencies were created after the successful release of Bitcoin. One of these cryptocurrencies is the Stellar Cryptocurrency. Some reviews even claim that Stellar is more successful than Bitcoin due to its higher gains.
In the year 2017, Stellar was one of the high-performing cryptocurrencies and has continued its excellent performance up until today.
Stellar is giving a more productive option for those who love to invest and wants to choose an alternative for Bitcoin. Below are the descriptions and the advantages of investing in Stellar.
What is Stellar?
Stellar is a technology that has an open-source payment feature that is closely similar to that of Ripple. In fact, the founder of Stellar, Jed McCaleb, is also a co-founder of Ripple.
Stellar works like Ripple as both their goals is to provide a payment technology that will allow connection between financial institutions while reducing the time and cost of transfer. To begin with, both of these Cryptocurrencies used similar protocols. However, in the year 2014, Stellar’s original protocol was replaced with the Stellar Consensus Protocol. Ripple remained as a closed system while Stellar became an open source.
Ripple’s and Stellar’s clients were also different from each other. Ripple is providing service to recognized banking institutions by providing them with a technology that allows them to do cross-border transactions. On the other hand, Stellar gives priority to developing markets and has several uses like bank loan distribution to people who do not have bank accounts and providing money remittance services.
Reasons to Invest in Stellar
- Collaboration with IBM and KlickEx
These two companies that show confidence in Stellar is a good signal for everyone who wants to start investing in Stellar. IBM uses the platform of stellar in creating a global payment method together with other large banks. In fact, there are already 30 banks that are connected with the services of Stellar and IBM.
In addition to that, Deloitte, a consultancy firm, is also a partner of Stellar.
- Stellar ATMs
Litecoin and Bitcoin already have ATMs which is why Stellar is starting to add their ATMs in the market. The first ATM of Stellar was recently exhibited in Singapore during the FinTech Festival in November. You can use the ATM to convert Singaporean dollars into Lumens for your e-wallet.
- Collaboration of FairX and Stellar
Since Stellar is faster and more efficient, FairX has chosen it as their platform to have a significant advantage over Coinbase. With this partnership, Stellar’s name has been making quite an impression on the market. People became more interested in investing in Stellar after this news.
- Fast Transactions and Zero Costs
One of the most significant advantages of Stellar is its zero-cost transactions that can be completed in a matter of seconds. Stellar is a non-profit organization, but they still accept donations of at least 5% from the initial Lumens. The 5% donation will be used for the organization’s operational cost.
Investing in Stellar or other cryptocurrencies comes with risks. With that being said, read and understand the rules about the cryptocurrency you are planning to purchase. A cryptocurrency like Stellar might be reliable because it has various, well-known, and legitimate business partners.