Stellar (XLM) Review 2020

Stellar Lumens (XLM) is a decentralized crypto-based project that aims to make money move like emails. Its network has attracted the remittances world to move towards a space in which the position of sovereign currencies declined in favor of virtual currencies.

Since launching, Stellar was able to surprise the crypto community by its rapidly-rising partnerships and its cutting-edge tech that is developing day by day.

In our all-embracing review to Stellar Lumens (XLM), we’ll cover all XLM cryptocurrency aspects and give you a close insight into the XLM real value. Let’s head into it.

Stellar Lumens (XLM), a crypto project that is establishing a global financial network. Launched in 2014 by Jed McCaleb, a former co-founder of Ripple and David Mazieres, a professor of Computer Science.

Stellar creators see a lack in the billion-dollar global remittance industry when it comes to the small cross border transactions with the high fees and slow service. To introduce an effective and cheap solution for cross border payments and other financing issues, Stellar is primarily designed to be a distributed payments network that is meant to afford a cheap, fast, and secure cross-border payment solution. The network also can be used as an ICO platform for issuing tokens, which is easier to use when compared with Ethereum.

In the stellar network, users can pay in different currencies; fiat, gold, and XLM with other users, and registering debts of trusted users on the decentralized ledger.

When the payments are completed, the user’s balance will be registered upon the ledger. When users who do not trust each other try to send assets, the network finds a way to start from the beginning to end-user by a network of trusted user pairs. When the payment is finished, all balances along the trust path are stabilized instantly and straightaway.

Stellar is utilizing a network of decentralized servers and a distributed ledger that is updating every 2–5 seconds among whole nodes.

Unlike Bitcoin, Stellar’s network with it’s unique and high-effective consensus protocol that is known as the Federated Byzantine Agreement (FBA) algorithm is able to process transactions too fast.

The FBA algorithm relies on quorum slices (or a part of the network) to validate a transaction, wherein every node in Stellar’s network decides another set of trustworthy (nodes).

When a transaction is approved by all nodes inside this set, this means the transaction is confirmed. That’s what has made the Stellar network greatly fast and able to process 1,000 operations per second.

XLM is the native and common currency of the Stellar network and has several use cases.

The main use is for cheap and fast payments, you can start with creating your account with Stellar’s network, and establish trust lines from your account to another account, in which payment fees (0.00001 XLM).

Other uses of XLM such as a bridging currency for liquidity providing between users or entities who/which don’t have a standard currency to complete exchanges. XLM coin also can be used for trading purposes like any other cryptocurrency asset.

Both Stellar and Ripple are payment networks, were created by Jeb McCaleb, and are widely seen as competing networks. However, there are key differences between the two platforms. While some people falsely claim that Stellar is a fork of Ripple, but in fact, Stellar has its own unique code base, and the two have different philosophies.

Ripple focuses on financial transactions in terms of the institutional side. It has sought partnerships with major global banks to replace global remittance networks. Stellar, on the other hand, is concerned more with individuals. It offers a platform that affirms inclusion and global financial literacy.

After 5 years of development, Stellar has used a model known as Federated Byzantine Agreement to switch to the Stellar Consensus Protocol for its consensus mechanism, while Ripple remains with a protocol that uses a proof-of-correctness mechanism.

Stellar mainly aims at helping unbanked people or who have low-income. Since its inception, the Stellar news has been revealing on new partnerships from time to time.

Today, Stellar has plenty of strategic partnerships, the most important one with IBM, as the Stellar crypto news reported in 2017. The partnership aims to develop a cross-border blockchain-based payment system for large banks.

Therefore, the efficiency of cross border transactions would be positively affected, especially for States of South-East Asia where many domestic helpers cannot afford to send money back home due to the remittance high cost. The program currently deals with 47 currencies and in 72 countries.


  • A decentralized network and open-source code.
  • Transactions confirmation time: 2–5 seconds.
  • Thousands of transactions per second.
  • Fast, secure and inexpensive cross-border payments.
  • Stellar has plenty of partnerships and support from non-profit institutes
  • Enables Multi-signatures and Smart Contracts.


  • The Crypto industry already has some tough competitors to stellar in its chosen space, such as Ripple, Ethereum, and other new alternatives.

Indeed, you can’t mine XLM coins in a similar process to Bitcoin as it doesn’t use the Proof-of-Work mechanism.

To illustrate, Bitcoin’s mining process is going through 3 steps:

1) Creating BTC coins 2) Coins Distributing 3) Verifying transactions across a decentralized system.

Instead, Stellar’s creation can be only with a mechanism called “inflation”, whereas Stellar relies on re-established nodes that validate transactions across a voting system. The rewards of the block are given to Stellar Nodes at a 1% inflation rate per year.

XLM coins also could be distributed to as many people worldwide as possible in a series of the Stellar airdrop processes or giveaways (free Stellar coins) defined in their mandate via a direct voting method.

You can acquire Stellar coins by trading on exchanges, being a recipient of inflation voting, and/or through the Foundation’s XLM airdrop and giveaway programs.

You can buy XLM through the crypto exchanges. Today, the majority of exchanges support trading XLM assets where you can get your XLM coins, but most of them allow you to buy/sell XLM only against BTC, USDT, and ETH.

There are over 30 exchange platforms that provide XLM trading, the most popular ones are Binance, Bitfinex, HitBTC, Ethfinex, Coinegg, OKEx, Bit-Z, Huobi, etc.

You can buy XLM instantly with the ChangeNOW instant exchange tool that provides you a fast, secure, and simple way to buy XLM coins.

Our service supports both cryptocurrencies and fiat with several purchase options swiftly and safely with minimal authentication procedures.

Step 1. From the ChangeNOW home page, choose a currency and enter the amount you would like to deposit. The service will automatically calculate the amount of BAT you will get. Then click on the Exchange button. With the current example, buying XLM for 1,000 USD via Credit Card.

Step 2. Enter your XLM address (where you would like to receive your coins).

Step 3. Double-check your information, then click Confirm.
Remember that all operations are irreversible.

Step 4. After you have confirmed the transaction, complete the purchasing process and you will receive your tokens immediately.

To store your XLM assets, choose a secure and reliable crypto wallet that supports the Stellar coin. You have a wide range of wallet options to store your XLM coins.

But before you jump on a wallet, make sure it is compatible with XLM coins. You can pick one of our list for the best XLM wallets here:

  • Trust Wallet, a secure, user-friendly wallet that supports a great variety of cryptocurrencies, available for Web, Android, and iOS.
  • LOBSTR, Curv, Ownbit and HTC Exodus are also proper wallets that support XLM cryptocurrency.
  • Cold wallets (wallets that are not connected to the internet) such as Trezor or Ledger Nano S, which provide secure offline storage of your cryptocurrency assets.
  • Exchanges’ wallets like Binance, HTC, Exodus,, etc.

The future bears plenty of opportunities for Stellar, as well as some challenges. Among those challenges will be beating the competition in the arena it chooses from Ripple and other platforms such as OmiseGo. When it comes to its aspirations to be a crowdfunding platform, many more challenges may arise.

The competition is not only against Ethereum but also now against new alternatives for crowdfunding such as the Binance Launchpad. However, Stellar is a tough competitor itself, with an impressive feature set and multiple partnerships, among the most noteworthy of which is the partnership with IBM that could help boost the fortunes of Stellar.

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ChangeNOW is an instant cryptocurrency exchange service for limitless crypto conversions. We support over 200 coins and are account-free!