What is Stellar and how to convert Bitcoin to Stellar?

Blockchain has been the subject of talk over the last few years, and curiosity about the benefits of blockchain is increasing every day. Cryptocurrency investment opportunities are becoming more visible and worthwhile to consider. Almost every virtual currency is backed by blockchain technology. It is believed that the Blockchain will revolutionize global financial infrastructure.

In terms of investment, a number of private investors and corporations are seeing virtual currencies as a potential source of profits. To be able to analyze a cryptocurrency for investment purposes, you must know what the different cryptocurrencies compete on. As compared to previous blockchains, all emerging platforms are betting on three winning combinations: reduced transaction costs, increased transaction speeds, and increased scalability.

Identical to blockchains, Stellar seeks to overcome issues such as scalability, security, decentralization, and high speed, with low transaction fees. It is intended that this article will enhance your knowledge of Stellar cryptocurrency and assist you in converting bitcoin to Stellar coin.

What is Stellar?

Stellar is considered a payment protocol based on the distributed ledger technology. It allows companies and individuals to benefit from quick cross-border transactions between any pair of currencies. In several ways, it is similar to other blockchain-based digital currencies. Stellar blockchain is a platform that connects payment systems, banks, and people to move money reliably, quickly, and at almost no cost.

Stellar Lumen (XLM) is the native virtual currency of Stellar which powers the entire range of operations on the blockchain network. When Stellar Network was established, 100 billion XLM Lumens were created. The only alternative mechanism for the creation of Stellar Lumen is inflation, as the annual inflation rate is 1% on the Lumen creation rate to account for lost Lumens and economic growth. The newly created Lumens are generated almost every week and distributed through the direct voting method.

In simple words, the Stellar network refers to the distributed ledger technology that facilitates efficient financial transactions. The technology is distributed, open-source, and community-owned. Plus, it is important to know the difference between the Stellar development foundation and the Stellar network. The Stellar development foundation is an NPO (non-profit organization) that contributes to the development of tools, contributes to financial inclusion and social initiatives around the Stellar network.

What is the Stellar Ledger?

The Stellar Ledger is considered a representation of the entire network at any given point in time. Like other traditional ledgers, the Stellar ledger also holds a list of the exchanges and balances of every account on the network.

As the stellar network is decentralized, there is no need for a middleman or a third party. Instead, each transaction on Stellar’s network needs to be verified by the network’s participant, also known as nodes, before it is recorded on a public ledger.

The ledger is not hosted on one single server but is recorded on any server that is capable of running Stellar software. The servers validate and sync the ledger through a process known as consensus.

Key features

Stellar facilitates its users with some amazing features that are rarely being offered by other blockchains. It supports a distributed exchange mode, which allows users to send payments in specific currencies even if they may have held credit in another and the network automatically performs the forex conversion. The receiver can easily withdraw their currency equivalent through a bank or any other partner institute.

Furthermore, Stellar makes it possible to trade, create, and send digital representations of all forms of money, like Bitcoin, Dollars, pretty much anything. Stellar has the ability to connect all the world's financial systems together on a single network. This would encourage the use of digital currencies and create such an environment where fiat and crypto both versions of currencies hold significance.

Stellar network excels in the leading traits of a true blockchain platform as Stellar database is open-source and decentralized. Unlike other blockchain protocols where due to scalability issues, transactions take plenty of time to process the transaction, Stellar network ensures transaction confirmation time within 3-5 seconds which is facilitated by its consensus mechanism. The network holds the capacity to process thousands of transactions per second. It also enables smart contracts and multi-signature. Plus, it has a fixed annual inflation rate which is only 1%.

What exchanges support Stellar (XLM)?

XLM is one of the most growing cryptocurrencies in the growing market and available on multiple exchanges. There are thousands of exchanges in the market that offer a wide range of digital currency on their platform but not all of them are good enough to be trusted.

How to convert BTC to XLM?

The best place to exchange BTC to XLM is Swapzone, where you can benefit from multiple operations on a single platform. Traders and crypto users who are looking for a highly credible platform to exchange BTC to XLM should consider Swapzone as the best option available, as the platform provides a transparent, progressive, and accessible swap service.

This cryptocurrency exchange allows you to browse through the available services and compare the real-time exchange rates of several currencies on a single platform. Swapzone facilitates you with more than ten service providers and an excellent choice of more than 400 assets. The assets are custom-free and do not require any sort of registration.

The platform functions in such a way that it lets you know the calculated exchange rate time and directly facilitates you with exchange rates from the service providers. All of this contributes to enhanced feasibility and usability for the users, hence it is recommended to try Swapzone for the best rates and crypto conversion services. Simple and easy steps to convert BTC to XLM are mentioned below.

  1. Go to Swapzone site to get your work started.
  2. Select the digital currency that you would like to exchange.
  3. Carefully specify the total amount you are going to transfer.
  4. Select XLM in the “Get Up To” section.
  5. Review the offers shown on screen. You will find several offers with the best rates listed at the top. The minutes required to complete the exchange are also visible on the screen.
  6. Confirm the offer you are willing to utilize and then enter the address to receive the XLM currency.
  7. List the address that would take the currency you are exchanging.
  8. Confirm the trade to complete the transaction.

Conclusion

Stellar is becoming popular in the mainstream crypto market and attracting the attention of investors and traders all around the world. It would be wise to manage your risk by attaching stops and limits to your position while trading Stellar. There are several factors that can influence the price of Stellar (XLM) in the future, such as public perception, XLM supply, popularity, and mainstream adoption.