Stellar is an extensive open source platform based on a public and distributed blockchain network with its own cryptocurrency called Stellar Lumens (XLM). Stellar was originally created on the Ripple protocol, but later its own development was created. It was conceived as a “killer” of Ripple: create a copy of the protocol, but without flaws. The project is being developed by the American non-profit corporation Stellar Development Foundation (SDF), headquartered in Delaware. Stellar claims to be platform that connects banks, payments systems, and people. Like Bitcoin and Ethereum, Stellar relies on blockchain to power the network, but the result is a much faster, cheaper solution. Stellar looks much more promising in comparison with Ethereum due to independence, decentralization and other advantages. The speed of a transaction in the Stellar network is about 5 seconds, thousands of transactions can be carried out every second. The market capitalization of Stellar for 2017 was over $523 million. The XLM cryptocurrency payment asset can be bought on most of the world’s cryptocurrency exchanges. Traders can buy Stellar on such exchanges as: Binance, Bitstamp, EXMO, WEX and others, as well as trade CFDs.
How Stellar System Works
Stellar system is an open source decentralized network that aims to make cross-border settlements fast, cheap and easy. Transactions on the Stellar network are added to the general distributed public registry, which is essentially a database accessible to anyone in the world. Stellar has its own system and has its own copy on many servers around the world, which gives Stellar additional decentralization. Experts in the field of information technology highly rate Stellar. The platform is positioned as a competitor to Ripple, but Stellar has its own platform and technology that is different from Ripple. But the projects still have a lot in common. Project networks have different bandwidth. Stellar has 1,000 transactions per second, and Ripple has 1,500 transactions per second. Let’s take a look at all the key benefits of this system:
- Implementation of decentralized work of the platform based on open source;
- Support for all cryptocurrencies and synchronization of work with banking systems;
- The ability to work with any type of currency within the Stellar Lumens platform;
- Stellar is capable of processing about 1000 operations per second, while the confirmation time is less than 5 seconds;
- Guaranteed security of transactions due to cryptographic encryption;
- The ability to convert any currencies in the Stellar system;
- More than Ripple has a number of different technical capabilities;
- Compatibility with other instruments of the modern financial market.
Main Benefits of Stellar CFDs
Like other cryptocurrencies, traders can trade on the rates of Stellar on Forex markets. According to many experts, Stellar Lumens is one of the most promising cryptocurrencies and is of great interest to potential investors. Stellar functions similarly to Bitcoin and other coins. Compared to Bitcoin, whose network runs exclusively on BTC, the Stellar network is a decentralized system that is exceptionally well adapted for transparent and efficient trading of any kind of currency. Due to the large number of advantages of the platform, it is already used by a fairly large number of large companies, including IBM, Deloitte, Tempo, Parkway. The system is convenient in that it allows you to send funds in one currency, for example, in US dollars, and can receive them in another currency with the help of partners scattered around the world. Trading CFDs on cryptocurrencies allows for leveraged trading and provides higher liquidity. Many investors trade Stellar through CFDs.
It is advisable to start trading on the hourly chart, in accordance with the trend movement of the market, while it is advisable to use support and resistance lines and various technical indicators that help establish the direction of the trend. You can trade breakout strategies, they are quite effective. For all beginners, it is recommended to start trading cryptocurrency on a demo account, since this asset is quite specific and has many different features.