Stellar is one of them. It is the 8th largest cryptocurrency having a market cap of $11 billion and hence, became the hot topic among investors. This article will explain all the basic facts about Stellar.

What is Stellar XLM?

Stellar is another cryptocurrency such as bitcoin, litecoin, ethereum, etc. It was created to facilitate the financial payments across borders. The unit of Stellar is Lumen and denoted by XLM coin.

XLM cryptocurrency is an open source decentralized platform. Stellar is created as a financial payment platform and using lumens, one can transfer money across borders easily with a very small transaction fee. This process is quick and reliable.

History of Stellar:

Stellar was developed in 2014 by Jed McCaleb, who was also the co-founder of Ripple cryptocurrency. Jed had differences in functional approach with the other founders and he then planned to launch Stellar as another cryptocurrency.

Stellar is aimed at facilitating financial transactions among users whereas Ripple was mostly focused on providing banking solutions.

When the whole network of stellar was started, 100 billion lumens were created by the team. Stellar is managed by the Stellar Development Foundation (SDF). It is a non-profit organization based in Delaware. Stellar has announced a list of partners such as IBM, etc which will be using Stellar in all their cross-border financial transactions.

How Does XLM Stellar Work?

One can make a transaction using lumens and transaction fees cost only .0001 XLM. This is a very small amount of fee charged which makes Stellar different from other cryptocurrencies. Also, a lumen transaction gets settled in as fast as 6 seconds only.

Another concept in Stellar is of anchor partnerships. Anchors are entities which provide the line of credit to the people who are willing to use Stellar network.

For example, if you want to send money to any of your friend in US. You can transfer the equivalent amount in Indian rupees of any of anchors in India. The anchors then transfer the amount in lumen to those based in US which in turn will transfer dollars to your friend in US.

This will result in fast transactions and it will cost less than a penny.

Characteristics of Stellar:

  1. Stellar can be used to make transfer across the world in an economical way. The transaction cost is less than a cent and transfer of money can be completed using different foreign currencies
  2. In today’s fast-moving environment, Stellar provides facilities for micropayments. It provides efficient financial transactions.
  3. XLM can be integrated into the business operations. However, the technical team will need to set up the databases and codes accordingly.
  4. Also, stellar is considered more friendly among third-party developers. Friendly here represents the smooth functioning and ease of networks.
  5. Stellar is focused on individual users.

XLM Stellar Rate Charts:

The price movement for Stellar has been very volatile which makes it a very risky investment. Stellar has made to the top 10 cryptocurrencies in the first few days of 2018.

It has become the 8th largest cryptocurrency in terms of market cap.

The performance graph of stellar has shown an upward trend. But investors should be aware that the top 10 cryptocurrencies list is changing rapidly due to this cryptocurrency revolution.


The XLM price in INR is Rs. 47.18

Price $0.626240
Market Cap $11,197,248,092
Volume $199,189,000
Circulating Supply 17,880,122,783
% Change (in last 1 year)  1398.08%

Should I invest in Stellar XLM?

Seeing the upward trend and the future technology, one can plan to invest in stellar coins but it depends on the risk appetite of an investor.

Investors and users should be aware that there is a lot of risk in this digital currency as the prices can fluctuate at a very rapid level and they can easily lose out the complete value of their investment.

The legal status of cryptocurrencies varies from country to country and still undefined. Most of the instances have occurred when online crypto cash has been targeted by the hackers.

However, considering the volatile values of Stellar and the cryptocurrency market in its infancy, it can turn around into a very risky investment. Also, it is not a legal tender in India.

Risks of Stellar:

Most of the regulators across the world have warned investors dangers and risk associated with cryptocurrencies. They are unregulated, liquid and are more prone to price fluctuations at a rapid level.

Transactions settle or not is very probabilistic and cannot be reported to the regulators and hence, manipulation can occur in the market. Higher prices indicate it a lucrative market for the hackers who are constantly trying to attack investors.

Investors who are directly involved in exchange transactions i.e. using their own account are frequently targeted and prone to lose their capital.

Where Else Can I Invest?

If you want to channelize your hard earned money and accumulate wealth with minimized risk, mutual funds can be considered as a safe investment.

Mutual funds are an indirect way of investing your money. If investors do not have time and expertise to invest in markets, mutual funds are ideal for your investment. They are managed by professional fund managers who have years of experience in capital markets and investments.

If you are interested in high risk investments, you can look at small-cap funds.


Cryptocurrencies market appears to be fascinating to investors in terms of returns but it is at its peak according to economists. It can be a bubble which can burst at any moment, hence investors are advised to select right investment products for their capital such as mutual funds, etc.

Also, Finance Ministry of India has recently announced that virtual currencies are not the legal tender in India. It is a clear and precise statement from the ministry to protect the citizens from hazards of hacking.

According to Finance ministry – “Consumers need to be alert and extremely cautious as to avoid getting trapped in such Ponzi schemes,”.  Virtual currencies are stored in electronic form and are more vulnerable to cyber attacks and can result in loss of money. It is advisable to invest your hard earned money in the right direction.

To start investing in mutual funds easily, log on to Groww!

Happy investing!

Disclaimer: the views expressed here are those of the author. Mutual funds are subject to market risks. Please read the offer document before investing.