Stellar is an open-source, decentralized payment technology that aims to provide a bridge between users and financial institutions. The network was founded in 2014 by Jed McCaleb – the co-founder of RippleNet – as a non-profit organization called the Stellar Development Foundation. The Stellar protocol aims to provide financial services to those who previously had no access to banking. So how do you earn Stellar? Please check the following ways to earn Stellar.
How to Earn Stellar (XLM) – Trading
1. Decide how you want to trade stellar
There are two routes to taking advantage of changes to stellar’s value: buying it, or trading on its price movements.
When you buy stellar, you would pay the full value of XLM upfront, in the expectation that it will increase in price and you can profit from the market movement. You would buy stellar through a cryptocurrency exchange, which can be a lengthy process as you may have to join a waiting list in order to open an exchange account.
When you trade on stellar’s price, you do not take ownership of the underlying coin, but speculate on its price instead. You can do so by using a leveraged trading account. This means that you only need to put down a small deposit – known as a margin – in order to receive full market exposure. Although leverage can magnify your profits, it can also magnify your losses, so it is important to be aware of the risks involved.
2. Develop a trading plan and outline your strategy
Before you start to trade stellar, it is important to outline a trading plan that will help you to maximize your profits and minimize your losses. Your trading plan should always be unique to you, but on the whole a good trading plan will include:
Goals. Your plan should outline exactly what you are hoping to get out of trading. This should look at daily, weekly and monthly targets
Markets. Whether you will just be focusing on trading stellar, or looking at a range of other markets, your plan should include the list of assets you are interested in or comfortable trading
Risk. It is important to outline a risk profile for yourself, including how much capital you have available to you and what your risk-to-reward ratio is – this is how much you would need to profit to justify the risk
At this point, it is also important to start thinking about what kind of trading strategy you will employ – this will outline a methodology for establishing market entry and exit points. This would be determined by how much time you want to dedicate to the markets and what style of trading you favour, whether this is day trading, scalping, swing trading or position trading.
3. Create a risk management strategy
Trading stellar does come with risk, especially if you decide to trade using leverage. This makes it important to create a strategy that will help you to manage your risk and protect your trades.
You can mitigate the risk of trading cryptocurrencies by attaching stops and limits to your position. A stop enables you to set a level that your trade will close at if the market moves against you, while a limit sets a level at which your trade will close so that you realise your profits.
4. Open and monitor your first position
Once you have established how you are going to trade stellar, it’s time to open your first position.
When you trade stellar, rather than buying it through an exchange, you have the opportunity to take advantage of markets that are rising as well as falling. You can do this by opening a position to ‘buy’ stellar if you think it is going to increase in price, or a position to ‘sell’ stellar if you think it is due to decline. Your decisions about which position to open should depend on the research and analysis you have performed, and the strategy you have in place.
After you have opened your position – attaching the appropriate stops and limits – it is important to monitor your position’s progress and to keep up to date with anything that could impact the price of stellar.
How to Earn Stellar (XLM) – Crypto Savings Account
If you deposit money into a crypto-based savings account, you can expect to earn interest, but the yield will be in the Stellar (XLM) of your choice. If your goal is to make US dollars, you may not get the result you want.
Getting started with a Stellar (XLM) savings account begins with comparing account providers. Here are some of the factors you might want to consider when you select an account provider:
- Safety: Be sure to research safety first when you compare Stellar (XLM) savings account providers. Because these accounts don’t have FDIC insurance, consider both the financial stability of the company and its cold storage solutions to keep your investment safer.
- Supported coins: Stellar (XLM) savings accounts support a select number of cryptocurrencies — no account provider will allow you to earn interest on every single coin on the market. If you already own Stellar (XLM), be sure that you choose a provider that supports the coins you’re interested in.
- Purchase availability: If you don’t already own Stellar (XLM), you might want to choose an account provider that offers a savings account and market access. For example, Coinbase allows you to quickly purchase cryptocurrencies using a number of purchase methods, and it also providers savings account access.
How to Earn Stellar (XLM) – Staking
Most cryptocurrency exchanges run validators, allowing their customers to stake with them through the exchange’s user interface. They include:
- Binance
- Coinbase
- Kraken
- Bitfinex
- OKEx
- KuCoin
- Okcoin
The process of Stellar (XLM) staking on exchanges is often similar. But exchanges’ staking offerings differ by which cryptocurrencies are available for staking, their fees, and the locking period (if any).
Some exchanges, like Kraken, list staking on their main menu, so it’s easy to find. But others, like Binance, will list it under “Earn,” which also includes other ways of earning passive income from crypto, like lending.
How to Earn Stellar (XLM) – Airdropping
In the cryptocurrency space, already prone to extreme levels of interest by digital money enthusiasts, some of the most-hyped events are airdrops. An airdrop is an event in which a cryptocurrency developer issues free Stellar (XLM) to a user base, sometimes as a result of a hard fork and sometimes as part of a promotion or other change in network design. The key for most investors is becoming aware of the airdrop phenomenon before it takes place. If you find out too late, you’ve missed out on your chance for free Stellar (XLM).
How to Earn Stellar (XLM) – Work for Stellar (XLM)
Stellar (XLM) is one space that is needed for a great workforce. And so crypto companies are now looking for the right talent to fill the digital marketing, content, and web designing space. Besides, these companies also offer competitive packages along with Stellar (XLM).
How to Earn Stellar (XLM) – Holding
Holding is the most common form of making money with Stellar Lumens XLM. It involves buying XLM coins today and holding on to them for a long time, believing that their value will continue rising in the foreseeable future. Investors, unlike traders, aren’t afraid of the short-term volatilities and will, therefore, not close their traders even after the most devastating price dip – as it happened in mid-May 2021 when XLM value dropped by more than 70% in less than 10 days.
Can I Get Free Stellar (XLM)?
When planning transactions with Lumens, you need to decide in advance where to store them. The developer’s website offers 19 recommended desktop, mobile, and online wallets, although there are many more options.
For a beginner user, this minimalistic Stellar Web Wallet will do. With it, you can get started with Stellar (XLM) within seconds.
Note that cold wallets have the highest level of security, which allows you to store Stellar cryptocurrency for a long time without connecting to the network.
- Getting Free XLM on Coinbase
Here you can get up to $10 worth of Lumens just by watching video tutorials about Stellar. Each video is a few minutes long and you can earn $2 in XLM for watching it.
This is a very convenient way to get XLM for free, while increasing your knowledge!
- Stellar Fauсets
Faucets are services that offer to earn cryptocurrency by performing various actions on the Internet: watching videos, entering captchas, playing games, and so on. Many of them pay with Lumens. Just type in Google: “Stellar faucet” and choose the best option for you.
How to Earn More Cryptocurrency?
What Could I Do With My Stellar (XLM)?
When it comes to cryptocurrency, it’s important to be knowledgeable about the risks you face. As they are new, cryptocurrencies can be volatile, and it’s possible to lose money if you choose to invest. Stellar notes that while lumens will always have value within its own network, their value relative to other currencies may change. In short, that affects the real world value of lumens for normal people.
That said, Stellar lumens could be a more stable cryptocurrency investment, simply due to the fact that they are more of a medium of exchange than a cryptocurrency token that’s meant to be held as an asset. While these types of cryptocurrencies, like Bitcoin or Dogecoin, are extremely popular, they can be harder to trust.
Where Can I Spend My Stellar (XLM) Tokens
Top companies accepting Stellar (XLM)
- MixWallet – This is a non-custodial cryptocurrency storage that supports the most popular coins and their tokens. Read More: Custodial vs Non-Custodial Wallets – Difference & Which One to Choose
- Multi-change – Favorable rates A unique service system allows us to provide customers with the most favorable exchange conditions Bonus system Within the framework of the project.
- Alfa-coin – Maximum advantages ease of exchange and the ability to choose your exchange strategy will allow you to make a profitable exchange.
- 1xBit – Are you a fellow sports enthusiast, but can’t find the right site to wager on? 1xBit is at your service! This prominent cryptocurrency sportsbook and casino has a lot to offer.
- CoinPayments – Since 2013, CoinPayments has pioneered the way for cryptocurrency payments and has become a global leader for cryptocurrency payment processing.
- Coinqvest – Coinqvest provides digital currency checkouts that automatically go from Bitcoin to a bank account, in minutes.
- HostMeNow – HostMeNow LTD is an unlimited web hosting company – We provide unlimited storage plans with super-fast load speeds! And offer services all over the world to large, medium and small business.
More About Stellar (XLM)
Who Owns Stellar XLM?
Stellar lumens (XLM) are the tokens released as native assets by the Stellar Development Foundation, a nonprofit launched by Ripple co-founder Jed McCaleb in 2014.
Why Would Banks Use Stellar?
Much like Ripple, Stellar is a payment technology that aims to connect financial institutions and drastically reduce the cost and time required for cross-border transfers. In fact, both payment networks used the same protocol initially.
Will Stellar (XLM) Rise?
The stellar lumens crypto price prediction from algorithm-based forecaster Wallet Investor estimated that the coin could move up to $0.163 by the end of the year and $0.21 by the end of 2023. By the end of 2025 the coin could trade around $0.39 and in five years’ time it could move up to $0.515.
Is Stellar (XLM) a Token or Coin?
The Stellar blockchain’s cryptocurrency is called the lumen, a token that trades under the symbol XLM. Stellar is one of the best-performing altcoins of the last five years with a market cap of just over $1 billion.
How long Does It Take to Transfer Stellar Lumens?
Transactions on the Stellar blockchain are confirmed in three-to-five seconds.
How Many Stellar (XLM) Are There?
A total of 100 billion XLM were issued when the Stellar network launched in 2015 — but things have changed since the release date. At present, the total supply stands at 50 billion XLM, and the circulating supply is currently 20.7 billion.
