Thanks to cryptocurrencies, investors can interact with other investors regardless of location. Cryptocurrencies have changed the world of trading, online banking, and investment. Their influence is getting more and more every day. Cryptocurrency has many advantages over real one. Hundreds of cryptocurrencies offer their services to facilitate trading between various parties and organizations. Trading, online banking through cryptocurrencies have their advantages over the real ones. First of all, digital currencies are not monitored by a single government or organization. In other words, their control is decentralized. The value of the currency is determined by the popularity of the cryptocurrency among investors.
Moreover, the transactions are done within some minutes—a high level of security guarantees that the identity of transaction makers will not be revealed to third parties. XLM and BTC are brilliant examples of cryptocurrencies. You may exchange XLM to BTC or vice versa throughout many online platforms.
How Does Bitcoin Function?
Bitcoin, shortly known as BTC, was launched in 2009, and the founder of this cryptocurrency is still unknown. Compared to many other exchange platforms, the transaction fees are quite reasonably priced on BTC. This makes the platform quite popular among investors.
BTC as digital money is controlled by a single government or banking system, and as an individual unity, it is not valuable. The system is based on a blockchain system. Since its foundation, this cryptocurrency has had many ups and downs. However, it has managed to overcome all the challenges and even trigger the creation of many other similar currencies. Peer-to-peer technology is used to make the platform more user-friendly and accessible to investors.
Thanks to its advanced technology, the platform’s security is guaranteed. However, like any other online banking platform, there are some risks connected with this digital money as well. Money laundering, illegal trading are potential risks of such platforms. To avoid those risks, the investors are highly recommended to keep security tips. BTC is currently one of the leading cryptocurrencies in the market. Its network cap is quite influential.
What is XLM?
XLM, the abbreviation of a cryptocurrency known as Stellar Lumens, is a blockchain-based digital network. The platform aims to help investors make faster and more convenient online transactions without any real issues and risks. Unlike many other cryptocurrencies, XLM tries to keep its transaction fees quite low to make them accessible to almost everyone.
The Stellar Network allows for making crypto exchanges or exchange of assets. If the investor wants to keep non-crypto currencies, like gold, there are reliable institutions called “Stellar Anchors,” which serve as banks and keep the deposits. In 2014, the market cap of XLM reached $35 million. In 2015, this network removed almost half of its overall supply, which resulted in having a cap worth $50 billion.
Both XLM and BTC are leading cryptocurrencies in the market. Each of them has its advantages and disadvantages. They should be taken into account very carefully to avoid financial risks. The most evident change may be the changenow fees, which are quite different for each one. As an investor, you need to consider this and make a reasonable solution for you or your business trading. Regardless of your final choice, being extra attentive while making online transactions is highly recommended.