Digital payment methods and cryptocurrencies are extremely popular now. That’s why Stellar, Lumens and XLM are also becoming increasingly important.


1) Stellar: what is it?

2) What makes Stellar special?

3) What are Lumens and XLM?

4) Don’t forget to pay your taxes!

5) Conclusion

Stellar: what is it?

The open-source platform Stellar is a network through which individuals and companies send and exchange digital assets. These digital values can be real currencies such as U.S. dollars, euros and pesos, cryptocurrencies such as bitcoin, or other assets such as gold.

What makes Stellar special?

Unlike many other fintech startups, Stellar uses a peer-to-peer network rather than blockchain for its services. The network wins thanks to its speed, low transaction cost and currency exchange function.

Stellar emerged from the Ripple protocol, which is also used in the XRP cryptocurrency. In 2015, Stellar continued to develop code that has largely lost its connection to Ripple.

What are Lumens and XLM?

Stellar has created not only a platform for transferring digital values, but also its own currency: Stellar Lumens. The coins are also called XLM.

Stellar Lumens or XLM is among the 30 most valuable cryptocurrencies. The price has undergone numerous shocks over the past few years, but overall, the cryptocurrency has great promise for the future.

There is a reason for XLM’s popularity and growth in value. The main goal of cryptocurrency is to solve problems with cross-border transactions. Long transactions time and high fees should be a thing of the past.

Currently, the open network is used by various small and large companies, including IBM, for its international payments.

Don’t forget: pay your taxes!

If you make transactions through the Stellar network, you have to pay a small fee. They are much cheaper than those of classic transfer service providers.

If you want to trade Stellar Lumens or XLM, there are other costs. For example, for transactions through the corresponding exchange. The most popular and reliable crypto exchanges: Binance, Coinbase and Kraken.

If you make a profit with XLM and other cryptocurrencies, you need to think about proper taxation of crypto-profits. 


Stellar, Lumens and XLM are three technical terms that are becoming increasingly important to startups. On the one hand, because the cost-effective transfer of money and digital values in a globalized world is easy on a company’s wallet. On the other hand, cryptocurrency trading is becoming more and more popular, e.g., for investing profits.