Lumen (XLM)

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You can deposit or withdraw XLM from Bitso using the Stellar network exclusively. Make sure you choose this network when transferring your coins.

 

What is Lumen (XLM)?

XLM, or Lumen, is the native token of the Stellar network, a platform that connects payment systems from traditional finance to the crypto world. The Stellar network provides interoperability, speed, and low cost for offering its services. The Stellar network was also created to allow any asset, such as fiat currencies, to have a representation in its digital form. Thus, an investment like the US dollar could be converted into an XLM token, which in turn could be sent anywhere in the world and reconverted into the local currency. 

 

What makes it unique

  • XLM is the native token that works as a kind of intermediary asset that guarantees the execution of transactions within the Stellar ecosystem. 

  • To make a transfer of an asset, Stellar converts the equivalent value of that asset into XLM and sends the amount to the corresponding account, which reconverts the XLM into local currency (or another asset that users want). 

  • Stellar's advantage is that transfers are made at a lower cost and faster than a traditional financial institution. 

  • Another advantage of the Stellar network is that you only need a token to stay active on the network. 

  • The network charges a higher price for microtransactions, making it secure against “flood attacks” (DNS attacks intended to flood the network and make it inaccessible). 

 

Purpose

XLM, Stellar network's native token, works as an intermediary asset into which any currency, fiat, or crypto can be converted, making it easy to send and transact cash anywhere. These transactions take place quickly and at a lower cost than traditional financial institutions. 

 

Sources of knowledge


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