Should you buy Stellar (XLM) in June?
- Stellar is a distributed computer network where lumens are the cryptocurrency required to conduct transactions
- Lumens has the ticker symbol XLM.
- Jed McCaleb and Joyce Kim founded Stellar.
Stellar XLM/USD has an ambitious mission of providing the world’s unbanked population with full access to financial services. It does this by making it cheaper as well as faster to move money from one currency to another.
Stellar is attempting to reimagine the market when it comes to currency transfers through the creation of a distributed network that can handle anything from payment rails to exchange. The main way through which this project stands out is in the fact that it enables its services by incentivizing a distributed network of computers to run common software.
Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.
Should you buy Stellar?
On June 2, Stellar is priced at $0.41. May 2, its value was $0.51 so Stellar is now 19% cheaper. But going back even further to the start of the year, it traded at $0.13, giving some investors an exceptional return.
Granted, there has been some near-term volatility but the price of Stellar has remained somewhat steady near the $0.40 level. As such, this might represent a strong support level where it might be a good price to buy at.
If Stellar fails to hold the support level and volatility sends it tumbling lower, we could see it re-test its early 2021 lows. As such, buying below $0.40 might not be the best idea but you should keep it on your watchlist and seriously consider a purchase at $0.15.
The ultimate indicator when it comes to the way the price swings will be the demand market has for such a system and given its $9.7 billion market cap and 1.4 billion volume, it seems like the interest is here to stay.
Future of payment transfers
Stellar cuts out banks and the fees associated with their links. So instead of having to find a bank that has a connection and agreement with another bank in another country, in order to send currency, you can do so easily with Stellar at a fraction of the cost.
If you believe in this concept of sending payments and see the flaws within the current banking systems we have, then Stellar might just keep you interested in analyzing it more.
The mission this project has is authentic and it will inevitably end up helping a lot of people with all of their money-transfer requirements, especially the unbanked who might not have an alternative option of doing so. Keep in mind that the fulfillment of this goal could potentially take many years, so consider your investment in this currency a long-term commitment when it comes to the best odds of it increasing in value.
Where to buy right now
To invest simply and easily, users need a low-fee broker with a track record of reliability. The following brokers are highly rated, recognised worldwide, and safe to use:
- Etoro, trusted by over 13m users worldwide. Register here >
- Capital.com, simple, easy to use and regulated. Register here >
*Cryptoasset investing is unregulated in some EU countries and the UK. No consumer protection. Your capital is at risk.