The BTC/XLM pair matches up BTC (Bitcoin) – a digital token of exchange operating via blockchain technology – with XLM (Stellar Lumens). XLM is merely an ISO code presenting the cryptocurrency of “native asset” of a distributed payments structure known as Stellar. There are over 17 million Bitcoin tokens in the market. Until now, Bitcoin is still a flagship in the industry even though some people consider that the cryptocurrency presents turbulence, slow speed and a high transaction fee.
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What is XLM?
Lumens (XLM) is the cryptocurrency that works within the Stellar network. In other words, Lumens is regarded as the fuel operating the engine (Stellar network). Lumens’ original name was Stellar, but then its name was changed to Lumens to avoid confusion between the cryptocurrency and the network.
The main difference between Stellar and other cryptocurrencies is that Stellar is non-profit. Users purchasing Stellar aid the nonprofit Stellar.org, which implements technologies to oppose poverty, by connecting people to low-cost financial services. By utilising the Stellar framework and Lumens cryptocurrency, Stellar.org aims to establish a network that supports people and business in areas with high diversity, exchanging money via multi-currency transactions and delivering speedy liquidity.
What is BTC?
BTC (Bitcoin) is the world’s most popular cryptocurrency. It is a decentralised digital currency with the significant advantage that it is unconstrained by any governments, banks or corporations. No authority can interrupt BTC transactions or affect BTC regulations. Also, Bitcoin movements are completely transparent, as every transaction is recorded in a distributed ledger.
The Bitcoin term is broken down into two main elements: the Bitcoin token and the Bitcoin protocol. The Bitcoin token refers to a snippet of code manifesting the ownership of a digital currency – like an IOU. Meanwhile, the Bitcoin protocol represents a distributed network that preserves a ledger of balances of the Bitcoin token.
BTC and XLM- Main Differences
- The initial difference between these two currencies is their purpose. The aim of Bitcoin is to establish safe network transactions between two parties without any interference from outside forces like a government, bank or other authority. Meanwhile, the XLM developer team releases tokens to the public for free. The idea is to include everyone in the digital economy.
- These currencies also bring to the market different transaction speeds. In Bitcoin, the average transaction confirmation time is 1 hour while that of Stellar is 3 to 5 seconds. Bitcoin’s transactions are 3 per second, while Stellar’s are more than 3,000 transactions per second.
How to Trade BTC/XLM
When people watch the pair BTCXLM, they often pay more attention to BTC as it is the flagship cryptocurrency and its effect on the market is significant. Nevertheless, traders should also keep track of XLM’s movements.
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Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Cryptocurrencies can fluctuate widely in price and are, therefore, not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework. Past performance is not an indication of future results. This is not investment advice. Your capital is at risk