Stellar Lumens supports financial transactions across the globe. The purpose of the Stellar project is to make transactions from one currency to another less expensive, especially for exchanges involving currencies with low liquidity.
For example, if someone wanted to send money from the U.S. to a country with a currency with a lower liquidity, they might use a service like Western Union and end up paying a surcharge to get the funds to the final destination. Stellar Lumens uses a federated byzantine agreement model to link up institutions and the decision-making process to send money across borders through credit, reducing the fees traditionally involved in completing the transaction. The project aims to bring affordable financial services to under and unbanked populations of the world.
Lumens are the tokens used to protect the Stellar ledger from abuse. While the fees to transact over the network may be low, the cost is high enough to deter bad actors from realizing gains by spamming the system. In addition, large-scale projects like the IBM Blockchain World Wire and Mobius have joined the Stellar network. Stellar Lumens are not mined, a set amount has been released, and the Lumens supply is monitored and adjusted on a democratic basis.
Stellar Lumens and Ripple share a common background. Ripple also operates as a payment network but solely focuses on doing business with large institutions in well-banked regions for profit. Stellar Lumens focuses its efforts on the unbanked by reducing the cost of banking.
Bitcoin IRA provides easy access to this digital asset, allowing you to add Stellar Lumens to your retirement portfolio. To use Bitcoin IRA to buy, sell, and swap XLM simply create an account, fund it, and trade.
Bitcoin IRA offers self-directed IRA accounts in which you can trade many cryptocurrencies, including Stellar Lumens. You can open a Roth or traditional self-directed IRA. With a Roth IRA, you contribute after-tax dollars into the IRA account, but you generally don’t have to pay taxes when taking the money out of the account after you have reached retirement age.1 With a traditional IRA, you may contribute pre-tax dollars into the account, but you pay taxes after you retire when you withdraw the money.
Besides those differences, you will not pay capital gains taxes by purchasing Stellar Lumens in your IRA account. However, as with any IRA account, if you choose to withdraw before retirement age, you could face paying a penalty and any taxes you owe.
Trading in cryptocurrencies with Bitcoin IRA is a popular way to diversify your retirement portfolio into the world of blockchain, crypto, and web3. Some traders invest in Stellar Lumens because the currency serves as a derivative of currency transactions in fiat. This means it is directly connected to the ability of people to move money throughout the world while using blockchain infrastructure to support transactions. It is a philanthropic project you can feel good about investing in, and companies like IBM participate.
Bitcoin IRA simplifies the buying and selling process with its intuitive platform and easy account creation. They also offer more than 60 different cryptocurrencies to choose from, allowing you to diversify your holdings as you add money to the account.
In addition, Bitcoin IRA provides investors with helpful education about each coin and is always looking for new assets to add to their coin selection.
To create your own crypto retirement account with XLM, visit Bitcoin IRA or download the app from the App Store or Google Play. Click Open Account from the website or Create an Account from the app and fill out the information requested. From there, you will be asked if you want to transfer or roll over an existing retirement account or fund the account from scratch. Once the account is funded, you can start trading XLM.
1Some taxes may apply. We recommend you consult your tax, legal, and investment advisor.