Stellar Lumens (XLM), which ranks eighth with a market capitalization of $3,947,869,328 (as of April 9, 2018), is listed in only a few exchanges. Unlike the big currencies like Bitcoin and Ethereum, which have listed on more than 400 exchanges, Stellar is listed in only 79 exchanges. As evident from the market response of the lesser-known altcoins, Stellar, like any other altcoin, struggles with its liquidity. For many traders, the dearth of buyers/sellers of a currency is a major put-off as such currencies are difficult to trade on exchanges.
A Review of Stellar’s Liquidity
As per the definition, liquidity suggests the extent to which an asset can be rapidly bought/sold by investors without affecting the price of that asset. Consequently, the term “market liquidity” signifies the degree to which a market enables assets to be traded at a stable rate. An asset, which has little or no liquidity, is critical to trade on exchanges. This can be explained with an example: an illiquid asset like an antique artwork can be extravagant and costly, but in the absence of a steady market for such art, the owner will have to sell it at a discount if he/she wants to sell it quickly.
When compared to the major currencies in the market, such as BTC, ETH, and LTC, which are listed in more than 400 exchanges, Stellar (XLM) is listed in only 19% of the total exchanges. Quite naturally, such low liquidity is a huge concern for traders. This altcoin, which comes with several promising features, should improve its liquidity to be traded more frequently in the market. As for XLM traders, such low liquidity can be alarming. However, going by some of its features on offer, it is unjust to assess its profitability on the basis of its availability to the traders.
Why Stellar’s Low Liquidity is Not a Concern for Investors?
From its very inception, Stellar has established itself as a highly rewarding altcoin. However, a quick market analysis will reveal that it is not entirely free of limitations. For instance, a lack of alternative anchors can be regarded as a big turn-off, apart from the fact that a Stellar account can only be topped up in lumens. Besides these limitations, one of the major drawbacks of Stellar is its low liquidity. As evident from the market analysis, Stellar (XML) is listed in less than a hundred exchanges, while other contenders like Bitcoin Cash and EOS, with visibility in 262 and 116 exchanges respectively, have much greater availability.
While it’s quite natural to be alarmed as investors, the low liquidity is not a big concern for the traders, report the analysts. As a worthy competitor in the crypto-market, it boasts a number of worthwhile features, from lightning fast transactions, low transaction fees to outstanding popularity. At any rate, this promising altcoin, which is traded at $0.196834 at the time of writing, can surprise its investors in many ways.
Ways Stellar Can Enhance Its Liquidity
As discussed at length in the earlier segments, Stellar’s (XML) liquidity is a major concern at the moment. With Stellar introducing a range of exciting updates, Stellar can emerge as a formidable contender to the major currencies, provided it improves its availability to its users. Although Stellar is not listed in a large number of platforms, it is available in many prominent exchanges such as Binance, Bittrex, Upbit, and Kraken. As per the trade volumes, these are the largest exchanges in the market. So, spreading the awareness can go a long way in attracting buyers/sellers to this profitable asset. Also, the regulatory body of Stellar can deploy the currency in real life transactions. Given the fact that it is recognized for its low-cost financial services, Stellar can embrace the ripe market in the developing countries to enhance its user-engagement.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
Image courtesy of Taco Witte via Flickr
Aluna.Social is a Compelling Social Platform for Crypto Traders and Investors
When one thinks about the social media landscape, the companies that first come to mind are most likely Facebook, Instagram, LinkedIn, and Snapchat. These platforms are a great way to stay connected with friends, families, and colleagues, especially when geographic distance is a factor. But, in addition to just chatting about life in general and sharing pictures, social media can be used to bridge the information gap that exists within the investment community.
Over the last decade, many trading offices have been established in large cities all over the world which allow solo traders and investors to pay a monthly fee in exchange for a workspace. The real benefit to trading in these offices is to participate in the free flow of trading ideas and information. Proprietary trading is one of the most challenging careers to be successful at and the exchange of ideas is almost required in order to succeed. Traders at hedge funds and investment banks work in teams so why shouldn’t remote traders?
While these trading offices are a great way to help bridge the information gap, Aluna.Social may provide an even better way, especially as it relates to cryptocurrency trading.
Aluna.Social, founded by Alvin Lee and Henrique Matias, is a multi-exchange social trading terminal for crypto traders and investors. The goal of the platform is to help newcomers shorten their learning curve,…
CoinFlip Scores Big with BRD Wallet Partnership
As the crypto markets move closer to mass adoption, one of the keys for future success will revolve around attracting as many market participants as possible. While many crypto users are extremely tech oriented, a lot of those on the sidelines are not. The cause of waiting on the sidelines could be due to a variety of reasons such as fear of the unknown, lack of knowledge, age, or a combination of all of the above. In order to entice new users to join the crypto revolution, crypto ATMs are rising up across the country. Of those, the largest and most influential crypto ATM company by a significant margin is CoinFlip.
In early October, CoinFlip announced on its Twitter that it had officially partnered with BRD Wallet to re-introduce their crypto ATM map. Now, BRD wallet users will be able to locate their nearest CoinFlip ATM and receive a 10% discount for both buys and sells. BRD brand awareness is growing quickly within the crypto community thanks to its innovative and entrepreneurial spirit. The team strongly believes in the value of financial freedom and independence, and want to empower people across the world by leveraging the possibilities that Bitcoin and other cryptocurrencies provide.
Cryptocurrencies are already making a huge difference around the world. Citizens of Venezuela, a country devastated by rampant inflation, have been using several cryptocurrencies…
Cryptocurrency Collateralized Debt Positions Are Growing in Popularity
While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle. Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance. One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess. That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS. These projects have managed to find a foothold in the market and have a better chance than most of staying there. While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.
What is a Cryptocurrency CDP?
In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount. There are several examples of this in our day to day lives. Auto title loans from large companies like TitleMax are extremely popular with consumers. Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has. The consumer can continue using their car as long as debt payments are made.
The same concept applies to cryptocurrency CDPs. Consumers are able to put up crypto tokens, such as…
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