Stellar and other cryptocurrencies have become the subject of significant investment and speculation in recent years. Although Bitcoin is probably the most well-known cryptocurrency, there are numerous other digital currencies available that have the potential to play a major role in global payments. These currencies offer investors a payment method that some would say is unrivaled when it comes to convenience and cost-effectiveness. Although there are some merchants that may already accept Stellar and other cryptocurrencies as a means of payment, that number could potentially grow substantially in the months and years ahead.
Some of the potential benefits of Stellar include low transaction fees and rapid settlement. Digital currencies may be sent or received anywhere on the globe with an internet connection, and do not require currency conversions. They may simply provide the most convenient way to send or receive funds anywhere in the world. Not only can they be used to send funds to other people, but they may be used to facilitate everyday purchases. Although these currencies may already have a high level of security protocols, the security involved in such transactions may continue to improve as they are more widely used.
Stellar was founded in early 2014 by Jed McCaleb and Joyce Kim. After its introduction, the currency quickly jumped to $.20 and then quickly ran as high as $.85.The initial momentum was not sustainable, however, and the currency rapidly dropped to around the $.60 level. From there the currency dipped further to the $.40 area before sliding again to around the $.20 region.
Stellar is currently trading around the $.20 level still, although it has seen some minor rallies (although significant in percentage terms) over the last year. Like many other cryptocurrencies, the currency may now be in a holding pattern until more clarity is seen surrounding the regulatory environment.
Although many may consider Bitcoin to be the king of cryptocurrencies, other currencies like Stellar could potentially play an important role within a currency portfolio. It may offer different features and technology than Bitcoin or other currencies, and may be useful for diversification purposes.
Whether you are a long-term investor in Stellar or a short-term trader, price charts can potentially be a very useful roadmap. Charts provide a simple, visual representation of price action and can be viewed using various time frames from a single minute to monthly or yearly charts. Short-term traders may focus their efforts on the smaller time frames while long-term traders and investors may be more concerned with the larger time frames.
Charts may also be useful for identifying potential support and resistance areas in a market or for spotting price trends. They can also be used for more technical trading purposes, using specific price patterns. While charts may aid in providing signals for market entry, that can also be very useful for trying to manage risk.
Stellar and other cryptocurrencies have shown a large degree of volatility in recent years. That volatility may stay elevated for some time as investors await further news on regulatory acceptance. If digital currencies become more widely accepted and “mainstream,” there is no telling just how high prices could go.
The cryptocurrency space has seen a lot of significant ups and downs already. It may be important, however, to keep in perspective that these currencies are a relatively new payment and investment vehicle.