Stellar
- Ticker
- XLM
- Category
- Payments
- Risk profile
- Volatile
What it is
A payment-focused ledger designed to move value between currencies, where assets other than its native token are issued by named organisations that promise redemption.
Why this risk level
- Holding an issued asset on Stellar means opening a trustline to that issuer, so the credit risk is the issuer's — the ledger records the balance but does not guarantee the redemption behind it
- Consensus comes from a federated agreement between chosen validator sets rather than mining, so transactions settle in seconds and fees are a small fixed amount rather than an auction
- XLM pays those fees, meets the minimum balance every account must hold, and is the bridge asset for path payments; it is not a claim on any issuer's reserves
A plain-English risk overview for education, not investment advice. Risk profiles describe the asset's own characteristics, not a price forecast — always do your own research before buying.
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