How to Convert XLM to USDT
You may want to convert your Stellar coins to USDT for whatever reason. With the advent of cryptocurrency exchanges like Rubix, trading cryptocurrencies is very easy. With these exchanges, you only need to create a user account, choose your preferred cryptocurrency pair, and complete the trade. When converting your XLM for USDT, the transaction can happen in as little as a few minutes.
About XLM & USDT
What is Stellar?
Lumens (XLM) are the native cryptocurrency of the Stellar network. The project is the brainchild of the Stellar Development Foundation, established in 2014 by Jed McCaleb. It received its initial funding from Stripe, Google, FastForward, and BlackRock. The Stellar network allows transactions between other digital currencies conveniently and quickly.
As a decentralized, open-source network, XLM allows users to swap their lumens with other cryptocurrencies and fiat currencies and vice versa. Unlike Bitcoin’s blockchain, the Stellar blockchain is not meant to be used as a means of direct payments. Instead, it acts as an intermediary in currency conversions. As such, it is a direct competitor to Ripple (XRP).
Lumens are not a mineable cryptocurrency. In 2014, the Stellar Development Foundation offered 100 billion coins, but the supply was reduced to 50 billions in 2019. The organization intends to distribute 95% of the tokens. Of this, 50% will get distributed to individuals, while organizations and companies in the Stellar ecosystem will receive 25% of the coins. The remaining 20% will go toward the network’s maintenance costs and development projects. The initial coin offering raised $39 billion.
Like most open-source cryptocurrency projects, Stellar has its primary repository hosted by GitHub. From there, users can access all the parts that comprise the project. The project also has decentralized control in the sense that anyone can participate without being subjected to a central authority. However, approvals in the Stellar network require consensus among users. Stellar is also renowned for its low latency and low transaction fees. It takes only a few seconds for a unanimous consensus to be reached. Lumens were created to help users overcome the problems typical in cross-border transactions. These include lengthy transactions times high transaction fees. Lumens dispel these problems, particularly for retail users by enabling them to send money anywhere quickly and affordably.
What is Tether?
USDT (Tether) is a stablecoin backed by the US dollar. In this regard, there is actual currency held in reserves at major financial institutions as collateral. Stablecoins such as the USDT are designed to always stay stable and have equal value to the USD. Most people who hold Tether do so for its stability. The same cannot be said of traditional currencies such as Bitcoin, XLM, and Ethereum.
Tether started as Realcoin in 2014. Its tokens were distributed for the first time in 2015. As such, Tether was among the pioneer stablecoins. It also had a great roster of founders, including Brock Pierce, the Bitcoin Foundation director. Today, Tether can be bought and traded on major cryptocurrency exchanges, including Rubix. Thanks to its high demand, Tether always earns more interest than other stablecoins.
As a stablecoin, Tether is attractive to cryptocurrency enthusiasts who want to avoid the instability of the cryptocurrency market. The stability helps investors minimize their risk of exposure during moments of market instability. Moreover, holding USDT rather than the US dollar eliminates the transaction costs and delays that typically impair trade execution in the cryptocurrency market.
Convert XLM to USDT using Rubix
Converting your XLM to USDT on the Rubix cryptocurrency exchange is a quick and straightforward process. The Rubix exchange has in-built tools to ensure the transactions are fast and affordable. With Rubix, you can trade your XLM to USDT coins and vice versa in as little as five minutes.
You can also choose other cryptocurrency pairs as per your preferences or convert your digital currencies into fiat currencies. Rubix also offers you a convenient way to manage your digital assets. You can pay for services and products, and send payments to your family and friends, all from your Rubix account.