How to Convert XLM to ETH
If you have Stellar coins that you need to convert to Ether, two options are available. You can either find someone who wants to trade their ETH to XLM or use a cryptocurrency exchange like Rubix. The former is time-consuming since it is always hard to find someone who wants to exchange the same cryptocurrency combination as you do. Besides, there is no guarantee that the conversion will be safe or you will get the best exchange rates. As such, it makes sense to use a cryptocurrency exchange.
About XLM & ETH
What is Stellar?
Stellar Lumens (XLM) was created in 2014 by the Stellar Development Foundation. Stellar Lumens was created as a barrier to entry and to improve the efficiency of the Stellar ecosystem. By making the digital currency fluid, more people could make financial transactions. Since Stellar is an open-source network, its creators worried it would be easy for malicious actors to introduce spam and slow down the system. Participants must have a minimum balance of one Stellar Lumen to access the Stellar network. Likewise, the minimum transaction fee is 0.00001 lumen.
Stellar Lumens are different from other cryptocurrencies because the currency is not the primary focus. Rather, lumens were created to add a barrier of entry to the network and prevent bad actors from slowing down the system. As such, the Stellar network is the focal point. A critical difference between Stellar lumens and other digital currencies is how the tokens are made available. Most cryptocurrencies, including Ethereum, get mined by anyone provided they have the necessary tools. For this reason, these cryptocurrencies have a limited supply and can usually get mined until a specific cap is reached. Also, participants in the mining network get rewarded with tokens for their efforts. Stellar lumens cannot be mined. Instead, the Stellar Development Foundation released 100 billion lumens when the network went live. In the subsequent years, supply has increased by 1% annually. The Stellar community decided to cut the supply in half and reduce it to a total of 50 billion in October 2019. As of mid 2021, there were 20 billion Stellar lumens in circulation. The foundation holds another 30 billion in reserve to help develop and promote the network
What is Ethereum?
Ether (ETH) is a decentralized cryptocurrency native of the Ethereum network. Ethereum establishes peer-to-peer smart contracts that allow users to transact the coin without a central authority. Transaction codes on the Ethereum network are verifiable, securely distributed, and immutable across the network. As a result, participants have visibility and ownership of transaction data.
Transactions are primarily sent and received by user-created and managed Ethereum accounts. Senders must sign transactions and spend small fees as a cost of undertaking transactions on the Ethereum network. Ethereum also provides a flexible platform where users can create decentralized apps using the Ethereum Virtual Machine and the network’s native Solidity scripting language.
Like other cryptocurrencies, Ethereum uses blockchain technology. The blockchain works as an electronic ledger. Thus, distributed consensus gets created and maintained according to the status of the blockchain. New blocks are often added to the long Ethereum blockchain so that transactions can get processed. The addition of new blocks also allows new Ether coins to be minted.
Convert XLM to ETH using Rubix
Cryptocurrency exchanges such as Rubix come equipped with the tools you need to convert dozens of cryptocurrency pairs, including XLM and Ethereum. You can exchange your XLM coins for Ether directly from your Rubix account. The cryptocurrency exchange also allows you to buy, sell and hold dozens of other digital currencies and convert them into fiat currencies.