Stellar (XLM) vs Ripple (XRP): How are they different?

xlm vs xrp

Two popular cryptocurrencies aim to provide payment solutions. These are xlm vs xrp. Each of these networks can be used to perform multi-currency transactions. However, certain factors make them different from each other. Ripple is an older cryptocurrency than Stellar. It has broader usage in traditional finance compared to Stellar. However, Stellar is a decentralized network, while Ripple has chosen a centralized system. For many users, decentralization is a key factor in favor of XLM.

The Stellar network focuses on helping unbanked people access an efficient cross-currency payment system. This is a good solution for residents of regions where access to banking services is limited or very expensive. Ripple, on the contrary, pays more attention to working directly with banking institutions. Several banking organizations have already adopted Ripple to transfer finances to other countries.

Ripple is now widely used in traditional financial sectors, making it a less volatile coin. Stellar is still highly flammable, so some people turn to other tokens during the transfer process.

Stellar vs Ripple – the level of decentralization

The level of decentralization is also a significant factor regarding cryptocurrency. Ripple and Stellar are relatively decentralized currencies, but Ripple is slightly more centralized than Stellar for two reasons.

  • The people participating in consensus (mining) must be institutional holders.
  • Jed McCaleb’s wallet was locked when he stopped working for the company.

Thus, these two points are contrary to the main principles of cryptocurrency, namely decentralization, and these are two problems that cryptocurrency is trying to solve.

So Stellar is in the lead when considering the decentralization of the network.

How to choose an exchange service

You need to choose a cryptocurrency exchange responsibly, primarily because scammers in this area also create fake services to extort money from users. And besides the fact that you need to find a reliable contractor, it is important to give preference to a site that offers cooperation on favorable terms. Plus, do not forget about the convenience and speed of transactions. So, when looking through the offers of exchangers, comparing them with each other, consider the following criteria:

  • Make comparisons and analyzes of cryptocurrencies, for example, wrapped bitcoin vs bitcoin;
  • How long has the exchange service existed? Fake exchangers usually do not work for a long time; they close as soon as they accumulate the amount of money the developers need or lose the trust of users;
  • Whether the resource you are studying offers an exchange of NEAR Protocol for the cryptocurrency of interest and on what conditions: restrictions on the number of convertible amounts, transaction fees, etc.;
  • How quickly the service concludes transactions with customers, whether it requires registration or verification on the site. Often, privacy plays a vital role for users;
  • What reviews do customers leave about the studied exchanger, and how many such publications?

Considering the above criteria, you can easily select a reliable crypto exchanger and make a profitable and safe transaction. And if you don’t want to spend time searching and studying a large amount of information, you can use the Letsexchange offers. This is a proven multi-currency exchange service that offers favorable terms of cooperation. It is safe to work with it, so you should not worry about the risks.

It remains only to figure out how to perform the exchange. But there are no difficulties here. Such operations are performed in just a few steps. Let’s consider them further.

You may also like...

Leave a Reply

Your email address will not be published. Required fields are marked *