How our Stellar calculator works
For people wishing to make quick payments abroad, reliably and for a fraction of the cost of other methods – then you are likely to use a Stellar converter at some point. The Stellar converter will help you to assess the values of your Lumens (XLM) against world currencies. Using the Stellar calculator will help you easily draw on exchange data that gives most up-to-date value of your digital assets.
It may be that the mathematics for calculating currency exchange is simple. Although, calculating the value of Stellar can be more complex as hardly any exchanges move directly between Stellar and fiat currency. This means that the conversion will need to take into account movement to Bitcoin, Litecoin or Ethereum before movement to Stellar.
To calculate your value of your Stellar then you would take the amount purchased and multiply it by the price paid. Then, the calculation is reversed, should you wish to convert from Stellar to another currency.If you were exchanging for USD, then the formula would be:
value in USD = exchange rate x amount of Stellar. Although you may need to add in the cost of moving from Lumens to Bitcoin, or similar, should your exchange not connect Stellar and fiat currency directly. This calculation also does not take into account transaction fees, though one of the benefits of Stellar is that these fees are minimal.
Our Stellar converter is the as accurate as you will find, as it is connected to up-to-the-minute price being traded on Stellar. The Stellar calculator is essential because of the volatility of all cryptocurrency, particularly those relatively new to the market. Using the Stellar calculator allows helps keep you in control of your investment.
What does converting Stellar mean?
Converting your Stellar is a little more complicated that trading Bitcoin, Litecoin or Ethereum. These more established cryptocurrencies allow for direct conversion between fiat currency and digital asset – mostly because they have been picked up by exchanges. Newer digital currencies such as Stellar will need to be converted to one of these other cryptocurrencies before being converted to world currency that is backed by backs and governments.
Once converted to Bitcoin or others the process of converting to traditional currency is as simple as buying and selling. Once you know the price by using the Stellar calculator, you will know what you will have to spend to buy the number of Lumens you require. From the Stellar converter you would likely head to an exchange site to make your purchase.
As the point of Stellar Lumens is to facilitate cross border transactions, it is likely to become much easier to convert your cash for Lumens and Lumens for cash in the future. Once a critical mass of usage has been established, it will likely be much easier and quicker to send money using Lumens than it would be to use a wire service or a bank. This is the idea behind the currency and is already shown much success.
How can you convert your Stellar?
Your most likely means of converting fiat currency to Stellar Lumens is at an exchange site. Exchange sites are websites that act as a direct connection between buyer and seller. In the past these exchange sites have shown some vulnerabilities to security breaches and hacking. Therefore, there has been a lot of work done to offer a sense of reliability and trust to the user.
There are three issues that users of exchange sites need to research. The first is the amount of currency held in cold storage. This might seem an odd concept for a financial site – cold storage being much more likely needed in the food industry. However, the idea is that a large proportion of digital assets are held offline and therefore out of the reach of potential criminals. These cold storage assets are therefore not directly available for trading online but are secure.
The amount of currency in cold storage impacts on the liquidity of an exchange. It is a difficult balance to maintain – keeping enough assets available for trade but at the same time offering a secure environment for people to hold their money. As the number of tokens number in the billions, even if 5% were kept in the system and available, this would still be a lot of digital currency. If you are trading at a number that would cause concern to these sites, then you are probably not reading this.
Finally, you need to consider the trustworthiness of the site, and this can be gauged from the regulatory bodies that check on the work of the site. Most American exchange sites are overseen by state level regulatory bodies, for instance. This sort of regulation inspires confidence without imposing policy on the currencies.
Alternatively, you can use a Stellar converter to exchange your money instantly into your currency of choice. This essentially uses an exchange site, but the conversion is complete in a few less clicks!
When should you convert your Stellar?
Stellar is slightly different to other cryptocurrency, in the sense that it is meant to be converted a lot. There are anchors that exist who are willing to transfer Lumens – and it is these people who will do most of the trading. If you want to move money from Australia to Singapore quickly and easily then you would give money to anchor – who would then send Lumens to another anchor – who would then give the equivalent cash to the person you are sending the money to. By cash this means conversion to Bitcoin or Ethereum and then conversion to a fiat currency.
This sounds stupidly complicated but the transfer between anchors will be almost instantaneous. This means that instead of 4 or 5 days to move money between countries, you can do it almost immediately.
Lumens do act as a currency token too. This means you can choose to buy and hold Lumens in the hope that they increase in value. There is some merit in this, as the transfer mechanism may cause an appreciation in the value of Stellar – something that can be checked on your Stellar calculator!