Money moves in five-second steps on Stellar.
Stellar is a public network built to move value — dollars, pesos, digital tokens — the way email moves messages: fast, cheap, and without a bank in the middle of every step. This guide walks you from "what is this" to sending your first transaction, without the jargon.
Ledger sequence — closes roughly every 5 seconds
What is Stellar?
Stellar is an open, public network for recording and moving value — think of it as a shared ledger that anyone can read, and anyone can submit a payment to, without asking a bank's permission first.
A public ledger, not a company
No single business owns Stellar. The record of who holds what is kept and confirmed by a network of independent computers called validators, run by banks, businesses, and individuals around the world.
Built to move money, not just tokens
Stellar's native asset is called lumens (XLM), used mainly to pay small network fees. But the network is designed so anyone can issue and move tokens that represent dollars, other currencies, or other assets.
Fast agreement, not competition
Unlike networks that rely on energy-intensive "mining," Stellar validators reach agreement through a voting process called the Stellar Consensus Protocol (SCP) — which is why ledgers close in seconds, not minutes.
How Stellar protocols work
Click each step below to see what actually happens when someone sends a payment on Stellar — from the moment it's submitted to the moment the money is usable on the other end.
Benefits and risks
Stellar has real advantages for cross-border payments — and real risks worth understanding before you send your first transaction. Here's both sides, without the sales pitch.
Benefits
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Low, predictable fees Typical network fees are fractions of a cent, regardless of the amount sent.
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Settlement in seconds Payments confirm in roughly 3–5 seconds, versus days for some international bank transfers.
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Built-in currency conversion Stellar can route a payment through multiple assets automatically, so a sender in one currency can pay a receiver in another.
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Open access Anyone with an internet connection can hold an account — no minimum balance or institutional approval required to receive funds.
Risks
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You are your own bank If you lose your secret key or recovery phrase, there is no customer support line that can restore your funds.
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Irreversible transactions A payment sent to the wrong address generally cannot be reversed or refunded by the network.
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Price volatility Assets on the network, including lumens, can fluctuate significantly in value over short periods.
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Anchor and issuer risk Tokens that represent real-world money rely on the trustworthiness of the business that issues them — research an anchor before relying on it.
This is educational information, not financial advice. Consider your own circumstances, and consult a licensed professional before making financial decisions.
Getting started with Stellar
A first transaction, done carefully. Follow these in order — each step depends on the one before it.
Choose a wallet
A wallet is the app that holds your secret key and lets you sign transactions. Look for one that is well-reviewed, actively maintained, and lets you export your recovery phrase.
Write down your recovery phrase — offline
Your wallet will generate a set of recovery words. This phrase is the only way to restore your account if your device is lost.
Fund the account with a minimum balance
Stellar accounts need a small minimum balance in lumens (currently a base reserve, roughly a few XLM) to exist on the ledger — this prevents spam and covers the tiny storage cost.
Add a "trustline" for any asset you want to hold
Beyond lumens, most assets on Stellar (like tokenized dollars) require you to explicitly opt in to holding them. This is a one-time step per asset, and it's a safety feature — you can't receive tokens you haven't approved.
Send a small test transaction first
Before moving a meaningful amount, send a small test payment to confirm the receiving address and asset are correct. Transactions on Stellar cannot be undone once confirmed.
Glossary
The terms you'll run into most often, defined in plain language.
- Lumens (XLM)
- Stellar's native asset. Used mainly to pay small network fees and to meet minimum account balance requirements.
- Validator
- An independent computer that helps confirm which transactions are valid and in what order, without needing to "mine" or compete for rewards.
- Stellar Consensus Protocol (SCP)
- The voting process validators use to agree on the ledger's contents every few seconds.
- Anchor
- A business that issues a token representing real-world money (like digital dollars) and allows people to deposit or withdraw that money.
- Trustline
- A record that you've explicitly agreed to hold a specific asset in your account — required before you can receive it.
- Path payment
- A payment that automatically converts between assets mid-transfer, so a sender and receiver can use different currencies.
- Secret key
- The private credential that proves ownership of an account and authorizes transactions. Anyone who has it can control your funds.
- Base reserve
- The small minimum balance of lumens required to keep an account active on the ledger.