StellarTerm is a DEX focusing on the XLM-crypto. All trading pairs are against the XLM.
You can use this platform online, or as a desktop client. The desktop client option is available for most of the major systems; Windows, Mac and also Linux.
The exchange does not explicitly state that US-investors are prohibited from trading. Accordingly, we do believe that US-investors can trade here.
General information on decentralized exchanges
Decentralized exchanges are becoming increasingly more popular, mostly due to the following factors:
- They do not require a third party to store your funds, instead, you are always directly in control of your coins and you conduct transactions directly with whoever wants to buy or sell your coins.
- They normally do not require you to give out personal info. This makes it possible to create an account and right away be able to start trading.
- Their servers spread out across the globe leading to a lower risk of server downtime.
- They are essentially immune to hacker attacks.
However, DEXs normally have an order book with lower liquidity than centralized exchanges.
As for StellarTerm, on the date of last updating this review (18 September 2021), the 24-hour trading volume in the platform's Spot Markets was USD 1,274,499 (according to information from Coinmarketcap.com). This placed it on no. 54 on the list of the DEXs in the world with the highest 24-hour trading volumes. On the same day, dYdX held the top spot with a trading volume of USD 1.28 billion followed by Uniswap with USD 934 million. So quite a big difference from the top platforms to say the least.
Other Decentralized Exchanges (DEXs)
As mentioned above, the DEXs are definitely gaining market shares against centralized exchanges. You have probably heard of at least one of the following exchanges that are all DEXs: Binance DEX, ViteX, EtherDelta, Bibox, Bitshares Asset Exchange, Waves DEX, Bancor Network, OpenLedger DEX, IDEX, Token Store, Bisq, Counterparty DEX, Burst Asset Exchange, AirSwap.io, Fcoin Exchange, Barter DEX, Switcheo Network, DEx.top and Ethermium.
StellarTerm Trading View
Different exchanges have different trading views. And there is no “this overview is the best”-view. You should yourself determine which trading view that suits you the best. What the views normally have in common is that they all show the order book or at least part of the order book, a price chart of the chosen cryptocurrency and order history. They normally also have buy and sell-boxes. Before you choose an exchange, try to have a look at the trading view so that you can ascertain that it feels right to you. The below is a picture of the trading view at StellarTerm:
StellarTerm Trading fees
We have not been able to find any clear info on this exchange’s trading fees. However, when comparing the prices offered at Stellarterm (1 BTC vs. XLM) against the number of XLM-units 1 BTC allegedly gave you at that point in time according to Coinmarketcap, we arrived at the conclusion that the mark-up/mark-down charged by Stellarterm was 1.00%. This is a bit high.
StellarTerm Withdrawal fees
We have not found any clear info on the withdrawal fees. Again, this is a potential risk for you as an investor. We have reached out to the exchange to clarify their fee model and will include any info we might receive here..
StellarTerm does not – like all (or at least close to all) other decentralized exchanges – accept any deposits of fiat currency. This means that cryptocurrency investors without any previous holding of cryptocurrency assets can’t trade at this trading platform. In order to purchase your first cryptocurrencies, you need a so called entry-level exchange, which is an exchange accepting deposits of fiat currency. Find one by using our Exchange Finder!
There is however a tab in the menu field at the trading platform where you can purchase Lumens through the use of Visa and/or MasterCard. But this is done through a third party (Lobstr) and not at the actual platform itself.
The servers of DEXs normally spread out across the globe. This is different from centralized exchanges that normally have their servers more concentrated. This spread-out of servers leads to a lower risk of server downtime and also means that DEXs are virtually immune to attacks. This is because if you take out one of the servers, it makes little to no difference for the network of servers in its entirety. However, if you manage to get into a server at a centralized platform, you can do a lot more harm.
Also, if you make a trade at a DEX, the exchange itself never touches your assets. Accordingly, even if a hacker would somehow be able to hack the exchange (in spite of the above), the hacker can not access your assets. If you make a trade at a centralized platform, however, you normally hold assets at that exchange. That is, until you withdraw them to your private wallet. A centralized platform can therefore be hacked and your funds held at such exchange can be stolen. This is not the case with respect to decentralized exchanges.