getting_started - USRBO.net

11/6/2021

Most people have no idea how to get into buying asset backed tokens. In order to obtain tokens, you must have XLM's. XLM's are the main asset on the Stellar network and are called Lumins.

The Coinbase marketplace is the easiest and most cost effective method of purchasing XLM. Setup an account on Coinbase and you will get two account numbers. One of the account numbers is public and the other is secret and should never, ever be given to anyone. Your public account number can be given to others if they are sending you a payment. Make sure to keep a copy of your account numbers in a safe place like a micro SD card that can be removed from your computer.

Once you have setup an account, you can purchase XLM to trade with or just hold. Most people use either a credit card or debit card to purchase XLM. However, some cards have been blocked by the card companies from purchasing digital currency or tokens.

Coinbase has been able to offer paying for digital currencies using PayPal. Coinbase will charge a fee for purchasing XLM but, it is said, to be less than other marketplaces fees. Once you have XLM, you should consider moving it into a wallet for safe keeping and preferably a wallet that will hold Stellar Lumins.

One of the most popular wallets is Lobstr. Like Coinbase, you will need to setup an account where you will get another set of account numbers. Once, you have your lobster account numbers you can send your XLM to your Lobstr account without any fees. Once, you have your XLM into your Lobstr wallet you can find Stellar tokens you wish to invest in. Lobstr is a stellar wallet. If you want to buy an asset on another network, you will need to use a market place that sells that asset (i.e. XRP on the Flare network).

Tokens are based on a percentage of XLM's price. One token will equal, one XLM if, the tokens price is one XLM. All tokens are traded in XLM.

Tokens are sold at a percentage of the XLM price.

You purchase XLM with, U.S. Dollars (USD) and XLM's value, is always represented in USD's.

1 XLM could equal any dollar amount and it's price, is based on the market value. Currently, XLM is a percentage of the value of the USD. Once, XLM is backed by a precious metal such as silver or precious metal backed currency, the pricing of XLM will surly change.

When understanding the value of a token, multiply the current XLM, USD price by, the cost of the token; this will give you the USD value of the token.

TOKEN = .005 XLM

IT'S PRICE IN USD = .0017823

XLM PRICE IN USD = .3564715

.3564715 X .005 = .0017823

When you purchase one token at .005, this is the percentage of an XLM which, equates to $0.0017823 if, the XLM's price is $0.3564715. While, you hold one token, it's value will rise or fall based on the current price of XLM.

One other factor that will degrade the value of a token is panic selling. Panic selling is done for many reasons but, is when a person sells their tokens for less than the current price of the token's value or less than they paid for it originally. Buying high and selling low, is never a good idea but, some people get in a pinch and it becomes necessary. This doesn't effect the value of the token itself, only the value the seller received.

Before you can obtain a particular token, you must create a trust line with the anchor. Most all wallets add a network reserve of 0.5 XLM to your network reserve. This reserve still belongs to you and will be returned if, you remove an asset and it's trust line. However, you will not be able to use that reserve to obtain tokens.  

You can trade XLM for tokens and the trust line will be created at that time, automatically or you can create a trust line first then, obtain the token you want. If you want to sell all of your tokens, the trust line will remain until you remove it. No trust lines can be removed until it has a zero balance.

This is a, “How to get started”, information sheet. It has been created by USRBO. Information, may change without notice. To learn more about digital assets, see the help section in Lobstr under, settings.