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Taxation Laws on Stellar Lumens (XLM) Transactions in the USA: Understanding Your Rights and Obligations

Posted on January 23, 2023January 25, 2023 by stellar

The United States has a complex tax code that presents unique challenges to cryptocurrency investors. Stellar (XLM) is no exception, and it’s important for American traders to understand the relevant tax rules surrounding this digital asset. In general, taxes on XLM transactions in the US depend on what type of transaction is taking place. For…

Stellar is a blockchain project founded in 2014 by Ripple co-founder Jed McCaleb and venture capital investor Joyce Kim. At the beginning, Stellar shared a lot of its code with the XRP ledger, but the project has since taken on unique characteristics of its own. However, the XRP and Stellar blockchains are still often compared since they both offer fast and cheap transactions and share some common history. You can read more on this topic in our in-depth article on Stellar (XLM).

STELLAR FACTS

Stellar is a decentralized protocol on open-source code to transfer digital currency to fiat money domestically and across borders.

FACT #2

The Stellar blockchain’s cryptocurrency is called the lumen, a token that trades under the symbol XLM.

FACT #3

Stellar is one of the best-performing altcoins of the last five years with a market cap of just over $1 billion.

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