Need of becoming an anchor?

niksmac

If I want to start a business which is supposed to handle Fiat, Cypto and my own asset in the future, is it necessary to become an Anchor? If yes, how to become an Anchor?
Can someone point me to some explainer video where I can understand all these terms and use cases?
Thanks in advance.

MisterTicot

@niksmac
Hi,

No you don't have to become an anchor to deal with Fiat and cryptos. You could use existing anchors by opening trustlines with them, that is in most cases accepting the tokens they're issuing.

This is exactly why anchors does exist. You can learn more about how the network works here:

https://www.stellar.org/developers/guides/

niksmac

MisterTicot What if I want to trade my own crypto/token either ERC20 or Stellar based? Do I need to be an anchor at that point?

MisterTicot

niksmac

Anchors or only for foreign coins, so you can issue your own token on Stellar without running one. Now, if you want to trade an ERC20 token on Stellar and there's no anchor for it you'll have either to run your own either to find an agreement with an existing etheum anchor that would manage the token for you.

niksmac

Thanks for the reply. Appreciate it.
One more question, do I have to contact the anchors in person or is there an API where I can do all these? Means, to handle EUR do I have to talk to (e.g. Tempo) and make a legal contract with them on paper?

MisterTicot

niksmac
It's much simpler than that: you have to open a trustline.

For EURT this is done by signing this transaction

Cajga

niksmac Just my 5 cents: I highly recommend to read the link that @MisterTicot commented about trustlines. It is important to understand that EURT token can be created by anyone on the Stellar network but you should only accept the one that you trust (that is why Stellar has trustlines which are related to issuer account + asset pairs).
This used to be an anchor cryptos but currently the website seems to be down and server from "Cloudflare's Always Online" service: https://apay.io/in

niksmac

Thank you @MisterTicot @Cajga ? appreciate the help.

niksmac

@MisterTicot I have a few more concerns, can I talk to in via any IM? This is me https://keybase.io/niksmac