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How to Buy Stellar Lumens (XLM)

If you want to buy and trade Stellar but don't know how to start, you've come to the right place. In this guide we list the best platforms to buy XLM, how to make your purchase step-by-step and how to sell your coins.

Bitcoin has led the digital currency revolution for much of the last dozen years, and other virtual currencies have a lot to thank it for. However, the older blockchain network’s scalability and transaction speed issues have led to the proliferation of faster and more scalable solutions. One of such is Stellar.

However, several crypto investors are still unaware of what the Stellar blockchain is all about and what it aims to achieve. This article explores what Stellar is and how to buy Stellar Lumens for relatively low fees. If you’re hunting for some of the best places to buy XLM, then this guide should come in handy. You may have bumped into a couple of platforms that support XLM and may be confused about which one is the best one to buy XLM.

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Contents [show]

    Best Places to Buy Bitcoin in October 2021

    Some of the top platforms to buy Stellar this month are:

    This list is not exhaustive and does not reflect the entirety of the rapidly expanding crypto industry. However, these brokers were carefully handpicked and reviewed due to their longstanding reputation and adherence to strict security measures.

    They also offer low fees, quick transactions and provide a broad range of payment methods to fund your account. In essence, they make it easy for users to buy Stellar with no extra effort.
    In addition, they are also quite liquid. This means that traders can easily buy and trade Stellar without fears of lack of liquidity.

    eToro - Our Recommended Crypto Platform

    eToro exchange
    • CySEC, FCA & ASIC regulated - Millions of Users Worldwide
    • Buy with Credit card, Bank transfer, Paypal, Skrill, Neteller, Sofort
    • Zero Commission Fees
    • Automatic Staking Rewards for holding ETH, ADA or TRX
    • Copytrade Winning Crypto Traders - 83.7% Average Yearly Profit
    eToro exchange
    67% of retail investors lose money when trading CFDs with this provider.

    How to Buy Stellar – Quick Guide to the Best Brokers for Buying Bitcoin in October 2021

    Do you want to buy Stellar? If yes, you can follow these quick steps listed below to get started:

    1. Open an account: You’ll first need to open an account with a trusted cryptocurrency broker. We recommend eToro, as the platform is heavily regulated, supports multiple deposit options with super-low fees.
    2. Upload ID: As a regulated brokerage site, eToro will ask you to upload a copy of your government-issued ID.
    3. Deposit: You can now deposit funds with a debit/credit card, Paypal, Neteller, Skrill, or a bank wire.
    4. Buy Stellar: Search for ‘XLM’ and click on the ‘Trade’ button. Enter the amount of Bitcoin you wish to buy ($25 minimum) and confirm the order.

    Once this is complete, you will now have Stellar in your eToro portfolio. Some investors prefer to keep their Stellar funds on the eToro platform until they want to withdraw. However, you can store your Stellar funds on the eToro crypto wallet.

    How to Buy Stellar – eToro Tutorial

    Looking for a comprehensive guide on how to buy Stellar? This section will cover how you can do this in the safest and most cost-effective way possible.

    Step 1: Open an account

    The entire process of creating an account, verifying your identity, depositing funds, and buying Stellar can be done in less than 8 minutes on the eToro platform. This is because eToro uses automated technology to verify your details.

    To get started, head over to the broker’s official website and click on ‘Join Now.’ You can find that in the top right-hand corner of your screen.
    You will be redirected to a signup page like the image below. You will need to fill in your first and last names, email address, username, and phone number. If you do not want to go through this rigor, you can easily signup with your Facebook or Google account on the bottom page. Remember to click on the square boxes before proceeding.

     

    eToro sign up

    67% of retail investor accounts lose money. Invest responsibly.

    Step 2: Upload ID

    This is very important if you want to buy Stellar. As mentioned earlier, eToro is regulated by top global bodies, and so you will need to have your identity verified before you can start any meaningful trading.

    You can actually complete this step at a later date – but it does need to be done before you are able to:

    • Deposit more than $2,250
    • Make a withdrawal

    With this in mind, it’s best to quickly upload the required documents now to avoid any delays in the future.

    This requires a copy of your:

    • Passport, driver’s license, or national ID card
    • Utility bill or bank account statement issued within the last 3 months

    In most cases, eToro will authenticate your documents straight away and subsequently remove all account restrictions.

    Step 3: Deposit

    Before you can buy Stellar, you will need to make a deposit. Thankfully, eToro offers several payment methods you can choose from besides your traditional bank wire transfer. They include:

    • Debit and credit card payments (Visa, MasterCard, Maestro)
    • Skrill
    • PayPal
    • Neteller
    • Sofort/Klayna
    • iDEAL
    • International bank transfer

    For deposit fees, eToro charges a flat rate of 0.5% across all the payment methods. This is cost-effective compared to several trading platforms, which charge as much as 5% for deposits. As per minimum deposits, US residents can deposit as little as $50 while other supported countries can get started with $200.

    Step 4: Search For Stellar

    Now that your account is fully funded, you can now buy EOS. Although you can head to the cryptocurrency section and scroll down to ‘Stellar,’ the easiest way to do this is to search for it. To do this, click on the search bar on the top of your dashboard and type in ‘Stellar.’ You will be shown ‘XLM’ with ‘Stellar’ underneath. Click on it to be taken to the trading page. Once there, you can briefly click on the ‘Feeds’ button to learn what other investors are saying about Stellar and look at Stellar’s track record through the ‘Chart’ button.

    Step 5: Buy Stellar

    Once you are ready to buy Stellar, click on the ‘Trade’ button. You will be redirected to an order page like the image below. Click on the ‘Amount’ tab and input how much you want to invest in Stellar (minimum is $25). When you are satisfied with everything, you can click on the ‘Trade Now’ button to complete your purchase.

    eToro-Buy-Stellar-Lumen (1)

    67% of retail investor accounts lose money. Invest responsibly.

    Where to Buy Stellar

    This section covers some of the top ten best platforms to buy Stellar this month. Let’s begin.

    1. eToro – Overall Best Platform To Buy Stellar

    eToro is our overall best platform to buy Stellar. The platform is quite popular for trading several financial instruments. Its social trading platform is one of the most well-known and has attracted over 20 million active users. etoro logo

    eToro is also a regulated broker and has operational licenses from global bodies like the UK’s FCA, CySEC, and ASIC. It offers exposure to some of the broadest range of financial instruments, and investors can trade commodities, stocks, bonds, FX currency pairs, CFDs, ETFs, and cryptocurrencies. eToro is considered the social media network for traders as it offers a ‘Feeds’ functionality where users can easily air their thoughts on particular investments.

    Stellar-Lumen-Chart-eToro

    The platform also hosts a CopyTrade functionality that lets new traders copy the trades of more experienced traders. This can be a great way to hedge against losses due to the knowledge gap and make some profits alongside. In addition, eToro enables traders to automatically diversify their portfolio across several regions and sectors through its in-house managed CopyPortfolio functionality. This is one of the best functionality and is only available for some of the most liquid asset classes.
    You also enjoy commission-free trades on the eToro platform. This means you only have to pay for the underlying asset and do not have to worry about paying commissions before making purchases.

    Meanwhile, eToro requires a $200 minimum deposit to start trading. US residents can do this with $50, and you can pay through various channels like bank transfer, debit/credit cards, and e-wallets like PayPal.

    Pros

    • Buy Stellar commission-free
    • Regulated by tier-1 bodies like the FCA
    • Popular social trading platform
    • Diversify investments with CopyPortfolio
    • Enables multiple payment methods

    Cons

    • Supports only USD payments
    • Flat rate of 0.5% for deposits
    • $5 for withdrawals

    67% of retail investor accounts lose money. Invest responsibly.

    2. Capital.com – Trade Stellar CFDs Commission-Free

    Another top platform to buy Stellar is Capital.com. Like the eToro platform, you can own Stellar without paying any commissions. Capital.com is a leading brand in the CFD and FX brokerage circles. It has operational bases in the UK, Cyprus, and Belarus. Capital.com Logo

    Just like eToro, Capital.com is also a regulated broker and has clearances from the FCA and the CySEC. Furthermore, Capital.com is one of the most popular platforms to trade CFDs in the world. You can also make crypto-to-fiat and crypto-cross market trades on Capital.com. If you have a keen eye for value and believe that Stellar will surge in the future, you can also engage in futures trading and pitch it against major currencies like the US Dollars, British Pounds, and Euro.

    capital.com Bitcoin CFDs

    Regarding its trading platforms, Capital.com offers two options. One is meant for institutional investors, and you can access that through its Prime Division trading platform. Another is for retail investors, and this is accessible on the Capital.com website.
    Minimum deposits are amazingly low, and you can get started with just $20 (applicable for all supported denominations). Capital.com enables deposits through credit/debit cards, wire transfers, and e-wallets.

    Besides cryptocurrencies, you can also trade CFDs of popular investments like FX currency pairs, stocks, bonds, and commodities.

    Pros

    • Absence of deposits and withdrawal fees
    • Offers rich library for beginners
    • Highly intuitive and user-friendly
    • Offers commission-free trades
    • Operates separate accounts for company and client funds
    • $20 minimum deposit required

    Cons

    • CFD trades only
    • Absence of price alert on the web platform
    • Does not support custom investment strategies

    71.2% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider.

    3. Libertex – Top Broker For Crypto CFDs And Stocks

    Libertex was founded in 1997 and is one of the oldest CFD brokers in the world. Based in Cyprus, Libertex is popular for its zero pricing structure, which enables users to make trading decisions without paying extra fees. Libertex logo

    Libertex uses the popular trading platform MetaTrader 4 (MT4) alongside its in-house Libertex web trader. The platform offers over 200 international markets in commodities, stocks, CFDs, FX pairs, bonds, and cryptocurrencies. Leverage is peaked at 30:1, and this is exclusively for experienced traders. Beginners are gradually eased into the system with a demo account which enables them to learn about the financial markets without losing their funds.

    In regards to minimum deposits, Libertex requires just $10, and you can easily fund your account through various options like bank wire transfer, credit/debit cards, and e-wallets.
    Libertex is also a global brand and supports top Premier League side Tottenham Hotspurs. It is also a regulated broker and has operational licenses from the CySEC.

    Pros

    • Zero pricing structure
    • Separate platforms for specific users
    • Amazingly low minimum deposit
    • Regulated by CySEC

    Cons

    • Low leverage for traders
    • Poor trader education
    • Charges apply for some deposit methods

    4. Plus500 – Regulated Platform Offering Different Asset Classes

    Plus500 is a top online broker that began offering financial services in 2008. Part of the Plus500 Ltd brand, the brokerage firm provides top-notch trades through its proprietary web trading platform and several electronic channels. Plus500 logoPlus500 is a public trading company and is listed on the London Stock Exchange (LSE). The UK’s FCA also regulates it. Plus500 enables investments in over 2,000 financial instruments, including FX currency pairs, ETFs, shares, cryptocurrencies, and options trading.

    It offers guaranteed negative balance protection and stop-loss orders. The platform is highly intuitive and user-friendly, and it enables users to place trades easily and conveniently. The leverage for experienced traders is put at 1:300, making it one of the highest in the trading industry.

    Pros

    • Publicly traded company
    • Regulated by the FCA
    • Operates negative balance system
    • High leverage
    • Access to 2,000+ financial instruments
    [/one_half]

    Cons

    • Poor educational resources
    • US clients are not welcome

    Your Capital is at risk.

    5. AvaTrade – Legacy Crypto Trading Platform

    AvaTrade is a part of the Ava Group of companies. It is a top FX and CFD broker operating offices in Ireland, Japan, Australia, and the British Virgin Islands. Much like other online brokers, AvaTrade is regulated in several jurisdictions. These include the EU, Australia, South Africa, Middle East, and Japan. AvaTrade

    One of the main attractions of AvaTrade is that it is a social trading platform. Users can leverage the platform's ZuluTrade and DupliTrade to enjoy social trading functionalities. Users can easily execute trades across FX pairs, cryptocurrencies, commodities, ETFs, shares, and bonds on the platform.

    AvaTrade-Home-scaled-1

    However, several instruments like cryptocurrencies are offered as CFD products which means you do not own the underlying asset.
    AvaTrade offers separate trading platforms for specific users. You can choose to trade with MetaTrader 4 (MT4) or use the AvaTrade Web Trader and AvaOptions.
    Meanwhile, minimum deposits are pegged at $100, and you can fund your account through bank wire transfers, credit/debit cards, and e-wallets.

    Pros

    • Great customer support
    • Multiple trading platforms
    • Social trading functionality
    • Regulated in several regions
    • Research and analytical tools are available

    Cons

    • Lengthy withdrawal window
    • Offers limited portfolio
    • High minimum deposit

    Your Capital is at risk.

     

    6. Coinbase – Top US Crypto Exchange

    Coinbase is a top US cryptocurrency exchange that was founded in 2012 by Brian Armstrong. It is also the only crypto-focused company that is publicly listed.

    The nine-year-old centralized is highly popular due to its easy-to-use trading platform. However, Coinbase separates its trading services based on the user’s experience. The first is the main Coinbase platform which is targeted at new investors but expensive to use due to the fees. The second is the Coinbase Pro variant, which experienced traders mainly use and enjoy low trading fees.

    coinbase website

    Unlike several other online brokers, Coinbase mainly focuses on cryptocurrencies and has one of the largest repositories of digital assets. It also offers custodial services for other institutions' digital assets, making it a multi-faceted online broker. Coinbase has a low minimum deposit entry bar of just $25, and you can fund your account with your bank wire transfer and e-wallets. However, Coinbase does not support credit card payments. Coinbase's deposit fees are also one of the highest in the industry, with a flat rate of 3.99%.

    Pros

    • Publicly-traded crypto exchange
    • A top destination for American residents
    • Low minimum balance
    • $25 minimum deposit
    • User-specific platforms
    • Large repository of altcoin offerings
    • Offers custodial services
    [/su_list][/one_half]

    Cons

    • High fees

    Your Capital is at risk.

     

    7. Binance – World’s Largest Crypto Exchange

    Since launching in 2017, Binance has set the pace in the emerging crypto space. The Bitcoin exchange is the largest crypto exchange of Chinese descent, with trading volume averaging over $60 billion daily. Binance Logo

    The crypto exchange is not only the largest by trading volume but also the most innovative and dynamic crypto platform. Binance operates one of the largest crypto ecosystems in the industry, running a competitive decentralized applications (dapps) platform in the Binance Smart Chain (BSC).

    binance buy bitcoin credit card

    Other key functionalities on the Binance exchange are its staking and savings plans. Through its Binance Earn, users can make passive income from their crypto holdings. Binance charges one of the lowest fee structures in the industry as users get to pay a flat rate of 0.10% for maker and taker fees. Binance does not have a minimum deposit, but it requires a $10 minimum to place a trade. Deposits are made through various payment methods ranging from bank wire transfers to credit/debit cards. You can also deposit Bitcoin directly into your Binance account. Binance operates a peer-to-peer (P2P) payment method where several users can buy and sell particular tokens with fiat.

    Pros

    • Low maker and taker fees of 0.10%
    • Large crypto portfolio
    • Offers legacy-based services like savings
    • Largest crypto exchange by trading volume
    • Has the largest deposit offerings

    Cons

    • Debit/credit deposit fees are high
    • Not ideal for beginners

    Your Capital is at risk.

    8. Revolut – Personal Finance Service With Crypto Support

    Revolut is one of a growing number of new generation banks looking to revolutionize how people interact with money and manage their finances. Entirely focused on an application and with no physical office, Revolut enables users to avoid hidden fees while paying with their card in foreign currencies or withdraw cash abroad. 

    Another great thing about the innovative banking and currency exchange business is that it allows users to receive, send, and exchange cryptocurrencies from the convenience of their smartphones. However, it does not operate as a cryptocurrency exchange like others reviewed in this guide.

    Revolut website

    Meanwhile, it has become a convenient way for its five million-strong users to exchange crypto assets to fiat in seconds. It is highly popular among users due to its low-cost cross-border payment settlement capabilities. In addition, Revolut offers loans and travel and phone insurance. Unlike other exchange businesses, Revolut does not have a minimum deposit, and you can easily make purchases with a virtual card.

    Pros

    • Active user base
    • Offers low-cost cross-border payment
    • Fast transactions
    • No hidden fees

    Cons

    • Customer support is not a strong point
    • No trading platform

    Your Capital is at risk.

    9. CryptoRocket – New Crypto Trading and Exchange Platform

    CryptoRocket is a new cryptocurrency trading platform launched in 2018. Based in St. Vincent and the Grenadines, CryptoRocket enables users to exchange and trade several market segments and offers exposure to FX currency pairs, indices, stocks, cryptocurrencies, and stocks.

    However, cryptocurrencies are the platform’s major area of focus, with over 35 major crypto assets being traded on the platform at present.

    CryptoRocket also has a low minimum deposit entry bar of just $10. However, it only accepts limited payment methods compared to other exchanges in the industry. Deposits can be made through bank wire transfer, debit/credit cards, and Bitcoin.

    CryptoRocket website

    The exchange platform is also not regulated by any global body. CryptoRocket’s unique selling point lies in its same-day withdrawals for credit card transactions, making it an appealing idea for several traders. Leverage is put at a high 500:1, and the broker runs only one account type – the Standard Account. Even though it is not regulated, CryptoRocket operates a segregated accounting system and keeps client funds in a separate account.

    Pros

    • Great range of assets for trading
    • Same-day withdrawals for credit cards
    • Rapid order execution
    • No deposit and withdrawal fees
    • Low minimum deposit

    Cons

    • Does not use MetaTrader 5 (MT5)
    • Not regulated
    • US clients are not welcome
    • Poor educational framework

    Your Capital is at risk.

    10. Changelly – Nifty Exchange for Instant Crypto Purchases

    Operating out of Hong Kong, Changelly is a popular crypto exchange that allows seamless transactions on its platform. While here, users can buy, sell, and swap cryptocurrencies effortlessly.

    Changelly is becoming a crypto investment favorite and currently hosts over 2 million users on its platform. The platform’s intuitive and user-friendly interface makes it easy to swap one digital token for another almost instantaneously. Aside from token swaps, Changelly operates as an automated market maker (AMM), which sees it present the best price for swapping their tokens. An additional benefit is that users can choose between a flat or fixed and a floating rate.

    changelly website
    A flat rate will lock in the best rate during the trading period, while a floating rate focuses on the current market value. Like top US crypto exchange, Coinbase, Changelly runs a Pro platform for more experienced traders to earn passive income by depositing their funds with the broker. Changelly is mainly a crypto-focused exchange and supports over 1,500 cryptocurrencies.

    Pros

    • Highly intuitive user interface
    • Supports large crypto repository
    • Has global reach in over 90 countries
    • User-specific platforms

    Cons

    • No phone support
    • Does not support crypto-to-fiat exchanges

    Your Capital is at risk.

    What is Stellar and How Does It Work?

    Before investing in Stellar, it is important that you know what the blockchain protocol is all about and how it works. This section will shed light on this question.

    So, what is Stellar?

    • Stellar is a blockchain platform that aims to provide a fast, secure, and inexpensive cross-border money movement to different transacting parties.
    • Like Ripple Labs, Stellar aims to make cross-border payments easy and cheap.
    • Although it has been dubbed a Ripple fork, Stellar is inherently different from the blockchain firm as it is decentralized and targets everyday users, not large financial institutions.
    • Stellar aims to enable financial inclusion for all and sundry.

    Stellar uses the Stellar Consensus Protocol (SCP), which allows it to validate 3000 transactions per second and for a fraction of the cost of proof-of-work (PoW) protocols like Bitcoin and Ethereum. Stellar logo

    Like the world’s oldest cryptocurrency, Bitcoin, Stellar operates a distributed peer-to-peer (P2P) network. It is also a convenient option for micropayment as users can easily make payments for everyday utilities on the Stellar blockchain.

    Stellar-Homepage-1

    Stellar connects individuals, banks, and payment systems to move money securely, rapidly, and for a fraction of the cost of traditional payment gateways and currency transfers. It is out to change international payments and remittances and seeks to make this safer, faster, easier, and cheaper for anyone to use in the world.
    It seeks to do this through its single, all-encompassing platform and offers a wide range of easily implementable software development kits (SDKs) and application programming interface (API).

    Creating new tokens on the Stellar blockchain is easy. Cowrie, Tempo, SaldoPay, and several others are a few of the projects built on the Stellar blockchain. Stellar uses an innovative consensus mechanism that is inherently different from several other blockchain platforms. Dubbed the Stellar Consensus Protocol (SCP), it enables blockchain consensus without relying on a closed system to record transactions accurately.

    As per performance, SCP is one of the fastest consensus algorithms out there as it validates over 3,000 transactions per second (TPS). Cost-wise, Stellar charges $0.01 for 3,000 transactions making it one of the most cost-effective ways of moving money across borders.

    Why Buy Stellar? Stellar Analysis

    Cryptocurrencies have led the financial markets for the last eight months in the aspect of returns. Even though the nascent industry is still in its infantile stage, early investors have seen their investments yield returns beyond their wildest dreams. Stellar blockchain is one of the most promising platforms, given its real-world impact on how we will do business in the nearest future. We will highlight some of the reasons why we think you should buy Stellar for the long haul.

    1. Yield Potential

    Investment returns are a major driver in the wealth creation industry, and many investors are searching for the best channel to increase their initial investment. In the past, stocks of Big Tech giants like Amazon, Alphabet, and Microsoft were highly sought after. However, things changed in the last twelve months, with the global economy brought to a screeching halt due to the worldwide pandemic.

    Crypto bellwethers like Bitcoin have been a viable means investors continue to increase their wealth, with the top digital asset growing more than 9 million percent since launching in early 2009. Several alternative currencies (altcoins) like Stellar have also seen their value surge in the last year.

    Stellar trade station etoro
    Source: eToro

    Represented by its digital token XLM, Stellar has come a long way this year. It began the year at $0.12 after rallying in late 2020 from a major market slump. Even though it has not retested its previous record price of $0.875 563 in Jan. 2018, XLM has not performed poorly this year. The ERC-20 token rose to $0.6554 on April 13, 2021, before losing steam. It retested this price action plateauing at $0.7143 on May 16 before market pressures set in. XLM could not pick itself up as this slump coincided with the May crypto market crash, which wiped off over $1 trillion from the crypto ecosystem.

    2. Solid Economics

    Like the world’s oldest cryptocurrency, Stellar is deflationary. This is because it uses a hard-cap limit on the number of XLM tokens that will ever be mined. Like Bitcoin, the total supply of XLM tokens is not yet exhausted, with only 23 billion XLM in circulation. Total supply is capped at 50,001,802,929 XLMs.
    This will make Stellar a scarce token soon, which would positively impact its value in the crypto market. Given its mass appeal and ideal for promoting financial inclusion, Stellar blockchain could become the go-to destination for developers to build low-cost and highly efficient payment rails for connecting much of the world.

    3. Quite Cheap

    Unlike several crypto protocols, the value of Stellar is cheap, and you can easily buy large volumes of XLMs as it is trading at $0.30044 at the moment. If you are on the lookout for a digital asset that you can later on sell for a high price, then Stellar is one you should consider.

    Stellar price compared with Bitcoin, Binance Coin and Ethereum prices
    Stellar price compared with Bitcoin, Binance Coin, and Ethereum prices | Source: TradingView

    However, you can only enjoy the full value of your investment if you buy Stellar commission-free. Although several brokers offer cryptocurrency trading, a few platforms enable you to maximize your investments. We recommend using the eToro platform to buy Stellar as it offers 0% commission trades, and this will increase your purchasing power in the long run.

    4. 24/7 Marketplace

    Cryptocurrencies are open for trading 24 hours and seven days a week. This makes the nascent market highly liquid, and you can easily liquidate your position without waiting for the market to open. Stellar is also highly liquid. In the last 24 hours, over $662 million XLM tokens have been traded, which makes it easy for you to pull your funds anytime you want.

    Is it Worth Buying Stellar in 2021?

    Stellar does not command a large share of the crypto market like Bitcoin and Ethereum. However, it has carved a niche and established itself as a global blockchain brand in the last seven years. Presently, it is the 21st most valuable cryptocurrency with over $7 billion in market cap. This shows that the Stellar blockchain is working towards sustainability.

    Stellar lumens price charts for 2021 till date
    XLM price charts Year 2021 till date | Source: TradingView

    Another major plus is its use case in international remittances. Traditional payment gateways and remittance channels charge as much as $75 for cross-border payments, and they are also inherently slow. Stellar validates transactions within seconds, and the fees are negligible. Given its quick transaction resolution, low cost, and general appeal to the everyday person, Stellar blockchain still has much uptrend for the future.

    Ways of Buying Stellar

    If you are looking for ways to buy Stellar, then you are in the right spot. Some of the best options include:

    Buy Stellar with PayPal

    PayPal is one of the top payment giants, if not the largest of all. The company has expanded its product offering and has added support for cryptocurrencies. Right now, you can’t buy Stellar on the PayPal platform, but you can use PayPal as a funding method to buy Stellar or any cryptocurrency of choice on a crypto exchange. To buy any cryptocurrency with PayPal, we recommend the eToro platform.

    Buy Stellar With a Credit Card

    Even though some exchange platforms do not support credit card payments for cryptocurrencies, the eToro platform does. You can easily buy Stellar with your credit card. However, your credit card issuer may bracket your Stellar purchase as a “cash advance.” This comes with a fee, of course. And you might expect to pay charges of 3 – 5% depending on your credit card issuer. It would be best if you considered this before settling with this option.

    Buy Stellar with a Debit Card

    A third option is to use your debit card. This payment method is quick, easy, and cheap. Like buying Bitcoin with a debit card, you can also purchase Stellar with your debit card. You will need to consider the transaction fee of the exchange.
    Some charge as high as 4% for debit card deposits, while others are affordable. eToro charges 0.5% for all deposits.

    What to Remember Before Buying Stellar

    Do you want to buy Stellar? There are a few things to keep in mind before investing your money.

    1. Stellar is Volatile

    Cryptocurrencies have been long criticized for their highly volatile nature. This is a major reason why several investors are still on the sideline due to the huge price swings in the crypto market. This May crypto crash is a reflection as more than $1 trillion was shaved off the market after Tesla stopped accepting Bitcoin and Chinese authorities cracked down on crypto mining in its territory. However, just like they are volatile, they have the highest level of recovery of any financial instrument. A rally could see losses turned to major gains in the near future.

    2. Public Transactions

    If you do not want your transactions to be transparent and publicly visible, you should not buy Stellar. This is because blockchain-based solutions like Stellar are open for everyone to see. In addition, your transactions can be queried by anyone.

    3. Addresses are Anonymous

    Although we have mentioned that transactions are made public on the blockchain, it is difficult to know the transacting parties. This is because Stellar trades are executed through wallet addresses which are a random combination of letters and numbers. This makes it impossible to identify a real-world owner of a wallet address.

    Choosing the Right Stellar Broker

    Although several trading platforms offer cryptocurrency trading, only a few can guarantee the best trading experience. We have highlighted some key attributes and features you should look out for when selecting a Stellar broker.

    1. Fees

    You should lookout for a broker that offers reasonable fees for deposits, withdrawals, trading, and swapping your Stellar for another coin. Paying fees is not a joyride for anyone, and if you can get a broker that offers some of the most competitive prices for trading Stellar, you should go for that. One of the best fee-saving brokers is eToro.

    2. Support

    Cryptocurrency trading can be a difficult thing to pull off, and that is why a great support team is crucial. Always look out for customer reviews on review sites like ours to get the inner scope on the customer support performance before signing up with them.

    3. Payment Methods

    Payment methods show how flexible a broker is in accepting deposits and withdrawing funds. You should also factor this into your research when searching for a platform. Credit/debit cards, PayPal, Skrill, and several others aside from bank wire transfer should rank high in your payment criteria.

    4. Volume and Liquidity

    Trading a particular financial asset must be subject to how much liquidity it has. This is also applicable to brokerage platforms. If a broker has low liquidity for a specific asset, look elsewhere.

    Stellar Price

    Cryptocurrencies like Stellar are volatile, which means they rise and fall within the 24-hour bracket. It can jump 10% and dip 25% an hour later. This helps us to understand a few things:

    • If market sentiment for Stellar is strong and more people want to invest, then the price will rise.
    • This is seen in 2017 when Stellar rose $0.329 to $0.875563 in Jan. 2018

    Regarding supported fiat currencies, Stellar is majorly traded against the US Dollars. However, you can still trade it against the Korean Won, Euro, Turkish TRY, and the British Pounds.

    Stellar Price Prediction

    Market analysts are bullish on the future growth potential of the Stellar blockchain. According to Wallet Investors, Stellar will likely rise to $0.519 by the end of this year while hitting $1.486 in the next five years. These generally give an inkling of what price potential a digital asset may show, but it is not always the entire story.

    XLM charts of all time
    Stellar’s price charts since 2019 till date| Source: TradingView

    The best way to gauge a token’s future value is to consider the market sentiment surrounding it. This will give you a clearer perspective on its long and short-term viability. For instance, if Stellar is on a bullish trend, investors will likely buy Stellar for fear of missing out (FOMO). If you could make an early entry just before the token surges, you would have been able to buy low and sell high, thereby making a profit.

    Investing in Stellar vs. Trading Stellar

    The financial market is full of different investment strategies applied by investors. While some may choose to buy and HODL for future profit, others may choose to be more hands-on and trade Stellar. We consider the inherent benefits of both below:

    Investing in Stellar

    This option is usually favored by new crypto users who are unfamiliar with how the crypto market works. This is like the traditional way of buying an asset and not selling it off for a long time. This strategy can bear fruit if you believe that the company will deliver on its promises. Investing in Stellar can also be beneficial if you do not want to constantly track price movements as you go about your daily activities. You can just buy and HODL till when you are satisfied with your gains.

    Trading Stellar

    Trading Stellar is highly favored by experienced traders who are well-versed in how the financial market works. It usually entails taking a position by investing your Stellar coin and liquidating or selling when your forecast is right.

    Although this can be highly profitable, it does come with a high level of risk. You may lose all your investments if the market reacts otherwise.

    So, Which is Better?

    Like any financial decision, you have to make the ultimate call. This will be easy to do if you are clear on why you want to hold cryptocurrencies like Stellar. However, we have highlighted some factors for you to consider:

    1. Time Frame

    This is the number one key factor in helping you select a strategy. You will need to answer the question on how long you want to hold Stellar crypto. If you are thinking of a year or more, then you should not consider trading it.

    2. Reason For Holding Stellar

    This considers the motive behind you buying Stellar. Many people are coming into crypto due to the massive returns these blockchain assets have shown. However, these digital assets have also let many people lose their money.
    If you are looking to make big gains in a short time, the best idea would be to trade them.

    3. Consistent Effort

    Investing or even trading cryptocurrencies will require you to put in the work to make an informed decision. This is because there are several cryptocurrencies without any value proposition which are sold on social media hype. If you want to cut through the noise and make your investment yield the expected returns, you need to spend some time understanding the mission of the crypto protocol and see if it has a real-world use case.
    To do this, we recommend you conduct due research and stick to the facts rather than let emotions cloud your judgment. A review site like InsideBitcoins will give you all the details on particular cryptocurrencies and their growing adoption.

    Buying Stellar as a CFD Product

    CFD is short for contracts for difference. This means an agreement between a buyer and seller that the buyer will pay the seller the difference between the current value of an asset and the value when the contract expires. It takes into consideration the difference between the entry price and the exit price.

    Stellar Price Analysis
    Source: Hacked

    Stellar is also traded as a CFD product on eToro. CFDs have become a popular investment style in the last couple of years, and several brokers offer CFD services. This way, you get to gain from Stellar’s price swings without outrightly owning the asset. Although there are several brokers that offer CFD trading commission-free, we recommend using the eToro platform due to its social trading platform and its large portfolio of assets to trade.

    Taxation on Stellar Earnings

    The cryptocurrency market is one of the burgeoning places that has received the most attention in the last year. Regulatory bodies like the Securities and Exchange Commission (SEC) and the Treasury Department are currently developing a crypto regulatory framework to curb illegal activities in the space.

    cryptocurrency taxes
    The Internal Revenue Services (IRS) is also trying to recoup some of the gains made from trading and holding cryptocurrencies. According to a 2014 classification of cryptos, the tax agency considers these virtual currencies as “property,” which is within the capital gains bracket.
    In addition, the taxman also treats crypto as income tax in certain situations. This section covers both capital gains and income tax eligible events.

    Taxable events for capital gains tax in the United States are:

    • Paying for services with crypto
    • Converting your crypto to fiat
    • Trading crypto on peer-to-peer (P2P) platforms
    • Taxable events that fall into the income tax bracket are:
    • Receiving crypto from an airdrop
    • Block rewards from mining crypto
    • Accepting crypto for rendering services
    • Earning interests from lending to DeFi platforms
    • Crypto made from staking and liquidity pools

    However, the losses you incur from your crypto holdings can be used to offset some of your tax obligations. This can run as high as $3,000 from your income tax, depending on the length of time you have held your cryptos.

    Calculating your Capital Gains Tax

    If you are a US resident, your capital gains tax largely depends on the length of time you have held cryptos and the income tax bracket you fall into. This will help you determine your:

    a. Short-term Capital Gains Tax

    If you have traded cryptocurrencies for less than a year, your capital gains tax will fall under your regular tax bracket. If you made any losses in your first year, you could use it to offset up to $3,000 of your trades. You can also postpone the losses into the following year to reduce your tax obligations.

    b. Long-term Capital Gains Tax

    This covers your particular situation if you have been trading cryptocurrencies for upwards of a year. Your capital gains will be taxed within the 0 to 20% range, depending on your income. You can check out a more comprehensive list here.

    The Importance of Responsible Stellar Investment

    One of the main attractions to the crypto market has been the significant returns these blockchain-based assets have posted. This, coupled with growing institutional adoption, has seen several investors come into the nascent space. However, one thing we need you to understand is that digital assets are highly volatile, meaning your gains may be wiped off in seconds following a market downturn. This is why we have decided to insert this section as a form of a caveat before you start trading Stellar:

    Consistent Research

    Investment experts and billionaires will always advise you to spend time looking at the fine details of a particular investment. This also applies even more so with cryptocurrencies, given the rapidly expanding crypto offerings in the crypto market. At our last check, there are over 11,000+ crypto assets currently listed on the global crypto charts.

    The only way to sieve the wheat from the chaff is through consistent research, where you need to focus on the value proposition and growing adoption. This will help you make an informed decision as to the long-term performance of a project and not rely on social media hype to make investment decisions. Other channels that can aid your research are dedicated social media channels, expert analysis, media coverage, and review websites like InsideBitcoins to understand the changing landscape better. We have a dedicated team of analyst experts that provide daily analysis of the crypto market.

    Hedge Your Bets

    After you have concluded your research, it is still important that you make reasonable bets on a particular cryptocurrency. This means you have to set a practical limit on how much you want to invest. If Stellar price falls below your safety zone, liquidate your position and count your losses. Do not think that it will rise again; they never really do.

    Would You Try Stellar Mining?

    Cryptocurrency mining is another way to acquire cryptocurrency tokens. However, Stellar’s use of SCP means that it does not validate transactions like proof-of-work (PoW) protocols like Bitcoin, which requires miners to compete for block rewards.

    Stellar is not also mined as all the XLM tokens have been pre-mined like Ripple Labs’ XRP token. Meanwhile, the Stellar Foundation normally increases new circulation at a fixed rate of 1% to account for lost Stellars and current economic growth. The 1% created tokens are done weekly and distributed to users based on a voting system.

    Minimizing Your Risk With Crypto Investment

    Two main ideas we have stressed in this guide are:

    • Stellar is volatile
    • Stellar is also risky

    To protect your investment, we recommend you follow the steps below:

    1. Do Your Own Research (DYOR)

    Doing due diligence and finding out the facts for yourself makes it far easier to manage your risk. This way, you own the results and can make better-informed decisions without feeling pressured or influenced into forking your money away.

    2. Be Careful of Fraudulent Schemes

    Like several startup ideas, the crypto industry is full of bad actors cashing in on investors’ ignorance. Do not add your funds to the rising waves of swindled victims. Disregard any investment that promises 10x or 20x your initial investment. This is one of the ways fraudsters get people to part away with their cryptocurrencies. Be alert, and if you feel uncomfortable with any investment promises, it really may be a fraud in plain sight.

    3. Invest Only What You Can Afford To Lose

    As basic as this idea is, many people still fall privy to losing all their life-savings investing. Do not fall into this trap. No matter how glamorous or fast-growing a crypto asset is, do not be foolhardy and put all your funds investing in it. Make sure you put a negligible amount and have your funds partitioned according to your risk level.

    4. Track your Results

    Like watching your investments in stocks and bonds grow, you need to apply the same principle to monitor your crypto investment performance. A great investment tracking tool is the eToro crypto wallet which will help you keep track of your Stellar investment. This will aid you in determining which investment should be liquidated and which should receive more funds.

    5. Resist FOMO

    Taking up the rear is fear of missing out (FOM). This syndrome primarily prompts bad investment decisions, and you need to put a lid on this if you intend to grow your crypto empire to the enviable heights you envision it to be. Forget the social media hype and buckle down on the fundamentals of a crypto asset. This will keep you grounded and cut down on the noise.

    Trading Robots

    Another option to reduce your risk exposure and guarantee some credible returns on your investment is trading robots. They primarily perform duties such as setting limit orders, take profit, and stop losses automatically without human intervention.

    This takes away the human factor involved in investing in crypto. However, trading robots are still in their nascent stages and are mostly unregulated. This makes it difficult to decide on the right one to use. Our team of crypto experts has developed a unique vetting system that helps pick the best trading robots from the fake ones.
    Some of the best trading software we have carefully reviewed are:

    Best Stellar Wallet

    Although several lines of code represent cryptocurrencies, they are stored in digital wallets. Stellar tokens are no different and need to be kept in a safe digital wallet to ensure security. In this section, we will highlight the best mobile digital wallet to keep your Stellar safe:

    eToro Crypto Wallet

    if you are looking for a safe place to store your Stellar funds, you can turn your attention to the eToro crypto wallet. This unique digital storage comes with tons of useful tools for crypto newbies who want to store their cryptocurrencies securely. Supporting over 120 cryptocurrencies, the eToro crypto wallet also enables you to easily trade major digital assets like Bitcoin without needing to use the main web platform.

    etoro bitcoin wallet

    You can also track and monitor your crypto portfolio performance from the eToro crypto wallet, making it an all-encompassing digital storage tool for everyone. Another great addition is that it is secure and has regulatory covering from the Guernsey Financial Services Commission (GFSC). You also get a password recovery service if you lose your private keys.

    The eToro crypto wallet is available for all Android and iOS devices, and it is free.

    Stellar and other Top Cryptocurrencies

    Stellar may be a promising digital asset, but it is not the most valuable. In this section, we compare it with other top-ranking cryptocurrencies in the crypto market.

    Stellar vs. Dogecoin

    Meant to be a sort of comic take on the sudden surge of altcoins following Bitcoin’s rise to blockchain prominence, the fun-centered crypto asset has endeared itself to several crypto investors. Despite not having any generic use case, Dogecoin is one of the most valuable cryptocurrencies sitting imperially on the seventh spot on the global crypto charts. This was reflected after it surged 15,000% year-to-date (YTD) and briefly becoming more valuable than Ford Motors and Twitter. Critics believe the dog-themed cryptocurrency will soon lose its appeal as investors will turn to more value-driven offerings like Stellar.

    Stellar vs. Ethereum

    Comparing Stellar may seem a bit harsh, but it may be necessary. Ethereum’s dominance of the emerging decentralized finance (DeFi) sub-sector firmly places it as the second most valuable cryptocurrency. Its continued drive to ensure a DeFi-centered future has made the protocol the official home of decentralized applications (dapps).
    Even though Stellar does not compete in the same field, it has a shot at becoming one of the top ten. This is seen in similar cross-border payment platform XRP, which is the sixth most valuable. The growing adoption of Stellar will likely push from its spot on twenty to the top ten before the year runs out.

    Stellar vs. Litecoin

    Litecoin is a hard fork of the largest crypto protocol, Bitcoin, and is one of the top fifteen most valuable cryptocurrencies. Operating on the same PoW protocol, Litecoin enables faster block finality time and has become many crypto investors’ favorite in the last year. However, it is still subject to the lags of the PoW consensus mechanism and can take some time to validate transactions during peak trading hours. Stellar’s SCP protocol trumps it, and this could be a cool factor in jetting the remittance protocol to blockchain prominence in the coming months.

    Stellar vs. Libra

    Libra coin is one of the most anticipated stablecoins in the emerging crypto industry. Created by Facebook and later rebranded to Diem, the Libra project has been in development for quite some time. It has seen its growth slowed due to regulatory concerns. However, the development team is earmarking this year for its debut. This may see it become one of the most utilized stablecoin due to its unique offering of a basket of investment for users.

    Where Does Stellar Go From Here?

    The crypto market has had to jump the hoops of rallies and volatilities, and these have both endeared and scared off several investors from the space. You may still be in doubt whether you should buy Stellar, and this is expected. However, these wild price swings are not expected to go on for long. As the industry matures, experts believe that there will be less volatility and more stability like the traditional markets. Also, with Stellar expected to become one of the top remittance blockchains in the future, this might be a great time to buy Stellar.

    eToro – Best Place to Buy Stellar

    Like several crypto protocols, Stellar has had a phenomenal year rising more than 200% in the last eight months. Although it has not hit the $1 mark, the remittance blockchain has garnered much interest as several investors look for cheap digital assets to buy low and sell high. Given its value proposition, Stellar is expected to see more adoption in the coming months as more people turn to it to facilitate value transfer quickly and cost-effectively. So if you want to buy Stellar, you can easily do that on the eToro platform.

    However, you should keep these at the back of your mind:

    • Investing and trading Stellar requires effort and research
    • Stellar is volatile, so price swings are expected
    • Always work with a regulated broker and exchange
    • Use expert review sites like Inside Bitcoins for market analysis on Stellar
    • Resist FOMO. Always invest based on the fundamentals

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    FAQs

    How do you buy Stellar?

    Several platforms support cryptocurrencies like Stellar, and you can buy XLM from almost anywhere now. However, we recommend using the eToro platform as top global bodies regulate it. In addition, it offers CopyTrade functionality and super-low fees.

    Should I Buy Stellar?

    This depends on your goals and your risk appetite. Stellar is volatile, and you should anticipate price swings every 24-hour window. However, if you decide to invest, ensure you only invest what you can afford to lose.

    What is the best way to buy Stellar?

    The best way to buy Stellar is with a regulated broker like eToro. Some other options like peer-to-peer (P2P) platforms or through crypto ATM come with too much risk. Leveraging eToro’s user-friendly platform, you can easily buy Stellar in seconds.

    How does Stellar Work?

    Much like every cryptocurrency, Stellar stems from blockchain technology which means it is a line of computer code. Its price is determined by market sentiment and the growing adoption of its blockchain solution by users.

    Is it safe to buy Stellar?

    Stellar is a safe investment to own, and you should not worry if you use the eToro platform to buy Stellar. However, it comes with certain risks, much like any investment and market downturn should be expected. Meanwhile, if you have conducted your research on the Stellar protocol, you should be aware of the potential earnings from this investment.

    How do I make money with Stellar?

    You can monetize Stellar by day trading the digital asset or buying and holding for the long haul.

    What are the benefits of buying Stellar?

    Stellar’s multi-dimensional offering as a remittance and host token for other blockchain protocols makes it a sound investment for the future. So, buying it for a bargain now could yield future gains.

    What are the best payment methods to use in purchasing Stellar?

    We recommend using a debit card. However, if you prefer using PayPal or Skrill, you can also buy Stellar through those options. Meanwhile, this largely depends on the payment option the broker you use supports.

    Who are the best Stellar brokers?

    Several platforms support Stellar trading and investing. Two of the best are eToro and Binance. Both are hugely popular among investors, and you can buy Stellar from either.

    How can I buy Stellar instantly?

    The first step is to create an account with a regulated broker like eToro and verify your account. Once this is complete, you will be able to buy Stellar in a few clicks.

    How can I buy Stellar with USD?

    You can buy Stellar with a Dollar-denominated card on eToro or by using your PayPal account as a funding method.

    What are the Taxes on Trading Stellar?

    This largely depends on the region you are buying from. Meanwhile, US residents can peruse the Stellar Taxation section in this guide.

    How much Is Stellar worth?

    Stellar value often changes due to volatility. At press time, Stellar is trading at $0.30044.

    How do I mine Stellar?

    The Stellar blockchain uses Stellar Consensus Protocol (SCP), which means it does not use the PoW mining protocol. Validator nodes do not compete for block rewards as Stellar uses a Federated Consensus system which reduces energy cost and block finality. Also, Stellar cannot be mined again as it has already being pre-mined at its launch in 2015.

    Question & Answers (5)

    Have a question? Our panel of experts will answer your queries.Post my Question
    1. Question

      Why people say XLM is much overrated ?

      Ron022
      Reply
    2. Question

      I was afraid for so long to get Stellar Lumens because of the complexity of buying it. But, after reading this, I don’t think I will have any problems. Did you have any problems?

      Joshua
      Reply
      • Answer

        Hello Joshua, no we didn’t feel any complexity when buying Stellar Lumens. All we had to worry about was choosing a legitimate and secure cryptocurrency broker to avoid getting scammed. We found out that eToro is the best choice for buying Stellar Lumens.

        Inside Bitcoins
        PRO INVESTOR
        Reply
    3. Question

      Awesome blog. Nice

      hanna54
      Reply
    4. Question

      The FAQs made in the end helps me a lot. Keep making them.

      robert19
      Reply

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