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When it comes to purchasing cryptocurrency, a beginning user may find it difficult and complex, and may often become discouraged. It’s important, especially in 2019 with the level of complexity in cryptocurrency being at its all-time high, to make sure you have an absolute grasp on the subject at hand prior to purchasing it; and purchasing Stellar Lumens is definitely no exception.
Understanding how to navigate through exchanges and make purchases for Stellar Lumens, otherwise known by its ticker symbol “XLM” is essential to avoid from being scammed, opening your account to hackers, or even misplacing funds because of your own error.
Compare Exchanges to Buy Stellar Lumens (XLM)
Stellar Lumens, otherwise known as “Stellar” or (XLM) by its trading ticker, is a financial platform that works in a semi-decentralized manner that aims to connect the entire globe to one another through a financial framework that is seamless and easy to use. As such, Stellar has additionally recently enabled itself as a framework more projects as well, not just a static option. Stellar has relabeled itself as being a “Platform” for those who want to develop on a distributed framework rather than as a singular cryptocurrency.
Stellar was recognized in 2017 after making significant gains during the rises in price of Stellar Lumens and cryptocurrencies and has since adapted into a global foundation for projects to develop on. This ranges from incorporating decentralized exchanges, very quick and easily confirmable transactions, to various cryptocurrency technology-based wallets.
One of the most notable benefactors that XLM has to offer is its confirmation time. While Bitcoin and Ethereum process only double-digit transactions per second, Stellar has the ability to process an exponentially larger amount of transactions, making it an extremely fast cryptocurrency. However, this does come at the cost of pure decentralization as is the case with many cryptocurrencies and their underlying blockchains. By implementing a more centralized nature, the technology can theoretically be processed faster, as is not the case with other decentralized technologies.
Stellar is also the platform for a few upcoming blockchain related projects that are making waves through the blockchain community. By implementing the Stellar protocol, applications and projects can imply faster transaction speeds on their platforms or even higher throughput rates. Trading XLM can be done on a variety of exchanges, however, it’s been garnering a large amount of attention in terms of CFDs because of the ability to trade price which means betting and potentially profiting from both directions.
How to create a Stellar Wallet
Best Exchanges to Buy Stellar Lumens
(Step by Step) How to Buy Stellar Lumens On eToro
“eToro Stellar” is a popular search online, given that eToro is considered the best option for purchasing Stellar. First and foremost, eToro is regulated and overseen by the FCA. As a result, there is an additional layer of security and safety implemented in your actions that is not present in many other cases. Although cryptocurrencies are indeed volatile assets, eToro smooths the process of purchasing and engaging in their trading a bit further through the emphasis they’ve placed on regulation and safety.
To get started on eToro and purchase Stellar from the platform, you’ll need to create an account, which can be done easily by pressing the green “Join Now” button placed on the homepage when loading the website. After pressing the button, a new form should be prompted on the screen that will typically ask for basic user information such as first and last name and email. Upon entering the information, you’ll be logged into a basic eToro account, however, it is unverified meaning you won’t be able to purchase or deposit funds until you validate it. To do so, head over to your account profile and you should see a status bar that is minimally completed; press the button that says “Complete Your Profile” which will link to a new page that you’ll use to provide the further credentials needed for verifying your account status.
Once you’ve selected the link you should be prompted with a new set of instructions that you’ll follow for the complete verification of your profile. eToro guides you on the instructions for the platform, which makes the process a bit more streamlined. For this section, keep in mind that you’ll need multiple forms of verification dependent on which part of the world you’re from. If you’re from the UK, you’ll have to provide your identification number, as well as valid forms of picture ID and proof of residence.
The process should be fairly straightforward as upon entering each set of information, eToro advances you to the following pages.
Once verified you’ll need a method of funding your account; otherwise, there’s no way to make an actual purchase of Stellar. We recommend traditionally $250 or so as a minimum to avoid from slippage or not acquiring an investment due to any additional fees that may be incurred. To make an actual deposit, you’ll need to add a method of funding by proceeding to the “Deposit” section of the platform which is located on the left-hand side of the user dashboard. Then you’ll need a way to actually link the funds to the eToro platform, which can traditionally be done either through a bank account, credit card, or PayPal. PayPal is the easiest way, so that’s the method we’ll utilize for now.
Once linked, you can process the funding process by pressing “Submit” after reviewing the amount you’d like to deposit. Wait for a few confirmation notifications and then you should have successfully added fiat currency (USD in this instance) to your eToro account. Next, you’ll have to actually buy Stellar from eToro, which you’re able to do by using the search bar on eToro and looking for “Stellar” (XLM).
Click the “Trade” button and a new panel should pop up. Enter in the amount of Stellar you’d like to purchase and click “Open Trade” once you’ve reviewed it. If done correctly, your order should execute a few seconds afterward and you should be able to see your position in XLM on your “Portfolio” tab.
Binance is one of the most trusted and reputable exchanges in the cryptocurrency sector at the moment due to its dedicated team and transparent integration process. The exchange’s CEO Changpeng “CZ” Zhao has been labeled as one of the most powerful forces in all of finance at the moment; Binance maintains a stance in the digital asset sector like no other in that it has never been hacked either. Although this can absolutely change, the longstanding track record is quite impressive as its one of the largest volume exchanges online. This track record also makes Binance one of the most viable options as far as purchasing Stellar
Creating an account on Binance is fast. To do so, you’ll only need an email, username, and a valid password. To start the process, head to Binance’s main website and click on their register button which can be found at the top right of the navigation bar.
Once you’ve selected register all that’s required is a username, email, password, and simple captcha to ensure legitimacy. For Binance, you’re not required to verify your account (Other than simple email verification) in order to buy Stellar, however, it is definitely recommended that you at least complete the most basic 2FA layer so that you have a formal addition of security with your funds in case anything is hacked or stolen.
Once you’ve registered, you’ll need to deposit funds to Binance; you can do this through a number of ways, most recently using a credit card. The two easiest ways for depositing on Binance are through credit card or Bitcoin. For Bitcoin deposits, all you need to do is hover to the account tab once you’ve logged into your account, and click on “Funds” –> “Withdrawals and Deposits”, then find Bitcoin (Or any other cryptocurrency, in this case, BNB deposit is shown). Click the deposit button, and you’ll be given a new wallet address which serves as your Binance Bitcoin (Or any other crypto) wallet. Sending funds to this address will then update and result in new funding for your Binance account.
As shown, the deposit address highlighted in red is the address we need to send crypto to so that it updates in our portfolio/account. By simply swapping Bitcoin in for any notable term mentioned, we’re able to fund our account using Bitcoin and then use that Bitcoin to purchase Stellar on Binance.
Next, navigate to the “Exchange” section (Top left of the navigation bar as demonstrated in the above picture), and then use the search bar to look through the BTC markets, or another market you may be prompted to use if you bought a stable coin using a credit card, and find “XLM”. In this case, we’re looking for XLM under the BTC markets.
Once the XLM market has been identified, go to the center most part of the screen and find where the order tab is located. This is where you’ll be making the actual order to purchase Stellar. Enter the quantity for the amount of XLM that you want to purchase and execute the order.
As a result, by going back to the page you were previously on when depositing the funds, you’ll be able to see that your amount of Stellar (XLM) in your Binance created wallet is now updated to reflect the amount.
- Various selection of up-to-date cryptocurrencies
- No verification needed (Besides email) to purchase XLM
- Cryptocurrency deposits as well as credit card
- Most targeted exchange from hackers/phishers
- Slow verification if looking for extended limits
While Coinbase is a great quick platform to enable purchasing of cryptocurrencies of different kinds, namely primary ones such as Bitcoin or Ethereum, Coinbase currently does not support the purchasing of Stellar Lumens. During live panels, Coinbase has stated they’re not closed off to the idea of enabling Stellar Lumens (XLM) trading on the platform, however, so to completely mark the possibility of XLM not being enabled on the platform isn’t applicable.
You can, however, view the XLM page on Coinbase which can be found here. Keep in mind though, Coinbase does not enable XLM trading, and any subsequent website that says they do offer XLM trading is not legitimate.
Plus500 is an international financial services firm that serves as an application and platform where users can buy and sell contracts for difference (CFDs) for various assets; among those assets are multiple types of cryptocurrencies, however unfortunately Stellar Lumens is not amongst those. However, Plus500 is consistently adding assets to their platform so the possibility that they add XLM to that list is definitely not impossible.
The Plus500 platform works in a fashion that offers exposure to cryptocurrency prices without actually having to buy cryptocurrency. Through CFDs, users are able to trade price action of underlying cryptocurrencies such as Bitcoin, Ethereum, or even Monero without ever actually buying any assets. The platform also works for other assets as well and is a great option for trading contracts for difference; unfortunately, at this time Stellar is not supported on the platform.
Buying Stellar Lumens (XLM) in Your Country
Purchasing Stellar in the UK can be done directly via either Binance or eToro. Both platforms are supported in the UK; eToro is also regulated by the FCA which is a very big benefactor if you’re from the UK and looking to trade on the platform. Although Stellar is a cryptocurrency is a relatively new asset, the assurance of trading on a platform that is regulated and having your funds stored with a previously reputable exchange is promising.
Additionally, buying Stellar on Binance is just as easily doable. Either way will work, and both exchanges have streamlined purchasing processes.
eToro and Binance are both usable and legal in the United States or Canada and can, therefore, be used by any US residents. eToro is most likely one of the best options because of its security and regulatory safety, as well as Binance for its continued efforts to secure funds through high-level processes and partnerships with entire government bodies and countries.
Differences Between Buying and Trading Stellar Lumens
- You own the asset, you have the right to move it, sell it, and transfer it as you wish.
- Traditionally associated with longer-term (Multiple months to years)
- Assets can be used just as fiat currencies are; for purchases, or for payments
- Somewhat safer than trading directly using margin or with borrowed funds
- XLM traded using contracts for difference (CFDs)
- You don’t actually own Stellar, you own a representation of Stellar which is in the form of a contract
- Traditionally associated with shorter-term positions or ideologies about Stellar because using margin accrues fees very quickly.
- Higher risk is implied because you’re buying contracts on margin (Borrowed money from the broker)
Alternative Methods to Buy Stellar Lumens (XLM)
Purchasing cryptocurrency can be very confusing and a lengthy process in many cases where you have to provide all of the banking and diligent account information when linking a funding method, however, many newer platforms enable credit card linking which streamlines the purchase of Stellar substantially. In these cases, credit cards are linked to the platform and used for direct funding of the account which can then be utilized to either buy the base asset (USDT) in a traded Stellar pair or purchase a direct Stellar CFD.
Purchasing Stellar using a credit card is very easy if being done on one of the following platforms: eToro or Binance. eToro is a very viable option since it’s registered and regulated by the FCA so there is a higher level of confidence in making purchases for XLM on eToro. Binance is also an option, and the purchase of XLM using a credit card can be streamlined on their site as well by simply linking your card through the funding methods of the Binance section.
To purchase Stellar using a credit card on eToro, first navigate to your account profile on the platform. Then, on the left-hand side, you should see the blue “Deposit Funds” button. Click on this and it should prompt you to add a form of payment which you can select to be a credit or debit card as shown below.
Once completed, enter in the quantity and press execute; you should then be able to purchase Stellar with the newly deposited funds.
Stellar can just as equivalently be purchased on eToro with a credit card as it can be by using PayPal. Both are streamlined through the platform and the process is the same. To do so, simply press the “deposit funds” button on the left-hand side of the account page and then navigate to where the drop-down menu is and specify the account type as PayPal. It will then prompt you to login to your PayPal and after doing so, you’ll be able to fund your eToro account using PayPal.
Then, once completed, you’ll have the fiat funds in your account which can be used for purchasing Stellar. The process is the same, the only difference is that you’re required to have an existing PayPal account that can be linked, essentially.
Buying Stellar with Bitcoin can be an easy process that is done through the Binance exchange. After signing up and entering in all of the preliminary information, you can deposit funds to your Binance account by using the pre-generated Bitcoin address that Binance creates for you. These wallet addresses are representations of deposit placements. Any Bitcoin you deposit to your Binance Bitcoin wallet will update as funds on the platform for you to trade; as a result, any Bitcoin you send to your wallet can then be used to buy Stellar through the XLM/BTC trading pair.
Buying Stellar using Bitcoin is fairly easy, however, can be easily complicated if careful steps aren’t followed. When depositing, just ensure the address you’re using is the correct one and isn’t accidentally misspelled or typed.
Stellar is developing a platform for financial technology and products that are seemingly unique when it comes to the overall market. In their efforts to develop a global cryptocurrency that is used in all parts of the globe, Stellar has established itself as an important entity.
Before buying Stellar, look at all of the different options of exchanges, assess how much you’d like to purchase, and which method is best for your (Trading or Buying). We recommend you to set your goals first and choose the best cryptocurrency exchange accordingly.
While the cryptocurrency does not in any way guarantee results, its past performance has indicated large potential gains and swings in price that if captured can yield profitability. Overall, XLM is a cryptocurrency to keep an eye out for in 2019.
This is a subjective question, as both Stellar and Bitcoin have their prospective advantages and pros, with a good amount of equal downside. While they are both cryptocurrencies, the Stellar protocol can theoretically, yes, process more transactions per second than Bitcoin can, giving it a higher throughput than Stellar. However, Stellar at the same time has sacrificed a level of decentralization in acquiring that said speed that Bitcoin still maintains, so it’s more of a question of assessing which factor you find more important, pure decentralization or faster transaction processing.
Stellar is not explicitly better than Bitcoin, and Bitcoin is not explicitly better than Stellar. Stellar is currently lower than Bitcoin in price and also has a lower market capitalization, however, it could be looked at with the perspective that Stellar could have a larger room for growth (Higher gains) than Bitcoin.
There are multiple Stellar wallets to choose from, however, arguably the best ones are the ones that have been audited, vetted, and validated by the Stellar team which can be found here.
There is also a verification/listing process for a wallet to be added to this list, so keep this in mind prior to purchasing.
Firstly, Stellar is as all cryptocurrencies are (Unless a stable coin, or tethered to a singular price movement), subject to a bit of volatility. As a result, it’s important to note that risk is going to be involved when it comes to buying Stellar or any cryptocurrency.
Determining whether or not Stellar is “worth it” really depends on personal opinion; although it’s not regulated or classified as such, treat it like another larger scale investment to be made; assess how much you’d like to purchase, your time frame, and also what your goals are ahead of time. Then you’ll be able to determine whether or not it’s worth it.
Stellar is mainly classified into two main pillars, a cryptocurrency as well as a protocol for other financial products or technologies. In the form of a cryptocurrency, XLM can be sent and received globally within seconds and confirmed all in one function, something that no other currency has been able to do. As a protocol, any project can come and develop on the Stellar protocol and adopt its high throughput performance rate, which is also found to be very high.
Before anything, try to assess your own personal opinion on Stellar and determine both through previous price action, and through future predictions done by both analysts and experts, on whether you think overall Stellar would be a good fit for your portfolio and also if you think Stellar’s volatility is too high or too little to blend with the rest of your portfolio. Factors such as these are important to separate and understand prior to including Stellar in your portfolio.
- 1 Compare Exchanges to Buy Stellar Lumens (XLM)
- 2 Best Exchanges to Buy Stellar Lumens
- 3 (Step by Step) How to Buy Stellar Lumens On eToro
- 4 Buying Stellar Lumens (XLM) in Your Country
- 5 Differences Between Buying and Trading Stellar Lumens
- 6 Buying
- 7 Trading
- 8 How to Trade Stellar
- 9 Alternative Methods to Buy Stellar Lumens (XLM)
- 10 How to Sell Stellar
- 11 FAQ