Want to jump straight to the answer? You can buy XLM on Coinbase and eToro!
The Stellar Network is an open source, blockchain-based distributed ledger focused on storing and transferring money between monetary values while reducing fees. The main goal of the Stellar network is to connect banks, payment systems and customers with faster speeds and without most of the standard transfer fees that must be paid when you transfer money using the traditional banking system.
Stellar’s native cryptocurrency is referred to as “lumens”, although many traders and investors use the terms “Stellar”, “lumens” and its symbol “XLM” interchangeably when referring to cryptocurrency.
If you want to expand your crypto holdings beyond major projects like Bitcoin and Ethereum, investing in Stellar might be right for you. Our guide will show you how to open a cryptocurrency trading account, complete your coin purchase, and store your coins safely. We’ll also introduce you to some of our favorite cryptocurrency trading platforms and portfolios to help you get started investing today.
How to buy Stellar
- Open an account online.
In order to invest in altcoins like Stellar Lumens, you will need to open an account with a cryptocurrency trading platform that supports digital asset. A cryptocurrency broker is similar to a stock broker – your broker is responsible for buying and selling coins on your behalf as per your instructions. Some platforms, like Coinbase and Gemini, are cryptocurrency exchanges, allowing you to buy and sell digital assets directly in the market.
There are 2 main types of cryptocurrency brokers: those that offer access only to cryptocurrencies and those that combine access to the cryptocurrency market with the ability to buy and sell other types of coins as well. ‘assets. Brokers specializing in cryptocurrency markets only tend to offer access to more coins and tokens than brokers who combine access to crypto with trading in stocks and currencies. Brokers who offer access to multiple markets can provide you with a single source for all of your investing needs.
The best platform for you will vary depending on what assets you need to access, what coins and tokens you want to buy, etc. The best platforms for XLM in particular are Coinbase and eToro.
- Buy a wallet.
After opening a brokerage account, you should purchase a cold storage wallet if you plan to hold your coins for the long term. A cold storage wallet is a physical device that stores your coins using an offline private key. Cold storage wallets are more secure than hot storage solutions, which are wallets that must be connected to the internet in order to view your coins and manage your account.
We recommend that you keep your coins in a refrigerated wallet compatible with the Stellar network to avoid the risk of hacking and theft.
- Make your purchase.
Once your account is open and your wallet configured, it’s time to place your buy order through your brokerage account. A buy order is a set of instructions that tells your broker what cryptocurrency you are buying, how many coins you are buying, and sometimes the price at which the order is to be executed. Most cryptocurrency brokers offer a range of order types to give you more control over the price you pay per coin.
Once you have placed your order, you can sit back and relax – your broker will complete the order following your instructions. Once the order is complete, you will see your coins in your trading account. If your order cannot be filled, your broker will usually cancel it by the end of the day.
Best Crypto Brokers For Stellar
Let’s take a look at some of our favorite crypto brokers currently offering access to Stellar.
Among the most popular cryptocurrency exchanges for newbies, Coinbase is best known for its straightforward account setups, straightforward order placements, and intuitive fee schedule. When you choose Coinbase, you can place an order in just a minute and buy cryptocurrency using direct fiat transfers.
This can make it easier for newbies who don’t own a cryptocurrency to make their first purchase without investing in Bitcoin and transferring it to another exchange. Coinbase even lets you earn some cryptocurrency by taking quizzes with its unique Coinbase Earn feature.
eToro is another popular cryptocurrency broker, offering a comprehensive trading platform that is suitable for beginners. eToro offers access to 15 of the most popular cryptocurrencies including Stellar, Tether, Bitcoin, and many more.
If you are new to cryptocurrency trading, you might like to learn from eToro’s Virtual Wallet, which provides you with $ 100,000 in fake currencies to practice your trading strategy. It’s a good way to learn more about eToro’s order types and platform. eToro also offers CopyTrader technology, which allows you to automatically copy trades from high profile investors.
Best crypto wallets
Check out some of our favorite cold storage solutions below. Hardware wallets are physical devices that store access to your cryptocurrency on an external device. These devices stay offline, keeping your digital assets safe. If you’re looking for the best cryptocurrency wallets on the market, check out the Trezor range.
Ideal for quick setups: Trezor Model T
If you’re looking for a cold storage wallet that lets you track and manage your parts on the go, look no further than the Trezor Model T. Featuring a bright touchscreen display, the Trezor Model T makes it easy to view your holdings when you are away from your computer.
The Trezor Model T can also be a great choice for investors new to cold storage. To start your wallet, just log into your computer or phone and follow the instructions. From patch cables to salvage seed cards, the Trezor Model T includes everything you need to start safely storing your parts offline.
Best touchscreen: SecuX V20
The SecuX V20 is a cold storage hardware wallet with a 2.8 inch color touchscreen to make it easy to manage your parts. The device even has an on-screen keyboard and address verification that helps you better resist hacking and theft attempts.
In addition to its impressive touchscreen, the SecuX V20 also has top-level security features, including a military-grade CC EAL 5+ certified security element to ensure that only you have access to your parts. The body of the SecuX V20 is also exceptionally secure, with a sturdy aluminum casing that lets you travel with the device without worrying about damage.
Trade or sell your cryptocurrency
Once you’ve made your purchase and your broker fulfills the order, you’ll see your coins in your brokerage account. From there, you need to decide if you want to keep your Stellar for the long term or if you want to become an active trader.
If you plan to keep your coins for longer than a week, you’ll want to transfer your tokens to a cold storage wallet. Your refrigerated wallet will have an address that you can use to direct your coins from your brokerage account. You may want to send a small amount of cryptocurrency to your wallet before liquidating your account to make sure you have the correct address. If you send your parts to the wrong address, it is virtually impossible to get them back.
Unlike long term traders, active traders capitalize on small Stellar price movements throughout the day or week. You’ll convert your Stellar to a stablecoin (like Tether) when Stellar’s prices rise, and then buy them back when the price drops again. This allows you to accumulate more coins, which you can then cash out or continue to trade.
Becoming an active trader requires a fast and responsive trading platform. Browse through some of our favorite brokers for short-term investors below to get started.
Current crypto prices
Before deciding to place your order to purchase Stellar through your broker, you may wish to monitor the price movement in the market. This allows you to buy when the prices are below average. Browse some of the major cryptocurrencies below to learn more about how the market is moving today.
Getting started with Altcoin investing
From Stellar’s revolutionary network to coins tied to an underlying asset (like Maker), altcoins beyond Bitcoin and Ethereum represent a wealth of potential. Unlike the forex market or the stock market, however, the cryptocurrency market is still very unregulated. Anyone can create a coin or token and start selling it, and there is no central organization that verifies the claims made by these projects.
If you do decide to invest in altcoins like Stellar, be sure to do plenty of research first to make sure that you are only investing in legitimate projects.
Benzinga has developed a specific methodology for classifying cryptocurrency exchanges and tools. We prioritized platforms based on offers, prices and promotions, customer service, mobile app, user experience and benefits, and security. To see a full breakdown of our methodology, please visit our Cryptocurrency Methodology page.
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