How to Buy Stellar

Stellar Lumens (XLM) is the proprietary cryptocurrency of the decentralised Stellar network, established in 2015. The main goal of the Stellar project is to create a new way for global financial systems to interact and simplify monetary payments and transfers.

What is Stellar

Stellar is a decentralized network of servers running on a native blockchain. All servers communicate with each other directly, on a P2P basis, without control from a centralized source. Any user can connect to the network by verifying their node through the Stellar ConsensusProtocol.

The Lumens Cryptocurrency (XLM) is used to power the network. In most cases, it is used to pay for transactions in the Stellar network. One of the reasons for the popularity of the token is the collaboration with IBM. This helps the project do its job: to regulate cross-border transactions for individuals and financial institutions.

To understand the basic principles of the network, let’s turn to an example.

You need to send $100 to your buddy in Poland from the US, but traditional bank transfers can only provide a transaction with an 8% commission. The Stellar network with minimal fees first transfers your dollars to XLM, and your buddy already receives the Polish zloty which the network has exchanged with XLM. This way you avoid many transfer and exchange fees

Where better to buy Stellar

Stellar is a common coin and can be found on various platforms. The coin can be purchased from exchanges, crypto-exchanges, electronic payment systems and banks such as Revolut.

The most profitable way to buy coins is through exchanges: they are the most reliable, have a high level of liquidity, good exchange rates, are regulated and offer a wide range of options to buy cryptocurrency (bank transfer, P2P exchange, from card etc). Also, many exchanges provide the opportunity to buy crypto for fiat money (US Dollars, Euro, etc.)

Stellar Buying Instructions

In this step by step guide we will look at one of the most profitable ways to buy XLM. We will also describe the basic principles of buying crypto.

1. Decide on the level of risk

Before buying a coin it is important to weigh all the risks. This is one of the main aspects of working with cryptocurrency. Once you understand all the features of the coin and know you are going to buy Stellar, look into the following points:

• Don’t buy with all your money. Most often traders trade on a percentage of their deposit (this helps reduce risk);
• Do not buy with all your money.
• Don’t buy with your last bit of money. No one knows exactly how the exchange rate of a coin will change. It is important to remain calm and hold the coin for a sufficient amount of time;
• Don’t use money you can’t afford to lose.

2. Choose a crypto-exchange

Now there are many crypto exchanges that provide the opportunity to buy XLM. Each exchange has its own parameters and features. Check the user reviews on the web to make sure you don’t wind up on a scammer. Also, to determine the exchange and not to get confused, you can use our rating of exchangers to buy Stellar.

Exchange

Website

BTC trading volume, 24h

1

Binance

www.binance.com

BTC trading volume, 24h

356.28

2

BitMart

www.bitmart.com/en

BTC trading volume, 24h

243.11

3

KuCoin

www.kucoin.com

BTC trading volume, 24h

90.63

4

Bitforex

www.bitforex.com

BTC trading volume, 24h

73.25

5

OKX

www.okx.com

BTC trading volume, 24h

63.64

3. Register your account

Let us take the example of buying at the top exchange Binance. This platform has the highest trading volume but you can choose any other crypto exchange to buy XLM.

You can check at our website.

To buy a coin, you must first register. Please see our step by step instruction on how to sign up for a new Binance account:

1. Open the official Binance page;
2. Click on Register in the top right corner;
   

   

3. Email or phone number and enter your password Create Account;
   

   

4. Step the instructions the site shows you

Detailed instructions can be found in the full on our website.

4. Top up your account

Let’s look at the process of funding your account with BUSD Stablecoin and then buying XLM for Binance USD. To do this you need to:

1. Click Wallet in the top right corner → click Fiat and Spot;
2. Type BUSD in search → Deposit;
   

   

3. Select transfer network → copy the address and paste it into sender wallet or scan the qr code → specify the amount of Binance USD to buy the cryptocurrency → transfer funds;
   

   

4. You have funded your Binance account.

5. Buy Stellar (XLM)

Buying XLM is not a complicated process. To buy Stellar:

1. Click Trade → select Spot;
   

   

2. Find XLM/BUSD in the search box → choose this trading pair → state order type, for example Market → type in the amount you wish to buy the coin → Buy XLM;
   

   

3. Purchase Stellar complete.

How to sell Stellar

The process of selling is not much different from buying. In order to sell Stellar:

1. Click Trade → select Spot;
   

   

2. Find XLM/BUSD in the search box → select this trading pair → specify order type, for example Market → under sell, write the amount of coin you wish to sell → Sell XLM;
   

   

3. You have successfully sold XLM.

Where to store your XLM

If you do not plan to trade and actively use the cryptocurrency, it is better to store it in “cold” wallets. These are cryptocurrency wallets which do not have a permanent connection to the internet and therefore are better protected. The most popular of these is Ledger, it looks like a flash drive and is widely used by the crypto community.

If you need to trade and use XLM often, you’re better off storing coins in exchanges or hot wallets. They are less secure than cold wallets, but will allow you to quickly withdraw and use your funds. The Trust Wallet and the multifunctional Atomic Wallet are good for such purposes.

When using hot wallets, don’t forget to use a strong password and enable two-factor authentication. This will help increase security and preserve your assets.

Read about: Best wallets to store cryptocurrency.

How to withdraw Stellar to a wallet?

We’ll look at the Stellar withdrawal example from Binance to TrustWallet. In order to take out the XLM, you need to:

1. Click Wallet → Fiat and Spot;
2. In the search box, type XLM → Withdraw;
   

   

3. Find XLM in TrustWallet and click Receive;
   

   

4. Copy the address and paste it into the Binance exchange → select transfer network → write number of coins to be transferred → confirm the transaction;
   

   

5. You have successfully transferred money from Binance to TrustWallet.

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Agatha Redich

Articles author, editor

Articles author and website editor. Works with texts for over 12 years. Among Agatha’s clients: Rossman, Zara, Bosch, ING Bank, Lexus and others. Crypto journalist since 2018. She wrote more than a hundred articles about cryptocurrencies and the crypto market. Agatha's professional credo is to reveal complex topics in an accessible and simple way.

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Emil Rabin

Site expert

Cryptocurrency expert and financial analyst. Emil has working experience in Bain and KPMG, collaborated with PayPal and Revolut, organized more than 30 educational events about blockchain and cryptocurrencies in Eastern Europe. An expert of the TGDRatings.com portal since 2022.

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