How to Buy Stellar?
Stellar (XLM) is an open source blockchain network for money, created as a more widely usable variant of Ripple (XRP). They also share a co-founder: Jed McCaleb is part of both projects. Where Ripple is geared towards enterprise-level users, Stellar is looking to cater to everyone in simplifying remittances and cross-border payments through their native coin, Lumens (XLM). Users send their funds to so-called anchors which hold these, issuing XLM in return, while their virtual wallets elsewhere can instantly receive those funds in the form of XLM which are redeemable for fiat.
Lumens are also used to create user accounts and to pay for transaction fees, similar to a number of other blockchains. A significant difference is that the Stellar network has very low fees, as well as a low minimum balance of XLM 0.5 on your account. With the price of XLM hovering around USD 0.42 as of the time of writing, it is clear that the network has a steady use case in providing access to those who cannot use financial institutions, regardless of how much money they want to move, and without the prohibitive overhead and other fees that usually go with this.
Buying Stellar in 2021: What You Need to Know
Buying Stellar Lumens in 2021 is simpler than ever before. XLM has long been listed on many prominent exchanges. With countless available markets, it is a matter of choosing the most liquid ones on the most reputable exchanges. Luckily, we have done most of the work for you! We’ve chosen five of the best exchanges offering XLM trading, so all you have to do is choose which one works best for you.
Binance. Binance has the largest XLM markets out of all exchanges, making up a tenth of all trades in a 24 hour period. You can trade XLM against ETH, USDT, BUSD, BNB, and BTC, as well as purchase it with any of the existing fiat options. Fees are competitively low, which means you won’t be at a loss when you need to make a quick turnaround. Perhaps best of all, Binance has almost global coverage with very few exclusions, so if this is your exchange of choice, chances are you will be able to sign up very quickly and start trading.
Coinbase. Coinbase actually has the second biggest XLM market, according to Coinmarketcap, making up around 8% of all XLM trades with its XLM/USD trading pair. However, you’re not restricted to this pair alone: you can buy the coin with other fiat options as well, plus trade it against BTC if you prefer to keep it strictly crypto. Another big advantage of Coinbase is that it is an extremely beginner-friendly platform—if you’re still learning or you simply appreciate a straightforward approach, Coinbase could be the place for you.
Bitfinex. On the other hand, if you’re an experienced trader who wants to take advantage of advanced trading instruments, Bitfinex is one of the best choices in the market. With risk-heavy options like margin trading, this is the platform for veterans who still like an intuitive, easy to use interface. You can trade XLM against BTC, ETH, and USDT here, but also buy it with fiat USD, all with low fees. One potential drawback is that the verification process takes a relatively long time, so this exchange really is professionals-only.
Poloniex. Poloniex actually uses the STR ticker for Stellar Lumens, so don’t get confused! It is still the same coin—STR used to be the ticker before XLM, and they’re one of the few exchanges that never changed it to the newer version. Here, you can trade XLM with USDT or BTC. However, Poloniex doesn’t have any fiat currencies, which means you will have to pre-purchase crypto before trading here! On the other hand, their fees are among the lowest in the market. It is well suited towards both veterans and newcomers, and you only need a valid email address to trade—no need to go through a KYC process unless you want to.
Kraken. Kraken is another beginner-friendly exchange, but they let you choose the trading interface level you’re comfortable with. This is also a very regulated exchange, complying with all the rules of each geographical area it’s available in, and very secure. You can trade XLM with BTC here, but if you need to buy it with fiat, there are many available options like USD, GBP, EUR, etc. On the other hand, there are no credit or debit card deposits available, so purchases with fiat are a little more complicated. Still, with the security on the exchange—which has never been hacked since its inception in 2011—some tradeoffs are simply worth it.
Although it is not always easy to choose among all the exchanges available in the market, these five are certainly among the best when it comes to buying Stellar Lumens (XLM) in 2021. Have we helped you narrow it down? Do you think we excluded a platform that should have been there? We are always looking forward to hearing from you, so feel free to let us know what you think.
In the meantime, after you’ve added XLM to your portfolio, be sure to check back in with Cryptonews to keep up to date with all relevant crypto and blockchain-related information.