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How to Buy Stellar Lumens (XLM)

A complete guide on how to buy Stellar Lumens (XLM) on different exchanges and brokers. Also, learn how to Buy Stellar Lumens (XLM)using different methods like credit cards, debit cards, and ATMs.

Author: Usman Ahmed Last updated: 20/10/2021

Introduction

In this article, we will share everything you need to know about investing in XLM tokens. We will introduce you to the different ways to invest in Stellar, tell you of the best places to buy Stellar, show you what to look for when vetting a Stellar trading platform, and provide you with a step-by-step guide on how to buy your first XLM token online.

At one time, Stellar was one of the ten largest cryptocurrencies in the world. But along the way it stumbled and its prices went on a downward spiral. Over the past few months, however, the Stellar Network has been working hard in winning back investor confidence in blockchain technology and helping boost XLM token prices. It started with sourcing partnerships with off-chain brands and extended to cutting the XLM coin supply by half.

The strategy has worked well seeing that the coin has performed exemplarily well, winning much of its market share back, recording relatively high daily trade volumes, and pushing its season’s high as close to 2018 high as possible.

Now that the crypto market has crashed, Stellar token prices have dipped. Crypto analysts are however confident that it will rebound and resume the pre-crash climb, making now a good time to invest in the coin.

But how do you buy Stellar coins today? Where can you buy these XLM tokens and what do you need before you can start buying them?

Top 5 Exchanges & Brokers Where You Can Buy Stellar (XLM) in 2021

  • Min Deposit: $200
  • Number of Coins: 20+
  • Supports Multiple Languages
  • Regulated by FCA, ASIC & CySEC
  • Paypal, Debit & Credit Card Accepted
BankCard CashGiro PayMastercardNetellerPayPalSkrillUnionPayVisaWire CardYandex
Visit eToro

Capital At Risk

  • Min Deposit: 20 $£€
  • Number of Coins: 12+
  • Regulated by FCA & CySEC
  • Place Buy & Sell CFDs Orders
  • Low Minimum Deposit
MastercardNetellerPayPalSkrillUnionPayVisaWire Card
Visit Capital.com

78.77% of retail cfd accounts lose money

  • Min Deposit: 1 $£€
  • Number of Coins: 50+
  • Regulated by SEC, & FinCEN
  • Place Buy & Sell CFDs Orders
  • Low Minimum Deposit
Giro PayMastercardNetellerSkrillUnionPayVisaYandex
Visit Coinbase

Capital At Risk

  • Min Deposit: 1 $£€
  • Number of Coins: 1500+
  • High Number of Coins
  • Accepts Fiat Deposits
  • Trade on Spot and Futures
Card CashMastercardSkrillWire Card
Visit Binance

Capital At Risk

  • Min Deposit: 1 $£€
  • Number of Coins: 50+
  • Highly transparent exchange
  • Competitive Bitcoin trading fees
  • Highly secure
Card CashGiro PayMastercardUnionPayVisa
Visit Kraken

Capital At Risk

A Three-step Guide on How to Buy Stellar (XLM) Instantly

Step 1: Create an account

Setting up an account with a broker or an exchange that offers Stellar is the first step to buying the altcoin. While there are multiple options available, find the most reputable platform and create an account with them. In most cases, the account opening process doesn’t take more than a few minutes. In this article, we will explain what to look for in a good crypto trading platform and tell you of some of the best places to buy Stellar Lumens.

Step 2: Fund account

You need to have some funds in your account to buy Stellar. You will have access to different payment methods depending upon your country of residence and the selected broker or exchange. The most popular today include debit/credit cards, Skrill, Neteller, PayPal, Web Money, Wire transfers, etc.

Step 3: Buy with or without leverage

Once you have finished depositing funds in your account, you can now buy Stellar with or without leverage. Buying XLM with leverage means trading crypto derivatives. Brokers usually allow you to open XLM CFD contracts instead of selling your actual coins and in such a case, you only need a fractional amount to get started.

On the other hand, you can buy actual coins from crypto exchanges by paying the total value of Stellar. Buying Stellar coins without incorporating leverage requires you to commit more capital investment compared to opening a CFD position.

Please note that there also are hybrid brokerages like eToro that give you the option of buying actual Stellar coins or trading XLM CFDs on their platform.

What Is Stellar (XLM)?

Stellar is a decentralized payment protocol that employs distributed ledger technology to facilitate financial transactions. Like other blockchain-based cryptocurrencies, it allows robust funds transfers across the borders. In other words, Stellar being an open-source platform, makes transactions fast and secure involving minimal cost. Lumens (XLM) is the utility token of the Stellar blockchain.

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How does Stellar (XLM) work?

The stellar network intends to enhance the efficiency of the existing financial system making it more accessible and transparent. Stellar validates and processes transactions using Federated Byzantine Agreement (FBA) based consensus mechanism, also known as Stellar Consensus Protocol.

Since miners on the network reach an agreement concerning a transaction’s validity within a few seconds, the SCP expedites transactions at cheap rates. Not to mention, instead of needing approval from the entire network, Stellar uses quorum slices to validate and approve a transaction. While each network node selects another set of trustworthy nodes, a transaction gets approved after being approved by all the nodes within this network.

How is Stellar (XLM) Different from or Similar to Bitcoins?

Bitcoin and Stellar and similar in that they both are designed to help solve the inherent challenges facing the global banking industry by revolutionizing how money is transferred and stored. There, however, are several fundamental differences in how they seek to achieve this goal, their design, and how their blockchains operate. Here are the four most visible differences.

Market capitalization

Bitcoin is the world’s oldest and by far the largest cryptocurrency. It currently has a market capitalization of $616.45 Billion and a total maximum circulation of 21 Million Bitcoins. Stellar on the other hand has 23.45 Billion Lumens in circulation, which give the Stellar Network a market cap of $6,999,083,241, making it the 20th largest cryptocurrency- according to CoinMarketCap.

Consensus mechanism

Stellar (XLM) primarily differs from Bitcoin (BTC) due to its consensus protocol. Stellar doesn’t need the entire network of miners to approve a transaction. Instead, it uses the Federated Byzantine Agreement (FBA) algorithm protocol for quick validation and confirmation of transactions within the Stellar Network. Bitcoin, on the other hand, employs the proof-of-work (PoW) consensus mechanism.

Transaction Speed

Transaction processing on Stellar is faster than on the Bitcoin blockchain. While the Bitcoin network can only process an average of 5 transactions per second, the Stellar Network developers claim that their platform can process more than 1000 transactions per second. Stellar has also been consistently listed among the fastest blockchains around today.

Purpose

Stellar focuses on including everyone in the digital economy and making bank loans and cash remittances accessible to all without charging individuals or institutions using the network. Bitcoin, on the other hand, seeks to introduce a safe network for transactions between two entities without involving third parties, such as banks, authorities, government, etc. However, users pay a network fee for conducting transactions on bitcoin’s blockchain.

Stellar (XLM) Historical Performance

Stellar launched in the crypto markets in August 2014. According to CoinMarketCap, the coin ended its first day of trading, on 6th August, selling for around $0.00265 with less than $36,000 worth of XLM coins having changed hands that day. The lack of demand for the coin meant that its prices reported depressing price action in the three years that followed.

It only started rallying in the second quarter of 2017 when the token prices rallied and broke above $0.5 for the first time in mid-May. Between June and September 2017, the coin prices slid again and briefly fell below $0.01 before embarking on the most spirited rally yet, culminating with an all-time high of $0.938 on 4th Jan 2018.

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Nonetheless, it couldn’t sustain this uptrend and the token prices soon started plummeting and by the end of March 2018, XLM token prices had dropped to $0.1908. However, in May that year, the altcoin attempted a comeback but could only rise to $0.4392. This streak of value loss continued throughout the year and it saw the altcoin lose more than 75% of its peak prices to sell for around $0.1128 on December 31, 2018.

It would then continue with the dismal price action throughout 2019 and 2020. The altcoin had a relatively hard time pushing its price towards and maintaining a price level above $0.01. But as the crypto market started rallying at the end of 2020, led by Bitcoin and Ethereum, the XLM coin took cue quickly as its prices embarked on an ascent.

It started the year trading at $0.13 and rose sharply to reach $0.31 within the first week of January 2021. By mid-February, the coin prices had shot to $0.5. After this, the coin prices went into a brief correction period and fell to $0.3 at the end of March. It would however recover and resume the climb that pushed it to the season’s all-time high of $0.79 on 11th May.

Today, the XLM token is trading at $0.34 on Coindesk. and has been caught in a range of between $0.19 and $0.41 over the last 30 days. The Stellar network has a market capitalization of $8.2 Billion which makes it the 20th largest cryptocurrency, according to the CoinMarketCap. It has a circulating supply of 23 Billion coins and a total maximum supply of 50 Billion Stellar Lumens – after burning more than half of the originally designed token supply.

What Factors Influence Stellar (XLM) Prices?

Here are some of the factors that have had the biggest impact on XLM token prices in the past and which are expected to continue playing a crucial role in shaping its future price action and direction.

How to Invest in Stellar (XLM)?

Now that you know how stellar has performed in the past and the factors influencing its price action. It is time we looked at the different Stellar investment strategies.

Buy and Hold (Long-term)

Buying and holding crypto-assets anticipating a rise in their value is one of the most popular investment strategies. Amidst the recent surge in Stellar prices, adding it to your crypto portfolio can be a worthwhile decision in the long run. Note however that the price action for different coins is highly volatile and that digital currencies carry greater risks compared to traditional investments.

Stellar CFD Trading

Trading Stellar as CFD is yet another effective way of investment. Trading crypto CFDs enable you to earn both in Bull and Bear markets. Besides flexible lot sizes, you can access high leverage to maximize your profit-earning potential. The best part is that you only need minimal investment to open a CFD position.

Day Trading Stellar

Investment in Stellar via day trading is also a fruitful option to consider. Day trading refers to opening and closing off your positions within the same day. With day trading, you can make quick money since most of your trading positions are likely to remain open for relatively a short time ranging between a few seconds to a few hours minutes. However, day trading is considered a riskier form of investment compared to other choices listed above. You need to have profound market knowledge and extensive trading experience to survive being a day trader.

How to Buy Stellar (XLM) Coin Guide

Here are the most popular ways to buy Stellar on the different trading platforms that list the altcoin.

Buy Stellar (XLM) With Credit/Debit Card

Payment via debit/credit cards is one of the quickest methods to buy Stellar coins. Almost all brokerage firms and crypto exchanges accept card payments, including eToro. Deposits made via debit/credit cards are instantaneous and attract no additional processing fees. Clients can fund their accounts in USD, GBP, EUR, and AUD. However, all transactions made in a currency other than the U.S. Dollar will carry a 2% currency conversion charge. The minimum deposit amount is $200 on eToro. Clients buying Stellar with debit/credit cards can add a maximum of $40,000 to their account.

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Buy Stellar (XLM) with eWallets (Skrill, Neteller)

Paying for different products and services with e-Wallets is also a popular method in the online world. Luckily, eToro also supports payments via e-wallets, such as Skrill and Neteller. However, before proceeding with e-wallet payments, clients need to make sure that their country doesn’t fall in the restricted jurisdictions where services of Skrill and Neteller are not available yet.

While the minimum deposit stays the same for clients who wish to buy Stellar with Skrill or Neteller i-e $200, eToro sets the maximum limit for e-wallet payments as $10,000. Please note that you need to have an active and funded account with either of the platforms to use them as a payment method. However, you can also link your debit or credit card with your Skrill or Neteller account alternatively. Supported currencies for e-wallet payments, include USD, GBP, and EUR. To avoid conversion charges, please fund your account in U.S. Dollars. Funds transferred via e-wallets instantly reflect in your eToro account.

Buy Stellar (XLM) with PayPal

PayPal is yet another popular option to pay for your Stellar coins on eToro. Provided that eToro supports PayPal in your country, you can add funds to your account up to $10,000. While the process is pretty fast and straightforward, eToro allows you to fund your account in USD, GBP, AUD, and EUR. There is no commission or fees on deposits, except for the conversion charges on transfers made in a currency other than the U.S. Dollar. To use PayPal, clients need an active account having some funds in it.

Buy Stellar (XLM) With Bank Wire

Bankwire is not only the most secure way to buy Stellar, but it is one of the widely accepted methods across all platforms, including eToro. However, clients usually keep it as their second option because it takes more time to process deposits and withdrawals compared to other payment methods. The average time needed for a wire transfer is 3 – 7 working days. The upside to using bank wire is that it is the only method that allows you to add unlimited funds to your eToro account.

Buy Stellar (XLM) Anonymously With No ID Verification

You can also buy Stellar anonymously(without ID verification) on eToro. The brokerage allows you two weeks after registration to verify your account. Meanwhile, clients can buy XLM tokens without revealing their identities. However, there is a deposit limit of $2250 for unverified eToro accounts.

What are the Pros and Cons of Buying Stellar (XLM)?

Pros

Cons

What Do You Need Before You Can Buy Stellar (XLM)?

After learning how to buy Stellar and the different ways in which you can invest in XLM tokens, it is now time to learn what you need before you can start buying the altcoin. Here are the three must haves.

Trader account

Opening a trader account with a brokerage firm or crypto exchange is the first step to beginning your Stellar investment journey. Later in this article, we will tell you of the best places to buy Stellar altcoins and what to look for when choosing a Stellar trading platform. They mostly request your personal information and ask that you verify your identity by asking you to share a copy of your government issued identification document, like a Passport or driving license.

Capital Investment

Secondly, you also need to have some funds in your account to start buying Stellar coins. The minimum capital investment required to open an account may vary from broker to broker. However, most brokers and crypto exchanges allow you to start trading with as low as $2. The investment required will also depend on your investment strategy. For example, if you wish to trade crypto CFDs, only a small amount would suffice. However, if you plan to buy actual crypto coins, you need more investment.

Stellar wallets

You will also need a crypto wallet to help keep the purchased Stellar coins safe and secure. While different types of wallets are available in the market, the most commonly used methods are hot and cold storage wallets. Your exchange will likely provide you a space to store your Stellar coins after buying them from it. However, the exchange-provided wallets are considered less secure as compared to cold storage options. Therefore, it is best to keep your digital assets in an encrypted offline storage device.

How Much Do You Need to Buy Stellar (XLM)?

Typically, there is no standard limit to how much you can invest in cryptocurrencies today. In most cases, the minimum and maximum investment amounts are informed by a host of factors both within and out of your control. The minimum trade amount will for instance be determined by such factors as your preferred deposit method, investment strategy, and preferred trading platform.

The maximum on the other hand will be determined by your preferred trading platform, your disposable income, investment strategy, and risk tolerance. In most cases, long term crypto investing is considered relatively safe because of most coin’s ability to maintain an uptrending price action while day trading is considered risky and appeals to derivatives traders who have access to leveraged funds that allow them to stake little capital to the trade.

Where Can You Buy Stellar (XLM) Today?

Stellar is one of the popular cryptocurrencies. It is currently listed by virtually all the popular crypto trading platforms across the world making it one of the most accessible altcoins. Whether you wish to purchase actual coins or trade XLM derivatives, you will almost always have easy access to a platform that sells actual stellar coins or its derivatives.

These include exchanges like Binance and Coinbase or peer to peer trading platforms that sell you actual Stellar coins, crypto brokerages like Capital.com where you can buy XLM CFDs. There also are hybrid crypto trading platforms like eToro that let you buy both actual coins and XLM CFDs on their platform.

What to Look for in a Stellar (XLM) Trading Platform?

The market is almost full of brokerage firms, over-the-counter exchanges, and peer-to-peer trading platforms listing XLM coins. Hence, finding the best place to buy Stellar coins can be quite tiring. However, with little guidance, things become more manageable. Let us share some of the factors you must look for when signing up with a crypto exchange or a brokerage firm.

Since we have explained all the necessary information you need to know before you could start buying Stellar coins, let us now enlist the five best platforms available for trading Stellar.

1. eToro – Best for Social Trading

Number of Coins: 20+
Margin Trading: YES
Minimum Deposit: $200
Visit eToro

Capital At Risk

eToro is the world’s leading social trading platform that offers multiple financial instruments across various classes of assets, including forex, indices, metals, commodities, and cryptocurrencies. eToro started its operation in 2007. Over the years, the company became the best platform that provides seamless copy trading exposure. The broker holds regulations from top-tier regulatory firms, including CySEC and FCA.

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Besides user-friendly trading platforms and advanced trading tools, the company offers rich research and educational resources suitable for novice and skilled trading professionals. Whether you wish to buy actual Stellar coins or prefer to trade a CFD position, eToro facilitates its clients in any case. With eToro’s copy trading service, clients can copy trades of other professional traders conveniently. The company keeps its pricing structure in line with average industry standards. While the broker doesn’t charge a commission or hidden fees, it employs a spread charge of 2.45% for trading XLM tokens.

Buying Stellar on eToro is a hassle-free process. Besides setting up an account with the company within a couple of minutes, you can fund your account instantly using multiple payment options available. eToro accepts payments through credit cards, debit cards, e-wallets (Skrill, PayPal, Neteller), wire transfers, BPAY, Swift, Venmo, Union Pay, Apple Pay, Web Money, and a few other local payment methods. While the minimum deposit amount is $200, the company allows you to add maximum funds of up to $40,000 using a debit or credit card. eToro doesn’t charge any fees on deposits. However, clients need to pay a flat rate of $5 on withdrawals.

Pros and Cons of Buying Stellar (XLM) on eToro

Pros

Cons

Step by Step Process of Buying Stellar (XLM) on eToro

  1. On eToro’s official website, click on the join now button to access the signup page.
    Screenshot
  2. Fill in your details on the registration form and click create an account after reading the terms and conditions.
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  3. Submit the supporting documents to verify your account. Else, you can only buy Stellar worth $2250 with no I.D. verification.
  4. Access the deposit page and select your preferred payment method, such as debit/credit cards, Skrill, Neteller, Wire transfers, etc. Indicate the amount you wish to deposit. Authenticate payment details to complete the transaction.
    Screenshot
  5. On the markets tab, find Stellar using the search bar. Enter the required amount of Stellar and press the open trade button to finish the purchase.
    Screenshot

2. Capital.com – Best for CFD Trading

Number of Coins: 12+
Margin Trading: YES
Minimum Deposit: 20 $£€
Visit Capital.com

78.77% of retail cfd accounts lose money

Capital.com is a multi-asset brokerage firm best known for providing competitive CFD trading services. Unfortunately, the broker doesn’t sell actual coins. Therefore, you can only trade CFD contracts of Stellar and other supported cryptocurrencies at Capital.com. The broker allows you to maximize your earning potential using a leverage of up to 1:2. While the company holds multiple regulations, it is considered a low-risk broker.

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Besides providing personalized market insights, the broker employs A.I. technology to empower its trading platforms and facilitate instant, also known as on-click, order execution. Trading Stellar at capital.com is also pretty straightforward. After signing up with the broker and verifying your account, you only need $20 to start trading your favourite crypto asset.

In addition to the fast account opening process at capital.com, multiple deposit options are supported to make it even more convenient for traders to get started right away. Clients can deposit funds using debit/credit cards and bank transfers. Depending upon your jurisdictions, the broker may allow you some other options, such as Google Pay and Apple Pay, etc.

While the company doesn’t charge any fees on deposits and withdrawals, the broker’s competitive spreads make it one of the best choices available to trade crypto CFDs. Not to mention, clients can also open a demo account with the broker to practice unlimited trading strategies without risking their real funds.

Pros and Cons of Buying Stellar (XLM) on Capital.com

Pros

Cons

Step by Step Process of Buying Stellar (XLM) on Capital.com

  1. Visit the official website of capital.com and click on the trade now button to sign up.
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  2.  Enter your email I.D. and a password on the registration page and click continue to proceed to the next step.
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  3. Access the dashboard and click the fund account button to add funds to your account. Select the preferred payment method from the available options, i-e debit card, credit card, wire transfers, Apple Pay, etc. Enter the desired amount and authenticate the payment details.
    Screenshot
  4. On the trade tab, find Stellar using the search bar and select the tradeable pair.
    Screenshot
  5. Indicate the amount you wish to trade and click the trade button to open the CFD position.

Note: Since trading Stellar on capital.com involves leverage, you buy CFDs and not the actual coins. Therefore, you can’t transfer the leveraged tokens to other crypto wallets.

3. Coinbase – Best for Beginners

Number of Coins: 50+
Margin Trading: No
Minimum Deposit: 1 $£€
Visit Coinbase

Capital At Risk

Based in the United States, Coinbase is one of the world’s most popular crypto exchanges and it has been around for nearly a decade. In April 2021, the company listed its shares on the Nasdaq and became the first-ever listed crypto exchange.

Coinbase is best known for its user-friendly trading platforms that make it easy for clients to trade Stellar and other cryptocurrencies. It is also rich in educational resources and in-depth market research tools that make it the best choice for beginners.

It features an easy account opening process and quick verification and asks for low minimum deposits and trade limits. You can also add more funds to buy more Stellar coins using multiple payment options, such as debit cards, PayPal, Apple Pay, wire transfers, etc. Not to mention, Coinbase also accepts crypto payments.

Since the crypto exchange abides by all the laws and regulations of the concerned regulatory authorities, your account verification is mandatory to buy Stellar on Coinbase. While the crypto exchange is quick to accept deposits, its withdrawal process is also reasonably fast.

The crypto exchange applies no fees on deposits and withdrawals. However, it may charge a transaction fee between 1.49% to 3.99%, depending upon your selected payment method. Other products and services available on Coinbase include Custodial wallet services, Coinbase index, USDC coin, and Coinbase Ventures.

Pros and Cons of Buying Stellar(XLM) on Coinbase

Pros

Cons

Step-by-Step Process Of Buying Stellar (XLM) on Coinbase

  1. Click the get started button available on the top right corner of the official website of Coinbase.
  2. Fill up the registration form and click create an account after reading the terms and conditions.
    Screenshot
  3. Click on the link received from the crypto exchange to verify your email I.D. and access the dashboard.
  4. Click on the deposit funds button under the portfolio tab and select your preferred payment method, such as debit cards, wire transfers, PayPal, Apple Pay, bank account, etc. Enter the amount you wish to deposit and authenticate the transaction.
    Screenshot
  5. Open the watchlist tab, select Stellar, enter the desired amount and click buy to complete the purchase.

4. Binance – Best for Low Fees

Number of Coins: 1500+
Margin Trading: YES
Minimum Deposit: 1 $£€
Visit Binance

Capital At Risk

With a daily trading volume of more than 2 Billion U.S. Dollars, Binance is the world’s largest and one of the most popular cryptocurrency exchange. The company came into existence in 2017 and is well known for its low-cost trading solutions. Besides providing a wide range of tradable assets, the crypto exchange makes it convenient for clients to buy Stellar using their preferred payment methods.

You can add funds to your account via debit/credit cards. In addition to accepting payments through more than 60 alternatives on the P2P platform, the exchange allows users to buy Stellar via third-party payment fiat-to-crypto exchanges like Simplex and Banxa.

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Clients have the option to buy Stellar and other cryptocurrencies using the web-based platform or the desktop version. Binance also facilitates on-the-go users with its mobile trading app. After purchasing the required quantity of Stellar coins, you can hold them online in the Binance secured wallet for free. However, keeping your crypto coins on the same exchange where you buy them is not recommended. Instead, it would be best if you opt for a cold storage option.

While the company keeps its pricing structure reasonably affordable, low deposit requirements enable less privileged clients to sign up with the exchange. Binance neither charges fees on deposits and withdrawals nor applies any commission on buying Stellar or other cryptocurrencies. There are no hidden charges as well.

Pros and Cons of Buying Stellar (XLM) on Binance

Pros

Cons

Step By Step Process Of Buying Stellar (XLM) On Binance

  1. Click the register now button on the official website of Kraken to access the sign-up page.
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  2. Enter your email ID and a password on the registration form. Alternatively, you can also use your mobile number to sign up with Binance.
  3. Click the fund account button on the dashboard and tap on the fiat deposit option on the popup screen. Select your preferred payment method
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  4. Enter the amount you wish to deposit and authenticate the payment details to complete the transaction.
  5. Click the spot trading button on the markets tab and find Stellar (XLM) using the search bar.
  6. Indicate your desired amount of Stellar and click the trade button to finish the purchase.

5. Kraken – Best for Security

Number of Coins: 50+
Margin Trading: YES
Minimum Deposit: 1 $£€
Visit Kraken

Capital At Risk

Kraken is yet another U.S-based crypto exchange founded in 2011. The company provides crypto-to-fiat trading services and lists over 50 crypto coins at times. With a focus on the safety of digital assets, the exchange is best known for its safe and regulated storage space. Unlike other crypto exchanges, Kraken gets its final accounts audited each year and submit them to concerned authorities. The company also employs advanced security protocols, including Secure Socket Layer (SSL) web encryption and two-step authentication factors to keep your personal and financial information out of the reach of intruders.

While the company offers intuitive trading platforms, buying Stellar on Kraken becomes a lot easier. Multiple funding options, such as debit/credit cards, Fedwire, Etana Custody, SWIFT, Silvergate Exchange Network (SEN), help clients instantly get started with the exchange. The company also accepts fiat deposits in U.S. Dollars (USD), Euro (EUR), and Canadian Dollar (CAD) with nominal fees. Notably, the company doesn’t charge any fees from clients depositing funds in CAD and EUR via SEPA transfers.

Not to mention, the Kraken account verification is a bit of a lengthy process and may take some time before you can add funds to your account. The company accepts clients from almost all parts of the world, including the United States.

Pros and Cons of Buying Stellar (TRX) On Kraken

Pros

Cons

Step By Step Process of Buying Stellar (XLM) On Kraken

  1. Click the signup button available on the top right corner of Kraken’s homepage.
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  2. Enter your details on the registration page, such as name, email ID, and country of residence, and click the create account button.
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  3. Check your email and click the link received from Kraken to complete the signup process.
  4. On the dashboard, click on the funding tab, select your preferred payment method and follow the instructions to add funds to your account.
  5. After receiving funds in your account, find stellar using the search bar and indicate your desired number of Stellar coins and click the trade button to make the purchase.
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Other Ways of Getting Stellar (XLM)

Besides buying Stellar coins on the respective exchanges, listed are some other ways to acquire Stellar coins.

Gift or tip

Due to the fact that it is a relatively affordable token to buy, Stellar coin falls within reach of everyone. Therefore, it shouldn’t surprise you if someone wishes to give you Stellar coins as a gift or tip. All you need is to set up a tip jar to start receiving your favorite coins.

Through Stellar faucets

Faucet websites offer free Stellar coins to individuals who complete different tasks on their platforms. These range from watching video advertisements, playing online video games, participating in online surveys, or watching promotional videos.

How Can You Use Stellar (XLM)?

After buying Stellar tokens (XLM), you would like to know how to use them best. Listed are some common ways you may consider spending your Stellar coins.

What do Reddit & Quora users say about Buying & Investing in Stellar (XLM)?

Quora

The Quora community holds mixed feelings concerning Stellar investments. According to some members, XLM tokens have a great potential to witness a surge in their prices. The members quote the useability of XLM tokens in support of their assumptions.

For example, people will have a cheap means to transfer funds across the borders without paying excessive charges, unlike the traditional payment system where you can transfer limited funds and pay substantial fees. Another reason for anticipating growth in the value of Stellar coins is its partnership with tech giants, such as IBM, ICIC, Deloitte.

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On the other hand, a section of the Quora platform users believes investment in Stellar is not a good idea. They believe that Stellar can compete with Ethereum in terms of developing decentralized apps. Also, developers hold the least interest in Stellar since they wish to make huge profits while Stellar transaction fees are too small to benefit developers.

Reddit

Unlike Quora, the Reddit community seems to be fully supportive of Stellar (XLM) investments. According to the majority of Redditors, the prospect of crypto is immensely bright. While some users appraise the foundation’s noble objective of eradicating poverty, others seem inspired by its low-cost transactions.

Reddit members believe that Stellar is a sleeping giant. Soon its price will surge to crazy heights given its partnership with IBM and the increased adoption rate in the coming years. However, some users also complain about the sluggish marketing strategy of the Stellar foundation. In their opinion, a better marketing approach is needed to bring it into the eyes of giant investors and make it the ultimate means for digital payments.

Bottom Line

Stellar was created to address the issues of the current financial system concerning international remittances, such as excessive fees and delayed processing. With inexpensive solutions for cross-border transactions, XLM elevates the standard of the traditional banking system. Stellar aims to allow developers to incorporate a robust exchange and trading system. Therefore, anyone having access to a basic hardware setup and an internet connection can transfer funds seamlessly through the Stellar network. In this guide, we have covered Stellar in detail. We have also enlisted the best platforms where you can buy Stellar coins at the best prices.

Frequently Asked Questions (FAQs)

No, It is not. Although the old network called Stellard, launched in 2014, was a Ripple modified fork. However, the current Stellar network came into existence in 2015 and was written from scratch. Being a completely new ledger, it doesn’t have any history from the Ripple network. 

Yes, Stellar is genuinely worth your investment, especially if you intend to hold it on a long-term basis. Notably, the gradual growth of the Stellar blockchain implies that the coin prices will rise but might have a slower pace. 

No, it is not. Stellar doesn’t employ the Proof-of-Work consensus mechanism. Instead, it uses the Stellar Consensus Protocol (SCP). Not to mention, the SCP ensures fast and secured payments across the borders. 

Indeed, it is a worthwhile investment given the recent surge in its prices and the increased adoption rate. According to analysts, Stellar will rise high as the technology develops and brings new use cases to the world. 

While many industry experts offer insights into Stellar price predictions, most believe that the XLM can reach up to $7.75 by the end of 2025.