The Stellar network is an open-source, blockchain-based distribution ledger focused on storing and transferring money across currency values while reducing fees. The Stellar network’s primary goal is to connect banks, payment systems and customers with faster speeds and without many of the standard transfer fees that must be paid when you transfer money using standard methods.
Stellar’s native cryptocurrency is referred to as “lumens,” though many traders and investors use the terms “Stellar,” “lumens” and its ticker “XLM” interchangeably when referring to the cryptocurrency.
If you’re interested in expanding 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, make your coin purchase and store your coins securely. We’ll also introduce you to a few of our favorite brokers and wallets to help you get started investing today.
Step 1: Open an Online Account.
In most cases, you’ll need to open a brokerage account with a crypto broker before you can buy or sell any type of stablecoin or altcoin. A cryptocurrency broker is similar to a stockbroker because your broker is responsible for buying and selling coins on your behalf per your instructions.
There are 2 major types of cryptocurrency brokers: those that offer access only to cryptocurrencies and those that combine cryptocurrency market access with the ability to buy and sell other types of assets as well. Brokers that specialize in cryptocurrency markets only tend to offer access to more coins and tokens than brokers that combine crypto access with stock and forex trading. Brokers that 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 the assets you need access to, the coins and tokens you want to purchase and more. Let’s take a look at a few of our favorite crypto brokers currently offering access to Stellar.
As among the most popular cryptocurrency exchanges for beginners, Coinbase is best known for its straightforward account setups, simple order placements and intuitive fee schedule. When you choose Coinbase, you can place a purchase order in as little as a minute, and you can purchase cryptocurrencies using direct fiat transfers.
This can make it easier for beginners who don’t own cryptocurrency to make their first purchase without investing in Bitcoin and transferring it to another exchange. Coinbase even allows you to earn a little cryptocurrency by taking quizzes through its unique Coinbase Earn feature.
eToro is another popular cryptocurrency broker, offering a comprehensive trading platform that’s suitable for beginners. eToro offers access to 15 of the most popular cryptocurrencies, including Stellar, Tether, Bitcoin and many more.
If you’re new to cryptocurrency trading, you might enjoy learning through eToro’s virtual portfolio, which provides you with $100,000 worth of fake currency to practice your trading strategy with. This is 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 top-level investors.
Step 2: Buy a Wallet.
After you open a brokerage account, you should purchase a cold storage wallet if you plan on holding your coins long term. A cold storage wallet is a physical device that stores your coins using a private key offline. Cold storage wallets are more secure than hot storage solutions, which are wallets that need to be connected to the internet in order to view your coins and manage your account.
We recommend holding your coins in a cold storage wallet that’s compatible with the Stellar network to avoid the risks of hacks and theft. Explore a few of our favorite cold storage solutions below.
Best for Quick Setups: Trezor Model T
If you’re looking for a cold storage wallet that allows you to track and manage your coins on-the-go, look no further than the Trezor Model T. Featuring a bright touch-screen design, the Trezor Model T makes it easier to view your holdings when you’re away from your computer.
The Trezor Model T can also be an excellent choice for investors who are new to cold storage. To get your wallet started, simply connect to your computer or phone and follow the directions. From a connecting cable to recovery seed cards, the Trezor Model T includes everything you need to begin storing your coins safely offline.
Best Touchscreen: SecuX V20
The SecuX V20 is a cold storage hardware wallet that features a 2.8-inch full-color touch screen to make managing your coins easier. The device even features an on-screen keyboard and address verification that helps you better resist hacking and theft attempts.
In addition to its impressive touch screen, the SecuX V20 also features top-level security features, including a military-grade, CC EAL 5+ certified secure element to ensure that only you have access to your coins. The body of the SecuX V20 is also exceptionally secure, with a solid aluminum case that allows you to travel with the device without worrying about damage.
Step 3: Make Your Purchase.
Once your account is opened and your wallet has been set up, it’s time to place your buy order through your brokerage account. A buy order is a set of instructions that tells your broker which cryptocurrency you’re buying, how many coins you’re buying and sometimes the price that the order should be executed at. Most cryptocurrency brokers offer a range of order types to give you more control over the price you pay per coin.
After your order has been placed, you can sit back and relax — your broker will take care of filling the order following your instructions. When the order is complete, you’ll 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.
Trade or Sell Your Cryptocurrency
After you’ve made your purchase and your broker has filled the order, you’ll see your coins in your brokerage account. From here, you need to decide if you’d like to hold onto your Stellar long term or if you’d like to become an active trader.
If you plan on holding your coins for more than a week, you’ll want to transfer your tokens to a cold storage wallet. Your cold storage wallet will feature 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 you liquidate your account to be sure that you have the right address. If you send your coins to an incorrect 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 into a stablecoin (like Tether) when Stellar prices rise, then purchase them back when the price falls again. This allows you to accumulate more coins, which you can then cash out or continue to trade with.
Becoming an active trader requires a fast, responsive trading platform. Browse a few of our favorite brokers for short-term investors below to get started.
Current Crypto Prices
Before you decide to place your order to buy Stellar through your broker, you might want to keep track of how prices across the market are changing. This allows you to buy in when prices are lower than average. Browse a few of the top cryptocurrencies below to learn more about how the market is moving today.
Getting Started With Altcoin Investing
From Stellar’s groundbreaking 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 highly unregulated. Anyone can create a coin or token and begin 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 that you do plenty of research first to make sure that you’re only investing in legitimate projects.
Gemini builds crypto products to help you buy, sell, and store your bitcoin and cryptocurrency. You can buy bitcoin and crypto instantly and access all the tools you need to understand the crypto market and start investing, all through one clear, attractive interface. Gemini Crypto Platform offers excellent account management options. You can manage your account at a glance, view your account balance 24-hour changes and percent changes. Get started with Gemini now.