The Stellar network is an open-source, blockchain-based distributed 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 the traditional banking system.
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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 cryptocurrency trading platforms and wallets to help you get started investing today.
How to Buy Stellar
- Open an online account.
In order to invest in altcoins like Stellar Lumens, you’ll need to open an account with a cryptocurrency trading platform that supports the digital asset. A cryptocurrency broker is similar to a stockbroker –– your broker is responsible for buying and selling coins on your behalf per your instructions. Some platforms, like Coinbase and Gemini, are cryptocurrency exchanges, letting you buy and sell digital assets directly through the market.
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. The best platforms for XLM in particular are Coinbase and eToro.
- 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.
- 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.
Best Crypto Brokers For Stellar (XLM)
Since Stellar Lumens is such a large projects, it’s listed on a fair amount of exchanges and brokerages. Picking the right trading platform is the 1st step in your journey as a cryptocurrency investor. While many platforms offer great services, U.S based exchanges offer some of the best security and customer service out there. The top 2 exchanges that support Stellar Lumens are Coinbase and eToro. Coinbase is one of the largest cryptocurrency platforms, and it’s publicly traded on the NASDAQ exchange. Plus, Coinbase has a program where you can earn free cryptocurrency for watching short videos on blockchain technology called Coinbase Learn. Coinbase Learn is ideal for new investors looking to learn more about the blockchain industry.
Another great option is eToro. eToro offers plenty of altcoins, including Stellar Lumens. A great feature on eToro is CopyTrader, which allows investors to copy the trades of more experienced investors. While it’s never a good idea to blindly follow someone else’s trades, this feature can be helpful for generating trade ideas.
Coinbase is one of the Internet’s largest cryptocurrency trading platforms. From Bitcoin to Litecoin or Basic Attention Token to Chainlink, Coinbase makes it exceptionally simple to buy and sell major cryptocurrency pairs.
You can even earn cryptocurrency rewards through Coinbase’s unique Coinbase Earn feature. More advanced traders will love the Coinbase Pro platform, which offers more order types and enhanced functionality.
Though Coinbase doesn’t offer the most affordable pricing or the lowest fees, its simple platform is easy enough for complete beginners to master in as little as a single trade.
- New cryptocurrency traders
- Cryptocurrency traders interested in major pairs
- Cryptocurrency traders interested in a simple platform
- Simple platform is easy to operate
- Comprehensive mobile app mirrors desktop functionality
- Coinbase Earn feature rewards you with crypto for learning about available coins
- Higher fees than competitors
eToro is headquartered in Cyprus, England and Israel. A major eToro plus is its social trading operations, which allows new clients to copy trade the platform’s best performers. Its social trading features are top notch, but eToro loses points for its underwhelming research and customer service features.
- Investors looking to CopyTrade other traders
- Simple user interface
- Several major cryptocurrencies and altcoins
- Expansive network of social trading features
- Large client base for new traders to imitate
- Only 29 coins available
Best Crypto Wallets
Explore a few of our favorite cold storage solutions below. Hardware wallets are physical devices that store access to your cryptocurrency on an external device. This devices stays offline, ensuring the safety of your digital assets. If you’re looking for the best cryptocurrency wallets on the market, check out the Trezor lineup.
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.
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.