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How To Buy Stellar ($XLM) Online 

 January 29, 2021

By  Jackson Rivers

The Stellar Network is an open-source blockchain-based distribution ledger that focuses on storing and transferring money across currency values while lowering fees. The main goal of the Stellar Network is to connect banks, payment systems, and customers at faster speeds and without many of the standard transfer fees that must be paid when transferring money using standard methods.

Stellar's native cryptocurrency is referred to as "Lumens," although many traders and investors use the terms "Stellar," "Lumens," and its ticker "XLM" interchangeably when referring to the cryptocurrency.

If you're interested in growing your crypto holdings beyond big projects like Bitcoin and Ethereum, investing in Stellar may be right for you. Our guide will show you how to open a cryptocurrency trading account, make your coin purchases, and keep your coins safe. We'll also introduce you to some of our favorite brokers and wallets so you can start 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 stock broker in that your broker is responsible for buying and selling coins on your behalf according to your instructions.

There are two main types of cryptocurrency brokers: those that provide access to cryptocurrencies only, and those that combine market access for cryptocurrencies with the ability to buy and sell other types of assets as well. Brokers that specialize in cryptocurrency markets usually offer access to more coins and tokens only 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 your investment needs.

The best platform for you will depend on the assets you need to access, the coins and tokens you want to buy, and more. Let's take a look at some of our favorite crypto brokers that currently offer access to Stellar.

Coinbase

One of the most popular cryptocurrency exchanges for beginners, Coinbase is best known for its simple account settings, easy order placements, and intuitive fee schedule. When you choose Coinbase, you can place an order and purchase cryptocurrencies via direct fiat transfers in as little as a minute.

This can make it easier for beginners who don't own cryptocurrency to make their first purchase without having to invest in bitcoin and transfer to another exchange. With Coinbase, you can even earn some cryptocurrency by taking quizzes via the unique Coinbase Earn feature. 

eToro

eToro is another popular cryptocurrency broker and offers a comprehensive trading platform suitable for beginners. eToro provides access to 15 of the most popular cryptocurrencies, including Stellar, Tether, Bitcoin and many more.

If you are new to cryptocurrency trading, you can enjoy learning about eToro's virtual portfolio, which offers you $100,000 worth of fake currencies to practice your trading strategy. This is a great way to learn more about eToro's order types and platform. eToro also offers CopyTrader technology that allows you to automatically copy trades from top-level investors.

Step 2: Buy a wallet.

After you open a brokerage account, you should buy a Cold Storage Wallet if you want to hold your coins for the long term. A cold storage wallet is a physical device that stores your coins offline with a private key. Cold Storage Wallets are more secure than Hot Storage solutions, which are wallets that need to be connected to the internet to view your coins and manage your account.

We recommend storing your coins in a Stellar network compatible cold storage wallet to avoid the risk of hacks and theft. Explore some of our favorite cold storage solutions below. 

Best for quick setups: Trezor Model T.

If you're looking for a cold storage wallet to track and manage your coins on the go, look no further than the Trezor Model T. With a bright touchscreen design, the Trezor Model T makes it easy to view your inventory 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 start your wallet, simply connect to your computer or phone and follow the instructions. From a connection cable to recovery seed cards, the Trezor Model T includes everything you need to safely store your coins offline.

Best Touchscreen: SecuX V20

The SecuX V20 is a hardware wallet for refrigerators with a 2.8-inch full-color touchscreen that makes it easier to manage your coins. 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 touchscreen, the SecuX V20 has 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 SecuX V20's case is also exceptionally secure, with a solid aluminum housing 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 is 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 are buying, how many coins you are buying, and sometimes the price at which you want the order to be executed. Most cryptocurrency brokers offer a range of order types to give you more control over the price you pay per coin.

After your order is placed, you can sit back and relax - your broker will take care of filling the order according to your instructions. When the order is completed, you will see your coins in your trading account. If your order cannot be filled, your broker will usually cancel it at the end of the day.

Trade or sell your cryptocurrency

After you have made your purchase and your broker has filled the order, you will see your coins in your brokerage account. From here, you need to decide if you want to hold on to your Stellar for the long term or if you want to become an active trader.

If you want to store your coins for more than a week, you should transfer your tokens to a Cold Storage wallet. Your Cold Storage wallet has an address that allows you to direct your coins from your brokerage account. You may want to send a small amount of cryptocurrency to your wallet before liquidating your account to make sure you have the correct address. If you send your coins to the wrong address, it's virtually impossible to get them back.

Unlike long-term traders, active traders benefit from small stellar price movements throughout the day or week. You convert your Stellar to a stable coin (like Tether) when Stellar prices rise, and then buy it back when the price falls again. This way you can accumulate more coins to cash out or continue trading.

Becoming an active trader requires a fast, responsive trading platform. Browse some of our favorite brokers for short-term investors and get started.

Jackson Rivers


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