Those who were around during the earlier days of crypto may remember Stellar. The relative veteran in the blockchain is still going strong (as much as can be considering crypto winters and an ongoing bear market). If you’re looking to invest, we’ve compiled a guide covering how to buy Stellar (XLM) and how blockchain and native crypto work. Here is what you need to know.
Buy Stellar (XLM) with just a few clicks on these secure platforms
YouHodler
Best for free BTC cloud mining
OKX
Best for mystery box offer
Coinbase
Best for beginners
Our methodology for choosing the leading crypto platforms for Stellar (XLM)
In explaining the ins and outs of XLM, this guide also recommends a number of prominent crypto platforms. These include YouHodler, OKX, Coinbase, Kraken, Binance, and Moonpay. These platforms have been selected for their significance in the market, robust security measures, and other vital criteria. BeInCrypto conducted thorough assessments of these exchanges over eight months, examining various features, including private key storage, anti-phishing measures, and more.
Here is what was inferred:
YouHodler for buying and storing XLM
YouHodler’s approach to security is robust, incorporating SHA256 encryption with Salt for password storage and SSL encryption for client-server data communication. This platform even runs offers, allowing users to earn anywhere between $10 to $10,000 on deposits. YouHodler also supports 35+ cryptocurrencies apart from XLM and allows the setting up of interest-bearing accounts for XLM holders, with APYs going as high as 12.3%.
Why buy XLM on OKX?
OKX impressed us with a comprehensive security framework that includes mandatory 2FA, semi-offline multi-signatures, secure private key storage, emergency backups, and anti-phishing measures. Besides XLM and other crypto trades, OKX has a competitive fee structure, ranging between 0.08% and 0.10%. Plus, client assets on OKX, including XLM holdings, are stored using a mix of cold and hot wallets.
Additionally, OKX’s XLM/USDT pair enjoys a high liquidity score of 460, per CoinMarketCap’s data, and comprises 2.07% of the global XLM trading volume.
Choosing Coinbase for trading XLM
Coinbase offers additional security options like biometrics, passwords, and security locks, which significantly enhance the safety of our crypto assets across different devices. With availability across the U.S. and Europe, Coinbase offers quite a reach to the XLM traders. The exchange supports two highly liquid trading pairs — XLM/USD and XLM/EUR — with the former enjoying a liquidity score of 653 and comprising almost 9.5% of the global trading volume.
Buying XLM on Binance
Binance’s XLM/USDT pairs enjoy high liquidity — 609 to date — and make 11.20% of the global volume. Plus, there are other pairs like XLM/BTC, XLM/TRY, XLM/ETH, and more for seamless token swaps.
Binance’s risk management system rigorously analyzes each withdrawal attempt, password reset, two-factor authentication reset, and email address change, with any unusual activity triggering suspended withdrawals for a minimum of 24-48 hours.
Buying XLM on Kraken
Importantly, Kraken’s security measures are superior, utilizing advanced cold and hot wallet solutions and ensuring physical security with secure cages, 24/7 armed surveillance, alarm systems, and video monitoring.
As for the ease of XLM purchases, the most liquid pair on Kraken is XLM/USD, with a CoinMarketCap score of 573. There are other pairs supported, including XLM/EUR and XLM/XBT.
Moonpay and the ease of purchasing XLM
Moonpay allows direct XLM purchases via the choice of fiat currency. This platform allows XLM purchases in 150+ countries using debit and credit cards. The minimum purchasing threshold is $30, and Moonpay’s security features include AES-256 block-level storage encryption for all data and compliance with ISO27001 and PCI DSS standards in data centers, ensuring high data security.
In summary, BeInCrypto has chosen these platforms due to their capacity to offer substantial trading volumes, minimal fees, favorable spreads, and attractive interest rates. These factors make them the go-to options for those seeking a safe and confident entry into the crypto market to purchase Stellar (XLM).
Learn more about BeInCrypto’s methodology verification here.
What is Stellar?
The Stellar XLM network is an open-sourced, second-generation blockchain platform designed to facilitate cross-border transactions and remittances. It was also created to be a low-cost alternative to the unbanked and underbanked.
Stellar lumens is the name of the native cryptocurrency to the blockchain. “Lumens” refers to the cryptocurrency coins themselves, while “Stellar” refers to the broader network or protocol.
Stellar was created by Jed McCaleb in 2014. McCaleb also founded Mt. Gox, the infamous centralized exchange, and co-founded Ripple, a Stellar competitor.
How does Stellar work?
Unlike Bitcoin, which uses proof-of-work, or Ethereum, which uses proof-of-stake, Stellar uses its own proprietary mechanism called the Stellar Consensus Protocol. The mechanism works on a federated system, which some may describe as “proof of reputation.”
In other words, a trusted group of nodes called “validators” updates the blockchain. Each node on the network selects a trusted group of nodes; when enough nodes agree on a transaction, it is considered valid.
Why is Stellar popular?
Stellar became popular for a number of reasons. The first is its fast and low-cost transactions, which often settle in seconds and cost a fraction of a cent.
Furthermore, Stellar has formed partnerships with a number of notable figures and institutions. Some of these include MoneyGram, Circle (USDC Coin), which supports USDC on Stellar, and even Ukraine, which uses the Stellar Development Fund (SDF) to tokenize its currency.
Stellar vs. other cryptocurrencies
Compared to other cryptocurrencies, stellar has lasted much longer than many coins that came out around the same time; as per CoinMarketCap’s historical listings, XLM is also the #23 top crypto by market cap — just below avalanche and above monero.
Stellar vs. XRP: An ultimate comparison
Regarding stellar and XRP, there are both similarities and differences. Both networks share a founder — Jed McCaleb — who, following rumors, had to clarify that Stellar is not a Ripple fork.
Beyond rumors, what is certain is that while Stellar was created to service the unbanked, Ripple was created to appeal to financial institutions to create a more efficient financial system.
Additionally, Stellar is open-source, has a community-based and philanthropic focus, and anyone can run a node. On the other hand, Ripple Labs holds a significant amount of XRP and has a more centralized role in Ripple’s promotion and development.
Stellar ecosystem
The Stellar ecosystem is relatively thin. It wasn’t initially meant to have the same programmability as Ethereum. Many of the applications on Stellar are NFTs are decentralized exchanges. Some of these include:
- Lumenswap
- LumenDex
- StellarX
- Litemint
- StellarNFT
Stellar wallets
Although Stellar may not have a multitude of DApps, it does have a few stellar-specific wallets. Here are a few stellar wallets that you can use to hold your XLM.
- LOBSTR
- Solar Wallet
- StellarTerm
- Keybase Wallet
- Vibrant
Stellar staking
Stellar is not a proof-of-work (PoW) or proof-of-stake blockchain. Therefore, there is no native support for XLM staking. You cannot stake Stellar in the traditional sense to become a validator.
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Where to buy stellar
As one of the top 25 cryptocurrencies by market cap, a number of platforms allow you to buy stellar. Here are the top places to buy XLM.
Kraken
Buying and trading stellar on Kraken was a standout experience for its security and comprehensive trading options. We found the platform’s user interface to be intuitive, facilitating easy navigation and execution of trades. Kraken’s detailed reporting tools were particularly useful for tracking our XLM investments and planning strategic trades, underpinned by its strong commitment to regulatory compliance and security.
Coinbase
Coinbase provided us with a seamless experience when buying and selling stellar. Its straightforward, user-friendly interface made it ideal for our team members who were newer to cryptocurrency trading. The liquidity of XLM on Coinbase ensured efficient transactions, and the platform’s educational resources were valuable in enhancing our understanding of stellar and the broader crypto market.
OKX
OKX impressed us with its wide range of trading options for stellar, catering to various trading styles. The platform’s deep liquidity pools facilitated quick and smooth XLM transactions, which was crucial for timely market moves. We also appreciated the user-friendly nature of OKX’s interface, which was complemented by the convenience of their mobile app for trading on the go.
Binance
Our experience with trading stellar on Binance was notable for its robustness and variety. The platform’s high liquidity for XLM trades ensured we could execute transactions swiftly and at favorable prices. Binance’s wide range of trading tools and features, including advanced charting options, provided us with the resources needed to make informed trading decisions. Moreover, the Binance mobile app was a key asset for managing our trades anytime, anywhere.
MoonPay
Using MoonPay for stellar transactions stood out for its simplicity and speed. The platform’s focus on straightforward, quick purchases made acquiring XLM hassle-free, particularly suitable for those looking to make direct purchases without the complexities of a traditional exchange. MoonPay’s streamlined process was especially appreciated by our team members who value efficiency and ease of use over everything else.
All of the above platforms have good market reputations and solid security measures. Kraken offers a highly secure CEX, while Coinbase PRO offers enticingly low fees. Binance has deep liquidity, making it the platform of choice for many people looking to buy XLM. All of the listed platforms are highly usable for beginners but also cater to an advanced audience. If you want to buy stellar anonymously, you can choose a number of decentralized exchanges, including Lumenswap.
How to buy stellar
Here’s how to buy stellar lumens on Kraken.
1. Open the Kraken app. Select the purple button with the arrows.
2. Select “Buy.”
3. Select an amount to buy.
4. Slide the slider at the bottom to complete your purchase.
How to sell stellar
1. Open the Kraken app.
2. Select the purple button with the arrows and select “Sell.”
3. Enter the amount you would like to sell.
4. Slide the slider at the bottom of the phone to complete your order.
5. You have successfully sold XLM.
Stellar: Should you buy into the hype?
We’ve covered key elements of the blockchain and native coin. But should you buy stellar? Let’s review some of its strengths and weaknesses to answer this question.
Pros and cons of investing in Stellar
Pros
- Low-cost and fast transactions
- Innovative consensus mechanism.
- Natively backed USDC on blockchain
- Smart contract functionality
Cons
- Proof of reputation mechanism
- Low trading volume and liquidity
- More successful alternatives
Is stellar a good investment for you?
Stellar was initially created to be a low-cost (in this, it has succeeded), an alternative to the traditional banking system, and a facilitator of cross-border transactions
However, despite the fact that many people think that its competitor is Ripple, its actual competitors are stablecoins. Because of this, Stellar doesn’t have much of a use case in its current iteration, making it difficult to find a good reason to invest in the network.
Stellar price prediction 2023/2025/2030
The network still aims to become a worthy alternative to traditional banking setups. If it achieves this, the future might be promising for the price of stellar. But what can we realistically expect? Our stellar price prediction posits that XLM could be worth $0.22 in 2023, $0.38 in 2025, and $0.76 in 2030. However, do note that price predictions are conditional on a number of factors, including the health of the broader markets.
Stellar has to keep up
Stellar has stood the test of time, unlike many of its competitors. This, coupled with its position as one of the top 30 cryptocurrencies by market cap, is impressive. If you choose to buy stellar, do so because you believe in the long-term worth of the project. While its initial use case was circumvented with the rise of stablecoins, note that the network has since pivoted to allowing more programmability to keep up with the times. While there is hope for a resurgence of stellar in the future, never invest more than you can afford to lose, and be sure to research the coin and network thoroughly.
Frequently asked questions
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